----- Original Message -----
From: John Hermann <[EMAIL PROTECTED]>
To: John Hermann <[EMAIL PROTECTED]>
Sent: Wednesday, 8 December 1999 8:09 PM
Subject: Civil Representation in Australian Government


> Economic Reform Australia
> ERA EMAIL NETWORK
>
> Date: Wed, 08 Dec 1999
> From: David Keane <[EMAIL PROTECTED]>
>
>
> Civil Representation in Australian Government
> by David Keane
>
> At the ending of World War II, the United Nations Charter was signed upon
> the ideal of representing "We, the Peoples". In practice, representation
to
> the United Nations was chosen by national governments, and "we the
peoples"
> have been excluded from any meaningful participation in government.
> The Rio Earth Summit demonstrated the profound strength and maturity of
> the civil sector of society, and moves were set in motion to formerly link
> civil society with the United Nations. Finally, on 14/July/97, UN
Secretary
> General Kofi Annan recommended that the General Assembly of the United
> Nations in the Year 2000 be a "Millennium Assembly focusing on preparing
> the UN to meet the major challenges and needs of the world community in
the
> twenty-first century, and be accompanied by a companion 'People's
> Assembly'". In response to the challenge, civil society met at the Hague
> Peace Conference in 1999, and decided to hold its inaugural People's
> Assembly in Apia Western Samoa in April 2000.
> The aspiration is that the 21st century will be the century of the people,
> in which new means for care and management of our planet must be
> established. The idea naturally emerges of developing people's
> representation in national governments. The idea has been tried in Sweden,
> in which a People's Assembly was elected. The Assembly had no legal
powers,
> but would look at sustainable, futuristic, green and ethical issues
through
> a general forum, and make recommendations to the government. The Swedish
> experiment has found favour, as a People's Assembly has now been elected
> there four times.
> The people's representatives must be elected quite independently to the
> party political process, and their platform ever starts from ethical
> considerations. Open-ness, transparency and consensus will be mandatory,
> and their influence will come through their capacity to lift up and
develop
> a clear vision for a long-term, sustainable, eco-friendly and harmonious
> pathway into the future.
> The model of economic rationalism being imposed upon Australia, reflects
> the nature of our autocratic, Canberra centred style of government and
> economic decision making. If we are to reverse the disastrous consequences
> of this economic direction, we need simultaneously to democratise the
> process of economic evaluation and implementation. Calls for transparency
> and sustainability will be slow to become effective, unless they are
> simultaneously linked with calls for revolutionary introduction of new
> democratic processes. One of these new democratic processes involves the
> introduction of people's participation in government. The second involved
> restoring the Constitutionally guaranteed right for economic equity
between
> the Commonwealth and the States.
>
> Commonwealth/State Economic Equity
>
> The Commonwealth government has no Constitutional authority to financially
> pressure the States, by selectively administering money derived from
> collection of income tax, or GST tax, or by directing the manner in which
> the States should acquire their revenues.
>
> The plain fact is that the Commonwealth government does not have exclusive
> Constitutional authority to collect income tax, GST tax, or other taxes
> apart from customs and excise. Before 1942, both Commonwealth and States
> collected income tax, and the constitutional validity of this arrangement
> has never been disputed.
>
> In "Uniform Tax (1942)" the High Court held valid all the essential
> elements by which the Commonwealth forced the States out of the income tax
> field. The crux of that decision, was that under the "defence power" at
> times of "hot war" (then in the middle of World War II) the Commonwealth
> had virtually unlimited power over the national economy, including forcing
> the States out of the income tax field.
>
> But during that same decision, it was made quite clear that such authority
> did not extend beyond the period of "hot war". Justice Latham pointed out
> that there was nothing in the Commonwealth legislation which deprived a
> State Parliament of the power to impose income tax, at times of peace.
>
> Once the collection of income tax was entrusted to the Commonwealth, the
> system has maintained itself by its own economic and political momentum.
> Even though, since the end of the Second World War, with the ending of the
> special 'hot war' conditions, there has been no constitutional reason for
> the States not to resume collection of income tax, nor for the States to
be
> bound to accept Commonwealth dominance in economic affairs.
>
> In theory, the States could in peace-time re-impose income tax at any
> time. They could do it in practice if they all combined together to give
> the Commonwealth an ultimatum as to time and method of resumption, but
> there are formidable difficulties in the way of any one State or a small
> group of States acting separately. In part, this is because under sections
> 51 (ii) and 99 of the Constitution, the Commonwealth would be unable to
> impose income tax at different rates in different States.
>
> If the States ever did team together to re-impose State controlled income
> tax, then the States would have re-asserted their constitutionally valid
> financially equitable position with the Commonwealth.
>
> The States are Hurting
>
> The States are hurting economically and socially. Their dissent was for a
> while cut short by the Commonwealth government's imposition of GST, and
> asking the States to wait and see how it works out. The promise was that
> the GST would be the panacea for all the State's economic ills. Yet in
> truth it is hard to see how such a regressive tax can help anything. In a
> year or two the gaping gaps in the GST promises will become all too
> obvious, and the voice of dissent will re-emerge from the States like a
> volcano that has been blocked.
>
> At such a time, it will be vital to present a vision before the States for
> total reform of Australian economic management, starting with
> democratisation of the economic decision making processes, involving
> (1) the States combining together to demand economic equity with the
> Commonwealth in management of Australia's economy. This will demand the
> establishment of a federal economic council, with equal representation of
> Commonwealth and States, and will be characterised by complete
transparency
> and consensus in decision making.
> (2) the inauguration of a "People's Assembly". This may be initiated by a
> single State government, several State governments, or by the Commonwealth
> Government. The People's Assembly will have authority to establish forums
> and enquiries, and will make recommendations to the governments (both
> national and State) but will have no legislative power. The People's
> Assembly will work with the principle of assistance and empowerment for
the
> people through a department of creative networking in people's
> participation, of voluntary research initiatives within the general
> population.
>
> ----ooOoo----
>
>
>

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