Financial Recognition of Local Government: Constitution Alteration (Local Government) 2013 Bill

The Constitution Alteration (Local Government) 2013 Bill was introduced into the House of Representatives on 29 May 2013 and Wednesday (5 June 2013) was passed by the lower house. The Bill proposes to amend the Commonwealth Constitution s96 to make specific provision in relation to the granting of financial aid to local government bodies of which there are currently 565 many of whom struggle finically while trying to meet a growing list of funding demands .

Background

The Attorney-General in speaking to the Bill said that in August 2011 the federal government had appointed an Expert Panel on Constitutional Recognition of Local Government chaired by former Chief Justice of the Supreme Court of NSW, the Hon James Spigelman AC QC (the Expert Panel) to identify options for the constitutional recognition of local government.

In December 2011 a majority of the Expert Panel members concluded that financial recognition of local government by amendment of the Commonwealth Constitution s 96 was a viable option within the 2013 election timeframe and led to the Commonwealth Parliament establishing a Joint Select Committee on Constitutional Recognition of Local Government to inquire into and report on the majority finding of the Expert Panel in November 2012. It subsequently supported the findings of the Expert Panel that a referendum on financial recognition of local government be held at the 2013 federal election.

Whistle Blowers get a Harsh Deal

In an article in SMH (5 June 2013) it is reported that informing a regulator like Australian Securities and Investments Commission (ASIC) of corruption may not be as easy as it might at first seems: "[i]f you've come across something rotten in the organisation you work for and are thinking of blowing the whistle to the corporate regulator, think twice".

The SMH report deals with a group of "whistle blowers" at the Commonwealth Bank who contacted ASIC in October 2008 with detailed information outlining "serious flaws" in the bank's financial planning unit. But, as reported, instead of ASIC moving quickly on the serious tip-off that one of the bank's top financial planners had engaged in systemic misconduct and his files were being "cleaned up", it took ASIC 16 months to take action and even more concerning is the lack of protection offered to the whistleblowers in the case.

One of the "whistle blowers" quoted said ''We dealt ASIC the cards to take 10 tricks but they settled for six . . . My whistleblower protection consisted of advising me to 'get out with what you have left'."

Although there have been Bills for proposed laws in four states (QLD, VIC, NSW and NT) as well as the CTH aiming to protect whistleblowers are in progress in those jurisdictions none have as yet been enacted  into law and all continue to use the terminology  "whistle blower" with all the pejorative connotations that Australian society connects to the term. Reading stories like this one  it is difficult not to wonder whether if citizens who take it upon themselves to do the right thing were not referred to as "whistle blowers" words which seems to evoke the view that such a person is a "tattle-tale" or "lag" instead of being someone who did the right thing, it might not go better for the said "whistle blowers". Is it our less than splendid origins as a penal settlement that seem to favour a less sympathetic disposition to people who take the often lonely path of revealing corruption, prejudice or deficient administration or even criminal activity by blowing the whistle on it?

Whistle blowing is right not wrong? To be encouraged and supported by government, policy and integrity commissions and regulators? More so than ASIC appears to have done in this case.

Source: Blow the whistle, face the music (SMH)

New Start Bill referred to Senate Committee for Inquiry and Report

The Senate has referred the Social Seurity Amendment (Supporting More Australians into Work) Bill 2013 (the Bill) to a Senate Committee for inquiry and report. The referral has been very much supported by the Greens who have been critical of the legislation. Senator Rachel Siewert (Australian Greens spokesperson on families) saying:

"This Bill allows people on very low payments like Newstart to earn a miserly additional $19 per week before their income support begins to be affected."

Nature of the Inquiry

The Bill has been referred to the Senate Education, Employment and the Workplace Relations Legislation Committee for inquiry and report by 17 June 2013. Key measures in the Bill include:

(i) Proposed increase to the income free area applying to recipients of benefits like Newstart Allowance, Widow Allowance, Partner Allowance, Parenting Payment (Partnered) and Sickness Allowance. The increase in the income free area would increase benefits from $62 to $100 per fortnight starting from 20 March 2014 and would be subject to an annual indexation.

(ii) Proposed extension to the eligibility criteria for the Pensioner Education Supplement to single principal carer parents receiving Newstart Allowance Payments from 1 January 2014. 

(iii) Proposes provision of a 12 week extension of eligibility for the Pensioner Concession Card to single parents who are no longer qualified for Parenting Payment (Single) because their youngest child has turned eight years of age, and who do not qualify for another income support payment due to earnings - commencing on 1 January 2014.

Green's Reasoning for Inquiry

The view of Senator Siewert and the Greens is that the short Inquiry would allow the Bill to be dealt with before the end of the current Parliament in June 2013, while at the same time providing the community with the formal opportunity to respond to the measures.

Key criticisms from the Greens include:

The amount of extra casual work proposed: "That's one hour of work extra per week at the casual minimum wage. The Bill does nothing to actually help people into work or to overcome the financial pressures they are facing."

The increase in the income free area: "Such a meagre increase of the income free area - from $62 to $100 per fortnight - falls short of the $50 per week increase to Newstart that has been widely called for. The fact is people on Newstart need an increase to Newstart and an improvement in the income free area."

The timing of changes: "To compound matters, the increase does not start until March 2014, so will offer no relief whatsoever until well after the election".

Indeed the Newstart benefit in particular is agreed by most social welfare advocates to be well below where it should be to provide fair and reasonable treatment for those on it and well below a sustainable living standard even a subsistence level. For his the Greens should get credit for trying to get more. However, it perhaps should also be noted that this is the first federal government in 20 years who has moved to increase such benefits, albeit perhaps not enough?

For those interested making submissions to the Committee have been requested by 11 June 2013 and the reporting date for the Committee is 17 June 2013. Click here to see more information.

Sources:

• Parliament of Australia Web Page
• Senator Rachel Siewert, Australian Greens spokesperson on families Media Release date 3 June 2013 (Chris.Redman@aph.gov.au)