The legal structure of resource use in Australia is not conducive to ration
al policy-making. The authority to manage resides with the states, which ha
ve enabled extensive parochial development of natural resources at the expe
nse of resource rents and environmental quality. This has been achieved wit
h administrative-type legislation, at the expense of common law adjudicatio
n. This decentralized structure is complex but has no inherent coordination
or direction to achieve any satisfactory resolution. Where the Federal Gov
ernment does not have direct legislative authority for initiatives in the n
ational interest, recent High Court decisions - particularly the Franklin D
am case - clarify that the Federal Government does possess the basis of ini
tiative for conserving the environment.