The Commonwealth government needs to respect states' sovereignty

Comments on Kenneth Wiltshire “Putting fox in charge of the chicken coop”, 24/08/2009, http://www.theaustralian.news.com.au/story/0,25197,25970688-5013480,00.html

Kenneth Wiltshire has a strong point. The federal government appointed tax review board does suffer from its federal government or centralist bias. Australia is a federation with States have their constitution power and responsibilities. Any changes to federal financial relations or arrangements should be inclusive and have the States being represented.

A successful federation needs to reflect the constitutional arrangement and the costs and benefits of centralisation versus decentralisation. A tax review board appointed by the federal government with virtually no State involvement is hardly inclusive or balanced between the federal and the States.

The Rudd government’s intention to reform Commonwealth State relations is good, but it needs act in consultation with the States to have a due respect for the constitution. The neglect of States’ participation in such a review of the Australian tax system shows that it was rushed and lack of judgement and reflected the federal government’s centralisation tendency.

It also reflected the Rudd government’s micro managing inclination and practices. The evidence so far has shown that its micromanaging approach is not successful and experience indicates that it is unlikely to be successful on average.

Of course, the Rudd government could say it will consult with the States on the review panel’s recommendations and the implementation of any agreed and accepted recommendations. But that way does negate the disrespect of the constitution and the States’ sovereignty.