NO.103

The Treasurer today announced the States and Territories will receive approximately

$450m in 2000-01 competition payments. This follows independent assessments of their

progress implementing National Competition Policy reform commitments by the National

Competition Council in June and September 2000.

All States and Territories will receive their full allocation of payments, with the

exception of Queensland and Northern Territory.

“In relation to Queensland, I have accepted the Council’s recommendation that

10% suspension be applied over its failure to put in place an adequate Community Service

Obligation framework to address competitive neutrality concerns arising from the operation

of Queensland Rail, and a further 5% be suspended in relation to insufficient progress

implementing of two part tariffs for urban water charges. These suspensions amount to

approximately $12.9m.”

The Northern Territory has had 5% of its payments suspended in relation to its failure

to introduce the national driver demerits point scheme.

“These amounts may, however, be restored following a positive assessment by the

Council in December 2000.”

Queensland, New South Wales and Western Australia will also face further assessment

this December, in relation to progress implementing legislation establishing a tradeable

water allocation framework.

“Water reform is a critical issue for the future, it is important the States and

Territories meet their commitments in this area.”

“Overall, this outcome reflects considerable efforts by all jurisdictions to

ensure their reform obligations are met, even where the original reform timetables may

have been ambitious”, the Treasurer said.

The Treasurer noted that a number of the competition reform areas are highly complex,

with a wide range of economic and social factors to be considered.

“All Governments, however, recognise the benefits to Australia as a whole inherent

in the National Competition Policy agenda.”

CANBERRA

3 November 2000

Contact: Niki Savva (02) 6277 7340