The Wire

The relationship between our Federal and state governments is often a strained affair. This weekend, this strain was particularly pronounced after the Federal Treasurer Peter Costello outlined an ambitious plan to totally reshape the nature of federalism in Australia. Mr Costello said he would like the Federal Government to take full responsibility for the national economy in relation to tax, interest rates, jobs and industrial relations. The plan has been met with outrage by the states, typified by Queensland Premier Peter Beattie’s rebuke that it would happen over his dead body. But would the plan stop some of the buck passing and duplication that occurs in the wrangling over state and federal service delivery?