27 October 2004

Release of Draft Inquiry Report into National Competition Policy Arrangements

The Treasurer, Peter Costello, today announced the release of the Productivity Commission’s Discussion Draft on National Competition Policy (NCP) Arrangements.

In April this year the Treasurer tasked the Productivity Commission with assessing the impacts of NCP arrangements to date and identify future competition-related reform priorities. The inquiry is intended to provide an independent input to the Council of Australian Governments review of NCP, scheduled to complete in September 2005.

The Discussion Draft indicates numerous areas where national coordination of reform would offer a high pay-off to the community compared with jurisdictions acting independently. The draft suggests that areas such as healthcare and natural resource management would benefit substantially from a nationally coordinated reform program and urges the all governments to both recommit to the National Water Initiative and expedite the Energy Market Reform Program.

The Productivity Commission is releasing its Discussion Draft to facilitate further public comment and input before finalising its report for Government. The Commission will be holding public hearings from 30 November to 16 December 2004 with written submissions due by 17 December 2004.

I would like to thank those people who have taken the time to make submissions to the inquiry. I encourage all interested parties, including state and local governments, to provide comment on the draft findings and to participate in the inquiry’s public hearings.

The Government looks forward to the outcomes of these public processes and the resulting final report. The Government will consider the final recommendations and will respond to the report in full, following receipt of the final report in early 2005.