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NATIONAL reforms will be harder to achieve in future because of government budgetary problems, requiring greater focus on innovation and collaboration, says a new report.






As the federal government awaits a white paper on the federation, which is likely to feed in to its broader budget audit, a newly-released report commissioned by the Council of Australian Governments Reform Council will add pressure on Tony Abbott to overhaul the commonwealth's relationship with the states.

Consultant and former top bureaucrat Rod Glover told the council in July - in the final months of the Labor government, with federal Labor at war with Coalition states - that having the Coalition in power federally would see the commonwealth take less of a leadership role.

“The Coalition has indicated that it will play a smaller role in public transport, health, education, the environment and industry policy, ” Mr Glover wrote in a report obtained by The Australian under Freedom of Information laws.

Concerned by the lack of inter-governmental focus on the economy beyond the mining boom, he suggested Australia would “benefit greatly from a debate about how to grow and diversify regional economies as this is, in fact, how our national economy grows”.

“The critical policies affecting regional competitiveness - competition, innovation and global engagement - require commonwealth and state government co-operation, ” Mr Glover wrote.

“How state, city and regional economies unfold is inextricably linked to the future of federalism; and this needs to find a place in the debate alongside the regular concern shown for the states' relative cost and revenue bases.”

The council will today release an assessment of the five years of COAG reforms.

The assessment is expected to criticise the slow progress made in some areas.

Mr Glover found governments were being asked to do more with less due to their poor budget positions. In future, at a commonwealth level, the “practice of `buying reform'.... may not be available”, he wrote.

“While a National Commission of Audit may identify savings and set medium-term parameters, it is unlikely to get to the heart of the challenge.

“While austerity can drive innovation, such audits typically see innovation only as an afterthought.

“Moreover, spending more is no more the answer to Australia's needs than is spending less.

“While investment can leverage reform _ and is needed in some areas _ the relationship between public spending and public outcomes is typically weak.

“Achieving systemic reforms in the absence of new funding places heavy demands on jurisdictions' governance as well as economic capabilities.”

Mr Glover applauded the work of the council, especially in sustaining the trust of all governments, but said that in future it should perhaps work more with central agencies.

He gave the example of the relationship between the Treasury and the Productivity Commission.

He said that while the commission provided an “ex-ante and critical analysis of policies”, when enabled by Treasury, perhaps the council could provide an “ex-post and constructive promotion of policies” and become an advocate for federalism.

NEWS






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