Or should we reduce the significance of the states? States such as 10 per cent of the population, holding one third of the land and at least that proportion of its natural wealth. Why have states involved in labour, transport, education etc? Isnt it time to acknowledge we are left with a dated expensive, undermining legacy?

DLC Wrote: 'The market is just the sum total of all the individuals whom participate in demanding certain goods and services, the market isn't some boogy man, it's moms and dads, it's you, it's me, it's everybody. A free market is simply the greatest form of democracy and meritocracy all rolled into one'.

That's right DLC, the market is not a "boogeyman" it's a concept. And your concept of the market includes mum's (not mom's) and dad's who all seem to live together in some kind of fantastic kingdom where everybody loves one another and cares about each other's welfare. Your the first person I've heard who has the genius to explain the "free market"; you must have insight way above that of us mere mortals.

Question: If a "free market" is 'the greatest form of democracy' then please explain the Chinese situation to me? I don't see any popularly elected representatives in their political system, yet they participate at great speed, in the 'free market'.

Please don't break down human existence to the low point of just a market. All I see, day in day out, in regard to the market, is corporation after corporation telling us how great their profit margins are. To the corporations however, the profits will never be great enough to provide fair wages, fair conditions, and the 'democratic' right for people to voice their disagreements with the boss without the fear of the sack.

PS: Australians speak English - not American English

Have a nice day.

Response to Remco:

I think you are missing the point. When Australia federated, it was a result of people voting in that particular form of government, with two honest methods for the commonwealth to expand its power. The first was by referral by the states under section 51; the second by going to the people via referendum under 128.

There are those who would be happy to see the states disappear, but let's have the debate; let's vote on it.

To those who reply that the Howard govt was voted in. Yes, that is true. But, so were each of the state govts. This is one elected govt muscling in on the turf of other elected governments.

The reason Australia makes sense as a federation is not its population, but it’s geographic size. People in regional areas travel many hours to do face to face business in their state capital. What then the situation when Perth, Adelaide, Brisbane and Hobart are no longer centres of government decision-making?

The largest country without a truly federal structure is Kazakhstan; population 15 million and about the same size as Western Australia. China, which has four formal tiers of government, is not federal but probably would be if democratic. The largest democratic country with a two-tiered structure is Finland, although it does have appointed regional councils. Finland is half the size of NSW with a smaller population. New Zealand elects officials to both regional and local councils, so it is really three-tiered.

After looking through wikipedia for about an hour, it seems that Australia has a very practical and sensible governmental structure for its size and population.

I have studied this issue and I have no doubt work choices
is unconstitutional. This High Court case will really show us if these Judges are just Government puppets. If these laws are not stopped there will be riots and over time a increase in crime.

How can our Prime Minister treat`the people of this country like this, it makes me f-ing sick. I did not vote for this Government and in my experience no one ever admits they did. Any Howard or former Howard voters here?

Just clarifying, where I mentioned China, this is probably far more that what I intended to say. I should have said that there'd be little argument to dismantle a federal structure in a hypothetical democratic state equivilant to China in population and size. Let's not get sidetracked.

To David Latimer. What one layer of government for just 1.5 million people cf eg NZ with 4 million (and just one)? Fragmented education, transport, law (what's this extradition bit?)etc. State governments that vie for the share of the pie rather than on per capita basis. Where WA has one third of the country's natural wealth and just one tenth of the people. And again, what relevance is government to the subject of this article, ie. labour?

Does federalism work in Australia? Yes it does, but at a huge price. Yes low sovereign risk for investment, but what a price. State governments struggling to justify a role, a link, when in reality there is little and that little bit is created artificially. Federalism is dying and one only has to look at the recent past to see what has happened to the state powers such as in business, transport, environment and laws. The legacy of a new country - fiefdoms.