NO.032

RELEASE OF THE PRODUCTIVITY COMMISSION REPORT INTO NATIONAL

COMPETITION POLICY

The Treasurer today announced the release of the Productivity Commission’s

final report from its inquiry into National Competition Policy (NCP) arrangements.

The Australian Government welcomes the report, which notes that the implementation

of NCP has brought substantial benefit to the Australian community, including

regional Australia, which overall have greatly outweighed the costs. It is estimated

that the observed productivity and price changes in key infrastructure sectors

(electricity, gas, urban water, telecommunications, urban transport, ports and

rail freight) in the 1990s, to which NCP and related reforms have directly contributed,

have served to increase Australia’s GDP by 2.5 per cent, or $20 billion.

The report recommends that Australia continue with competition-related reform

to sustain and extend our impressive economic performance.

As the Productivity Commission’s review was intended to inform the Council

of Australian Governments (COAG) review of NCP arrangements to occur later this

year, there will be no formal Government response to this report. The Government’s

response will instead be the outcome of the COAG review.

The COAG review provides the opportunity for the Australian, State and Territory

Governments to consider the future of competition and productivity related reform

in Australia, and decide the best arrangements to ensure our continued economic

prosperity.

The report is available on the Productivity Commission’s website: www.pc.gov.au

MELBOURNE

14 April 2005