Fed: NSW, Vic, WA call for fairer slice of commonwealth pie

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Fed: NSW, Vic, WA call for fairer slice of commonwealth pie

The treasurers of New South Wales, Victoria and Western Australia say the current methodof dividing Commonwealth money among the states is inefficient and unfair.

The three states -- which claim they'll miss out on $2 billion this financial year-- commissioned a review of Commonwealth and state financial relations by economists ROSSGARNAUT and VINCE FITZGERALD.

The treasurers say the report confirms their view that Australia's current system doesn'tstack up on the grounds of efficiency, equity, simplicity and transparency.

New South Wales Treasurer MICHAEL EGAN's called on the HOWARD government to considerthe report and take up the challenge of reform.

But the call's fallen on deaf ears -- Prime Minister JOHN HOWARD says he won't getinvolved in how the state's allocate the funding.

AAP RTV jph/smb/rp

KEYWORD: GRANTS (CANBERRA)