 Commonwealth of Australia 2002 ISBN 0-9581457-0-9 This work is subject to copyright. Apart from any use as permitted under the Copyright Act 1968, the work may be reproduced in whole or in part for study or training purposes, subject to the inclusion of an acknowledgement of the source. Reproduction for commercial use or sale requires prior written permission from AusInfo. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Legislative Services, AusInfo, GPO Box 1920, Canberra, ACT, 2601.

Inquiries or comments on this report should be directed to: Communications Officer National Competition Council 12 / 2 Lonsdale Street MELBOURNE VIC 3000 Ph: (03) 9285 7474 Fax: (03) 9285 7477 Email: info@ncc.gov.au

An appropriate citation for this paper is: National Competition Council 2002, Assessment of governments’ progress in implementing the National Competition Policy and related reforms, Volume two: Water reform, August 2002, AusInfo, Canberra.

The National Competition Council The National Competition Council was established on 6 November 1995 by the Competition Policy Reform Act 1995 following agreement by the Commonwealth, State and Territory governments. It is a federal statutory authority which functions as an independent advisory body for all governments on the implementation of the National Competition Policy reforms. The Council’s aim is to ‘help raise the living standards of the Australian community by ensuring that conditions for competition prevail throughout the economy which promote growth, innovation and productivity’. Information on the National Competition Council, its publications and its current work program can be found on the internet at www.ncc.gov.au or by contacting NCC Communications on (03) 9285 7474.

Table of contents

Abbreviations 1 Introduction The water industry and its impacts Implementation of the reform framework The reforms Economic outcomes Future developments 2002 NCP assessment framework Summary of assessment 1.1 1.1 1.3 1.4 1.11 1.13 1.14 1.16

2

New South Wales Consumption-based pricing Trade waste Full cost recovery – rural price paths Institutional reform Water allocations and property rights Provision for the environment Progress report issues

2.1 2.1 2.7 2.9 2.15 2.16 2.38 2.59 3.1 3.1 3.3 3.8

3

Victoria Full cost recovery: urban Full cost recovery: rural Rural dividend payments

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Community service obligations and cross-subsidies Water allocations and property rights Provision for the environment Progress report issues 4 Queensland Full cost recovery: urban water boards Consumption-based pricing Trade waste charges Provision for the environment Public consultation Progress report issues 5 Western Australia Provision for the environment Environment and water quality: Integrated catchment management Environment and water quality: National water quality management strategy Progress report issues 6 South Australia Pricing and cost recovery Consumption-based pricing New rural schemes Provision for the environment Environment and water quality: Integrated catchment management Environment and water quality: National water quality management strategy

3.11 3.14 3.24 3.43 4.1 4.1 4.3 4.6 4.9 4.12 4.33 4.36 5.1 5.1 5.3 5.5 5.12 6.1 6.1 6.5 6.9 6.14 6.21 6.23

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Public consultation Progress report issues 7 Tasmania Full cost recovery: urban Consumption-based pricing Water allocations and property rights Provision for the environment Environment and water quality: Integrated catchment management Progress report issues 8 Australian Capital Territory Full cost recovery: urban Consumption-based pricing Progress report issues 9 Northern Territory Provision for the environment Public education Progress report issues 10 Murray–Darling Basin Commission Pricing and cost recovery: rural Trade Progress report issues Appendix A: List of submissions References

6.27 6.28 7.1 7.1 7.9 7.14 7.18 7.28 7.31 8.1 8.1 8.4 8.6 9.1 9.1 9.4 9.6 10.1 10.1 10.4 10.7 A.1 R.1

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Abbreviations

ACT ACTEW ANZECC ARMCANZ BMAP CoAG CRR CSO EBIT EBITDA EPA ESC EWP EWR GDP GPOC IPART ICRC MDBC NCC NCP PAWA

Australian Capital Territory ACTEW Corporation Australian and New Zealand Environment and Conservation Council Agriculture and Resource Management Council of Australia and New Zealand Business Management Assistance Program Council of Australian Governments Committee on Regulatory Reform (CoAG) Community service obligation Earnings before interest and tax Earnings before interest, tax, depreciation and amortisation Environmental Protection Agency Essential Services Commission Environmental water provision Environmental water requirements Gross Domestic Product Government Prices Oversight Commission (Tasmania) Independent Pricing and Regulatory Tribunal Independent Pricing and Regulatory Commission (ACT) Murray–Darling Basin Commission National Competition Council National Competition Policy Power and Water Authority

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PC QCA ROR ROP SCARM TERs WRP WSAA

Productivity Commission Queensland Competition Authority Rate of return Resource Operations Plan Standing Committee on Agriculture and Resource Management Tax-equivalent regimes Water Resource Plan Water Services Association of Australia

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