NO.007

The Treasurer today announced his decision to reinstate $14.83m in suspended National

Competition Policy (NCP) payments to Queensland.

This money was suspended on recommendation of the National Competition Council. The

Council had concluded as part of its June 1999 second tranche NCP assessment that

Queensland was unable to demonstrate compliance with a specific water reform commitment.

The Council has since completed a supplementary assessment, recommending that the

penalty be removed. Queensland has committed to preparing new guidelines for determining

ecological sustainability and economic viability of investments in rural water projects.

“I would like to express my recognition of Queensland’s current and proposed

efforts in implementing the COAG water resource framework.

“These efforts represent a promising step forward in what is a complex and

sensitive area of the reform program, involving both environmental and economic aspects.

I look forward to continued progress across all jurisdictions”.

The Council will be conducting a further assessment of Queensland’s progress

against a range of additional water reform commitments in June 2000. This will relate to

future NCP payments.

CANBERRA

22 February 2000