Taking 'WA Inc' Seriously: An Analysis of the Idea and its Application to West Australian Politics

During the late 1980s and early 1990s, the term WA Inc (or WA Incorporated) became a by-word in the West Australian community for the failings, especially in their commercial activities, of the West Australian Labor governments of that period. Despite popular and academic interest in the notion of 'WA Inc', it is arguable that the conceptual linkage between 'business' and government, once central to popular interpretations of the term, remains under-analysed. This article has two main purposes: to illuminate usage of 'WA Inc' by identifying several basic referents of the term and relating these to popular criticisms of the West Australian government in the 1980s and to determine the importance of those criticisms, thereby contributing to the larger debate about capacity of government to emulate private sector business.     

Competition and Collaboration in the Contracting of Family Relationship Centres1

In 2005–06 the Australian government announced the establishment of 65 Family Relationship Centres (FRCs) – a ‘gateway’ service assisting separating couples to reach agreement about child custodial arrangements without recourse to courts. The use of a multi‐round competitive contracting regime for the purpose of selecting service providers gave rise to a number of tensions amongst not‐for‐profit organisations (NFPOs) which, to a degree, compromised the full realisation of stated public policy aims. Reporting on fieldwork conducted with a sample of FRC operators, industry representatives and key government officials this article evaluates the extent to which the case of FRCs conforms to critiques commonly aired in the social policy literature that attribute various forms of policy failure and/or social capital depletion to the competitive contracting of human services within quasi‐markets. Although the competitive selection process imposed significant costs on the NFPOs involved, the program also exhibited substantial collaborative and collegial behaviours between government and NFPOs, thus diverging from the critique usually portrayed in the literature.     

Funding the Welfare State: Globalization and the Taxation of Business in Advanced Market Economies

Theorists assert that international capital mobility creates substantial pressure for all democratically elected governments to decrease tax burdens on business. I explicate and critique the general version of this theory and offer an alternative view. Empirically, I explore whether or not the globalization of capital markets has resulted in decreases in business social security, payroll, and profit taxes. I also investigate whether or not capital mobility has intensified government responsiveness to domestic investment and profitability. Evidence suggests that business tax burdens have not been reduced in the face of rises in capital mobility nor is tax responsiveness to profitability and domestic investment intensified by more open capital markets. To the contrary, analyses indicate that business taxation has become subject to new 'market conforming' policy rules that developed in tandem with liberalization of markets. These new policy orientations reduce the economic management roles of business taxation while leaving the revenue-generating roles intact. In conclusion, I discuss the implications of the findings for questions concerning the structural power of internationally mobile capital, redistributive policies, and the autonomy of democratically elected governments in a global economy.     

The Munich Olympics Massacre and the Development of Counter-Terrorism in Australia

Counter-terrorism is a product of government, identifying as its target a kind of violence defined as terrorism. This article explores a particular moment in its development, as an intersection of international, national and bureaucratic responses to the Munich Olympics massacre of 1972. Australian understandings of the development of counter-terrorism have been dominated by a number of themes – principally by the Hilton Bombing of 1978 and the subsequent acceleration of security restructuring during the Fraser years, by the collapse of the Cold War focus of the security and intelligence agencies at the end of the 1980s and then by the ‘war on terror’ following 9/11 and the Bali bombing. Counter-terrorist planning was however an emerging business of government in the 1970s, in Australia as in its alliance partner the United States. While the Hope Royal Commission into intelligence agencies (1974–7) has dominated attention in later accounts of the development of counter-terrorism, a 1972 Interdepartmental Committee on Terrorism and Violence in Australia anticipated many of its concerns. In this developing concern with terrorism, the role and interest of the domestic intelligence agency (ASIO) at this time was limited. This paper contextualizes the Munich massacre as one of the factors shaping a rethinking of security and policing strategies in the early 1970s, a moment in the emergence of a modern government of terrorism.     

The Australian way of government and public sector commercial reform: from a lucky to a clever country?

In recent years, Australia has struggled to remain in the top twenty developed countries, globally. The reality is that Australia's natural resource and agricultural bases no longer serve to provide sustainable national competitive advantage. In the past decade, therefore, government initiatives have aimed to produce a range of industry policies, apparently designed to strengthen the economic base, enhance government and industry responsiveness and productivity, and to attract increased overseas investment. The modernization of Australian public sectors and the adoption of private sector business principles, especially commercialization and privatization, have been critical aspects of competitive reform. This article examines several of the key strategies adopted by Australian governments, especially those designed to enhance national competitive advantage, to determine which strategies may be working, or not working, and why. Particular emphasis is placed on the role of governments as corporate business managers and their ability to respond to commercial realities on a business management, as distinct from an ideological, basis. (© 1997 by John Wiley & Sons, Ltd.)     

Bureaucrats and Markets in China: The Rise and Fall of Entrepreneurial Local Government

Local government entrepreneurship in China in the reform era is argued to have been, on balance, instrumental to growth and market-oriented reform.¹ Economic factors are emphasized in explaining both its rise and anticipated decline. Undeveloped markets and established local state trading networks favored agencies of the local state in exploiting business opportunities arising from deregulation. However, market development and increasing autonomy of firms are now reducing the advantage of local government business agencies, and they face a diminished and changed role.     

Can the hidden hand of the market be an effective and legitimate regulator? The case of animal welfare under a labeling for consumer choice policy approach

In Australia, labeling for consumer choice, rather than higher government regulation, has become an important strand of the policy approach to addressing food animal welfare. This paper illustrates the usefulness of “regulatory network analysis” to uncover the potentials and limitations of market‐based governance to address contentious yet significant issues like animal welfare. We analyzed the content of newspaper articles from major Australian newspapers and official policy documents between 1990 and 2014 to show how the regulatory network influenced the framing of the regulatory problem, and the capacity and legitimacy of different regulatory actors at three “flashpoints” of decisionmaking about layer hen welfare in egg production. We suggest that the government policy of offering consumers the choice to buy cage free in the market allowed large‐scale industry to continue the egg laying business as usual with incremental innovation and adjustment. These incremental improvements only apply to the 20 percent or so of hens producing “free‐range” eggs. We conclude with a discussion of when and how labeling for consumer choice might create markets and public discourses that make possible more effective and legitimate regulation of issues such as layer hen welfare.     

Sir Henry Bland and the Fraser Government's Administrative Review Committee: Another Chapter in the Statutory Authority Wars?

The release of the 1976 Commonwealth cabinet records on 1 January 2007 provided the opportunity to review the work of the Administrative Review Committee (ARC) appointed by the Fraser government and headed by Sir Henry Bland and so to open up a hitherto little appreciated chapter in Australian administrative history. At first glance, it appeared that Bland's ARC had been strongly opposed to widespread use of statutory authorities, for so long a regular part of Australia's machinery of government, thus providing an interesting point of comparison with the Uhrig inquiry of 2003-04, which attracted much notice for its antipathy towards statutorily independent agencies. Given the unusual methodology of the ARC, it was also likely that an account of its work would shed further light on public inquiries generally, perhaps assisting in development of a typology of such inquiries.     

Non‐Departmental Public Bodies Under the Howard Governments1

There has been both continuity and change in the use of non‐departmental public bodies (NDPBs) during the Howard years. In terms of continuity, the statutory authority and its incorporated version, the statutory corporation (in whose development late 19th and early 20th century Australian governments played such an important part), have remained in wide use. In terms of change, however, two other NDPB forms offered some challenge to its popularity. The government‐owned company came to be a preferred form for government business enterprises (GBEs) and, more recently, for many other non‐commercial public activities as well. And the executive agency, first making its Australian appearance in 1999, seemed initially to be another significant challenger, but its numbers, never great, were soon cut back. The article examines these trends, relating them to several relevant systemic inquiries and policy changes, notably the Humphry review of the governance of GBEs, the final settlement (in 1997) of the package of financial management acts, the Uhrig inquiry of 2003 and the system‐challenging pressures that have followed it. Commonwealth participation in joint (Commonwealth/subnational and Commonwealth/private) activities is also noted, as is the lack of ‘fit’ of the Australian experience with international theorising about ‘agencification’. Finally, the article seeks to identify the leading figures within the Howard governments who have been directing both the changes and the continuities involved in these developments.     

Keeping It In‐House: Households Versus Population as Alternative Proxies for Local Government Output

Forced amalgamation has been used as a policy instrument in local government by numerous regulatory authorities across the world. A common presumption underlying municipal mergers holds that larger local councils will experience greater economies of scale. However, the empirical evidence on this question is mixed. Part of the reason for this could lie in the frequent use of population as a proxy for local government output in the empirical literature. This paper examines the use of alternative proxies, particularly the number of households but also the addition of business unit data. We demonstrate that household data represents a more accurate proxy of Australian local government output compared to population size. In addition, the paper employs experimental data, conceptual considerations on population, and household dynamics to establish that the number of households represents the most appropriate measure of local government size for both empirical and public policy purposes.     

New Governance in Australian Schools: A Place for Business Social Responsibility?

Many public policy areas are being transformed as traditional government roles and relationships with other actors are changing. This article reports on business not-for-profit support for Australian secondary schools revealing substantial contributions directed at core educational and schoolwork interface activities. The article explores the nature of these supports, the means by which the relationships between schools and businesses emerge, the motivation of business and broader issues arising from the involvement of business in this and other areas of public policy.     

The Decline of Traditional State Dirigisme in France: The Transformation of Political Economic Policies and Policymaking Processes

During the Mitterrand years, successive governments' policies of deregulation and privatization have progressively deprived the state of many of its traditional interventionist instruments. As a result of this, as well as of the internationalization of world trade and the economic integration of Europe, French business has become more independent of the state as well as more interdependent. With these changes in both business and government have come a concomitant transformation in French policymaking processes, such that the traditionally heroic government policies formulated absent business input have been succeeded by more everyday ones, where business for the most part leads and government follows.     

Municipal Debt Issues in Foreign Markets: Managing Currency and Interest Rate Risk

Since the mid-1980s, there has been an acceleration of state and local government interest in the taxable bond market as a source of capital. This has resulted from, among other factors, restrictions imposed on economic and industrial development loan programs resulting from the passage of the Tax Reform Act of 1986. Increased state and local government involvement in the taxable bond markets has increased competition for such capital between the public and the private sectors. In turn, the developing capital competition has expanded into overseas securities markets. Private sector corporations have frequently accessed foreign capital markets to take advantage of lower interest rates and reduced financing costs. By contrast, state and local governments have accessed such markets only recently. This article discusses the policy issues considered by a state or local government entity when it decides to borrow funds in foreign markets and discusses the issues involved in managing currency and interest rate risk when issuing municipal bonds in foreign markets. It includes a review of the hedging techniques used by the Kentucky Development Finance Authority (KDFA) to protect against changes in the Yen/Dollar exchange relationship on a recent Samurai bond issue sold by KDFA as an example of such a transaction.     

Mandate, Independence and Funding: Resolution of a Protracted Struggle Between Parliament and the Executive Over the Powers of the Australian Auditor-General

This paper examines a political struggle in the Australian federal sphere over parliament's right, exercised through the Office of the Auditor-General, to oversee the accounts and management practices of the executive and entities created by legislation to deliver public services. The period from the early 1970s witnessed a dramatic shift in the method of delivering government services to the community and an increasing attention to economy, efficiency and effectiveness in their administration and delivery. The Australian government has increasingly used private sector organisational models and modern management and accounting practices to deliver a wide range of services. The rise of these 'new public management' practices resulted in an erosion of traditional parliamentary oversight of government management and reporting activities. This historical analysis is based upon Porter's (1981) processual analytical framework. The analysis focuses on the action of groups such as the executive, parliamentary committees and the Office of the Auditor-General as evidenced in documents produced in response to critical events. Models developed by Funnell and Cooper (1998) are used to characterise the transition of public sector audit from a traditional administrative model to a corporatist model.     

EXEMPT PROPRIETARY COMPANY ANNUAL REPORTING REQUIREMENTS: PUBUC INTEREST OR BUREAUCRATIC EMPIRE-BUILDING?

Abstract: Australian small business enterprises, operated as exempt proprietary companies, are exposed to numerous statutory requirements. The Corporations Law Simplification Taskforce has proposed a number of changes with the stated objective of minimising the statutory burdens faced by small business. One of the recommendations of the taskforce is that most exempt proprietary companies be exempted from the requirement to supply key financial data in annual returns lodged with the Australian Securities Commission. This paper provides a review of the existing statutory responsibility for exempt proprietary companies to prepare annual returns including key financial data and lodge them with the ASC. A common justification offered for the introduction and continued maintenance of annual reporting requirements has been the protection of the public interest. The “public choice” theory of regulation provides alternative explanations for the regulation, including the promotion of producer interests or the promotion of the interests of the regulatory agency responsible for the administration of the legislation, the Australian Securities Commission, and other government departments such as Attorney-General's, Finance and Treasury. The existence of alternative explanations raises the possibility that the regulation is not motivated exclusively by the public interest. Indirect evidence of the usefulness of the annual reporting requirements was gathered with a consideration of the quality of the key financial data disclosed in annual returns. More than 40% of the annual returns lodged by a sample of exempt proprietary companies, during the years 1986 to 1989, contained key financial data which was inconsistent with being extracted from a properly prepared balance sheet (where assets minus liabilities equal shareholders' equity). The possibility that the maintenance of annual reporting requirements is not in the public interest, and the limited reliability of key financial data disclosures made, offers some support for the recent recommendations of the Corporations Law Simplification Taskforce that annual reporting requirements for small business enterprises be modified.     

PUBLIC AND CORPORATE DUTIES: THE LLOYD CASE IN WESTERN AUSTRALIA

Abstract: In its broadest sense, this paper is about public and corporate accountability in Australia. In its narrowest sense, it examines the implications for senior public officers of the trial of Tony Lloyd in Western Australia. Lloyd was convicted in 1991 of acting improperly in his capacity as a director of Western Colleries Ltd during one of the last attempted rescues of Rothwells Ltd by the state government and the Bond Corporation in 1988. He successfully appealed, not against the conviction, but against the two-year sentence of imprisonment. The comments of the three judges of the Supreme Court are directly relevant to contemporary interpretations of the roles and relationships between business and government, and between public servants, government advisers and company directors.
The first section of the paper examines obligations and constraints imposed on individuals who have public duties, and how these are currently being interpreted in Western Australia. It refers to the uncertainties and imprecision which have developed in understandings of private and political interests, company and public duties, in both convention and the law. This discussion is the background for the detailed analysis which follows of the Lloyd case and its implications for Australian public servants.     

Structural Reform of Local Government in Australia: A Sustainable Amalgamation Model for Country Councils

Abstract. Council amalgamation has always been the major policy instrument for structural reform in Australian local government. While the Australian literature has spawned taxonomic attempts at classifying models of structural change in local government, a serious deficiency in this body of work has been the specification of amalgamation as an undifferentiated category embodying the unconditional merger of many small local authorities into a single larger entity. This paper seeks to remedy this problem by developing a model of sustainable amalgamation and contrasting it with unconditional amalgamation in using a stylised example derived from four existing Western Australian country shires contemplating consolidation.     

The commodities supercycle's end and political risk

The commodities supercycle has ended, and commodity prices have dropped steeply. This has strained the economies of net commodity exporters, most of which are emerging-market and developing countries. Substantial reductions in export revenues have prompted budget cuts and other drastic remedial action that have in many cases reduced government assistance to general populations and produced shortages of basic goods and services. As a result, popular discontent and instability have broadly increased political risk.     

THE SOUTH AUSTRALIAN GOVERNMENT AND THE INDUSTRIES ASSISTANCE COMMISSION

Abstract: One frequent source of inter-governmental conflict within a federation is the different economies of the constituent units, and State governments in Australia have increasingly become aware of the regional consequences of Federal policies in areas such as tariffs. This is of particular concern to South Australia which, compared to other States, has a greater than average reliance on manufacturing industry, especially those industries which depend on a relatively high level of tariff protection. The industrialization of South Australia from the 1930s onward was based on a complex interaction between government and business, and thus in the 1960s when the revitalized Tariff Board and later the Industries Assistance Commission showed that they were committed to lowering the level of tariff protection, the new Premier's Department became the focus of the government's interest in tariff matters. From January 1974, following the creation of the IAC, to 1976 was the high point in the State's involvement in the making of Australian tariff policy, both in terms of the number of inquiries calling for submissions and in the capacity of the government to participate. The staffing and organization of individual departments concerned with tariffs were strengthened, and an interdepartmental Industry Inquiries Screening Committee was established to coordinate government submissions. Since the 1976 Inquiry into Shipbuilding, the government's involvement with the IAC has tapered off, partly as a result of the feeling that the greatest gains are won at the “political” rather than at the “administrative” level Although it is difficult to assess the success or otherwise of the South Australian government's venture into the making of tariff policy, a number of consequences for the State may be identified. The regional point of view was at least placed before the IAC; the State public service was strengthened; the already close relationship between business and government became even more intimate (despite differences in ideology); and some of the crude protectionist views held in the early 1970s have been replaced by a commitment to a long-term reconstruction of industry.     

The liberalization and (re)regulation of Dutch gambling markets: National consequences of the changing European context

This paper deals with the liberalization of Dutch gambling markets, in particular the (re)regulation of these markets after 2002. It is argued that during the 1990s a neo‐liberal “risk regime” of gambling regulation replaced the traditional moralizing and restrictive gambling policies. However, this risk regime has recently been challenged by the development of Internet gambling, the discussions about the “Services Directive” in the European Parliament and cases brought to the European Court of Justice. These circumstances are redefining the European context for national gambling policies and gambling organizations. Together with a growing risk awareness, this has caused the Dutch government to reconsider its gambling policies. This paper outlines the basic features of the risk regime of gambling regulation, and makes clear that after a decade of great leniency and tremendous market growth, the Dutch gambling markets, including casinos, lotteries and slot machines, were confronted with serious backwashes.