Mark Furner (Queensland, Australian Labor Party) Share this | Hansard source

I move:

That the Senate take note of the report.

I rise to speak on the report of the Senate Select Committee on the Reform of the Australian Federation. On behalf of the committee I am pleased to speak to the committee's report entitled Australia's Federation: an agenda for reform. The report was presented to the President of the Senate on 30 June 2011. In establishing the inquiry, the Senate was seeking an assessment of whether the federal system is effectively serving the needs of the Australian people.

The committee heard considerable evidence that federalism allows a geograph­ically large and diverse country such as Australia to maintain national unity and deal with global issues at the same time as respecting regional difference, and that the most internationally competitive economics in the world are federations. Evidence presented to the committee underlined that the federal model of governance we see operating in today's Australia still delivers on the principle that promoted the formation of the Australian nation, namely, that through union more can be achieved than the states could achieve separately. As a delegate at the 1898 Australasian Federation Conference commented:

No man can say that, even burdened with disunion, Australia will not have ... prosperity. No man can say that every state ... will not share it. But ... all that prosperity will be as nothing to the prosperity that will come from union.

The evidence before the committee was clear that Australia benefits socially, culturally and economically from this union. The nation has a robust system of government that continues to serve the Australian people well.

However, the committee also heard of challenges facing the Federation. These include: vertical fiscal imbalance and centralising trends that impact the distribution of power between the levels of government and therefore the roles and responsibilities of the Commonwealth and the states. Cooperation and competition between jurisdictions can be of immeasur­able benefit to Australians as standards are lifted across jurisdictions and resources are put to their best use. However, a key challenge facing Australia's model of federalism is to guarantee an appropriate balance between Commonwealth and state power.

The federal system also faces the challenge of remaining responsive to the needs of the Australian people. The Austra­lian Federation should be dynamic and open to carefully considered reform. Change through constitutional referendums has been modest. Only eight out of 44 referendums have been passed. Whether this is an indication of Australia having a poor record of referendums or, as one witness suggested, a record of poor referendums, was debated keenly during the course of the inquiry. What is clear, though, is that there needs to be a significant and more effective engage­ment with the Australian public than has hitherto occurred if reform is to be achieved. A willingness to reform will ensure that we can continue to meet the challenges facing the Federation and Australians can continue to enjoy the benefits of federalism as the nation evolves.

The committee considers the maintenance of the federal compact between the Commonwealth and the states requires a more coordinated program of review. We must move beyond the ad hoc approach to federal reform to develop a continuing process by which the health of the Australian Federation is continually monitored and improved. In accordance with the terms of reference received from the Senate, the committee's report sets out an agenda for considered reform of the Australian Federation. Among the measures recom­mended are: the establishment of a joint parliamentary committee that will have an integral role in helping manage Australia's modern Federation; exploration of ways to place Commonwealth funding of local government on a more reliable long-term foundation; improvements to the operation of the Council of Australian Governments, otherwise known as COAG; and measures to improve public understanding of, and engagement with, the federal system including dedicated research into priorities affecting the Australian Federation. In all, the committee made 21 recommendations and I commend these to the Senate.

The report brings to a close an inquiry conducted over 12 months for which four hearings were held and 48 submissions received. The inquiry attracted extensive interest from persons across the Australian community including academics, lobby groups, individuals and government bodies at the Commonwealth, state, regional and local levels. This was an inquiry that touched on each level of government across each jurisdiction. The committee extends its thanks to all those who participated and thereby contributed to establishing an agenda for national reform.

In concluding, the committee wishes to acknowledge the work of Senator Trood, chair of the committee, and I speak on behalf of the committee in the absence of Senator Trood, who retired on 30 June. The committee is grateful to the Senate for his leadership and his fervent commitment to the inquiry. The agenda for reform and the continuing action that the committee hopes will follow are part of Senator Trood's legacy and demonstrate his commitment to good governance within the Australian federal system. Additionally, we wish to place on record the extensive assistance of the secretariat and thank them for their excellent work that contributed to finalising this report.

Debate adjourned.