NO.078

COMMONWEALTH NATIONAL COMPETITION POLICY PAYMENTS TO STATES AND TERRITORIES

FOR 2002-03

The States and Territories will receive approximately $740 million in competition

payments in 2002-03, following an independent assessment of their progress in

implementing National Competition Policy reform commitments by the National

Competition Council (the Council).

I have decided to accept the Council’s recommendation that all States and

Territories receive their full allocation of payments, with the exception of

Queensland.

The Council has recommended that the $270 000 reduction in Queensland’s 2001-02

competition payments continue in 2002-03 for Townsville City Council’s lack

of progress in respect of two-part water pricing reform. I have accepted this

recommendation. The Council will revisit this recommendation following the Queensland

Competition Authority’s consideration of the latest cost effectiveness study

commissioned by Townsville City Council.

Over the remainder of 2002-03, the Council will conduct a number of supplementary

assessments and consultation meetings with some jurisdictions. These processes

may have implications for some States’ competition payments.

Payments for 2002-03 (subject to adjustment for changes in CPI, population

estimates and supplementary assessments) are as follows:

Details of the 2002 assessment will be available on the National

Competition Council’s website (www.ncc.gov.au).

CANBERRA

6 December 2002

Contact: David Alexander

02 6277 7340