Bob has a number of good points but he is …

Comment on The financial crisis in the Northern Territory by Ken Clarke.

Bob has a number of good points but he is far too kind to the Productivity Commission.
That organisation should hang its head in shame at how it has mislead the Australian community. The Productivity Commission constantly bagged the fiscal equalisation process on two key grounds: First, it said right from the start that jurisdictions were equalised to the highest standard, i.e. WA. That is simply not true and only applies in a mathematical sense when deriving the relativity number BUT that is after the actual equalisation process has been completed, where all jurisdictions receive around about the same capacity to fund Government services.
But by making this tricky claim, it encouraged the Australian community to think there was something horribly wrong with the fiscal equalisation process when it is actually very fair and sensible.
Second, the Productivity Commission made a lot of noise about how the fiscal equalisation process distorted Government decision making and was therefore bad for the economy.
But in its final report it produced no evidence of this despite close on two years of investigation.
The final report uses words like “might,” “could” and “may” to describe the “damaging” effects of fiscal equalisation on the economy.
This Productivity Commission promoted policy debacle means that for the first time in Australia’s history, access to Government services will now depend on what jurisdiction someone lives in.
It means residents of Brisbane for example will have lower standards of Government services than residents of Perth.
That can’t be good for Australia.

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