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2011-03-28

Need to define Australian federal state relations clearly

Comments on Imre Salusinszky and Matthew Franklin “I'll take fight to PM, says Barry O'Farrell”, 28/03/2011, http://www.theaustralian.com.au/national-affairs/state-politics/ill-take-fight-to-pm-says-barry-ofarrell/story-fn7r7bxz-1226029077595

Federal-state relation is an important issue to consider and to get it right, although it now appears to have a partisan look that shouldn't have to be like that.

Over the past years, federal government of both main political persuasions has centralised or attempt to centralise too much power unnecessarily to Canberra. The most typical was Rudd's now failed health reform package that would take 30% of GST from the states to enable the federal government to be the dominant funder of public hospitals and primary healthcare.

There should be clearer demarcation of federal and state responsibilities and revenue power. Canberra is not suited to provide many services that states do and cannot and shouldn’t invade state issues too much. The debacles and wastes in federal government’s pink batts and even the BER programs are just reminders of how federal government could do worse than state governments.

It is astonishing and extraordinary to see that some people would think that the federal government could do it better when most state government that are equally subject o electoral test and also have inter-state competition as benchmarks couldn’t fix certain services to the satisfaction of the residents.

It is just like to some ill persons having difficult to cure the disease may go to any alternatives in the hope to find a cure. It is more likely to make the matter worse rather than improve it.

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