The outlook for state governments in Australia is extinction. Their reign will be known as the federation period of Australian history. The evolution of streamlined government to meet the challenge of providing rapid national responses to pressing trade and global environmental and security issues, renders the muddling middle level of government obsolete. Structural reform of government is imperative for Australia.
Over the next decade, states, in their current form, face a steady and terminal decline in their relevance as national legislation and regulation replaces the plethora of conflicting state laws with their bloated civil services. The task ahead for future federal governments is to set uniform Australian standards for formerly state controlled education, water, greenhouse emissions, power generation, health care, policing, registration of names and vehicles, liquor and gaming, bushfire control, criminal and commercial law, planning and local government.
I see a future where Australians will have a greater say in the way they are governed because local councils and regional organisations of local government will be the service providers of former state services. Local government is close to the people. Residents deserve to be given the opportunity to have their views considered in the policy formulation process.
The NSW Local Government and Shires Associations have drawn attention to the fact that the recent Independent Inquiry into the Financial Sustainability of Local Government in NSW identified unnecessary red tape as a major issue for Local Government. However, improving performance of state departments and agencies is only likely to produce marginal cost-savings over time. Red tape savings from cutting out the entire squabbling, buck passing, confusing and inconsistent state intermediaries and replacing them with nationally regulated services with direct federal funding that is administered by either local government authorities or by national regulators is the way to go. Government service delivery in the future needs to be delivered locally, well funded and efficient.
The NSW Independent Pricing and Regulatory Tribunal (IPART) has suggested that the NSW Government consider updating or replacing the NSW best practice regulation guidelines to ensure the NSW guidelines are consistent with national developments in regulatory reform.
Clearly the most efficient and cost effective way forward to achieve the optimal benefits from red tape reduction is to apply national regulations and rescind all state regulations to all areas of government in Australia. Canberra University PhD student, Mark Drummond has estimated an annual $50 billion savings to Australian taxpayers from eliminating the states regulatory and legislative roles.
Eliminating state governments, will free up billions of dollars each year that can be productively applied into areas where Australia is falling behind. Three such areas are research and development, education as well as bolstering the regions’ essential services and investment. All these areas need massive investment to make Australia a smart country. Reallocating states functions is the best way to achieve much needed public utility infrastructure renewal without higher taxation. Surely it’s time to end the high level waste in the unproductive antiquated machinery of state civil service and political administration. Who’s for reform? I understand that the Greens and Democrats are on-board. Perhaps the new federal Labor Party team of Kevin Rudd and Julia Gillard? Or perhaps a Costello Government can show the required leadership – he has hinted at national regulatory reform. The Prime Minister, John Howard has to date, hosed down speculation about the possibility of the entry of the federal government into the states jealously guarded turf. He may surprise us all with his corporations power trump card yet to be brought into play?
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