Is it the case that government knows what's best? Undoubtedly this is true some of the time, because they have access to information and expertise that isn't generally available, or even understandable, by the general population. Witness the recent financial earthquakes or consider the importance of secret military intelligence.
The government needs to be in a position to take decisions in situations where Interactive Democracy will be ineffective and only they can decide when to employ their powers. However, this "emergency" response is balanced by Parliaments inspection and by the voting rights of the general public to sack them at the next general election, or even call for resignations sooner.