Media Releases
Local Governments Could Provide Schools and Fast Development Approvals if They Receive More Than Just ‘Recognition’ in the Constitution.
A new report by Dr Oliver Hartwich of the Centre for Independent Studies says that local governments are weak and their dependence on state government largesse and legislation is disempowering local communities.
Local governments’ share of Australia’s total tax revenue is under three percent, and for about a third of their expenditure they depend on grants from state and federal of governments.
Local governments’ powers are being eroded and transferred to the states. And council amalgamations push local political decision making even further away from local people.
But locals shouldn’t despair.
‘With their own financial revenue and a formal role in the Commonwealth Constitution, local governments have the potential to do much more,’ says Dr Hartwich.
‘For example, primary and secondary education could be assigned to the local government level rather than one-size-fits-all state government education. Local school boards could administer schools, offering parents a greater role and providing scope for tailoring schooling solutions to the needs of the local community.’
‘The unpopular ‘Bill Heslops’ and ‘Bob Jellies’ of local councils are often criticised for delays in approvals of development applications, but local governments play an important role in the planning and development of the built environment. By giving the tax revenue generated by housing and development to the local rather than state government, councils would have the incentive to enable and speed up development.’
Yet for local governments to be able to bring government closer to the people directly affected by its decisions, the Prime Minister must create a new place for local governments in the Commonwealth Constitution, without overly complicating federal relations.
Radical Surgery: The Only Cure for NSW Hospitals by Professor Wolfgang Kasper was released by the Centre for Independent Studies on Thursday 29 January.
Wolfgang Kasper is Professor of Economics emeritus at the University of New South Wales and he is a member of the Academic Advisory Board of the Centre for Independent Studies. He served on the staff of the German Council of Economic Advisors, the Kiel Institute of World Economics, the Malaysian Treasury, the Reserve Bank of Australia, and OECD.
The report is available at www.cis.org.au and Professor Kasper is available for comment.
