Barnett's issue with CGC misses the point

Comments on Paul Kelly “The west is digging in against Labor”, 30/10/2010, http://www.theaustralian.com.au/news/opinion/the-west-is-digging-in-against-labor/story-e6frg6zo-1225945329693
While Premier Barnett may have a point in terms of GST distribution on whether there should be a floor for any states, his attacks on the Grants Commission are misplaced.

While the use of black box is convenient to describe the Grants Commission when one has an issue with its recommendation, one should understand that most if not all of the methods are open and transparent, as are the process the Commission came to its methods and recommendation.

Further, the Commission only recommends a set of relativities which are supposed to be used to distribute the GST; the Commission does not have the power to force the relativities to be accepted by the commonwealth. It is the Treasurer who decides the distribution of the GST, albeit in most cases based on the recommendation of the Commission.

Another point is that the Commission reviews and develops its methods and calculates the GST relativities under the terms of reference from the commonwealth in consultation with the states. States could influence the commonwealth on the terms of reference. For example, the terms of reference for the commission's last review, the 2010 review which was completed in February, asked the commission to simplify its methods. So the commission did.

The problem is that it is often difficult for the states to agree on an alternative distribution principle to that adopted by the commission.