NO.043

The Treasurer today announced the States and Territories will receive more than $600

million for implementing the second tranche of National Competition Policy reform

commitments.

These payments are being made on the recommendations of the National Competition

Council, which has assessed the performance of each State and Territory against their

obligations. These payments will amount to more than $620m.

This decision follows receipt of the recommendations of the National Competition

Council, resulting from its assessment of each State and Territory’s performance

against NCP obligations.

All States and Territories will receive their full allocation of 1999-00 Payments, with

the exception of Queensland. This is in accordance with the NCC’s recommendations.

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

payments of approximately $15m of its total 1999-00 Payment allocation of $118.67m be

suspended, pending a supplementary assessment by the Council before 31 December 1999.

“This decision is based on Queensland’s inability to adequately demonstrate

its commitment to a specific water reform measure, part of an agreed package of water

reforms agreed to by all States and Territories. The supplementary assessment allows

Queensland time to demonstrate its implementation of this reform, and have the suspended

payment fully restored.

“I will make this decision following receipt of the NCC’s recommendation on

this matter”.

A decision on payments to the States and Territories for 2000-01, the final year of the

second tranche period, will be made following supplementary assessments to be conducted by

the Council covering a range of reform commitments.

The use of supplementary assessments recognises that while many jurisdictions are

genuinely committed to reform, implementation is a complex and time-consuming process.

This approach provides an incentive to continue reform rather than arbitrarily penalising

States and Territories.

I congratulate the States and Territories for maintaining their commitment to

reform— recognising the practical difficulties inherent in the process — and

urge them to push on to achieve the full range of benefits for all Australians. I also

congratulate the National Competition Council on its practical approach to reform.

27 July 1999

Further information: Niki Savva (Treasurer’s office) 02 62777340