Meeting the challenges of cyber-security

Just weeks after the Attorney-General, Robert McClelland, announced the establishment within the Australian Security Intelligence Organisation (ASIO) of a ‘specialist cyber investigations unit to investigate and provide advice on state-sponsored cyber attack against, or involving, Australian interests’, News Limited media reports have claimed that the parliamentary computers of the Prime Minister and several key Cabinet ministers were infiltrated recently in a sustained “hacking” attack.

Distribution of GST to the states

On Wednesday 30 March 2011, the Government announced a review of how the goods and services tax (GST) revenue is distributed to the states. This post looks at how GST revenue is currently distributed using horizontal fiscal equalisation. This post also presents some of the criticisms of equalisation, the role of the Commonwealth Grants Commission (CGC) and the scope of the proposed review.

The Egyptian constitutional referendum of March 2011: a new beginning?

The ousting of the Egyptian Government in February 2011 was followed by a referendum on constitutional changes, held on 19 March. The Supreme Council of the Armed Forces, the interim ruling body following the departure of President Hosni Mubarak on 11 February, suspended the 1971 constitution and dissolved parliament on 13 February. A drafting committee of jurists was appointed to write proposed constitutional amendments, the idea being that once a referendum on the changes was held, parliamentary, followed by presidential elections, could be held.

Members of Parliament salary and entitlements

On 24 March the Special Minister of State, Hon Gary Gray, introduced the Remuneration and other legislation amendment bill 2011. This bill provides, among other matters, for the Remuneration Tribunal to determine MP’s base salary, currently $136 640, and ends the Parliament’s ability to disallow the remuneration determinations, that is senators’ and members’ pay increases. The Bill also requires the Tribunal, an independent statutory authority, to publish its reasons for the determination.

Since 1990 the Remuneration Tribunal has only had an advisory power with regard to the annual allowance (or base salary). After the relevant determinations are tabled, Parliament may resolve to disapprove (disallow) the determinations. In 1974 Parliament disallowed the Tribunal’s determination increasing the annual allowance to $20 000 per annum. In the thirty years since then Parliament has also modified determinations, postponed increases and enacted reduced allowances previously determined by the Tribunal. The most recent example of wage restraint was the pay freeze that occurred from 1 July 2008.

Responding to boat arrivals

A widespread perception in the community that Australia is being swamped by asylum seekers arriving by boat continues to strongly influence government policy and to be an emotive and divisive political issue. As a result, for many years the Labor Government and before it the Coalition Government have been pressured to adopt and maintain effective measures to address border security concerns, combat people smuggling and 'stop the boats'.
Both sides of politics are in agreement on some of the measures in place to deal with these issues (such as mandatory detention for unauthorised boat arrivals), but there are policy differences, some influenced by arguments as to whether 'push factors' or 'pull factors' are the primary determinant of asylum seeker arrivals in Australia. The Labor Government has emphasised that irregular migration is a global challenge and is linked directly to 'push factors' such as conflict and displacement within the region. In contrast, the Coalition attributes the recent increase in irregular boat arrivals (also known as irregular maritime arrivals) to 'pull factors' driven predominantly by domestic policy changes—most notably, Labor’s decision in 2008 to discontinue temporary protection visas, grant refugees permanent residency and discontinue the processing of asylum seekers in Nauru.

Libya and the United Nations Security Council Resolution (UNSCR) 1973

The wave of protests sweeping across the Middle East in recent months has seen demands for democratic reforms and regime change in several countries, including Tunisia, Egypt, Yemen and Bahrain. However, Libya quickly became the focus of international attention as government forces began firing upon their own civilians with heavy weaponry, and bombing population centres from the ground and air. An overview of how the unrest evolved into a humanitarian crisis is covered in more detail in a previous post. As the world’s attention turned to condemnation, calls for UN intervention grew stronger and more insistent. Following the failure of the Libyan Government to heed the warnings issued on 26 February under UNSCR 1970, on 17 March the UN Security Council ultimately passed UNSCR 1973 authorising member states to ‘take all necessary measures’ to protect Libyan civilians. This included the declaration of a no-fly zone over Libya, but specifically excluded a UN-mandated occupying ground force. Outlined below are brief answers in response to some of the frequently asked questions on the issue.

When Garnaut met Henry: the carbon price and welfare reform

Professor Ross Garnaut’s recent update paper no. 6 to the Garnaut Climate Change Review, released on 17 March 2011, found that ‘protecting the most vulnerable is critical to the success of the carbon price’. Professor Garnaut found that while reforms to income taxation would, for most taxpayers, assist in mitigating the effects of a rise in the price of consumer goods resulting from the introduction of a carbon price, those on little or no income could face hardship unless reforms are also made to the social security system.

The 2011 tax forum and the 1985 tax summit

On Sunday 20 March 2011, the Treasurer announced in an Economic Note that a Tax Forum would be held on 4–5 October 2011 at Parliament House. This announcement has sparked interest in the potential scope of the tax forum, and the similarities that can be drawn to the Tax Summit held by the Hawke Government in 1985.

Regional unemployment rates - February 2011

On Thursday 17 March the ABS released the latest regional labour force statistics. These statistics reveal that the unemployment rate around Australia ranged from 1.3 per cent in the South Eastern Statistical Region of New South Wales to 13.0 per cent in the Far North Statistical Region of Queensland.



Five Statistical Regions with the lowest rates were:

• South Eastern Statistical Region (New South Wales) 1.3 per cent


• Eastern Suburbs Statistical Region (Sydney) 2.6 per cent


• East Metropolitan Statistical Region (Perth) 2.6 per cent


• West Moreton Statistical Region (Queensland) 2.8 per cent


• Inner Sydney Statistical Region (Sydney) 3.4 per cent.

Five Statistical Regions with the highest rates were:

• Far North Statistical Region (Queensland) 13.0 per cent


• Northern Adelaide Statistical Region (Adelaide) 9.3 per cent


• South Eastern Melbourne Statistical Region (Melbourne) 8.8 per cent


• Canterbury-Bankstown Statistical Region (Sydney) 8.6 per cent


• Mersey-Lyell Statistical Region Sector (Tasmania) 8.6 per cent.

(Source: ABS, Labour Force, Australia, Detailed - Electronic Delivery, Feb 2011, cat. no. 6291.0.55.001 )

Senators and Members can find more details on the small area labour market section of the Parliamentary Library’s intranet site at http://libiis1/Library_Services/electoralatlas/SmallArea.htm

Small area labour market page includes unemployment statistics for:

• 
  
  Statistical Regions


• 
  
  Statistical Local Areas


• 
  
  Commonwealth electoral divisions.

The Libyan conflict in the context of Middle East revolutions

Over the past three months a wave of popular dissent triggered by long-standing grievances over poor living standards and insufficient domestic reforms has swept across the Middle East and North Africa. Thousands of citizens in Tunisia, Egypt, Libya and other regional countries demanded a change of political leadership, and immediate social, political and economic reforms.

Carbon tax rate considerations

The Government’s recent proposal for tackling rising levels of Australian greenhouse gas emissions is a two-stage carbon price mechanism. The first stage of the scheme is a carbon tax. After three to five years, this will be transitioned into stage two, a cap-and-trade emissions trading scheme (ETS). The details of this architecture are unconfirmed, and there has been speculation over the level of the first-stage tax. There are also opposing views arguing that carbon pricing is not likely to be as effective in reducing emissions as, say, direct investment to accelerate the development of competitive renewable or non-carbon sources in the marketplace. So any carbon pricing mechanism implemented by the current government could be rescinded by a future government. Nevertheless, assuming a price on carbon is adopted with a view for longevity, a number of factors will be under consideration in determining this tax rate. Broadly, the tax must be high enough to reduce emissions. But it must also take into consideration the price of carbon in other countries, as explained below.

Reform of Ministerial Councils

Ministerial Councils are an important part of the Council of Australian Governments’ (COAG) reform structure. Their role is to develop proposals for reform to be considered by COAG and to oversee the implementation of reforms agreed to by COAG. While COAG is comprised of the Prime Minister, the Premiers and Chief Ministers of each state and territory and the President of the Australian Local Government Association, Ministerial Councils are composed of the Commonwealth, state and territory ministers responsible for a particular area of reform. They may also include ministers from New Zealand when an issue under consideration affects that country. Papua New Guinea and Norfolk Island may also have observer status where appropriate.

Medicare Locals - many questions yet be answered

The Government has released the guidelines for the establishment and initial operation of Medicare Locals (MLs) following the consultations around its discussion paper on the governance framework. Applications are invited for the operation of MLs to commence in either mid 2011 or January 2012. Approximately 15 MLs will be awarded in each round. The guidelines and prior ministerial statements would indicate that the initial groups of MLs are likely to be drawn from existing Divisions of General Practice.

Emissions Trading – Some developments since late 2010

In November 2010 the Parliamentary Library published a Background Note outlining operating and proposed emissions trading schemes around the world. Since that publication, there have been several new developments: 

• the proposed South Korean Emissions Trading Scheme will commence operations in 2015 instead of the 2013 date that had been speculated
• the legislation implementing the proposed Japanese emissions trading scheme is currently under review. If the scheme goes ahead it most likely will commence operations in 2015 instead of 2013
• in America, the Midwestern Greenhouse Gas Reduction Accord appears to have been abandoned by the current governors of the 10 participating states. None of these governors was in office when this Accord was first signed in 2007, and
• the House of Representatives of one of the participating states in the Regional Greenhouse Gas Initiative (New Hampshire) has voted to leave this scheme on 1 January 2012. This Bill has to be approved by a Committee and that State’s Senate before it becomes law. That said, it is likely that this Bill will be passed.

But it's not all doom and gloom in respect of emissions trading. The following developments illustrate that some schemes continue to be implemented:

• the European Commission continues to prepare the implementation of the third phase of the European Union’s Emissions Trading Scheme
•  pre-market trading of allowances and offsets for use in the Californian Emissions Trading scheme has commenced, and
•  the first transaction under Taiwan’s voluntary emissions trading scheme has taken place.

 (Post authored by Leslie Nielson.)