2020

A complete overhaul of the federal system

THE 2020 Summit has called for a republic, a complete overhaul of the federal system, an inquiry into taxation and the creation of a seamless national economy.

After some 1000 participants produced hundreds of ideas, ranging from a comprehensive climate change agenda to a bionic eye, Prime Minister Kevin Rudd declared the summit a success and promised action.

He said community discussion would continue all year on a website, and indicated that some specific proposals, including reform of the federal system, would be early priorities.

The Prime Minister welcomed as "very good" the call for a seamless national market, knocking out as much interstate regulation as possible.

The idea of such a market, whether in electricity, energy, labour, carbon or water, was an ambition that "we haven't been presented with" before.

"That's certainly worth having a look at," he said. "It's a big agenda."

One idea that particularly attracted the Prime Minister was to reduce the HECS debt of people who undertook community service.

"We need more volunteers in the community," he said.

A controversial proposal for a bill of rights received majority support in the governance group, but also ran into strong resistance.

The flawed nature of Australia's federal system was a strong, recurring theme across the groups.

The economy group called for a federation commission to undertake a "clean sheet of paper" review of the roles and responsibilities of federal, state and local governments in areas of major economic activity.

The governance group urged a constitutional convention on the issue.

Mr Rudd said it was clear that the federation needed to be fixed. "The overwhelming chorus of complaint from this summit was the federation is not working to help people, whether it's on the business side or the delivery of social services," he said. "It underlines the Government's resolve to get this right."

The economy group co-chair, former Westpac boss David Morgan, said a unifying theme had been the need to move to a "truly national, seamless economy" and get away from duplication in the state and federal government functions.

The economy group said the tax review should look at simplifying tax, reducing inefficient taxes, harmonising, ensuring a progressive system and tackling negative interaction with the welfare system.

It would be the first such review in nearly a quarter of a century.

The summit proposed a two-stage process to get to a republic.

It also urged a plebiscite to indicate whether people wanted it, followed by a referendum to change the constitution.

Mr Rudd said: "The republic has always been a question of when the country and the community would come with us.

"You need to have consensus behind you. The fact that this summit was saying thumbs up to a republic is a big step forward."

The summit endorsed Mr Rudd's idea of one-stop parent and child centres. But parliamentary secretary Maxine McKew, co-convenor of the governance group, could not get support from that group for her proposal to ban all private funding of political parties.

The governance group said indigenous Australians' custodianship of land and water should be recognised in the constitution's preamble.

Other ideas from the meeting include the free movement of labour from the Asia-Pacific region into Australia; "lifetime participation accounts" for every Australian into which the government and others can make payments for education, training, parental leave and superannuation; and a "golden guru" program with retired people mentoring in workplaces and schools.

Among climate change proposals were that all new buildings after 2020 should be carbon-neutral, and that people should be given the tools to manage their individual carbon footprints.

Mr Rudd described the summit as "a very Australian gathering" which was energising for democracy.

"I don't want to wake up one morning in the year 2020 with the regret of not having acted when I had the chance," he said. "That's why it's important to plan ahead."

Victorian Premier John Brumby said it had been a fantastic process. "I think the republic is a good recommendation," he said. He also welcomed the idea of a tax review, saying it would be the first since the Hawke-Keating years.

Shadow attorney-general George Brandis had mixed feelings. "It wasn't a particularly representative group," he said. Ninety-nine per cent in the governance group had been in favour of republic, while less than half favoured the republic in the community, according to opinion polling.

Opposition Leader Brendan Nelson said the priorities among the ideas were those on taxation, getting the federation to work effectively, drought-proofing and food security.

He said there seemed to be a disproportionate number of people who already had prominence in public life.

"I did find it hard to find people with a car loan and a mortgage and three kinds that had to find child care to get here," he said.

He said he had heard many of the ideas before, but: "There are some general themes there, and messages … for all of us."

The Age | 21 April 2008