Foundation report confirms concerns about Commonwealth power

2/5/94

Premier Richard Court today said that the report by the Evatt Foundation on the State of Australian Government only confirmed concerns that during the next ten years the role of State Governments in Australia would become marginalised because of the growing financial dominance of the Federal Government.

Mr Court said all Australians who supported the Federal system of Government should be alarmed by the report's findings, which showed that the Federal Government had overtaken the States in spending on a wide range of economic and social services to the community during the past decade.

"During the last decade, the States have experienced major financial cuts relatively to help fund the Federal Government's growing duplication of services in areas which have been traditionally and constitutionally the responsibility of the States," the Premier said.

"The loss of approximately $4 billion per annum in financial assistance grants to the States during the period 1982-1983 to 1993-1994 has been a major contributory factor to this growing political and economic decline of State Governments in Australia.

"While payments to the States have fallen by 13 per cent in real per capita terms over the last decade, the Commonwealth's own purpose outlays have increased by 17 per cent in real per capita terms over the same period.

"This major growth in Federal Government spending in traditional areas of State responsibility has led to abuses such as the recent 'sports rorts' affair, when there were no proper mechanisms of accountability to check the relevance of this spending.

"The more financial power is concentrated in Canberra, the less accountability there will be at a local level and the more the delivery of services will ultimately suffer.

"Our Federal system of government in Australia enshrines the principle of ensuring that government is close to the people and this is being increasingly undermined by the financial concentration of power in Canberra.

"State Governments serve a critical role, particularly in regional areas of ensuring that key decisions on economic and social issues reflect community attitudes."