Page 4239 - Week 15 - Tuesday, 20 November 1990
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train, detailed work across a range of fronts with the overall objective of achieving efficiencies within and between the States and the Territories and the Commonwealth as well as being directed towards the enhancement of Australia,s national economy.
The potential benefits for the ACT of this cooperative approach to such a wide range of issues are considerable. As a contributor to and participant in the national economy the ACT stands to benefit from actions commenced at the conference to make the Australian economy more competitive and flexible. In this regard discussions focused on three main areas: Commonwealth-State financial arrangements, the minimisation of duplication between levels of government, and micro-economic reform, including the reform of regulations on a nation-wide basis.
In relation to Commonwealth-State financial arrangements, participants at the conference recognised the need to closely examine the key issue of the vertical fiscal imbalance between levels of government. Therefore, in preparation for further special premiers conferences, work will focus on, firstly, the reform of the distribution of taxation powers and, secondly, the extent to which tied grants from the Commonwealth to the States could be reduced to achieve greater flexibility in the management of State and Territory budgets.
Successful and enduring reform in this direction would result in reducing the current fiscal imbalance whilst ensuring that the Commonwealth retains adequate means to meet its responsibilities for effective macro-economic management. It is particularly pleasing, Mr Speaker, to note that there was agreement by the Commonwealth that the trend which has seen a substantial growth in specific purpose grants in recent decades should now be reversed.
The unanimity of view on this subject augurs well for a positive result to the work commissioned by the conference. Clearly, reform of Commonwealth-State financial relationships in the manner contemplated by the October Special Premiers Conference would provide the ACT Government with a greater range of options for the management of its budget and the Territory's economy generally. It would provide greater choices insofar as revenue raising is concerned as well as providing greater scope to target the expenditure of funds received from the Commonwealth in a way which meets the special needs of the ACT.
A closely related matter discussed in Brisbane concerned the duplication of services between levels of government. It was recognised that the conditions set by the Commonwealth which attach to many tied grants often result in overlaps between two tiers of government, confusion on the part of those to whom services are provided and general inefficiencies in the use of scarce resources. Accordingly, leaders and representatives agreed to a set of
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