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Wednesday, 16 June 2010
Page: 3586


Senator Cash asked the Minister representing the Treasurer, upon notice, on 3 May 2010:

For each of the financial years 2003-04, 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 to date, has the National Competition Council recommended to the Treasurer that the level of competition payments made by the Commonwealth to a state jurisdiction be reduced; if so, can the details of these recommendations be provided.


Senator Sherry (Assistant Treasurer) —The Treasurer has provided the following answer to the honourable senator’s question:

The National Competition Council recommended to the Treasurer that the Commonwealth reduce the levels of competition payments in 2003-04, 2004-05 and 2005-06. These reductions took two forms - permanent deductions and suspensions which might be released in a subsequent year.

Competition payments ended in 2005-06 and no further recommendations were made.

Details of the Council’s recommendations are as follows:

Financial year 2003-04

The Council’s recommendations arising from its 2003 NCP assessment are summarised in Table 1.

Table 1: Council’s recommendations on 2003-04 competition paymentsa

New South Wales

Chicken meat industry legislation

5% permanent deduction ($12.7m)

Regulation of liquor sales

5% permanent deduction ($12.7m)

Other outstanding legislation review items

10% suspension ($25.4m)

Victoria

General outstanding legislation review items

5% suspension ($9.4m)

Queensland

Regulation of liquor sales

5% permanent deduction ($7.3m)

Tranche 4A electricity reforms

10% suspension ($14.6m)

Full retail contestability electricity reforms

15% suspension ($21.9m)

Other outstanding legislation review items

10% suspension ($14.6m)

Western Australia

Retail trading hours regulation

10% permanent deduction ($7.5m)

Regulation of liquor sales

5% permanent deduction ($3.7m)

Regulation of potato marketing

5% permanent deduction ($3.7m)

Lack of transparency in water pricing

10% suspension ($7.5m)

Regulation of egg marketing

5% suspension ($3.7m)

Other outstanding legislation review items

20% suspension ($14.9m)

South Australia

Chicken meat industry legislation

5% permanent deduction ($2.9m)

Regulation of liquor sales

5% permanent deduction ($2.9m)

Barley marketing arrangements

5% suspension (2.9m)

Other outstanding legislation review items

15% suspension ($8.7m)

Tasmania

General outstanding legislation review items

5% suspension ($0.9m)

ACT

General outstanding legislation review items

10% suspension ($1.2m)

Northern Territory

Regulation of liquor sales

5% permanent deduction ($0.4m)

Other outstanding legislation review items

15% suspension ($1.1m)

a All dollar amounts are subject to minor revision to reflect changes in population and inflation.

Financial year 2004-05

The Council’s recommendations arising from its 2004 NCP assessment are summarised in Table 2. These recommendations also addressed release or otherwise of payments suspended in 2003-04.

Table 2: Council’s recommendations on 2004-05 competition payments and suspended 2003-04 competition paymentsb

Council’s recommendations for suspended 2003-04 payments

Council’s recommendations for 2004-05 payments

New South Wales

Water reform obligations

10% suspension ($26m)

Rice marketing legislation

5% suspension ($13m)

Chicken meat industry legislation

5% suspension ($13m)

Regulation of liquor sales

Outstanding legislation review items

Release full amount

Victoria

Pool suspension

Release full amount

Queensland

Full retail contestability gas reforms

5% suspension ($7.6m)

Regulation of liquor sales

5% permanent deduction ($7.6m)

Tranche 4A electricity reforms

Release full amount

Full retail contestability electricity reforms

Permanently deduct funds

15% suspension ($22.7m)

Outstanding legislation review items

Release full amount

Western Australia

Structural electricity reforms

15% suspension ($11.5m)

Retail trading hours regulation

10% permanent deduction ($7.7m)

Regulation of liquor sales

5% permanent deduction ($3.8m)

Regulation of potato marketing

5% permanent deduction ($3.8m)

Lack of transparency in water pricing

Release full amount

Regulation of egg marketing

Release full amount

Outstanding legislation review items

Release 5 percentage points ($3.7m) and permanently deduct 15 percentage points ($11.2m)

15% suspension ($11.5m)

Council’s recommendations for suspended 2003-04 payments

Council’s recommendations for 2004-05 payments

South Australia

Chicken meat industry legislation

Regulation of liquor sales

5% permanent deduction ($3.0m)

Barley marketing arrangements

Permanently deduct funds

5% suspension ($3.0m)

Outstanding legislation review items

Release 5 percentage points ($2.9m) and permanently deduct 10 percentage points ($5.8m)

10% suspension ($5.9m)

Tasmania

Outstanding legislation review items

Release full amount

ACT

Outstanding legislation review items

Release full amount

Northern Territory

Regulation of liquor sales

5% deduction ($0.4m)

Outstanding legislation review items

Release full amount

b All dollar estimates in the table, including those relating to 2003-04 competition payments, are subject to minor revision to reflect changes in population and inflation.

Financial year 2005-06

Following on from the 2005 NCP assessment the Council’s recommendations on 2005-06 competition payments and suspended 2004-05 payments are summarised in Table 3.

Table 3: Council’s recommendations on 2005-06 competition payments and suspended 2004-05 competition paymentsc

Council’s recommendations for suspended 2004-05 payments

Council’s recommendations for 2005-06 payments

New South Wales

Chicken meat industry legislation

Release suspended funds in full

na

Queensland

Full retail contestability electricity reforms

Release suspended funds in full

na

Full retail contestability gas reforms

Release suspended funds in full

na

Regulation of liquor sales

na

5% permanent deduction ($7.8m)

Western Australia

Structural electricity reforms

Release suspended funds in full

na

Retail trading hours regulation

na

10% permanent deduction ($7.9m)

Regulation of liquor sales

na

5% permanent deduction ($3.9m)

Regulation of potato marketing

na

5% permanent deduction ($3.9m)

Outstanding legislation review items

Release 5%; permanently deduct 10%

10% permanent deduction ($7.9m)

South Australia

Regulation of liquor sales

na

5% permanent deduction ($3m)

Barley marketing arrangements

5% permanent deduction

5% permanent deduction ($3m)

Outstanding legislation review items

Release 5%; permanently deduct 5%

5% permanent deduction ($3m)

Northern Territory

Regulation of liquor sales

na

5% permanent deduction ($0.4m)

...