COAG fails to agree on schools

Prime Minister Julia Gillard is bracing for a showdown on education funding at the COAG meeting. Source: AAP

PRIME Minister Julia Gillard says none of the states and territories were able to sign up to the federal government's schools funding plan at a Council of Australian Governments (COAG) meeting.

State leaders met in Canberra on Friday to consider the funding arrangement announced on Sunday, as well as disability care, Australia in the Asian century, the early childhood education national partnership, gang laws and the Royal succession.

But the schools funding deal was not signed, leaving Ms Gillard to try and get agreement by her longer range deadline of June 30.

"No jurisdiction was in a position to sign on Friday," she told reporters.

"We will continue discussions."

Under its new model, Labor is offering the states $14.5 billion in schools funding from next year, with the federal government to pay 75 per cent of the total and the rest coming from state coffers.

It also wants state education budgets to increase by three per cent a year, in return for a greater 4.7 per cent lift in federal money.

Ms Gillard said the leaders did agree that Australia needed a high quality education system.

The COAG did make some progress on disability, with the ACT and South Australia signing up for the longer term implementation of the national disability insurance scheme from 2018.

As well, the Northern Territory has agreed to host a launch site covering Tennant Creek.

Leaders also discussed the principles that will guide the way the disability care system will work.

"So some principles were agreed," Ms Gillard said.

COAG chair Victorian Premier Denis Napthine said there had been "considerable discussion" about the schools funding proposal, and the importance of getting the reform right.

"Ultimately there is more work to be done, with jurisdictions to examine the financial implications for each of their jurisdictions, and there will be ongoing bilateral discussions between jurisdictions and the commonwealth on those matters," he said.

One of the main opponents of Labor's schools funding split, Western Australian Premier Colin Barnett, said he would be part of further talks with Ms Gillard on the issue.

"We will stay in the discussions," he said.

"But at the moment there is little to attract us."

Ms Gillard said she wanted to see WA schools benefiting from the extra resources and money being offered. Under the plan, WA would receive about $300 million over six years.

The leaders also discussed ways to tackle gang violence, organised crimes and illegal firearms and increase cooperation through proposed national gang laws.

"As organised crime and gangs become more and more sophisticated, it's necessary to make sure that across the country there is no place to hide and no loopholes," Ms Gillard said.

Dr Napthine said leaders had expressed a "very strong commitment" to fighting gang organised crime.

"COAG committed to further work by police ministers and attorneys-general to further develop agreed cooperative approaches to deal with criminal organisations and unexplained wealth," he said.

"There was also agreement with respect to examining issues associated with illegal firearms, and to strengthen existing firearms laws in regard to tracking of firearms and ballistics identification."

The COAG meeting also addressed the issue of the royal succession, ahead of the impending birth of a child to Prince William and the Duchess of Cambridge.

"This is Australia's part in ensuring in the future girls could become the monarch in the same way that boys can so there's no discrimination, and no discrimination against the monarch marrying a Catholic," Ms Gillard said.

All states and territories endorsed the commonwealth enacting legislation on the matter.

"Individual states can elect if they so choose to also enact their own legislation," Ms Gillard said.

This gives leeway to Queensland, which had initially objected to the commonwealth taking the lead on the issue.

"I think this provides a sensible way forward for all jurisdictions to operate under the commonwealth constitutional changes," Dr Napthine said.

Meanwhile, ACT chief Labor minister Katy Gallagher is confident her government can reach agreement with the federal government on schools funding by June 30.

South Australian Labor Premier Jay Weatherill was also hopeful a deal can be struck.

Tasmania Labor Premier Lara Giddings said her state hasn't signed up because there were final details to be worked out, although she supported the reform.

Queensland Premier Campbell Newman said state schools were his government's constitutional responsibility, not the federal government's.

"We are concerned by a number of things that are centralist in approach," he added.

Mr Barnett said he was worried about WA state schools having to report to Canberra.

Mr Newman said Queensland had put up $835 million over five years but the commonwealth was asking for the state, which has fiscal constraints, to raise $1.3 billion over six years.

"You can see there's a gap and I've got to go and work on it," he added.

NT chief minister Adam Giles said his door remained open but the current offer was not acceptable and the commitments required from the territory were "unsustainable."

"It's almost the case of death or Siberia," he said.

Dr Napthine and NSW Premier Barry O'Farrell are both keen to continue bilateral negotiations on schools.

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