Table of Contents
The debate about federalism is gathering momentum. Australia’s system of government is facing renewed scrutiny as we enter an era where blame-shifting, cost-shifting and duplication between the three spheres of government have become part of the public debate (e.g. House of Representatives 2003; LGI 2006; Dollery 2005; Wild River 2006). As a nation, we have already passed up two prime opportunities to reflect on the nature of our federation and how it should evolve to meet the nation’s needs. The Centenary of Federation was a lost opportunity; something we did not take sufficient advantage of. So, too, was the constitutional debate on whether or not Australia should become a republic or retain the monarchy. On that occasion, we worked ourselves into lather about symbols – not substance.
More than 10 years ago, then Queensland Premier Wayne Goss posed the question: ‘Will the States survive as viable political entities into the 21st century?’ (Goss 1995). Goss called for a national debate on the future of our federation, including a reallocation of responsibilities between different spheres of government and argued ‘[u]nless this debate is vigorously taken up, what we will witness within a generation is the de facto, if not de jure, abolition of the States’.
Wayne Goss’ warnings sound prophetic now. Federal Governments have been encroaching more and more on state territory. It is a trend seen through both the Hawke and Keating Governments and which is accelerating under John Howard. As mentioned earlier (see Brown, Peters this volume), the recent High Court decision upholding the Federal Government’s powers to legislate in the area of industrial relations is a case in point (WorkChoices 2006). States’ powers are being challenged in the policy areas of the environment, water, health and education. Local government is providing a broader range of services. The Labor State Premiers across Australia have recently formed the Council for the Australian Federation (CAF) based on the Canadian Council of the Federation model. This is a political response to the increasing centralism of federal governments.[1]
But where are we heading – under what terms, and what conditions? More importantly, what will the outcome be? It is timely for a really good look at how we govern ourselves. We – the people – need to be masters of our own destiny. If we were drawing up government in Australia from scratch, we would not pick the ‘dog’s breakfast’ we have today. Yes, Australia is doing well. But we’re doing well in spite of our governance arrangements, not because of them.
This chapter demonstrates the importance of the local government sector to regional governance in Australia’s federal system of government. It puts the case that, although there has been substantial reform within the federal governance system in the last 20 years, there has been a failure to establish enabling institutional arrangements for strengthening local government’s capacity to work together to deliver regional outcomes. In the context of current shifting roles and responsibilities for local government, this paper argues the case for constitutional reform to recognise local government within the Australian federal governance system.