THE RISE AND DEMISE OF COERCIVE FEDERALISM*

Abstract: The question of how a fiscal balance might be maintained between the Commonwealth and the States exercised the minds of the framers of the Constitution before 1901 and has been of concern ever since. Centralization of financial power in the Commonwealth has resulted from decisions of the High Court of Australia especially the two Uniform Tax Cases which in 1942 established, and in 1957 reinforced, the Commonwealth's hegemony in the revenue field. This hegemony enabled the Commonwealth to influence, if not dictate, State policy initiatives by the making of conditional grants for a wide range of specific purposes under Section 96 of the Constitution. The practice of making specific purpose grants as an element in what has been called “coercive federalism” was adopted in varying degree by the Commonwealth during the years between 1943 and 1975. The “new federalism” policies of the present government have as their objective the reversal of this practice and in its place the restoration of State automomy in the expenditure of a pre-determined share of income tax revenues. Some of the problems entailed in the withdrawal of specific purpose grants are outlined, and the paper also suggests an institutional mechanism to maintain a proper fiscal balance between Commonwealth and States as part of the “new federalism”.     

THE DEPARTMENT OF THE PRIME MINISTER AND CABINET IN PERSPECTIVE

As much as any department, the Department of the Prime Minister and Cabinet comes in for its share of public comment, both as to functions and purpose, on its alleged struggle for supremacy in the economic or welfare or foreign policy field or somewhere else. Inside the Department we tend to give this sort of allegation a tired smile; and because it is wide of the mark, a first reaction is to be critical of the commentators. The second reaction, probably the proper one, is realization that there needs to be greater understanding of the role of the Department and its objectives, which can only be achieved by wider discussion and public debate. The proper reticence of senior officers about entering public debate on policy issues tends sometimes to flow over to a reticence on questions of public service administration. That is a pity, because public administration is our business: better administration is our objective. It is not something to be achieved within the confines of the public service; or more precisely it is to be achieved in fuller measure by debate and analysis inside and outside the Service.     

THE PERSISTENCE OF POVERTY IN THE CONTEXT OF FINANCIAL INSTABILITY: A BEHAVIORAL PERSPECTIVE

We review recent findings regarding the psychology of decisionmaking in contexts of poverty, and consider their application to public policy. Of particular interest are the oft‐neglected psychological and behavioral consequences of economic scarcity coupled with financial instability. The novel framework highlights the psychological costs of low and unstable incomes, and how these can transform small and momentary financial hurdles into long‐lasting poverty traps. Financial instability, we suggest, not only has obvious economic ramifications for well‐being, but it also creates the need for constant focus and attention, and can distract from the very opportunities otherwise designed to alleviate the effects of poverty. We describe a variety of public policy strategies that emerge from this perspective that are not readily apparent in conventional theories that permeate the design of social programs.     

AGAINST THE SPIRIT OF LOCAL GOVERNMENT: THE MAKING OF TASMANIAN TOWN AND COUNTRY PLANNING LEGISLATION

Abstract: Town planning as part of a wider program of postwar reconstruction gained support in Tasmania in the 1940s. This support resulted in the passage of the Town and Country Planning Act 1944, the first major major piece of town planning legislation in Tasmania. This article examines the background to this statute, focusing on the deliberations of a joint committee of parliament appointed to hear the views of interested parties on town planning. Particular attention is devoted to the dispute over whether municipal councils or a town planning board with wide powers should regulate town planning. The land use planning reforms introduced in 1993 are also assessed.     

THE IMAGE OF THE PUBLIC ADMINISTRATOR: THE PERSPECTIVE OF THE PRESS*

The theme of this conference is "the image of the public administrator". This puts me immediately on the spot, since I suspect that many public servants believe that if that image is less flattering than they would like it to be, the fault lies largely with the press. This notion, which is also popular in the professions, is at once comforting and dangerous. It is comforting because it is always a relief to find that it is someone else's fault that one is unloved. It is dangerous because it encourages a retreat back into complacency.