CLERP (Audit Reform and Corporate Disclosure) Bill Introduced
December 4, 2003Labour Force, Alan Cadman, Tax Cuts, Labour Supply, LPG, Ethanol – Doorstop Interview, Senate Alcove, Parliament House
December 11, 2003NO.107
NATIONAL COMPETITION POLICY PAYMENTS TO STATES AND TERRITORIES FOR 2003-04
The Treasurer today announced that the Australian Government will make competition
payments to the States and Territories of more than $578 million in 2003-04.
The payments follow an independent assessment by the National Competition Council
of progress by the States and Territories in implementing National Competition
Policy (NCP) reform commitments.
The estimated maximum level of competition payments in 2003-04 is $759 million.
The National Competition Council (NCC) recommended $53.9 million in the
form of permanent deductions and $126.9 million in suspensions.
The National Competition Council has indicated that it will recommend that
specific suspensions be lifted and reimbursed if and when jurisdictions sufficiently
progress reform. Similarly, with respect to pool suspensions, the Council will
reassess these penalties in subsequent assessments and, where satisfactory progress
is made, may recommend that the suspension be lifted or reduced and the suspended
amounts reimbursed.
When NCP agreements were adopted by all the Australian, State and Territory
governments in 1995, legislation reviews and associated reforms were to have
been completed by 2000. In November 2000, the Council of Australian Governments
agreed to extend the deadline for these reviews to June 2002. Subsequently,
governments were provided a further year in which to finalise their reviews
and responses. This year’s recommendations by the NCC recognise the length of
time that jurisdictions have had to undertake NCP reform commitments entered
into in 1995.
NCP does not require governments to repeal all restrictions on competition
or to deregulate or privatise industries. It requires governments to undertake
transparent and rigorous reviews of legislation that restrict competition and
to reform those competitive restrictions, except where it would be contrary
to the public interest to do so.
The public interest test means that restrictions on competition that are of
net benefit to the community as a whole can be maintained, unless that net benefit
can be achieved in other, less anti-competitive, ways.
Payments and penalties for 2003-04 (subject to adjustment for changes in CPI,
population estimates and supplementary assessments) are:
NSW |
VIC |
QLD |
WA |
SA |
TAS |
ACT |
NT |
|
Maximum Available Payments |
$254.4m |
$188.1m |
$146m |
$74.6m |
$58.1m |
$18.1m |
$12.2m |
$7.4m |
Permanent Deductions |
$25.4m |
– |
$7.3m |
$14.9m |
$5.8m |
– |
– |
$0.4m |
Suspensions |
$25.4m |
$9.4m |
$51.1m |
$26.1m |
$11.6m |
$0.9m |
$1.2m |
$1.1m |
Actual Payments |
$203.5m |
$178.7m |
$87.9m |
$33.6m |
$40.7m |
$17.2m |
$11.0m |
$5.9m |
In early 2004 the Council will conduct supplementary assessments of New South
Wales’ and Victoria’s progress with implementing water reform. These processes
may have implications for these States’ competition payments.
Details of the 2003 assessment will be available on the National Competition
Council’s website (www.ncc.gov.au).
These competition payments are entirely separate from GST revenue and Budget
Balancing Assistance paid to the States. A separate release on these payments
has been issued today showing payments to the States exceeding the guaranteed
amount by $575 million in 2003-04.
CANBERRA
8 December 2003
Contact: David Alexander
02 6277 7340