This is a constant cry in the Federal Hansard's, looks pretty constant in the Queensland Parliament too.

Beattie was asked about fuel prices;

Today a litre of unleaded fuel costs close to $1.20 at the bowser. Some time ago that would have been considered unthinkable. That is why I am again renewing my call for the Commonwealth government to hold a royal commission into the fuel industry and fuel pricing. It is a national problem, and a national solution is what is needed.

We have to ask: why will the Commonwealth government not act? The reasons for price fluctuations are many and varied, and there is no doubt that oil companies do have some questions to answer. But it could also be that the Howard government does not want to lose the 38.143c it takes in excise for every litre of fuel. That is an enormous amount--38c of the $1.20 per litre goes in excise. This represents more than one quarter of a motorist's fuel bill. Or we could ask: is the Howard government reluctant to act because it does not want to lose any of its other income? Maybe it could justify an impost if the money came back to Queensland but, when all sources of Commonwealth funding, including the GST, are taken into account, we still receive less than our fair share. In other words, every time motorists fill up they get whacked over the head by the federal Treasury, with its hands in our pockets and elsewhere, but our fair share of the money does not come back to Queensland. That means that we do not get our fair share of money for road funding.

But he does have a point. In a Federalist system, the States would be responsible to themselves, but the onerous taxation regime of the Federal government effectively removes the ability of the states to be autonomous, self-sufficient and independent.

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Cam Riley: South Sea Republic. Freedom, liberty, equity and an Australian Republic.

Comments
  • It\'s the point of federalism...: Actually, I have nothing against the fact that some states subsidise others. Victoria (where I come from) subsidises other states too, I believe. If some states did not subsidise others, why not just become six separate countries? No. Subsidies, like all forms of welfare, come to the very heart of what it means to be a community.

    The present tax régime is flawed; the states cannot be independent or self-sufficient. The Commonwealth government returning to the States exactly their proportion of the tax they earn will not fix this.

    In a Federalist system, the States would be responsible to themselves, but the Commonwealth Government must also be independent of the States. The Commonwealth Government should retain the ability to tax directly from money-earners who live in it, and should be able to distribute those funds as they want: Including to areas disproportionately to how it was drawn.