Federal Treasurer Peter Costello looks to be on a collision course with the states after he outlined an ambitious plan for greater federal power.
The treasurer wants to wrest more financial control from the states, including taking full responsibility for taxes.
Mr Costello's plan is likely to set back federal-state relations which, despite ongoing antagonism over GST revenue, have improved recently with agreement on counter-terrorism laws and progress on water reform.
He raised the prospect of broader commonwealth control of finances, but did not spell out whether that could involve taking over key state revenue sources such as taxes from gaming, payrolls and land ownership.
The federal government is using its corporations powers to set up a national industrial relations system, but Mr Costello said he was frustrated at being unable to use those powers to assume control of other areas the commonwealth had in its sights.
2006-07-02 15:06:17 · 3 answers · asked by cantcu 7 in Politics & Government ➔ Other - Politics & Government
"I would like the commonwealth to take full responsibility for the national economy in relation to tax, in relation to interest rates, in relation to growth, in relation to jobs, in relation to industrial relations," he said.
The idea found little favour with South Australia and Victoria.
South Australian Premier Mike Rann said the treasurer's plan was a takeover bid for the states.
He described the idea as a "naked grab for power" and "a glimpse of the arrogance that a Costello Liberal government would bring".
Victorian Treasurer John Brumby said the idea was ill conceived and "more about attention seeking rather than serious policy reform".
Fascism at work. Now they want ALL of the power!! You agree with this money grabbing Treasury Secretary?
He sure wasted no time!!
2006-07-02 15:07:37 · update #1
I remember when Repubs were for a smaller Fed government and more states's rights. What the hell happened to them?
2006-07-02 16:18:22 · answer #1 · answered by notyou311 7 · 0⤊ 0⤋
Since it looks like the GOP might get voted out, they are moving fast.
2006-07-02 22:09:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
yes i agree with you 100%
2006-07-03 19:52:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋