International IDEA 19
4. Distribution of powers
commerce’ or through conditional fiscal transfers to the states. This is a clumsy
and inefficient arrangement which makes it difficult to adopt national policies or
ensure uniform outcomes. Moreover, although the courts have generally allowed
the federal government broad latitude to act in this way, it has resulted in some
policies and programmes being contested in the courts.
In Australia, in contrast, the Constitution was amended in 1946 to grant the
federal parliament the power to enact laws with respect to ‘invalid and old-age
pensions’; ‘the provision of maternity allowances, widows’ pensions, child
endowment, unemployment, pharmaceutical, sickness and hospital benefits,
medical and dental services . . . benefits to students and family allowances’ (art.
51, xxiii and xxiiiA). This means there are no constitutional obstacles to
developing national policies in these areas.
Because constitutions, in addition to defining legal rules, are political
documents that signal intent and express identity, the explicit recognition that the
federal government has responsibility for public services, social security and
welfare policies may strengthen the political case for the extensive exercise of
federal power in these policy areas in order to raise national standards.
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