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Fellow Citizens of Mirboo North and South Gippsland, most welcome visitors. On behalf of the people of South Gippsland I would like to welcome you all to Mirboo North today and express special appreciation for the attendance of our speakers and the Conference organisers, Beyond Federation.

I want to say right at the start that I am not a member of any political party or group. However, I do feel that State governments are doing more harm than good and support the aims of Shed a Tier.

We are here today because we share a vision of a better governed Australia. An Australia where Citizens engage with their government, not just at election time, but all the time. An Australia that is a world beater because the energies of its people are not constrained by crippling and costly bureaucracy. An Australia where citizens can choose a government at a local level that actually has the power to address local issues.

The House of Representatives Standing Committee on Economics, Finance and Public Administration has quoted the cost of duplication and co-ordination in Government at $20 billion per year. Their 2003 Report 'A Fair Share for Responsible Local Government' recommends a move towards direct funding of Local government by the Federal government to avoid this cost.

This report, known as the Hawker report, received unanimous approval from both sides of Federal politics. While the report does not recommend an end to State governments, it does clearly make the case for avoiding much of their parasitic activities. I understand the complete elimination of State governments would save an additional $10 billion, saving the people of Australia a total of $30 billion each year and every year.

Clearly we must have a Federal government to handle national defence, border control, foreign relations, national law and tax collection and so forth. Also there must be a system of Local government to distribute services at a local level.

We do not have to have State governments acting as a conduit between the Federal Government and Local Government. The State governments add no value to the funds flow, they merely absorb much of it in their own teeming bureaucracy.

When I was asked to speak here today I read the Australian Constitution, just to see how difficult it would be to get rid of the State governments. Well, it looks pretty difficult.

To abolish all of the State Governments a referendum would need to be carried by a majority of voters in every State.

Anyway the message is that getting rid of State Governments is going to be very, very, difficult.

If we start the journey today, the end will not be in sight. We have to concentrate on going in the right direction.

Simply put we have to support anything that takes us towards two tiered government and oppose anything that entrenches or increases the power of the State governments over Local government.

At a Federal level we need to strongly back the Hawker report because it is a definite step in the right direction.

In particular direct Federal funding to Local government such as the roads to recovery funds for local government road improvements, should be applauded by voters.

In Victoria the current trend is that local government is being slowly strangled by an indifferent and bureaucratically inclined State government. Too many Councils are prepared to accept anything the State government hands out and there is limited pressure for change.

This is because Local government is politically stunted by the State government's continuous so called 'democratic' changes to Local government powers. Local government is pilloried by its citizens due to the inept State government planning legislation it is forced to administer. There is no clear difference between the two major parties as neither is offering any promises of real change.

Victorian Local government is very weak by world standards. This needs to be corrected if Local councils are to progress along the road that will see an end to State governments.

For example, political instability in local government is encouraged by the Victorian Electoral Commission's 6 yearly reviews. Bizarrely these reviews allow the Commission not only to adjust ward boundaries, which is fair enough in the case of population changes, but also to amalgamate wards and councillors in any way. So some councils have single councillor wards, others several councillors per ward and others all councillors in one ward. The Commission can change everything around every six years, which continually disrupts the bond between councillors and the people.

Secondly the State government's attitude that councillors hold a voluntary part time job means that allowances are held at a low level effectively barring people with full time jobs from serving as councillors.

Choice is the essence of democracy. By preventing large parts of the population from standing for Council, the State government both weakens democracy and lowers standards.

Thirdly, Mayors face election by councillors every year. This and the fact they are not elected by the people means the foremost democratic representative of a Council is politically hobbled and lacks the authority of popular endorsement. Some Councils have even rotated the Mayor's position, so everyone gets a 'turn' regardless of ability.

Lastly the Victorian Local Government Act gives extraordinary power to the Chief Executive Officer. The CEO can declare any matter as secret, can prohibit contact between Councillors and staff and refuse to take any action or provide any information unless required to do so by law or specifically directed by a resolution of Council. Given the weakness of the Mayor's position it is no surprise that some Councils seem to be run by the CEO.

State governments will be hard to remove. So we need to concentrate on the means to that end and keep going in the right direction. In general this implies supporting anything that strengthens Local government or the Federal government and the bonds between those two.

In Victoria Councils are weak due to the State government's regulations. This needs to be corrected so Councils have the political will and leadership to pursue changes and oppose the continual erosion of their power by the State government.

The danger is that in Victoria democratic Local government will disappear and Councils will simply become bureaucratic arms of the State government.

The Hawker report means that the Federal Government is looking in the right direction. We have to encourage anything that will give Victorian Local government more backbone so they enthusiastically pursue the opportunities for direct Federal funding and stronger ties with the Federal Government