Commonwealth National Competition Policy Payments to States and Territories for 2002-03

The States and Territories will receive approximately $740 million in competition payments in 2002-03, following an independent assessment of their progress in implementing National Competition Policy reform commitments by the National Competition Council (the Council).

I have decided to accept the Council's recommendation that all States and Territories receive their full allocation of payments, with the exception of Queensland.

The Council has recommended that the $270 000 reduction in Queensland's 2001-02 competition payments continue in 2002-03 for Townsville City Council's lack of progress in respect of two-part water pricing reform. I have accepted this recommendation. The Council will revisit this recommendation following the Queensland Competition Authority's consideration of the latest cost effectiveness study commissioned by Townsville City Council.

Over the remainder of 2002-03, the Council will conduct a number of supplementary assessments and consultation meetings with some jurisdictions. These processes may have implications for some States' competition payments.

Payments for 2002-03 (subject to adjustment for changes in CPI, population estimates and supplementary assessments) are as follows:

Details of the 2002 assessment will be available on the National Competition Council's website (www.ncc.gov.au).