Business Council pushes for OHS harmonisation deadline

Source: WorkplaceOHS
Date: 30/10/06

A Business Council of Australia (BCA) plan on improving Federal-State relations is pushing for COAG to set a 2007 deadline on achieving national OHS regulatory harmonisation.

Reshaping Australia's Federation: A New Contract for Federal-State Relations,proposes a 12-point plan which identifies costs to the economy caused by overlap, duplication and cost shifting between the Commonwealth and the States.

It highlights 'regulatory hotspots', such as OHS, as key issues where 'dysfunctional federalism is causing inefficiencies that are holding the economy back'. The Council of Australian Governments (COAG) identified OHS as a problem area in February, with 10 OHS schemes (and another 10 workers compensation schemes) around Australia.

BCA President, Michael Chaney, said Australia's system of Federal-State relations is at a 'crossroads'.

'The effectiveness of our current system of federalism will be determined by which road it takes in the next few months,' Chaney said. 'The BCA is calling for a new contract for Federal-State relations to overcome blockages in our current system, and tackle overdue reforms to keep our economy on track.'

Costing billions a year

Chaney said BCA research has found Federal-State inefficiencies are already a major economic issue costing taxpayers at least $9bn a year.

'Put another way, these inefficiencies require an additional tax burden of $1,100 a year to be imposed on every Australian household,' he said. 'The costs to the economy as a whole in terms of business costs and future opportunity costs are likely to be significantly higher. This is a problem that will only get worse if do not act now to fix it.'

He said a priority of the plan is the creation of a 'common market' that allows the free flow of people, goods and services around the country.

It proposes giving COAG a year to make significant progress with harmonising key business regulation. If COAG fails, Chaney said, the Commonwealth will need to 'step in and provide leadership to create a common market'.

'Our current federalism arrangements were established in the days of the horse and buggy, but to compete in a global economy we need a new, efficient contract between the Commonwealth and States to drive us into the future,' Chaney said.

Plan

The BCA's 12-point plan outlines a process that can be used to agree on a new approach to Federal-State relations. Key points include:

• a Federal Convention to be held to develop a framework for re-assessing the respective roles of the Commonwealth and the States
• the convention to examine the pros and cons of the Commonwealth taking over the management and regulation of key national markets
• COAG agreeing to set a deadline of the end of 2007 for significant progress in achieving a common market through harmonisation of those regulatory 'hot spots' already agreed by COAG (which includes OHS)
• if significant progress in achieving outcomes is not made, the Commonwealth developing national business schemes for core areas of business regulation, allowing corporations to elect to opt into those schemes and out of State-based schemes
• the Commonwealth and the States agreeing on constitutional amendments allowing the States and the Commonwealth to set up effective cooperative arrangements
• establishing a Federal Commission to identify issues requiring a collective response from governments, advise on response options and report to COAG on progress in implementingCOAG agreed reform agendas, and
• reforming the fiscal arrangements between the Commonwealth and the States to close the gap between which government raises revenue and which spends it, to increase accountability and reduce blame shifting

'History shows the present system rarely achieves the meaningful results needed to meet Australia's current and future challenges. Since COAG was established in 1992 it has met on average only once a year and for a few hours each time.

'This is not enough to achieve the reforms Australia needs to meet domestic requirements, let alone to be competitive in the global economy,' Chaney said.

He also urged Governments to set 'clearer timelines' to improve service delivery or reform key areas of the economy so that 'rhetoric is backed up by timely action'.