Council of Australian Governments

Council of Australian Governments Meeting

Canberra 13 February 2011
Communiqué

The Council of Australian Governments (COAG) held its 30th meeting in Canberra today.
The Prime Minister, Premiers, Chief Ministers and the President of the Australian Local
Government Association attended the meeting.

Natural Disasters

Recent natural disasters have had a profound effect on the Australian community. All
Australians have been affected by the tragic loss of life and widespread devastation
experienced in many communities.

COAG acknowledged the tremendous efforts of volunteers, emergency services

personnel and the Australian Defence Force in responding to the disasters, with many
crossing borders to help out.

COAG recognised the challenges facing many communities in the rebuilding process
that lies ahead and welcomed the generous package of assistance the Commonwealth
and affected States and Territories have provided for individuals, businesses, local
government and the restoration of infrastructure following recent natural disasters.
COAG noted the establishment of the Australian Government Reconstruction
Inspectorate, which, together with State arrangements, will strengthen accountability
and rigour in the use of substantial public funding to be committed to the rebuilding.

To improve Australia’s ability to withstand and recover from future disasters, COAG
adopted the National Strategy for Disaster Resilience and agreed to take immediate
steps to implement it.

The Strategy focuses on the shared responsibility of governments, business and

communities in preparing for, and responding to, disasters. It sets out concrete steps
governments at all levels can take to reduce risks posed by natural disasters and better
support communities to recover from disasters. Other actions will include steps to
support improved risk-based planning decisions, the take-up of insurance and the
provision and construction of resilient infrastructure.

A New Strategic Direction for COAG and Increased Accountability

COAG has a proud history of leading major reforms that have contributed to economic
prosperity and improved the lives of all Australians. COAG has made significant
progress in responding to the key challenges facing Australia of raising productivity and

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improving workforce participation to lift Australia’s long-run economic potential. The
skills, deregulation and health reforms currently underway are key to this agenda.

Building on this record, COAG today adopted a streamlined agenda built around five
themes of strategic importance that lie at the intersection of jurisdictional
responsibilities:

 a long-term strategy for economic and social participation;

 a national economy driven by our competitive advantages;

 a more sustainable and liveable Australia;

 better health services and a more sustainable health system for all Australians ;
and

 Closing the Gap on Indigenous disadvantage.

COAG renewed its commitment to strong ongoing monitoring and reporting of

important national initiatives to ensure that they meet their goals and are delivered in a
timely way. As part of the emphasis placed on implementation, governments
committed to prioritising the passage of legislation to give effect to agreements
reached by COAG.

COAG has also set ambitious goals to improve outcomes with the reviews of the
performance frameworks of National Agreements providing an opportunity to ensure
that progress is measured and that all jurisdictions are clearly accountable to the public
and COAG for their efforts.

Consistent with the priority themes, COAG agreed that mental health reform and the
final report of the Productivity Commission inquiry into a long-term disability care and
support scheme (if available) will be considered at the next meeting of COAG.

National Health Reform

COAG today agreed to work in partnership on National Health Reforms to deliver a

better deal for patients and secure the long-term sustainability of Australia’s health
system. National Health Reform will deliver a health system that will ensure future
generations of Australians enjoy world class, universally accessible health care.

To give effect to these commitments, every Australian government signed a Heads of

Agreement on National Health Reform (at Attachment A) and a revised National
Partnership Agreement on Improving Public Hospital Services and committed to signing
a full National Health Reform Agreement by 1 July 2011.

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Regulatory and Competition Reform

COAG welcomed the release of the independent report by the COAG Reform Council
(CRC) on the progress of the National Partnership Agreement to deliver a Seamless
National Economy, and its finding that good progress has been made in 21 of 27
deregulation priorities and six of eight competition reforms, with seven regulatory
reforms and one competition reform completed. Since the report was finalised, a
further six regulatory reforms have been completed or reached the implementation
stage. Around half of the regulatory reforms are now complete.

Recognising the good progress being made in implementing the Seamless National
Economy reforms, COAG agreed to bring forward its final completion date from June
2013 to December 2012.

Given the high priority all governments attach to boosting productivity and the
competitiveness of the economy, COAG asked relevant ministers and officials for options to
be developed for a further wave of regulatory and competition reforms. COAG will consider
the options later in 2011. COAG released a brochure and a report card to provide
information on the most up-to-date progress of this national partnership and its
benefits to business, consumers and the economy.

To progress the current regulatory reform agenda, COAG:

 signed an Intergovernmental Agreement to bolster the national approach to

food regulation;

 agreed in principle to settle reforms to legal profession regulation by May 2011

(with the exception of Western Australia and South Australia);

 agreed that the Australian Transport Council will finalise arrangements for a
national maritime safety regulator that will ensure that all owners, operators
and builders of commercial vessels face the same regulatory arrangements; and

 determined that the national agreements on transport regulators be completed

by July 2011.

Details of the regulatory and competition reforms are at Attachment B.

Infrastructure Planning - Ports

COAG endorsed the need for a national ports strategy. The strategy is to be an integral
part of the national freight strategy that is under development. It will improve
productivity, promote better long-term planning around ports and bring a greater focus
on performance to Australia’s waterfronts.

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COAG asked the relevant Ministerial Council to complete an implementation plan for a
final national ports strategy by August 2011 for out-of-session endorsement by COAG.

Vocational Education and Training

Skills and Workforce Development

In light of the changes in economic conditions since the National Agreement on Skills
and Workforce Development was agreed in November 2008, COAG has requested that
it be reviewed to ensure it supports a VET system that:

 is responsive to contemporary economic conditions; and

 meets the skills needs of the economy and industry and the preferences of
students.

National Vocational Education and Training Regulator

COAG affirmed the importance of greater participation to ensure that more Australians
contribute to, and benefit from, the prosperity of the nation.

In recognition of the importance of skills and workforce development, COAG (with the
exception of Victoria and Western Australia) agreed in principle to the
Intergovernmental Agreement (IGA) for Regulatory Reform of Vocational Education and
Training (VET) with sign-off by the end of February 2011.

This agreement will establish a national VET regulator to drive better quality standards
and regulation across the Australian VET sector. Ensuring rigorous quality assurance of
education and training is critical to increasing the skills and qualifications of individual
workers and the productivity of the economy. Victoria and Western Australia
committed to a national approach to regulation of the sector but maintained they
should have regulatory control over certain providers including TAFEs.

Unique Student Identifier for VET

COAG welcomed progress on the development of the Vocational Education and Training
Unique Student Identifier (USI) and agreed to develop a formal business case by June
2011. A unique student identifier will simplify the process of enrolment and
engagement with VET providers.

Ministerial Council Reform

Ministerial Councils play a key role in progressing important work across all levels of
government. Drawing on the review of Ministerial Councils conducted by
Dr. Allan Hawke AC, COAG has agreed to a comprehensive reform plan for a new system
of Ministerial Councils. These changes will see a fundamental shift towards a council

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system focussed on strategic national priorities and new ways for COAG and its councils
to identify and address issues of national significance.

COAG has effectively halved the number of Ministerial councils from over 40 to 23. This
will see COAG focus on reforms of critical national importance through:

 a more agile and responsive system based on policy development through

Standing Councils and flexibility to respond to critical and complex issues through
time-limited subject-matter specific Select Councils;

 policy oversight of National Agreements and National Partnership Agreements;

 a system more focussed on implementation; and

 a tighter relationship between COAG and its Councils.

Further information on the Ministerial Council reform is at Attachment C.

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Attachment B

THE COAG DEREGULATION AND COMPETITION AGENDA

REFORMS COMPLETED BY COAG TO BE COMPLETED OVER 2011 AND 2012
Reform

  Develop model national occupational health and safety legislation  Regulation of chemicals and plastics
  Streamlined environmental assessment and approvals   Personal property securities
  Harmonisation payroll tax arrangements 
 National Electronic Conveyancing System
  Establish Australian Health Practitioner Regulation Agency 
 National system for consumer credit
  A single national system of trade measurement 
 Review of Australia’s anti-dumping and countervailing system
  Nationally consistent rail safety regulation 
 Energy reforms
  A national consumer protection framework 
 Infrastructure access regulation
  A national consistent product safety framework 
  Agreement to a national oil and gas regulator  Infrastructure access and regulation regimes

  National regulation of trustee corporations   Transport regulators, including maritime regulation

  National regulation of mortgage broking   Road reform plan
  National regulation of margin lending   Occupational licences
  National regulation of non-deposit lending institutions   Registering business names
  Code-based assessment for single residential dwellings
 Directors’ liability
  Agreement to develop a national construction code
  Developed model national mine safety regulations Not-for-profit sector

  Nationally consistent approach to food regulation Retail tenancy

  Standard Business Reporting 
COAG has agreed to bring forward the completion date of the current
  Wine labelling 
Seamless National Economy reforms by six months
  Established the National Occupational Licensing Authority
from June 2013 to December 2012
  Review of parallel import restrictions on books 
 Agreement to national vocational education and training regulator  Element of the National Partnership Agreement to Deliver a Seamless National Economy
0
 Agreement to legal profession reform
 Identified by COAG Reform Council as completed by 30 September 2010 or completed subsequently
Department of the Prime Minister and Cabinet
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Attachment C

More Effective Ministerial Council System

The system of Ministerial Councils will be reformed from 30 June 2011, to focus on
strategic national priorities and new ways for COAG and its councils to identify and
address issues of national significance.

Under the new system, enduring issues of national significance will be addressed
through Standing Councils, while critical and complex issues will be addressed through
limited life Select Councils.

Standing Councils will be established in the areas of: health; community, housing and
disability services; school education and early childhood; tertiary education, skills and
employment; transport and infrastructure; police and emergency management; law and
justice; federal financial relations; energy and resources; environment and water;
regional Australia; and primary industries.

Standing Councils will support the move to a reform-based system by identifying a small
number of priority issues of national significance (normally five to seven) they will deal
with and in what timeframes, for endorsement by COAG.

Standing Councils will also undertake legislative and governance functions relevant to
their scope, and provide an annual report to COAG which includes an overview of the
decisions made by the Council.

Select Councils will be established initially to cover: homelessness; workplace relations;

climate change; women’s issues; and immigration and settlement, in addition to the
existing Select Council on Gambling Reform.

Select Councils will be established, where First Ministers propose, to work on specific
reform tasks of critical national importance that are of sufficient importance to warrant
Ministers’ direct attention.

This new system provides a clear role for Ministers from all jurisdictions to sup port
COAG in tackling 21st century policy challenges. There will be sustained collaborative
effort on the long-term reform agenda while allowing for the flexibility needed to
address more urgent challenges.

The new arrangements strengthen policy oversight of National Agreements and

National Partnership Agreements, which govern the financial relationships between the
Commonwealth and States and Territories and ensure performance and delivery. There
will also be greater emphasis on implementation and a tighter relationship between
COAG and its Councils.
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A small number of Ministerial Legislative and Governance Fora will be established in
specific areas to manage ongoing legislative and governance functions where they are
outside the scope of Standing Councils. Five Legislative and Governance Fora will cover
the following areas: food regulation; gene technology; corporations; consumer affairs;
and the Murray-Darling Basin.

The Ministerial Legislative and Governance Fora will also oversight significant collective
responsibilities for ministers where they are set out in relevant legislation,
intergovernmental agreements and treaties that are outside the scope of Standing
Councils.

Outside of the Ministerial Council arrangements, Ministers may meet from time to time
with their colleagues in other jurisdictions on matters of mutual interest and to
facilitate collaboration and information sharing. This will include activities such as
implementing the National Drug Strategy and the long-term tourism strategy.
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The New COAG Council System

COUNCIL OF AUSTRALIAN GOVERNMENTS (COAG)

Standing Councils Select Councils Legislative & COAG Working

Governance Fora Groups
• Business Regulation &
School Education Competition
Health Homelessness Food
& Early Childhood
Regulation • Indigenous Reform
• Infrastructure
Tertiary Police &
Workplace
Education, Skills & Emergency Murray-
Relations
Employment Management Darling Basin

Community ,
Transport &
Housing & Climate Change
Infrastructure Corporations
Disability Services

Energy & Immigration &

Law & Justice Consumer
Resources Settlement
Affairs

Environment & Women’s

Primary Industries Gene
Water Issues
Technology

Federal Financial Regional

Gambling
Relations Australia

 Standing Councils cover key areas of ongoing Commonwealth and State/Territory responsibility and funding.

 Time-limited Select Councils focus on key reform tasks, providing a flexible and agile response to complex national issues.

 Legislative and Governance Fora cover significant executive responsibilities that do not fall within the scope of Standing Councils.

 Working Groups provide COAG with advice on key reforms which transition to other bodies in the system as required.