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| Issue No 120 |  |
23 November 2001 |
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EconomicsBack to the PackBy Chris Shiel
The big story in this year's State of the States League Table is the end of the long reign of New South Wales at the top of the heap.
After five years straight -- which aligns with the first five years of the Carr Labor government --New South Wales has fallen from first position. Moreover, the fall has been dramatic, with the State dropping from first to fourth position. Why has New South Wales suddenly fallen so far? The short answer is that the government has become steadily less competitive in the crucial social policy area, where the State led during the first two years of the Labor government, but where it is now heading toward the wooden spoon. New South Wales performed 18 percentage points better than the CGC average in social policy in the 1997 and 1998 League Tables, and held first position. The State slipped to four percentage points better than the CGC average in both the 1999 and 2000 League Tables, but still held second position in the category. This year, New South Wales has been thoroughly outpaced by the other leading jurisdictions, and is now seven percentage points below the CGC average. Over the same time, New South Wales also lost its leading edge in environmental policy. After holding first position in 1999 and 2000, the other jurisdictions have now consigned the major State to third position, albeit with a score that remains above the CGC average. In its economic policy performance, the State has maintained third position, behind Queensland and Western Australia. Environmental policy--slipping, but still above the average With third position overall, New South Wales took first position in the availability of its public transport and the proportion of household vehicles running on unleaded petrol, and third position in national parks and wildlife services and sanitation and environmental protection. The State's poorest performance was in cultural and recreation services, where it came fourth. While New South Wales has slipped in its overall environmental performance relative to the other States, note that it still performed above the average in all categories, with the exception of cultural and recreation services (where it was five percentage points below the CGC average). In particular, the State's investment in national parks and wildlife services was 27 percentage points above the CGC average, and its third position in this category was due to the hot pace now being set in this area by Tasmania and Queensland The Economy--holding on in the important areas Although in third position overall, New South Wales did better than this in the crucial categories of capital investment, full-time jobs and Gross State Product, where it was second behind Western Australia. On the other hand, New South Wales was fourth in the level of its industry assistance and equal fifth (that is, last) in the total jobs count. Since New South Wales tends to project the idea that it does not protect its industry to the same extent as the smaller States, it can be noted that it provides the second highest levels of assistance to primary industry and to the mining, fuel and energy industries, and the average level of assistance to manufacturing industry. What accounts for the State's fourth position in the industry assistance category is a low level of petrol subsidies, which is the second lowest of the States, and the low level of assistance it provides for tourism, which is the lowest of all the States. Social policy--a matter of complacency? Overall, New South Wales performed seven percentage points below the all-States average in social policy, coming second last in this sensitive policy area. The State's welfare and education services were the best performers, with New South Wales coming third in both categories, with scores of ten and four percentage points above the CGC average, respectively. These were followed by health services, where the State came fourth with a score of two percentage points above the average. The two areas that sunk New South Wales were transport services, where the State came second last, and public safety and emergency services, where the State won the wooden spoon for the third year straight. In welfare services, the State came third in the three major sub-categories of family and child welfare, aged and disabled welfare, and 'other welfare' services. In the crucial area of education, the State led only in the provision of transport for rural school children. It was second in its provision for vocational education and training and for non-government schools, but second last in pre-school education and, disturbingly, the vital government schools category. In health, New South Wales was third in its provision for hospitals, fourth in provision for nursing homes and public health, and second last in provision for mental health and community health. Only hospitals and community health services were above the CGC average, with mental health some 15 percentage points below the CGC average. In transport services, the State was five percentage points below the CGC average in its provision for roads, and some 30 percentage points below average in its net expenditure on urban transit. The State's wooden spoon for public safety and emergency services was due to a level of service provision that was almost 40 percentage points below the CGC average: in actual per capita terms, New South Wales spent $42.97 in this category compared to the CGC average of $61.04.
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   Interview: Civilising CapitalPeter Butler is a global investor with a difference. He believes that environment, shareholder democracy and workers rights make good business sense. Industrial: All In The Family In his opening submission to the landmark case, ACTU assistant secretary Richard Marles argues working hours are vital to life. Unions: Saving CinderellaIt is a modern day fairy tale - a Cinderella from the suburbs, worked like a slave from morning to night injured and then abandoned. International: Recognising ChinaGough Whitlam draws the links, past and present, between recognition of China and the continuing struggle to achieve a genuinely inclusive Australian democracy. History: The Speakers SquareA new book lifts the lid on Melbourne's radical past - including the soapboxes that dotted the city in the 1890s. Economics: Back to the PackThe big story in this year�s State of the States League Table is the end of the long reign of New South Wales at the top of the heap. Satire: Man Reneges On Promise To Leave The Country If Howard Re-ElectedA Sydney man has decided he won�t leave Australia despite the re-election of the Howard Government. Review: When Hippes Meet Unionists A new book investigates how links between politics and culture reached a high point in the 1970s
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