N EW SOUTH WALES GOVERN MEN T Report to the National Competition Council on the Application of National Competition Policy in New South Wales March 2003 Table of Contents 1. IN TROD UCTION ....................................................................................................................................... 1 1.1 1.2 1.3 2. O VERVIEW ................................................................................................................................................ 1 2003 N CP A SSESSMEN T ........................................................................................................................... 2 STRUCTURE OF TH IS REPORT .................................................................................................................... 2 EN ERGY ........................................................................................................................................................ 3 2.1 ELECTRICITY ............................................................................................................................................. 3 2.1.1 Derogations from the N ational Electricity Cod e ........................................................................ 3 2.1.2 Electricity Tariff Equ alisation Fund ............................................................................................. 3 2.1.3 N ational Transm ission Grid Interconnection ............................................................................. 3 2.1.4 N ational Electricity Market Institu tional Arrangem ents .......................................................... 3 2.2 G AS ........................................................................................................................................................... 4 2.3 P ETROLEUM .............................................................................................................................................. 4 3. PRIMARY IN D USTRIES ........................................................................................................................... 5 3.1 A GRICULTURE .......................................................................................................................................... 5 3.1.1 Grains ............................................................................................................................................... 5 3.1.2 Pou ltry Meat ................................................................................................................................... 5 3.1.3 Rice ................................................................................................................................................... 7 3.1.4 Agricu ltu ral and Veterinary Chem icals ...................................................................................... 8 3.1.5 Farm Debt Med iation ..................................................................................................................... 9 3.1.6 Stock Med icines .............................................................................................................................. 9 3.1.7 Food Regu lation ............................................................................................................................. 9 3.1.8 Veterinary Su rgeons .................................................................................................................... 10 3.2 FISH ERIES ................................................................................................................................................ 11 3.3 M IN IN G ................................................................................................................................................... 12 4. TRAN SPORT ............................................................................................................................................. 14 4.1 4.2 4.3 4.4 4.5 TAXIS AN D H IRE C ARS ........................................................................................................................... 14 TOW TRUCKS .......................................................................................................................................... 14 D AN GEROUS G OODS .............................................................................................................................. 14 M ARIN E SAFETY ..................................................................................................................................... 15 P ORTS AN D SH IPPIN G ............................................................................................................................. 15 5. HEALTH AN D PHARMACEUTICAL SERVICES ............................................................................. 16 5.1 5.2 5.3 5.4 5.5 N URSES ................................................................................................................................................... 16 P ODIATRISTS ........................................................................................................................................... 16 P H ARMACY ............................................................................................................................................. 16 D EN TISTS AN D O PTOMETRISTS .............................................................................................................. 17 D RUGS, P OISON S AN D C ON TROLLED SUBSTAN CES .............................................................................. 18 6. LEGAL AN D OTHER PROFESSION AL AN D OCCUPATION AL LICEN SIN G ......................... 19 6.1 LEGAL P ROFESSION ................................................................................................................................ 19 6.1.1 N CP review recom m end ations .................................................................................................. 19 6.1.2 Ad vertising of Personal Inju ry Services .................................................................................... 20 6.1.3 Legal Professional Ind em nity Insu rance ................................................................................... 21 6.2 W OOL, H IDE AN D SKIN D EALERS ......................................................................................................... 22 6.3 EMPLOYMEN T A GEN TS .......................................................................................................................... 23 6.4 C ON VEYAN CERS ..................................................................................................................................... 23 6.5 BOXIN G AN D W RESTLIN G ...................................................................................................................... 23 6.6 EN TERTAIN MEN T IN DUSTRY .................................................................................................................. 24 6.7 H AIRDRESSERS ........................................................................................................................................ 24 6.8 C OMMERCIAL A GEN TS AN D P RIVATE IN QUIRY A GEN TS ..................................................................... 25 6.9 D RIVIN G IN STRUCTORS .......................................................................................................................... 25 i N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 6.10 7. 8. 9. 10. 10.1 10.2 10.3 10.4 10.5 10.6 11. 11.1 11.2 11.3 12. 12.1 12.2 13. P AWN BROKERS AN D SECON D -H AN D D EALERS ............................................................................... 26 WORKERS COMPEN SATION .............................................................................................................. 27 RETAIL TRAD IN G ARRAN GEMEN TS (LIQUOR LICEN SIN G) .................................................. 28 FAIR TRAD IN G AN D CON SUMER PROTECTION LEGISLATION ........................................... 29 SOCIAL REGULATION (GAMBLIN G) ......................................................................................... 30 LOTTERIES .......................................................................................................................................... 30 C ASIN O .............................................................................................................................................. 30 G AMIN G M ACH IN ES.......................................................................................................................... 31 M IN OR AN D OTH ER G AMBLIN G ........................................................................................................ 32 TAB IN VESTMEN T LICEN CE .............................................................................................................. 33 RACIN G AN D BETTIN G ...................................................................................................................... 35 PLAN N IN G, CON STRUCTION AN D D EVELOPMEN T........................................................... 36 A RCH ITECTS....................................................................................................................................... 36 SURVEYORS ........................................................................................................................................ 36 VALUERS ............................................................................................................................................ 36 COMPETITIVE N EUTRALITY ........................................................................................................ 38 C OMPETITIVE N EUTRALITY C OMPLAIN TS ........................................................................................ 38 2000-01 RATES OF RETURN FOR G OVERN MEN T BUSIN ESSES ........................................................... 38 STRUCTURAL REFORM OF MON OPOLIES .............................................................................. 40 ATTACHMEN TS ATTACH MEN T 1: UPDATE ON PLAN N IN G AN D LAN D USE.………………………………...…...41 ATTACH MEN T 2: SIGN IFICAN T N ew Sou th Wales GEN ERAL GOVERN MEN T SECTOR AGEN CIES REQUIRED TO IMPLEMEN T PRICIN G PRIN CIPLES……………..……………………..52 ATTACH MEN T 3: NEW SOUTH WALES GOVERN MEN T BUSIN ESS EN TERPRISES TH AT H AVE OR ARE IN TEN DED TO BE CORPORATISED OR PRIVATISED……………………………………...55 N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 ii 1. 1.1 Introduction Overview N ew Sou th Wales has im p lem ented su bstantial reform s to im p rove the efficiency and effectiveness of ind u stry regu lation and create com p etitive m arkets for p u blic sector good s u nd er the 1995 intergovernm ental agreem ents for com p etition p olicy reform . N ew Sou th Wales is a lead ing state in N CP energy m arket reform and has m et its stru ctu ral reform obligations against Clau se 4 of the Com p etition Princip les Agreem ent (CPA). The Governm ent has introd u ced fu ll retail contestability in the electricity and gas m arkets, w ith over 306,000 sm all cu stom ers op ting to enter into negotiated contracts as at the end of Febru ary 2003. N ew Sou th Wales is p articip ating in fu rther d evelop m ent of the national electricity m arket and institu tional arrangem ents. The Governm ent has com p leted all agreed road transp ort reform s, as end orsed by the Cou ncil of Au stralian Governm ents (COAG). N ew Sou th Wales has m ad e su bstantial p rogress in fu lfilling its obligations u nd er the 1994 COAG Strategic W ater Reform Framework. Achievem ents inclu d e ind ep end ent p rice regu lation for the bu lk of w ater u se in N ew Sou th Wales, w id esp read ad op tion of cost reflective w ater p ricing and , throu gh the W ater M anagement A ct 2000, new w ater sharing arrangem ents w hich give clear p riority to the environm ent and establish clear w ater access rights and w ater trad ing ru les. Water reform is an area that w ill continu e to be m onitored by the N ational Com p etition Cou ncil for all ju risd ictions after the 2003 assessm ent p eriod . N ew Sou th Wales has also introd u ced m ajor stru ctu ral changes to the regu lation and m anagem ent of governm ent bu sinesses. N ew Sou th Wales has u nd ertaken system atic reform of p u blic m onop olies and p rovid ed third p arty access to services p rovid ed by significant infrastru ctu re facilities. All m ajor bu sinesses w ith m onop oly characteristics are su bject to ind ep end ent p rice oversight by the Ind ep end ent Pricing and Regu latory Tribu nal. All governm ent bu sinesses op erate w ith in a com p rehensive com m ercial p olicy fram ew ork. The Governm ent is com ing to the end of an extensive p rogram of legislation review and reform . The Governm ent has also established a regu latory environm ent that p rom otes system atic and transp arent assessm ent of the costs and benefits of all p rop osed governm ent regu lation s. Legislation review and reform activity form s the bu lk of p riority rep orting areas id entified by the N CC for the final 2003 Assessm ent. N ew Sou th Wales notes that a nu m ber of N CP review s have served as a vehicle for broad er regu latory im p rovem ents in governance and p olicy, resu lting in better overall fram ew orks for achievem ent of the Governm ent‟s p olicy objectives. The N ew Sou th Wales Governm ent rem ains com m itted to com p leting review and , w here ap p rop riate, reform activity. In view of N ew Sou th Wales‟ com m itm ent to national com p etition p olicy and its consid erable achievem ents since 1995, the rem aining few incom p lete m atters at the tim e of rep orting are consid ered of relatively m inor im p ortance for the 2003 assessm ent. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 1 1.2 2003 N CP Assessment This rep ort to the N CC is su bm itted in accord ance w ith the Governm ent‟s rep orting obligations in the N CP Agreem ents. The rep ort ou tlines the Governm ent‟s p rogress in im p lem enting N CP obligations for the p eriod 31 March 2002 to 31 March 2003 in rem aining p riority areas id entified by the N CC. The rep ort also forecasts legislation review and reform activity to 30 Ju ne 2003. Sep arate arrangem ents have been agreed to rep ort on the im p lem entation of w ater reform obligations. This rep ort shou ld be read in conju nction w ith the Governm ent‟s six p reviou s Annu al Rep orts to the N CC covering the calend ar years 1996, 1997, 1998, 1999, 2000 and last year‟s rep ort covering 1 Janu ary 2001 to 30 March 2002. Inqu iries abou t this rep ort m ay be d irected to the Inter -Governm ental and Regu latory Reform Branch, The Cabinet Office, telep hone (02) 9228 5414. 1.3 Structure of this Report This rep ort contains sep arate chap ters ad d ressing ou tstand ing N CP obligations (Chap ters 2 to 12) in p riority areas id entified by the N CC. These p riority areas are: Energy; Prim ary Ind u stries; Transp ort; H ealth and Pharm aceu tical Services; Legal and other Professions and Occu p ations; Workers Com p ensation Insu rance; Retail Trad ing Arrangem ents (Liqu or licensing); Fair Trad ing and Consu m er Protection Legislation; Social Regu lation (Gam bling); Planning, Constru ction and Develop m ent Services; and Com p etitive N eu trality Chap ter 13 of the rep ort p rovid es an overview of d evelop m ents in relation to the stru ctu ral reform of m onop olies. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 2 2. Energy The energy p riority issu es id entified for the 2003 N CP assessm ent relate p rim arily to the fu rther d evelop m ent of the N ational Electricity Market (N EM). It is noted that a nu m ber of N EM p olicy issu es are cu rrently being consid ered by the N EM Ministers‟ Foru m and the Parer Review u nd er the au sp ices of COAG. Resp onses to any reform p rop osals arising from these review s w ill be p u rsu ed throu gh COAG. 2.1 2.1.1 Electricity D erogations from the N ational Electricity Code For the 2003 assessm ent, the N CC has requ ested confirm ation that all N ew Sou th Wales d erogations to the N ational Electricity Cod e have exp ired . As p er Chap ter s 8 and 9 the Derogations (Chap ter 8) section of the N ational Electricity Cod e, all d erogations that are not in the natu re of ongoing technical or p roced u ral d erogations requ ired u nd er the Cod e have exp ired , or are d u e to exp ire by 31 Decem ber 2004. In the N CC‟s 2002 Assessm ent Rep ort, the N CC accep ted the need for, and ap p rop riateness of, the d erogations, w hich relate to the im p lem entation of fu ll retail contestability . One of the d erogations d u e to exp ire in 2004 relates to m etering m atters. N ew Sou th Wales is cu rrently p rep aring a d iscu ssion p ap er seeking ind u stry view s and feed back on how to p rogress these m atters once the relevant d erogation ceases. 2.1.2 Electricity Tariff Equalisation Fund The Electricity Tariff Equ alisation Fu nd is a transitional arrangem ent that is d u e to exp ire in Ju ly 2004. Before that tim e, N ew Sou th Wales w ill exam ine the continu ed need for su ch an arrangem ent in light of retail m arket d evelop m ents. 2.1.3 N ational Transmission Grid Interconnection N ew Sou th Wales has been an active ad vocate of the need for transm ission reform in ord er to im p rove interconnection of electricity grid s. N ew Sou th Wales has consistently su p p orted greater levels of interconnection as evid enced by its su p p ort for the Sou th Au stralia- N ew Sou th Wales Interconnector. N ew Sou th Wales, as Chair of the N EM Ministers‟ Foru m , is lead ing w ork that exam ines fu nd am ental p olicy issu es associated w ith the cu rrent fram ew ork for p lanning and d evelop m ent of the transm ission system . 2.1.4 N ational Electricity Market Institutional Arrangements The N CC noted in its 2001 N CP Assessm ent that the ju risd ictions are u ltim ately resp onsible for N ECA and N EMMCO and that exp erience su ggests there m ay be som e w eaknesses to the institu tional fram ew ork to w hich these institu tions belong. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 3 N ew Sou th Wales has acknow led ged these concerns by, in p artnership w ith other ju risd ictions, com m issioning the COAG Energy Review . The recom m end ations of this review w ill be consid ered by the Ministerial Cou ncil on Energy and COAG in 2003. N EM Ministers have also agreed , throu gh the N EM Ministers Foru m , to for m alise their p olicy oversight role throu gh the d evelop m ent of am end m ents to the N ational Electricity Law . 2.2 Gas N ew Sou th Wales ad op ted the d raft gas qu ality stand ard sp ecifications in the Gas Supply (General) Regulation 1997 in 2001, and transferred the sp ecifications to the Gas Supply (N etwork Safety M anagement) Regulation 2002 in Sep tem ber 2002. The new Au stralian Stand ard for general p u rp ose natu ral gas, p u blished on 24 Janu ary 2003, is id entical to the gas sp ecifications contained in the N ew Sou th Wales Regu lation. It is intend ed that the N ew Sou th Wales Regu lation w ill be am end ed to reference the Au stralian Stand ard later this year. 2.3 Petroleum For the 2003 Assessm ent, the N CC has sou ght a rep ort on p rogress in im p lem enting am end m ents to the Petroleum (Submerged Lands) A ct 1982 arising ou t of the national review of legislation governing offshore p etroleu m d evelop m ent. As ad vised to the N CC in 2002, given the need for N ew Sou th Wales to m irror Com m onw ealth legislation, the Governm ent w ill am end the N ew Sou th Wales Act follow ing the com p letion of requ ired am end m ents by the Com m onw ealth. Tw o of the three reform s recom m end ed by the Review w ere im p lem ented u nd er the Com m onw ealth‟s Petroleum (Submerged Lands) A mendment A ct 2002. The third involves a fu ll rew rite of the Com m onw ealth Petroleum (Submerged Lands) A ct 1967. This rew rite is u nd erw ay and a new bill is exp ected to be introd u ced into Com m onw ealth Parliam ent in 2003. N ew Sou th Wales w ill be m onitoring d evelop m ents closely. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 4 3. 3.1 Primary Industries Agriculture 3.1.1 Grains The final rep ort of the review of the Grain M arketing A ct 1991 (the Act) w as com p leted in Ju ly 1999. The N ew Sou th Wales Annu al Rep ort to the N CC for the year end ed Decem ber 2000 exp lained the d ifferences betw een the review ‟s recom m end atio ns and the Governm ent‟s d ecision in relation to the reform of regu lated m arketing of grains in N ew Sou th Wales follow ing the collap se of the Grains Board in 2000. In essence, the Governm ent p rovid ed for a staged rem oval of restrictions on the m arketing of grains, w ith the im m ed iate rem oval of restrictions on the sales of all com m od ities other than d om estic sales of m alting barley and exp ort sales of all barley, canola and grain sorghu m . The Grains Board w ill retain vesting p ow ers over these grains and oilseed s u ntil a legislated su nset d ate of 30 Sep tem ber 2005. The Board w ill then be w ou nd u p and d issolved . The Grain M arketing A mendment A ct 2001, assented to on 14 Decem ber 2001, gave effect to this arrangem ent. The above arrangem ents are su p p orted by a p erform ance agreem ent for the Grains Board ‟s agent, Grainco Au stralia, and an ind ep end ent m onitoring regim e over Grainco‟s p rices. In the p articu lar circu m stances of the Grains Board ‟s insolvency, this p resents a firm and ap p rop riate transition p lan to achieve reform ou tcom es by 2005 that are consistent w ith N CP p rincip les. As requ ested by the N CC, N ew Sou th Wales exam ined op tions to bring forw ard the Sep tem ber 2005 d ead line for rem oval of rem aining restrictions. This has been fou nd not to be p ossible given that the regu lation u nd erp inning rem aining m arketing m onop oly rights is the su bject of a cou rt-ord ered Schem e of Arrangem ent and bind ing Deed s of Agreem ent betw een Grainco Au stralia, the Ad m inistrator of the Grains Board and the N ew Sou th Wales Governm ent. 3.1.2 Poultry Meat The Poultry M eat Industry A ct 1986 w as first review ed in 1999 bu t d id not achieve consensu s am ongst the review p articip ants. Follow ing the review fu rther w ork w as cond u cted in 2001 to assess the p u blic benefit of the Act. It w as fou nd that the benefits from d eregu lating negotiating arrangem ents betw een p ou ltry grow ers and p rocessors w ou ld be insignificant to consu m ers. By contrast, the losses to ind ivid u al grow ers from d eregu lation w ou ld be su bstantial. The N ew Sou th Wales Governm ent annou nced in N ovem ber 2001 that it w ou ld not d eregu late the p ou ltry m eat ind u stry. In October 2002, the Poultry M eat Industry A mendment (Price Determination) A ct 2002 (the Act) w as p roclaim ed , au thorising contract grow ing agreem ents entered into by p ou ltry m eat grow ers and p rocessors for the p u rp oses of the Act. These agreem ents are therefore p rotected from legal challenge u nd er the Com m onw ealth Trade Practices A ct 1974. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 5 The retention of regu latory arrangem ents w as based on the need to p rovid e grow ers w ith a level of cou ntervailing m arket p ow er relative to p rocessors. The stru ctu re of the contract grow ing system is su ch that p rocessors, rather than grow ers, control the su p p ly of bird s and have a high d egree of control over the grow ing p rocess. Grow ers m u st nonetheless u nd ertake su bstantial investm ent in cap ital that is highly sp ecialized (has no alternative u ses), is non-p ortable and of w hich a consid erable am ou nt is sp ecific to su p p lying a p articu lar p rocessor. These characteristics m ake it m ore costly for grow ers to exit the ind u stry, form ing a barrier to achieving a contestable m arket, and therefore com p etitive ou tcom es, in p ractice. For exam p le, to recou p their investm ent, grow ers are often locked into w orking for one p rocessor for the life of the investm ent, w hich m ay sp an the term s of several contract p eriod s. As grow ers d o not ow n the chickens or have control over m any of the inp u ts in the grow ing p rocess, they have little ability to negotiate to su p p ly other p rocessors after entering into a contract w ith one p rocessor. Processors generally have m ore op tions to exit both from their relationship s w ith a contract grow er and the ind u stry, as they are large corp orate entities w ith significant financial cap acity and the ability to sou rce p rod u ct from a nu m ber of grow ers. The ACCC has p reviou sly recognised that there is a p u blic benefit in im p roving grow ers‟ bargaining p ositions and that the natu re of the p ou ltry m eat ind u stry lim its the extent of anti-com p etitive d etrim ent that m ay norm ally arise from collective negotiations betw een a grou p of grow ers and a p rocessor. In March 2002, the ACCC issu ed a d raft d eterm ination p rop osing to allow collective negotiations in N ew Sou th Wales betw een ind ivid u al p rocessors and their contracted grow ers for the p u rp ose of negotiating stand ard contracts, inclu d ing the agreem ent of a com m on grow ing fee. The d raft au thorisation covered all cu rrent and fu tu re p ou ltry grow ers contracted to p rocessors for a p eriod of five years. While the d raft au thorisation w as w ithd raw n follow ing the N ew Sou th Wales Governm ent‟s d ecision to retain its existing regu lation, sim ilar au thorisations have been issu ed by the ACCC in Sou th Au stralia and Victoria, w hich have com p arable ind u stry stru ctu res, on the basis of net p u blic benefit. The Governm ent consid ers that the stand ard grow ing contracts ap p roved u nd er the d raft au thorisation w ou ld not have op erated to resu lt in su bstantially d ifferent ou tcom es to those u nd er the cu rrent N ew Sou th Wales regu latory arrangem ents. The featu res of the m arket noted by the ACCC as lim iting anti-com p etitive d etrim ent u nd er collective negotiation arrangem ents exist u nd er the regu latory arrangem ents in N ew Sou th Wales. For exam p le, the ap p lication for au thorisation sou ght to ap p rove p rocessor–sp ecific collective bargaining grou p s, w hich w ou ld , in a contestable m arket, have lessened the scop e for grow ers to sw itch from one p rocessor to another. This w as consid ered by the ACCC to have lim ited im p act as the natu re of the contract grow ing system lim its the scop e for com p etition betw een grow ers to service d ifferen t p rocessors in any event. The ACCC has also noted that the high level of com p etition in d ow nstream retail m arkets is likely to lim it any p rice im p act, p articu larly as the grow ing fee only com p rises a sm all com p onent of the retail p rice. The cu rrent regu latory arrangem ents in N ew Sou th Wales d o not resu lt in the setting of a single statew id e grow ing fee and d o not p reclu d e fee variations. The base rates set by N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 6 the Pou ltry Meat Ind u stry Com m ittee (PMIC) in Janu ary 2003 listed nine d ifferent p rices, reflecting the p robable nu m ber of grow ing fee rates that w ou ld have existed u nd er the p rop osed au thorisation. The PMIC has also introd u ced increased levels of negotiation betw een p rocessors and their resp ective grow ers. The PMIC is cu rrently introd u cing variou s new initiatives to ensu re that any efficiency costs arising from its role in au thorising agreem ents betw een p ou ltry m eat grow ers and p rocessors are m inim ised . For exam p le, in relation to grow er fees, the PMIC takes into accou nt variations in p rod u ction costs su ch as d ifferences betw een regions, d ifferences betw een tu nnel and conventionally ventilated shed s and variations in hou sing. A safegu ard w ithin the legislation w ith resp ect to efficiency costs is that if p rocessors are d issatisfied w ith their negotiated agreem ents they are free to invest in their ow n grow ing facilities. At this tim e relatively few p rocessors have p u rsu ed this op tion. The m ost significant stated „ad vantage‟ of au th orised collective bargaining over N ew Sou th Wales‟ existing arrangem ents is that of assisting transition to d e-regu lation. It is not clear how ever w hy collective negotiations, if they had been au thorised in N ew Sou th Wales, w ou ld not be necessary after five years. The ACCC‟s Janu ary 2003 d ecision to renew its initial five-year au thorisation for collective negotiation arrangem ents in Sou th Au stralia for a fu rther five years ind icates that the stru ctu re of the p ou ltry ind u stry has not significantly changed and that there is a net p u blic benefit in retaining the arrangem ents. It is noted that the Sou th Au stralian Governm ent has introd u ced legislation to re-regu late the ind u stry (the Chicken Meat Ind u stry Bill 2002). The retention of regu lations in N ew Sou th Wales w ill fu rther facilitate ord erly ind u stry ad ju stm ent over the p eriod to Ju ne 2004, w hen grow er contracts are sched u led to exp ire and a p rocess of re-stru ctu ring takes p lace. This p rocess p resents a m ajor ad ju stm ent challenge to the N ew Sou th Wales ind u stry. 3.1.3 Rice The 1995 review of the Rice Marketing Board , w hich is established u nd er the M arketing of Primary Products A ct 1983, fou nd that cu rrent rice m arketing arrangem ents p rovid e a su bstantial net p u blic benefit, w ith the m arket p rice p rem iu m s from rice exp orts consid erably ou tw eighing som e efficiency costs to the d om estic m arket. N ew Sou th Wales nonetheless gave in -p rincip le su p p ort in Ap ril 1999 to the p ossible introd u ction of a Com m onw ealth single d esk for rice exp orts and consequ ent d eregu lation of state-based rice m arketing arrangem ents, as a m eans to red u ce the sm all d om estic level costs. This w as su bject to the follow ing cond itions: the m od el for im p lem entation being feasible and p ractical, and not p u tting exp ort p rem iu m s at risk; ind u stry view s being taken into accou nt on the need for a transition p eriod p rior to the com m encem ent of the arrangem ents and the length of any initial exclu sive licence p eriod for the Ricegrow ers‟ Coop erative Lim ited ; and all other States being in agreem ent w ith the m od el. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 7 Since that tim e, the Com m onw ealth has consu lted other States and Territories on the p rop osal for introd u ction of national single d esk rice exp ort arrangem ents. N ew Sou th Wales has w ritten to the Com m onw ealth seeking ad vice on the ou tcom e of the consu ltation and the Com m onw ealth‟s p rop osed p osition. N ew Sou th Wales believes that d eregu lation of d om estic rice m arketing arrangem ents shou ld not take p lace w ithou t the concu rrent introd u ction of viable and jointly agreed alternative arrangem ents. 3.1.4 Agricultural and Veterinary Chemicals The A gricultural & V eterinary Chemicals (N ew South W ales) A ct 1994 (the Act) gives effect in N ew Sou th Wales to Com m onw ealth legislation establishing a n ational registration schem e for agricu ltu ral and veterinary chem icals. The Act w as p art of a national review and ou tstand ing N CP issu es are being ad d ressed on a national basis rather than by any ju risd iction ind ivid u ally in accord ance w ith the strategy for review and reform agreed by governm ents in 2000. N ew Sou th Wales is fu lfilling its obligations as a p arty to this national ap p roach, as ou tlined below Licensing of agricu ltu ral chem ical m anu factu rers The w orking grou p of signatories to the national registration schem e has com p leted a review of m anu factu rer licen sing p rovisions. The review rep ort is to be su bm itted to the Prim ary Ind u stries Stand ing Com m ittee, w hich rep orts to the Prim ary Ind u stries Ministerial Cou ncil, for end orsem ent shortly. Regu lation of low -risk chem icals Governm ents have d evelop ed a fram ew ork for the assessm ent and registration of low -risk chem icals. The Agricu ltu ral and Veterinary Chem icals Legislation Am end m ent Bill 2002 (Cth) contains p rop osed am end m ents to im p lem ent this fram ew ork. The Bill w as p assed in the H ou se of Rep resentatives in Febru ary 2003 and is cu rrently in the Senate. Contestability of chem ical assessm ent services The signatories w orking grou p has d evelop ed p rop osals for increasing the contestability of chem ical assessm ent services. In Sep tem ber 2002 the Prim ary Ind u stries Stand ing Com m ittee end orsed the N ational Registration Au thority p u rsu ing these p rop osals ad m inistratively in consu ltation w ith Agricu ltu re Fisheries Forestry Au stralia. Third p arty access to chem ical assessm ent d ata The Fed eral Governm ent is cu rrently p rep aring am end m en ts to the Agvet Cod e to p u t in p lace a p olicy fram ew ork for d ata p rotection, after a p eriod of extensive con su ltation w ith ind u stry stakehold ers. The N CC has also requ ested the p u blic interest case for the d ecision to retain, as p art of the registration p rocess, a requ irem ent that the su p p lier‟s claim to a p rod u ct‟s efficacy be evalu ated in resp ect of „ap p rop riateness‟, as w ell as „tru thfu lness‟. This d ecision, as d etailed in the intergovernm ental resp onse to the N CP rep ort, w as taken by governm ents based on an evalu ation of the risks to p u blic health, risks to occu p ational health and safety, and ad verse im p acts on the environm ent. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 8 3.1.5 Farm D ebt Mediation The Farm Debt M ediation A ct 1994 p rohibits lend ers from enforcing their contractu al rights to recover farm d ebt before offering the farm er access to a statu tory m ed iation p rocess. The review of the Act w as p u blic and com p rised rep resentatives of the N ew Sou th Wales Farm ers‟ Association, the Au stralian Bankers‟ Association, the N ew England Ru ral Cou nseling Service, the N ew Sou th Wales Ru ral Assistance Au thority, N ew Sou th Wales Agricu ltu re and The Cabinet Office. It w as com p leted in Decem ber 2000. The review fou nd that the objective of the schem e w as to ad d ress the p otential for th e ru ral cred it m arket to fail to d eliver efficient and equ itable resolu tion of farm d ebt d isp u tes. Sp ecifically, “the inherent inflexibility of cou rts and their „all or nothing‟ resolu tions has the strong p otential to lead to inefficient ou tcom es”. It a lso fou nd that the “im balance of p ow er betw een farm ers and cred itors im p ed es p articip ation in , and the effectiveness of, both volu ntary d isp u te resolu tion m easu res and litigation.” The review recom m end ed the retention of m and atory requ irem ents for m ed iation on farm d ebt. An assessm ent of the costs and benefits of m and atory m ed iation resu lted in a net benefit to the com m u nity as the p rocess w as m ore cost effective for both p arties than alternative d isp u te resolu tion op tions. Su bm issions to the review from both the ru ral and finance sectors end orsed this view . A stu d y of alternative schem es op erating in other states show ed m u ch low er u tilisation com p ared w ith N ew Sou th Wales, illu strating the lack of effectiveness of volu ntary schem es in this area. The review also recom m end ed the introd u ction of p rovisions to strengthen the legislation, inclu d ing ad m inistrative tribu nal review of certain d ecisions of the N ew Sou th Wales Ru ral Assistance Au thority, w hich p rovid es for increased accou ntability. The Governm ent end orsed the review ‟s recom m end ations in N ovem ber 2001. The Farm Debt M ediation A mendment A ct 2002 w as p assed by the N ew Sou th Wales Parliam ent in October 2002, im p lem enting review recom m end ations. 3.1.6 Stock Medicines The N CC has requ ested a rep ort on p rogress w ith review and reform of ad vertising restrictions contained in the Stock M edicines A ct 1989. The Governm ent is cu rrently consid ering a p rop osal to am algam ate chem ical resid u es legislation inclu d ing the Stock M edicines A ct 1989. The p rop osed revised legislation w ou ld contain no p rovision for ad vertising restrictions and the effect of this new legislation w ou ld be to rem ove the cu rrent ad vertising restrictions in the Act. It is anticip ated that am end m ents w ill be introd u ced in 2003. 3.1.7 Food Regulation The Governm ent introd u ced the Food Bill 2002 (the Bill) into the N ew Sou th Wales Parliam ent on 17 Sep tem ber 2002. The Bill w ill be re-introd u ced w hen Parliam ent resu m es in 2003. The Bill contains all core p rovisions of the Mod el Food Bill, w hich relate p rim arily to food hand ling offences and the ap p lication in N ew Sou th Wales of the Food Stand ard s Cod e. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 9 The Food Bill also sets ou t p rovisions allow ing the taking and analysis of food sam p les to ensu re that food for sale is safe and su itable for hu m an consu m p tion. To this end , laboratories, analysts and food safety au d itors m ay be ap p roved for the p u rp oses of carrying ou t analyses. A non-ap p roved p erson w ill not be p rohibited from carrying ou t those activities how ever their resu lts w ill not be recognised for the p u rp oses of the p rop osed Act. The objective of these p rovisions is to ensu re that high stand ard s of food safety are m aintained in N ew Sou th Wales. The Governm ent consid ers that there is a strong p u blic interest in overseeing the com p etence and integrity of p ersons carrying ou t analyses for the p u rp oses of the legislation. The Bill p rovid es for recou rse to the Ad m inistrative Decisions Tribu nal for review of d ecisions m ad e in relation to an ap p lication or cond itions for an ap p roval. The N CC has also requ ested fu rther inform ation on retained restrictions in the Dairy Industry A ct 1979 and the M eat Industry A ct 1978. The Dairy Ind u stry Act w as rep ealed in 2000 in conju nction w ith d eregu lation of the ind u stry. The licensing and insp ection p rovisions relating to food safety u nd er the tw o Acts w ere rep laced by the Food Production (Dairy Food Safety Scheme) Regulation 1999 and the Food Production (M eat Food Safety Scheme) Regulation 2000. Both schem es w ere d evelop ed by SafeFood Prod u ction N ew Sou th Wales u nd er the Food Production (Safety) A ct 1998 on the basis of scientific assessm ents of food safety risks in each ind u stry. A statu tory review of the Food Production (Safety) A ct 1998 w as com p leted by the N ew Sou th Wales Cou ncil on the Cost and Qu ality of Governm ent in N ovem ber 2002, w ith find ings p u blished in Decem ber 2002. The review fou nd the d airy and m eat food safety schem es to be effective and N ew Sou th Wales ahead of other States and Territories in d evelop ing and im p lem enting p reventative food safety regu lation in the p rim ary p rod u ction and seafood ind u stries. 3.1.8 Veterinary Surgeons The review of the V eterinary Surgeons A ct 1986 w as com p leted in 1998. The review d eterm ined that the regu lation of veterinary p ractitioners throu gh the cu rrent system of licensing is in the p u blic interest as it ensu res that only trained p ersons are able to u nd ertake su rgical and other high risk health care p roced u res on anim als and consu m ers are w ell inform ed as to the com p etencies of anim al health service p rovid ers. The regu lations are consistent in this resp ect w ith anim al w elfare and p u blic health obligations im p osed by other legislation su ch as the Poisons and Therapeutic Goods A ct 1966, Prevention of Cruelty to A nimals A ct 1979 and the A gricultural and V eterinary Chemicals Code A ct 1994. The review also conclu d ed that a licensing system is necessary to m eet overseas trad e certification qu ality requ irem ents. Reform s recom m end ed by the review inclu d e loosening restrictions on entry to the p rofession and ow nersh ip of veterinary hosp itals, and op ening u p less seriou s anim al treatm ent p roced u res to non -vets. The N ew Sou th Wales Cabinet ap p roved a resp onse to the review in Sep tem ber 2002, inclu d ing the d rafting of legislative am end m ents. A d raft bill is being p rep ared and legislation to give effect to the reform s is exp ected to be introd u ced w hen Parliam ent resu m es in 2003. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 10 3.2 Fisheries The Fisheries M anagement A ct 1994 (the Act) sets ou t a nu m ber of m easu res d esigned to ensu re the su stainable m anagem ent of fishery resou rces, su ch as com m ercial fishing and fishing boat licences, catch lim its, trad eable rights to shares in the ou tp u t of a fishery and aqu acu ltu re leases. The p rim ary objectives of regu lation are to conserve fish stocks and to p reserve the habitat and biod iversity associated w ith those stocks. The N CP review of the Act (released Ap ril 2002) fou nd net benefits to the com m u nity from these m easu res. In com p aring form s of control over fishing in Au stralian and other ju risd ictions overseas, the review conclu d ed that alternative (inclu d ing non legislative) ap p roaches to su stainable fisheries m anagem ent w ou ld be u nlikely to w ork as w ell as the m echanism s cu rrently in p lace. The term s of the Act w ere therefore consid ered ap p rop riate. In 2001, the Governm ent im p lem ented the review ‟s recom m end ation that the objectives of the Act be exp and ed to exp licitly inclu d e the p rovision of social and econom ic benefits to the w id er com m u nity (Fisheries M anagement A mendment A ct 2001). The review also id entified p articu lar m easu res w hich ap p ear to restrict com p etition and abou t w hich concerns w ere raised that costs m ay not be ou tw eighed by benefits, nam ely fish receiver registration fees and licensing for recreational charter fishing boats. The review d id not reach firm conclu sions on the natu re and extent of these m easu res‟ benefits and costs and N ew Sou th Wales is exam ining these m atters fu rther in the context of broad er fisheries m anagem ent issu es. Fish receiver registration fees ap p ly to any p erson or bu siness bu ying fish from a com m ercial fisher. The review consid ered that the registration fees m ay be anticom p etitive becau se they increase fish w holesalers‟ costs relative to costs incu rred by w holesalers of other food s. H ow ever, this form of registration also p rovid es tw o benefits: a m eans to m onitor illegal fish sales and an offset to the costs of the necessary au d iting of fish receivers. To ensu re that the fees are set at the ap p rop riate level, they are being review ed as p art of a cost recovery fram ew ork for com m ercial fishing. A cap on the nu m ber of licences for recreational charter fishing boats lim its fishing by these boats and ensu res su stainability by controlling how m u ch fish can be taken. Parttim e op erators have been allocated non -transferable licences to p revent the increase of fishing activity resu lting from transfer of licences to fu ll-tim e op erators. The Governm ent w ill exam ine these issu es in the context of long-term m anagem ent arrangem ents for the charter boat ind u stry in consu ltation w ith the ind u stry. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 11 3.3 Mining The N CP review s of the Coal M ines Regulation A ct 1982 (CMRA) and the M ines Inspection A ct 1901 (MIA) w ere u nd ertaken as p art of a w id e-ranging review of all legislation governing m ine health and safety since the Gretley m ine d isaster in N ovem ber 1996, in w hich fou r p eop le w ere killed . A Ju d icial Inqu iry into the Gretley incid ent m ad e a nu m ber of recom m end ations to im p rove safety w hich w ere im p lem ented in am end m ents to the CMRA and MIA in 1998 and CMRA Regu lation in 1999. The review of m ine safety has observed that d esp ite significant im p rovem ents to m ine safety in recent years, m ines still exp erience seriou s inju ries and fatalities. Key conclu sions of the review have been that the regu latory ap p roach to m ine safety shou ld p lace an onu s on m ine op erators to d evelop occu p ational health and safety p lans that are tailored to m anage the health and safety requ irem ents of their ow n op erations, and that there shou ld be consistency betw een m ine safety legislation and the m ore general Occupational Health and Safety A ct 2000 (OH S Act) covering all em p loyers. The Coal M ine Health and Safety A ct 2002 w as d evelop ed in resp onse to these find ings. The Act, p assed by Parliam ent in Decem ber 2002, rep ealed the Coal M ines Regulation A ct and com p lem ents the OH S Act. The Act sets ou t requ irem ents for strategic safety p lanning at each coal m ine, the resp onsibility of m ine op erators to d evelop health and safety m anagem ent system s that ad d ress the p articu lar requ irem ents of their m ines, investigatory and in sp ection p ow ers, and p enalties and legal p roceed ings consistent w ith the OH S Act. It establishes a Coal Com p etence Board to set com p etency stand ard s for d efined w orker p ositions, w ith flexible p ow ers to resp ond to the changing health and safety requ irem en ts of the ind u stry. The reform s w ere d evelop ed in conju nction w ith extensive consu ltations betw een the Governm ent, Mine Safety Cou ncil and the ind u stry, and consid ered com p etition p olicy p rincip les, inclu d ing those raised in the 2000 N CP issu es p ap er for the Coal M ines Regulation A ct. The legislation is fu nd am entally based on p rotecting the safety of w orkers and assessm ents of the p articu lar risks arising from coal m ining. The Governm ent released a p osition p ap er on reform of legislation governing safety in m etalliferou s m ines and qu arries in October 2002. Reform s in the p osition p ap er took into accou nt com p etition issu es raised in the review of the M ines Inspection A ct 1901 (2001). It p rop oses reform s sim ilar to those for coal m ines, aim ing to ensu re that the p articu lar hazard s associated w ith the op eration of m etalliferou s m ines and qu arries are ap p rop riately m anaged at each site. In Decem ber 2002, the Governm ent introd u ced into Parliam ent a d raft Mine H ealth and Safety Bill, based on the p osition p ap er. This d raft Bill p rop oses to rep eal and rep lace the M ines Inspection A ct 1901. Follow ing fu rther consu ltation w ith safety exp erts, ind u stry and em p loyee rep resentatives, it is intend ed that the new legislation w ill be introd u ced into Parliam ent in 2003. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 12 Legislative am end m ents consequ ent on the enactm ent of the Coal M ine Health and Safety A ct 2002 w ere m ad e to the M ining A ct 1992. Key com p etition issu es in the M ining A ct relate to the licensing of m ineral exp loration and extraction activities, w hich w ere review ed as p art of the N ew Sou th Wales Governm ent's licence red u ction p rogram . N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 13 4. 4.1 Transport Taxis and Hire Cars N ew Sou th Wales has p reviou sly rep orted in d etail on the review of taxi regu lations (2002 Annu al Rep ort p ages 6 and 7; Annu al Rep ort for the year end ed Decem ber 2000 p ages 117 and 118). The review w as u nd ertaken by the Ind ep end ent Pricing and Regu latory Tribu nal (IPART) d u ring 1999. As p reviou sly ind icated the N ew Sou th Wales Governm ent su p p orts IPART‟s recom m end ation that taxi licences be increased by five p er cent each year. H ow ever, the slow u p take of new licences rep orted last year continu es. IPART consid ered that another review of the area w ou ld be w arranted in 2005 follow ing the staged release of licences over the p reced ing five year p eriod , to assess the need to retain restrictions on the nu m ber of taxi licences. Given the d ifficu lties exp erienced to d ate, consid eration is being given to bringing forw ard a fu rther review to exam ine su p p ly and d em and issu es and other m atters im p acting u p on the regu lation and release of taxi licences. 4.2 Tow Trucks The Tow Truck Industry A ct 1998 w as introd u ced by the Governm ent follow ing a review of the tow tru ck ind u stry after a tru ck d river w as fatally shot in Febru ary 1998. The review , cond u cted by Mr Peter And erson, confirm ed the existence of a nu m ber of seriou s p roblem s w ithin the ind u stry, inclu d ing an escalation in violence betw een com p eting tow tru ck op erators and d rivers, the u se of p ressu re tactics on consu m ers involved in accid ents and d angerou s and corru p t p ractices w ithin the ind u stry. The review recom m end ed a nu m ber of reform s to the p olicy, enforcem ent and organisational elem ents of tow tru ck regu lation , inclu d ing the establishm ent of a „Job Allocation Schem e‟ (JAS) to d istribu te sm ash tow ing jobs. A six-m onth trial of the JAS com m enced on 20 Janu ary 2003 and an evalu ation p rogram w ill be cond u cted throu ghou t the trial to d eterm ine its effectiveness. The Governm ent confirm s its p reviou s ad vice that a review of the Tow Truck Industry A ct 1998 w ill com m ence six m onths after the JAS trial (2002 Annu al Rep ort p age 8). The review of the Act w ill inclu d e w ithin its term s of reference an exam ination of the im p act of clau se 69(2) of the Tow Truck Industry Regulation 1999 on interstate op erators. 4.3 D angerous Goods For the 2003 Assessm ent, the N CC has requ ested a rep ort on p rogress in im p lem enting the N ational Stand ard for the storage and hand ling of d angerou s good s in the w orkp lace. N ew Sou th Wales rep orted in its 2002 rep ort to the N CC that the Governm ent finalised the im p lem entation of the new Occupational Health and Safety A ct 2000 and its associated regu lation in 2001. Both of these p ieces of legislation im p ose d u ties to ensu re the health, safety and w elfare at w ork of em p loyees, u sing a risk m anagem ent ap p roach sim ilar to that requ ired by the N ational Stand ard . 14 N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 On 1 October 2002, the Governm ent ap p roved the release of an Issu es Pap er containing p rop osals for an overhau l of the Dangerous Goods A ct 1975 to ap p ly the N ational Stand ard and asp ects of the N ational Stand ard for the Control of Major H azard Facilities. Su bm issions have been review ed follow ing a targeted consu ltation p rocess and a bill to am end the Act is anticip ated to be introd u ced in the Bu d get 2003 session of Parliam ent. 4.4 Marine Safety The Governm ent ad vised the N CC in its 2002 rep ort that an N CP review of the M arine Safety A ct 1998 w ill be cond u cted tw elve m onths after the Act has been in fu ll op eration . The Act rem ains su bstantially u ncom m enced as a related regu lation on m arine safety, w hich is to be introd u ced in conju nction w ith the com m encem ent of the Act, has not been finalised . The regu lation is aw aiting ad vice from the Com m onw ealth on the ou tcom es of the cu rrent review of the Uniform Ship p ing Law s Cod e, w hich p rovid es the basis for com m on national safety stand ard s for com m ercial vessels. The Governm ent intend s to com m ence certain other p rovisions in the Act relating to recreational vessels in ad vance of finalisation of the regu lations. A statu tory review of the Act is d u e to com m ence on 28 N ovem ber 2003. The Governm ent w ill consid er com p etition p olicy issu es d u ring this statu tory review p rocess, a rep ort of w hich w ill be tabled in both H ou ses of Parliam ent by 28 N ovem ber 2004, as requ ired by the Act. 4.5 Ports and Shipping The Ports Corporatisation and W aterways M anagement A ct 1995 (PCWMA/ the Act) governs the term s and cond itions u nd er w hich the m ajor p orts of N ew Sou th Wales op erate. The Act also establishes the Waterw ays Au thority to exercise m arine safety and w aterw ays m anagem ent fu nctions u nd er the Minister. The N CP review of the Act, u nd ertaken by the Centre for International Econom ics, w as su bm itted to the Minister for Transp ort in Decem ber 2001. The review conclu d ed that “The w ay that N ew Sou th Wales p orts op erate u nd er the PCWMA generates net benefits for the com m u nity from an N CP p ersp ective. … In p ractice, each of the p ort corp orations p rovid e(s) core activities of safety and real estate m anagem ent and allow (s) the m ore contestable w aterfront services, su ch as steved oring, to be su p p lied p rivately follow ing com p etitive tend ering”. The Governm ent d oes not p rop ose to alter the regu latory fram ew ork at this tim e. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 15 5. 5.1 Health and Pharmaceutical Services N urses The review of the N urses A ct 1991 (October 2001) recom m end ed that nu rses and m id w ives continu e to be regu lated by the cu rrent system of restricting the u se of titles to registered m em bers of the p rofession, bu t that m id w ife p ractice requ irem ents be relaxed . The Governm ent has conclu d ed consu ltation w ith stakehold ers on a d raft bill incorp orating review recom m end ations and exp ects to introd u ce the am end ing bill w hen Parliam ent resu m es in 2003. 5.2 Podiatrists The Podiatrists A ct 1989 (the Act) restricts the u se of titles and d escrip tions to registered p od iatrists and the p ractice of p od iatry to registered p od iatrists. The m ain objectives of the Act are to assist in m aintaining stand ard s of care and to p rotect the p u blic by ensu ring that su itable p ersons p rovid e p od iatry services. In p ractice there is com p etition in entry to the ind u stry as p od iatrists are covered by Mu tu al Recognition Acts, w hich allow those registered interstate or in N ew Zealand to ap p ly to p ractice in N ew Sou th Wales. A nu m ber of other p ractitioners m ay also p rovid e foot care services, su ch as chirop ractors and osteop aths, p hysiotherap ists, exercise p hysiologists and m ed ical p ractitioners. Med ical p ractitioners m ay p ractice p od iatry w ithou t ap p lying to the Board , and nu rses and others m ay p rovid e basic foot care as a p art of their em p loym ent in a hosp ital, nu rsing hom e or com m u nity health centre. The p od iatry ind u stry is relatively sm all, w ith arou nd 650 registered p od iatrists and has a m inor d irect im p act on econom ic activity in N ew Sou th Wales. The m ajor p rop osals for reform in the review of the Act are to rep lace cu rrent w hole-ofp ractice restrictions on p od iatry w ith three core p ractice requ irem ents, w hich w ou ld allow p od iatrists, m ed ical p ractitioners and nu rses to carry ou t foot treatm ents on a sim ilar basis, and to rem ove technical contraventions of the Act w here other regu lated p ractitioners su ch as p hysiotherap ists ad m inister foot treatm ent w ithin their legitim ate scop e of p ractice. It is anticip ated that the Governm ent w ill consid er the review recom m end ations and m ake any am end m en ts to the Act in 2003. 5.3 Pharmacy The review of the Pharm acy Act w as cond u cted nationally throu gh COAG in 1999. The review ‟s recom m end ations inclu d ed retention of p harm acist ow nership of p harm acies; lifting of restrictions on the nu m ber of p harm acies that a p harm acist can ow n; enabling friend ly societies that ow n p harm acies to be treated in the sam e w ay as other p harm acies; and rep lacing ed u cational requ irem ents for registration w ith com p etency based requ irem ents. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 16 N ew Sou th Wales w as a p arty to the inter-ju risd ictional w orking grou p that consid ered and p rep ared a resp onse to the recom m end ations of the review , w hich has been fu rther consid ered by COAG. COAG‟s resp onse to the review w as referred to States and Territories in Au gu st 2002. The N ew Sou th Wales Dep artm ent of H ealth has u nd ertaken consu ltations w ith stakehold ers since that d ate and the final p rop osals for legislative change are cu rrently su bject to Cabinet consid eration (d elayed by the N ew Sou th Wales p re-election caretaker conventions). 5.4 D entists and Optometrists The Dental Practice A ct 2001 (w hich rep laces the Dentists A ct 1989) contains restrictions on the em p loym ent of d entists by non d entists. The objective is to p rotect the health and safety of p atients and ensu re the accou ntability of service p rovid ers. The Act contains a nu m ber of exem p tions to this ru le, one of w hich is w here the em p loying bod y has been ap p roved by the Dental Board after m eeting p u blic interest requ irem ents. The N CC has requ ested inform ation on how the Dental Board has exercised its ap p roval p ow ers, w ith the aim of ascertaining w hether the exem p tion p ow er is being u sed to p rotect incu m bents. The p rovisions w ithin the new Act allow ing non-d entists to ap p ly for p erm ission to em p loy d entists (and that also allow registered health fu nd s to em p loy d entists w ithou t the p erm ission of the Dental Board ) set ou t a clear intent to p rom ote increased com p etition in the em p loym ent of d entists. This need s to be w ithin a regu latory fram ew ork that ensu res that stand ard s of p ractice are m aintained and the health and safety of p atients is p rotected . The Governm ent ind icated in its 2002 rep ort to the N CC that the benefits of rem oving the em p loym ent restriction altogether w ou ld not ju stify the costs of establishing and enforcing an alternative regu latory schem e based on p enalties. The Act d irects the Dental Board to exclu d e the interests of the p rofession w hen assessing the p u blic interest. The cu rrent p rovisions effectively and efficiently p rom ote com p etition w hilst ensu ring that the health and safety of p atients are p rotected . At the tim e of com p leting the review of the Dentists A ct 1989 (March 2001), the Dental Board had granted em p loym ent exem p tions to enable seven sep arate organisations to em p loy d entists in sixteen d ental clinics. It is noted that the restrictive effect of the p rovisions w as su bstantially lessened follow ing the 1996 Cou rt of Ap p eal d ecision in N IB H ealth Services Pty Ltd v Dental Board . Since this d ate the only ap p licants for new ap p rovals have been p rivate health insu rance com p anies, w hich have all received d ecisions in their favou r. This record w ou ld ap p ear to ind icate that there have been no ad verse im p acts on these or other p otential em p loyers. The N CC has also sou ght inform ation on how the Governm ent has exercised p ow ers to grant exem p tions from restrictions on ow nership of op tom etry services u nd er the Optometrists A ct 1930. It is noted that w hile in fact the Optometrists A ct 1930 has been rep ealed by the new Optometrists A ct 2002, p rovisions u nd er the old Act relating to exem p tions w ere rend ered inop erative follow ing the com m encem ent of the Optometrists and Optical Dispensers (A mendment) A ct 1969 (com m enced 28 N ovem ber 1969). There has been no p ow er after that d ate for the Governm ent to exem p t a p erson from ow nership restrictions. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 17 The Optometrists A ct 2002 contains general restrictions on the ow nership of op tom etry p ractices, bu t allow s the Minister for H ealth to p rescribe p ersons or classes of p ersons other than op tom etrists as being entitled to op erate an op tom etry bu siness. N ew Sou th Wales confirm s that these exem p tion p ow ers are not intend ed to be u sed to p rotect incu m bent bu siness ow ners. 5.5 D rugs, Poisons and Controlled Substances The su bstantive recom m end ations of the review of the d ru gs, p oisons and controlled su bstances legislation requ iring legislative am end m ent have been im p lem ented in N ew Sou th Wales by the Poisons and Therapeutic Goods Regulation 2002. The Regu lation com m enced on 1 Sep tem ber 2002. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 18 6. 6.1 6.1.1 Legal and Other Professional and Occupational Licensing Legal Profession N CP review recommendations The final rep ort of the N CP review of the Legal Profession A ct 1987 w as com p leted in 1998. The Governm ent has m ad e su bstantial p rogress w ith im p lem entation of reform s arising from the review as w ell as com p leting other m ajor com p etition based reform s to the regu lation of the legal p rofession, as ou tlined in the N ew Sou th Wales rep ort to the N CC for the year end ing Decem ber 2000 (refer to p ages 144 and 145). In 2002 the Governm ent introd u ced the Legal Profession A mendment (N ational Competition Policy Review) A ct 2002 (com m enced 4 October 2002), w hich: rem oved the requ irem ent for corresp ond ing law s to be in p lace before law yers from other states w ere p erm itted to p ractise in N ew Sou th Wales. It is noted that no other ju risd iction ap art from N ew Sou th Wales has rem oved the need for corresp ond ing law s; reform s the stru ctu re of p ractising certificate fees (com m encing Ju ly 2004). Practising fees are to be set on a cost recovery basis and w ill no longer inclu d e a charge for com p u lsory m em bership of a p rofessional association. The activities in resp ect of w hich a fee m ay be charged m ay also be au d ited ; allow s sp ecialist accred itation schem es to be cond u cted by p ersons or bod ies other than the p rofessional associations; allow s solicitors to p ractise in m u lti-d iscip linary p artnership s, d esp ite anything to the contrary in Law Society ru les; and requ ires p rofessional d iscip linary action taken against law yers to be p u blicised and the keep ing of a p u blic register on d iscip linary action. The N CP review m ad e som e recom m end ations concerning the arrangem ents for d ealing w ith com p laints and d iscip lining law yers, althou gh the rep ort conclu d ed that the schem e served the p u blic interest overall. The Legal Profession A mendment (Complaints and Discipline) A ct 2000 (com m enced 14 Ju ly 2000) clarified the am bit of the p ow ers of the Legal Services Com m issioner (LSC) to d eal w ith consu m er d isp u tes. The Legal Profession A mendment (Disciplinary Provisions) A ct 2001 gave the LSC ad d itional p ow ers to m onitor and review the com p laints investigation and hand ling p olicies of the Law Society Cou ncil and Bar Cou ncil, and to m onitor generally the exercise of regu latory fu nctions by both Cou ncils. The qu estion of the p rop er lim its of the ju risd iction of the Ad m inistrative Decisions Tribu nal to m ake com p ensation ord ers has also been consid ered by the Law Reform Com m ission in its rep ort Complaints A gainst Lawyers: A n Interim Report (Ap ril 2001). Fu rther im p rovem ents N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 19 to com p laint resolu tion and d iscip line p roced u res are exp ected to be introd u ced by the Governm ent w hen Parliam ent resu m es in 2003. The rem aining issu es raised by the N CP review are largely being exam ined u nd er the p roject to d evelop m od el u niform law s for regu lation of the legal p rofession, overseen by the Stand ing Com m ittee of Attorneys General (SCAG). N ew Sou th Wales is lead ing w ork in this p rocess. The d rafting of m od el law s by the Parliam entary Cou nsel‟s Com m ittee is w ell u nd erw ay in the areas of ad m issions to p ractise, the reservation of legal w ork, costs and costs d isclosu re and com p laints and d iscip line. The N ew Sou th Wales Attorney General has ad vised SCAG that, su bject to su p p ort for p rop osals for u niform p rovisions for tru st accou nts, term s of p rofessional ind em nity insu ra nce and fid elity fu nd coverage, m od el p rovisions are exp ected to be read y shortly. 6.1.2 Advertising of Personal Injury Services The N ew Sou th Wales restrictions on ad vertising p ersonal inju ry services w ere introd u ced in resp onse to the p roblem of red u ced access to afford able p u blic liability insu rance. The N ew Sou th Wales Governm ent is m oving to strengthen these restrictions as a nu m ber of p ractitioners have sou ght to circu m vent these restrictions. While the cau ses of this are com p lex (inclu d ing the size of com p ensation claim s, the p ricing and investm ent p ractices of insu rance com p anies inclu d ing u nd er -p ricing in the p ast, low er investm ent retu rns for insu rers and rising reinsu rance costs) one of the factors that led to increasing p rem iu m s ap p ears to have b een the sharp rise in the nu m ber of p u blic liability claim s. Evid ence of the grow th in su ch claim s w as p rovid ed in last year‟s rep ort to the N CC. Fu rther evid ence has since been p resented to the national Ministerial m eetings on p u blic liability insu rance and to a joint sitting of the N ew Sou th Wales Parliam ent. The cost of su ch claim s is also a significant issu e. At the m eeting of Ministers on 15 N ovem ber 2002, PriceWaterhou seCoop ers Actu arial ad vised that claim s u p to $100,000 com p rised ap p roxim ately 45% of the cost of claim s overall. At the joint sitting of the N ew Sou th Wales Parliam ent on 18 Sep tem ber 2002, Trow brid ge Consu lting noted the d isp rop ortionate im p act that claim s in the $20,000 to $100,000 bracket had on the costs flow ing from p u blic liability claim s. Trow brid ge also noted that there had been a significant increase in p u blic liability litigation in N ew Sou th Wales w hen com p ared w ith other ju risd ictions. The N ew Sou th Wales Governm ent consid ers that one of the reasons for the grow th in sm all claim s is that ad vertising by som e law yers encou rages p eop le to m ake p ersonal inju ry claim s. Som e of this ad vertising m ay have encou raged p eop le to m ake a claim , regard less of the seriou sness of their inju ry, their genu ine need for com p ensation or t he real m erits of their claim . Given lim its to the cap acity of the ju stice system and the grow th in the nu m ber of claim s, ad vertising restrictions m ay also regu late d em and for litigation relative to that for other less costly form s of settling d isp u tes or resolving grievances. This w ill assist to lim it the negative externalities arising from increasing nu m bers of filed claim s, in p articu lar non- N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 20 m eritoriou s claim s, w hich can contribu te to log jam s in cou rt ad m inistration and im p ose efficiency costs that are u ltim ately borne by the w id er com m u nity. Any restrictive im p act of the ad vertising ru les in N ew Sou th Wales is ou tw eighed by the p otential for a fu tu re p ositive im p act on levels of litigiou sness in the p ersonal inju ry area. On balance, the p u blic interest is best served by im p osing reasonable restrictions on this typ e of ad vertising. The Prim e Minister of Au stralia also d escribed the original rem oval of ad vertising restrictions on law yers as a “d isastrou s m istake” to the Com m onw ealth Parliam ent on 14 March 2002. The Prim e Minister m ad e this statem ent in the context of answ ering a qu estion regard ing the p u blic liability crisis. The Prim e Minister stated that the rem oval of restrictions has contribu ted to the “…grow th of a litigiou s m entality in ou r so ciety”. H e also noted m ore generally in relation to restrictions on litigation that “[w ]e cannot have it both w ays, and society has got to d ecid e w here the balance is stru ck”. If p ressu re on insu rance p rem iu m s and rates of litigation are alleviated by the national p rocess of reform p resently u nd erw ay, inclu d ing tort law reform s at N ew Sou th Wales level, the need for these ad vertising restrictions can then be review ed . The N ew Sou th Wales Governm ent consid ers, how ever, that the restrictions im p osed are critical at this tim e in the broad er interest of the N ew Sou th Wales com m u nity. 6.1.3 Legal Professional Indemnity Insurance For the 2003 assessm ent, the N CC has raised concerns abou t the „m onop oly p rovision of p rofessional ind em nity insu rance‟ in States and the N orthern Territory. It shou ld be noted that N ew Sou th Wales legislation d oes not p revent m u ltip le p rovision of legal p rofessional ind em nity insu rance for legal p ractitioners. It d oes requ ire that a legal p ractitioner have an ap p roved insu rance p olicy, that is, w here the insu rer and the term s of the p olicy are ap p roved by the Attorney General by ord er given to the Law Society or Bar Cou ncil. In recent years, insu rance for solicitors has been p rovid ed by an agency arrangem ent betw een Law Cover (a su bsid iary of the Law Society) and a com m ercial insu rer. This m eans com m ercial insu rers have been able to com p ete (as m u ch as com p etition exists in the cu rrent „hard ‟ insu rance m arket) for the p rovision of p rofessional ind em nity insu rance for N ew Sou th Wales solicitors. Fu rther, u nd er the legislation a nu m ber of insu rers cou ld be ap p roved to p rovid e insu rance to solicitors, as is the case for barristers. The N ew Sou th Wales 2002 annu al rep ort to the N CC noted that the Governm ent had p rop osed to establish a new m u tu al fu nd to cover all solicitors, exclu d ing those w ho have exem p tions. The p rop osed m u tu al fu nd w as not p u t in p lace last year, largely becau se of ad vice received from APRA that the entity that m anages su ch a schem e w ou ld requ ire a licence u nd er the Insurance A ct 1973 (Cth) and w ou ld be requ ired to m eet its cap ital ad equ acy requ irem ents. In ad d ition, the p ossibility of a national, or a p artly national, insu rance schem e has been raised , and is being exp lored , by the Stand ing Com m ittee of Attorneys General as p art of the N ational Legal Profession Mod el Law s Project. The fu tu re arrangem ents for solicitors‟ p rofessional ind em nity insu rance in N ew Sou th Wales w ill therefore be consid ered fu rther in this context. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 21 The N CC has also sou ght ad vice as to w hether recent civil liability reform s in N ew Sou th Wales w ill have an im p act on legal p rofessional liability insu rance. It is not anticip ated that there w ill by any significant im p act. Many of the reform s, su ch as those relating to p ersonal inju ry d am ages and recreational activities, are not relevant to legal p rofessional ind em nity insu rance. Tw o areas of the civil liability reform s w hich m ay have an im p act are the p rovisions relating to the stand ard of care for p rofessionals and those relating to p rop ortionate liability. The p rovisions relating to p rop ortionate liability have not yet com m enced , as fu rther consid eration is being given to their interaction w ith the Trad e Practices Act (Cth). The N ew Sou th Wales Governm ent has requ ested the Com m onw ealth to introd u ce sim ilar reform s to d am ages u nd er the Trad e Practices Act as soon as p ossible. 6.2 Wool, Hide and Skin D ealers The W ool, Hide and Skin Dealers A ct 1935 (the Act) requ ires p ersons w ho carry on a bu siness of bu ying or selling w ool, hid es and skins to be licensed and keep certain record s. The Act also gives p olice p ow ers to enter and search p rem ises u sed for the p u rp ose of storing w ool, hid es and skins. The aim of regu latory arrangem ents is to red u ce the incid ence of stock theft. Wool, hid es and skins, along w ith m eat, are m ajor p rod u cts that can be d erived from agricu ltu ral crim e and m ake stock theft attractive. A 1998 N CP Issu es Pap er su ggested that althou gh the im p act of existing regu lations on com p etition d id not ap p ear significant, the Act m ight be rep ealed . The Governm ent d id not su p p ort this after consid ering the find ings of a Pastoral and Agricu ltu ral Crim e Working Party, established in 2000 to ad vise on issu es of crim e p articu lar to p rim ary p rod u cers. The Working Party rep orted in October 2000. The Working Party fou nd , contrary to assu m p tions in the N CP issu es p ap er, that stock stealing continu es to be a m ajor crim e in N ew Sou th Wales and has in fact increased in recent years d u e to the rise in the valu e of cattle and exhau stion of w ool stockp iles. It confirm ed that w ool, hid es and skins are high risk com m od ities w hich lack id entifiers and can easily be stolen and on -sold . The Working Party recom m end ed that a licensing regim e be retained by Governm ent as the m ost effective m eans of tracking and investigating trad e and that the regim e be m od ified on the basis of p aw nbroker licensing p rovisions given sim ilarities in risk relating to trad e in stolen p rop erty. The final N CP review of the Act w as com p leted in Ju ne 2002 follow ing consu ltations w ith ind u stry and agencies. The review fou nd the costs of licensing and record keep ing requ irem ents insignificant to ind u stry p arties and clearly ou tw eighed by their effective u se as a d eterrent to crim e as w ell as second ary benefits in d isease control. The requ irem ents have a sm all im p act on a sm all nu m ber of p ersons - there are less than 150 p ersons op erating as w ool, hid e and skin d ealers. The rep ort of the review su p p orted the recom m end ations of the Working Party. To m inim ise the im p act of the licensing system on com p etition and im p rove ad m inistrative efficiency, it also recom m end ed that the p rim ary ap p lication of the Act be narrow ed to cover sheep and cattle only, the nom inal licence fee ($10) be rem oved and that licences be renew ed on a three year, rather than an annu al, basis. Follow ing consu ltation w ith N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 22 ind u stry on a d raft bill, it is anticip ated that am end ing legislation w ill be introd u ced in the first half of 2003. 6.3 Employment Agents The Employment A gents A ct 1996 and its associated regu lation w ere rep ealed u nd er the Fair Trading A mendment (Employment Placement Services) A ct 2002, w hich w as p assed by Parliam ent on 30 October 2002 and com m enced on 17 Febru ary 2003. 6.4 Conveyancers The review of the Conveyancers Licensing A ct 1995 w as com p leted in October 2001. The review fou nd that the costs associated w ith restrictions u nd er the Act‟s occu p ational licensing m od el w ere ou tw eighed by the p u blic benefits, m ainly relating to the p rotection of consu m er interests. The review recom m end ed that the cu rrent licensing regim e and bou nd aries of conveyancing w ork be retained as the best regu latory op tion to achieve the objectives of the Act. The review also m ad e recom m end ations to im p rove the op eration of regu lations, inclu d ing stream lining d iscip linary arrangem ents and red u cing the regu latory com p liance bu rd en for conveyancers. The Governm ent accep ted the review ‟s recom m end ations in May 2002. Follow ing p u blic consu ltation on an exp osu re bill, the Governm ent introd u ced the Conveyancers Licensing Bill 2002 into Parliam ent on 11 Decem ber 2002. The Bill w ill be re-introd u ced follow ing the p rorogu ing of Parliam ent in the Bu d get session of 2003. 6.5 Boxing and Wrestling The p rim ary objectives of the Boxing and W restling Control A ct 1986 (the Act) are to p rom ote safety and to ensu re integrity. The need to p rom ote safety in com bative contact sp orts is fu nd am ental. The need to ensu re integrity d erives from the scop e for corru p tion. The Act sets the requ irem ents and cond itions for events, com p etitors, and ind u stry p articip ants. It establishes the Boxing Au thority of N ew Sou th Wales to ad m inister legislation regard ing p rofessional boxing and kickboxing events, and to regu late w restling. The Act also stip u lates a fit and p rop er p erson test, training requ irem ents for ind u stry p articip ants, costs of registration, gend er and age restrictions, and a requ irem ent to d em onstrate m ed ical fitness. The Act also establishes a p erm it system for am ateu r fights, ad m inistered by the Minister. The p rofessional boxing and kickboxing ind u stry is relatively sm all and has a m inor d irect im p act on econom ic activity in N ew Sou th Wales. The ind u stry inclu d es ap p roxim ately 300 p rofessional contestants and 200 ind u stry p articip ants. There are no significant anti-com p etitive econom ic issu es arising from the op eration of the ind u stry. The regu latory arrangem ents are d esigned p rim arily to ensu re the health and safety of p articip ants and the com p etent su p ervision of fights. Major requ irem ents inclu d e com p u lsory m ed ical checks and ad herence to the ru les of the sp ort. The N ew Sou th Wales Governm ent is m ind fu l of the health and safety concerns of the p u blic regard ing N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 23 these sp orts. These concerns are reinforced by the Au stralian Med ical Association w hich recom m end s that boxing be p rohibited u nd er the age of 18, and su p p orts N ew Sou th Wales‟ restriction on fem ale boxing d u e to concerns over brain and other inju ry. The N ew Sou th Wales Governm ent consid ers that there is inherent and broad p u blic benefit in regu lating p articip ation in d angerou s com bat sp orts, even w here m ed ical op inion is d ivid ed . Sim ilarly, the Act requ ires a p erson to be „fit and p rop er‟ to p articip ate in the ind u stry. This restriction ad d resses corru p tion issu es. Accord ingly , the Governm ent d oes not p rop ose to alter the regu latory fram ew ork at this tim e. 6.6 Entertainment Industry The p rim ary objective of the Entertainment Industry A ct 1989 (the Act) is to p rotect p erform ers against u nscru p u lou s agents. The Act requ ires that p eop le w ho rep resent p erform ers for financial rew ard be „fit and p rop er‟ p ersons and have know led ge of, or exp erience in, the entertainm ent ind u stry and sets a lim it on fees. These m easu res d o not im p ose high costs on ind u stry p articip ants and there are no significant anti-com p etitive im p acts. There are clear p u blic benefits arising from com p etent p rovision of services and the red u ction in scop e for exp loitation and financial loss, p articu larly in relation to child p erform ers and those starting ou t in the ind u stry. A significant characteristic of the ind u stry is the inform ation asym m etry that exists betw een casu al p articip ants in the entertainm ent ind u stry and agents. The ind u stry is d ynam ic, changes rap id ly to m eet changing consu m er d em and s and is inherently innovative. The p attern of em p loym ent for the m ajority of p erform ers is typ ified by a series of short-term engagem ents, w ith p erform ers‟ incom es varying greatly and reflecting relative shifts in the statu s range of ind u stry p articip ants. The natu re of the ind u stry and p articu larly the volatile natu re of em p loym en t for p erform ers p u t the consu m ers of agents‟ services in a relatively vu lnerable p osition. The regu lations p rovid e m easu res to ad d ress the inform ation asym m etry and im balance in p ow er. The Act d oes not p revent p erform ers from op erating w ithou t a rep resentative. The Act d oes not requ ire the licensing of entertainm ent ind u stry em p loyers, w ho are regu lated u nd er existing ind u strial relations regu lation, reinforcing the m ain objective to p rotect casu al or freelance p erform ers. The fee lim it rep resents a m axim u m am ou nt (in the case of m ost engagem ents, 10 p ercent) that entertainm ent ind u stry agents m ay d em and u p on the engagem ent of a p erform er. This p rotects entertainers w ho new ly engage rep resentatives. Fees m ay be negotiated at less than this level and m anagers and p erform ers m ay also agree in w riting to fees exceed ing the m axim u m lim it. The review of the Act has id entified som e issu es, su ch as com p liance and enforcem ent w hich, althou gh ou tsid e the scop e of the N CP p rocess, m ay be im p roved . The Governm ent w ill be finalising these issu es in 2003. 6.7 Hairdressers The Shops and Industries A ct 1962 („the Act‟, form erly know n as the Factories, Shop s and Ind u stries Act 1962) regu lates the haird ressing trad e in N ew Sou th Wales. The Act N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 24 requ ires haird ressers to hold a licence. The effect of the licensing system is recognition of com p etency stand ard s, obtained throu gh ap p rop riate trad e certificates in haird ressing. There are six categories of licence, w hich reflect the com p etencies gained . Ind u stry rep resentations ind icate that the licensing system d oes not p resently im p ose onerou s stand ard s or any significant costs. Consu m er rep resentations have ind icated that consu m ers are better able to d istingu ish betw een haird ressers on the basis of licence category than by d irect assessm ent of ind u stry training and qu alifications. The Governm ent is consid ering w heth er to retain the cu rrent system . It is noted that in the absence of a licensing system , there m ay be a need to ensu re com p etency stand ard s given the p articu lar risks to health and safety that arise from su bstand ard w ork. It is anticip ated that any legislative am end m ents w ill be m ad e in 2003. Given the strong consu m er p rotection focu s of the licensing system , there is valu e in consid ering am end m ents in the context of broad er changes to the regu lation of services. For exam p le, the review of the Fair Trading A ct 1987 (N ew Sou th Wales) recom m end ed that relevant p rovisions of the Trade Practices A ct 1974 (Cth) be im p orted into State legislation to p rovid e m ore com p rehensive consu m er p rotection in relation to services, not ju st good s. 6.8 Commercial Agents and Private Inquiry Agents The Commercial A gents and Private Inquiry A gents A ct 1963 (the Act) requ ires d ebt collectors and p rivate inqu iry agents to hold a licence and stip u lates certain cond u ct requ irem ents. The objectives of regu lation are to p rotect the safety of the p u blic and p rom ote the accou ntability of, and m aintenance of ap p rop riate stand ard s by , p ersons w ho m ay collect confid ential inform ation and have access to p rivate p rop erty and large su m s of clients‟ m oney in the cou rse of their w ork. The review of the Act w as com p leted in Ap ril 2002 and has recently been u p d ated to take into accou nt new ind u stry statistics and d evelop m ents. The review fou nd that the Act p rovid es a net p u blic benefit by red u cing costs to clients and red u cing the risk of crim inal activity or harm to the p u blic. It fou nd that regu latory objectives m ay only be achieved throu gh a licensing system . The m ajority of p u blic su bm issions to the review su p p orted retention of licensing arrangem ents. The review how ever m ad e recom m end ations to rem ove restrictions w here they cou ld not be ju stified in the p u blic interest, inclu d ing the requ irem ent for licensees to be in charge of a bu siness, d istinctions betw een com m ercial agent and p rivate inqu iry agent licences, and certain com p liance requ irem ents for licence hold ers. It is anticip ated that the Governm ent w ill consid er the final rep ort in May 2003 and introd u ce any am end ing legislation later this year. 6.9 D riving Instructors The Driving Instructors A ct 1992 p rovid es for the licensing of instru ctors engaged to teach p ersons to d rive m otor vehicles for rew ard . The review of the Act w as com p leted in Sep tem ber 2001 and the final rep ort released in May 2002. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 25 The review fou nd a net p u blic benefit in regu lating those entering the d riving instru ction ind u stry, w ith benefits to consu m ers from com p etent instru ction, red u ced incid ence of corru p t p ractices and the p articip ation of p ersons of good character and exp erience ou tw eighing p otential costs. The review consid ered cu rrent entry requ irem ents to be not u nnecessarily restrictive and that consu m ers have ad equ ate choice as to p rice, availability and levels of service. Learner d rivers seeking tu ition, for exam p le, m ay still elect to be tau ght by a relative or friend rather than u sing the services of a p rofessional instru ctor. The review recom m end ed that the existing „core‟ regu latory fram ew ork for licensing d riving instru ctors be retained . The review how ever recom m end ed rem oval or relaxation of restrictions w here they cou ld not be ju stified in term s of net p u blic benefit, inclu d ing requ irem ents for p ost-licence instru ction and ad vertising requ irem ents. The Governm ent su p p orted the m ajority of the review ‟s recom m end ations bu t d ep arted from tw o follow ing a fu rther review of their health and safety im p lications. These relate to relaxing cu rrent p rovisions for licence tenu re, w hich w ou ld have resu lted in d rivers being able to qu alify for instru ction w ithou t a reasonable level of exp erience and rem oving a requ irem ent for d u p licate d riving controls, w hich w as view ed as an u naccep table safety risk. The Driving Instructors A mendment A ct 2002, incorp orating the ap p roved reform s, received assent on 16 Decem ber 2002. 6.10 Paw nbrokers and Second-Hand D ealers The review of the Pawnbrokers and Second Hand Dealers A ct 1996 w as com p leted in N ovem ber 2001. The review fou nd that the Act p rovid es a net p u blic benefit and recom m end ed retaining the existing licensing regim e for p aw nbrokers and d ealers to m ost effectively achieve the Act‟s objective of red u cing the incid ence of p rop erty -related crim es, su ch as trafficking in stolen good s. The review d id not recom m end any N CP-related am end m ents. The review , how ever, recom m end ed variou s changes to im p rove the op eration of the existing schem e, inclu d ing establishing a qu icker, fairer and less exp ensive m echanism for the retu rn of stolen p rop erty to its rightfu l ow ners. In Ap ril 2002, the Governm ent accep ted the review ‟s recom m end ations and in May 2002 ap p roved release of the rep ort. The Pawnbrokers and Second-Hand Dealers A mendment A ct 2002 w as p assed by Parliam ent on 21 N ovem ber 2002. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 26 7. Workers Compensation For the 2003 assessm ent, the N CC has requ ested inform ation on the scop e and tim ing of the cu rrent review of the d esign of the w orkers com p ensation insu rance schem e. The p rim ary objectives of the review , being cond u cted by McKinsey and Co, are to inqu ire into and m ake recom m end ations for (i) the op tim u m u nd erw riting/ insu ran ce arrangem ents that w ill su p p ort d elivery of the w orkers com p ensation schem e‟s objectives and Governm ent p olicy p rincip les; and (ii) the achievem ent of better schem e ou tcom es and p erform ance in relation to p rice, service and efficiency; inju ry and claim s m anagem ent; risk m anagem ent; fu nd s m anagem ent and p rem iu m collection. The term s of reference for the review sp ecifically requ ire a range of u nd erw riting op tions to be consid ered and the op tions to be assessed in accord ance w ith the Com p etition Princip les Agreem ent clau se 5 gu id ing p rincip le and against the financial risks p osed to the N ew Sou th Wales Governm ent. The review is to evalu ate any broad er com p etition issu es contained w ithin the legislation and the m anagem ent of the schem e d eficit d u ring transition to any new system . This com p rehensive review is being u nd ertaken against a backgrou nd of fu nd am ental changes that have been m ad e to the N ew Sou th Wales w orkers com p ensation schem e in recent years. The Governm ent is m ind fu l of the p otential exp osu re of statu tory insu rance schem es to the fortu nes of com m ercial insu rers (in sp ite of the oversight of APRA), highlighted by the collap se of the H IH Insu rance Grou p in 2001. It is anticip ated that the review ‟s final rep ort w ou ld be su bm itted for consid eration by the Governm ent in the second half of 2003. The N CC has also sou ght ad vice as to w hether recent civil liability reform s in N ew Sou th Wales w ill have an im p act on w orkers com p ensation insu rance. There is no d irect im p act anticip ated as the Civil Liability A ct 2002 reform s sp ecifically exclu d ed w orkers com p ensation m atters. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 27 8. Retail trading Arrangements (Liquor Licensing) The N CC has sou ght ad vice on the com p letion of the review of the liqu or licensing p rovisions of the Liquor A ct 1982 and Registered Clubs A ct 1976, reform action and the p u blic interest case in favou r of any retained restrictions. The review has been com p eted follow ing extensive p u blic consu ltation and release of a d iscu ssion p ap er in Ju ne 2002. It is anticip ated that a d ecision on the com p etition issu es raised in the final rep ort w ill be m ad e tow ard s the m id d le of 2003. The rep ort consid ers all cu rrent licensing requ irem ents, inclu d ing the issu e of the need s test, w hich cu rrently op erates w ith resp ect to the issu ing of a n hotelier‟s licence or retail off-licence. In 1996 the m inim isation of harm associated w ith m isu se and abu se of liqu or w as inserted as the p rim ary object of both the Liquor A ct 1982 and Registered Clubs A ct 1976. As a resu lt harm m inim isation obligations w ere p laced u p on licensees and regu lators. H ow ever, the overall licensing schem e w as not restru ctu red at that tim e to reflect the new em p hasis u p on harm m inim isation. The review rep ort m akes a nu m ber of recom m end ations to refocu s the licensing schem e in line w ith harm m inim isation criteria and to ensu re com p etition is not u nnecessarily restricted . N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 28 9. Fair trading and consumer protection legislation The N CC has p reviou sly accep ted that the Fair Trading A ct 1987 need not be review ed to the extent that p rovisions are consistent w ith the Trade Practices A ct 1974. The review of the Fair Trading A ct 1987 and Door to Door Sales A ct 1967 w as com p leted in March 2002. The Governm ent accep ted the review ‟s recom m end ations in Au gu st 2002 and released the review rep ort in Sep tem ber 2002. The review fou nd that the legislation w as p ro-com p etitive and that there w ere net p u blic benefits in the regu latory arrangem ents for consu m er p rotection . H ow ever, the review recom m end ed variou s legislative am end m ents to rem ove or red u ce the effect of restrictions w here these w ere not ju stified on p u blic benefit grou nd s, inclu d ing the rem oval of m and atory cod es of p ractice for trad ers. The review also recom m end ed variou s other im p rovem ents, inclu d ing rep eal of the Door to Door Sales A ct, am end m ent of the Fair Trading A ct to stream line the existing schem e for d iscip lining trad ers, ad d itional consu m er p rotections in relation to d irect selling p ractices and am end m ent of the existing consu m er p rotection p rovisions in the Fair Trading A ct to m irror those of the Trade Practices A ct 1974 (Cth). The Fair Trad ing Am end m ent Bill w as introd u ced into Parliam ent on 11 Decem ber 2002. It w ill be reintrod u ced w hen Parliam ent resu m es in 2003. The review of the Funeral Funds A ct 1979 w as com p leted in N ovem ber 2001. The Governm ent accep ted the review ‟s recom m end ations in Febru ary 2002, as w ell as the p rep aration of an exp osu re bill to facilitate fu rther p u blic consu ltation. The review fou nd that the im p act of the legislation on com p etition w as not significant. The review established a net p u blic benefit case for retaining key consu m er p rotection s su ch as ensu ring that ind u stry p articip ants are of fit character and clarifying consu m er rights in p re-p aid contracts. The p rop osed legislation w ill, how ever, rem ove restrictions on fu neral fu nd s w here th ey are not ju stified on p u blic benefit grou nd s, inclu d ing restrictions on the nu m ber of fu nd d irectors and tru stees. The review rep ort w as released in Ap ril 2002. Since that d ate, N ew Sou th Wales has been d iscu ssing w ith the Com m onw ealth w hether fu neral fu nd s are also regu lated as a financial p rod u ct u nd er its Corporations A ct 2001 in w hich case there m ay have been fu rther op p ortu nities for reform . The p osition w as u nclear d u e to changes introd u ced u nd er the Com m onw ealth financial services reform s in 2001. On 6 March 2003, the Com m onw ealth m ad e a Regu lation exem p ting p articu lar fu neral exp ense p olicies from regu lation u nd er the Corporations A ct. It is not clear on its face the extent to w hich the Regu lation w ill ap p ly in N ew Sou th Wales. The Governm ent is cu rrently exam ining the im p lications of the exem p tion for N ew Sou th Wales regu lation. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 29 10. 10.1 Social Regulation (Gambling) Lotteries While the N ew South W ales Lotteries Corporatisation A ct 1996 and Public Lotteries A ct 1996 w ere not listed for N CP review the N CC has requ ested fu rther inform ation on the ou tcom es of the recent statu tory review s of both Acts, w hich incorp orated an assessm ent of N CP issu es. The review rep orts w ere tabled in the N ew Sou th Wales Parliam ent in Decem ber 2002. A final d ecision on the com p etition issu es raised in the rep ort is anticip ated in m id -2003 follow ing fu rther p u blic consu ltation. The Acts w ere fou nd to generally com p ly w ith N CP p rincip les. The key com p etition issu e relates to p rovisions in the Public Lotteries A ct that confer u p on N ew Sou th Wales Lotteries Corp oration exclu sive licences to cond u ct seven lottery gam es u ntil 2007, after w hich d ate the licences becom e contestable. N ew Sou th Wales Lotteries Corp oration w as corp oratised u nd er the N ew South W ales Lotteries Corporatisation A ct 1996. The review recognised the p otential costs arising ou t of exclu sivity arrangem ents (su ch as lim its on the ability of Governm ent to transfer a licence to another p arty), how ever recom m end ed that the exclu sive licence arrangem ent for N ew Sou th Wales Lotteries be retained u ntil the legislated exp iry d ate of 1 Ju ly 2007. The review consid ered that there w ou ld be a net p u blic cost in rep ealing the p rovisions before this d ate. N ew Sou th Wales Lotteries has m ad e long-term d ecisions based on the sp ecified exclu sive p eriod of the licences, and to red u ce the p eriod m ight u nd erm ine its financial viability. Im p ortantly, there are no ind ications that other ju risd ictions w ill be op ening u p their licences to contestability p rior to this d ate. Lifting restrictions in the absence of a national m arket w ou ld p lace N ew Sou th Wales in a p osition of significant com p etitive d isad vantage and also resu lt in an absolu te transfer of lottery gam ing activity and revenu e to other States. It w as also consid ered that an im m ed iate d eregu lation of cu rrent arrangem ents w ou ld be contrary to Governm ent p olicy of restricting the grow th of new gam bling op p ortu nities in N ew Sou th Wales. Other com p etition issu es inclu d ed the less str ingent harm m inim isation requ irem ents im p osed u p on lottery gam ing in com p arison to other gam ing, su ch as p oker m achines. The review consid ered that the d iffering ap p roaches are ju stified on the basis that other gam ing p oses su bstantially greater risks of harm , a find ing that is su p p orted by the Prod u ctivity Com m ission‟s 1999 Report on A ustralia’s Gambling Industries. 10.2 Casino The review of the Casino Control A ct 1992 w as com p leted in Decem ber 1998. In Decem ber 2000 the N ew Sou th Wales Governm ent ind icated in-p rincip le su p p ort for the review 's recom m end ations bu t the rep ort need ed to be u p d ated before a final d ecision w as m ad e. The revision of the rep ort w as com p leted in March 2003. The revised rep ort reaches broad ly the sam e conclu sions as the first rep ort. The review acknow led ges the licence exclu sivity m ay not be consistent w ith N CP p rincip les. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 30 H ow ever, it find s that there is no feasible or less restrictive op tion for casino gam bling at this tim e given the natu re of the exclu sivity agreem ent entered into w ith the single licence hold er and the liability for su bstantial com p ensation shou ld the Governm ent seek to end the agreem ent. Ad d itionally, the review fou nd that the exclu sive licence arrangem ent w as a reasonable ap p roach to the grad u al liberalisat ion of the gam ing m arket in an environm ent of d iscern ible com m u nity ap p rehension abou t the p ossible social costs. The rep ort d raw s attention to the com p etitive selection p rocess for the single licence hold er as a p ro-com p etitive m ethod of establishing a m onop oly m arket. The m onop oly p rofits of the ventu re are shared w ith the N ew Sou th Wales p u blic via a p rogressive taxation regim e. H ow ever, the rep ort acknow led ges that the establishm ent of exclu sivity arrangem ents to m axim ise taxation revenu es is not a sou nd basis for the restriction. The review fou nd that other restrictions in the legislative regim e focu sed d irectly u p on consu m er p rotection and p robity m atters and w ere not u nd u ly restrictive. The exclu sivity arrangem ent exp ires in 2007. The final rep ort recom m end s that the Governm ent consid er the case for liberalising the casino gam ing m arket as the 2007 exp iry d ate ap p roaches. Sp ecifically, it recom m end s that consid eration be given to p rovid ing no new exclu sive casino licences, not renew ing existing exclu sive licences on exp iry and rem oving any legislative barriers to new entry into the casino gam ing m arket. It is anticip ated that the Governm ent w ill m ake a final d ecision on the revised review recom m end ations in m id -2003. 10.3 Gaming Machines The Dep artm ent of Gam ing and Racing com p leted a review of the Gaming M achines A ct 2001 against com p etition p olicy p rincip les in March 2003. The review clearly sets ou t the need for a com p rehensive regu latory ap p roach in the gam ing m achine sector to m inim ise the social costs of p roblem gam bling (estim ated by the Prod u ctivity Com m ission to be at least $1.8 billion p er annu m ). The review d eterm ined that there is a net p u blic benefit arising from the harm m inim isation m easu res contained in the Act. Sp ecifically, the review d eterm ined that the social im p act assessm ent requ ired for p rop osed increases in the nu m ber of gam ing m achines in a venu e w ithin a com m u nity is an im p ortant m easu re to ensu re the view s of the com m u nity are p art of the d ecision m aking p rocess and to ensu re the d ecision-m aker has fu ll inform ation on the p ossible harm that w ou ld flow from ap p roval of the ap p lication. The review noted the Prod u ctivity Com m ission‟s view , in its 1999 Rep ort A ustralia’s Gambling Industries, that venu e cap s can p lay a role in ad d ressing the accessibility d rivers of p roblem gam bling. The review therefore su p p orts the Governm ent‟s m easu res to cap the nu m ber of gam ing m achines across the State and p er venu e. Also in line w ith the Prod u ctivity Com m ission‟s find ings, the review fou nd that, becau se a p u rp ose of ad vertising is to heighten p rod u ct ap p eal and u ltim ately increase p rod u ct d em and , strong restrictions on gam ing m achine ad vertising serve the p u blic interest. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 31 N on-m etrop olitan venu es w ere d eterm ined to have been at risk of fina ncial non-viability if their gam ing m achine entitlem ents w ere trad ed into m etrop olitan areas, as had occu rred in relation to liqu or licences, w ithou t ap p rop riate safegu ard s. The review therefore fou nd that the non -transferability of entitlem ents from non -m etrop olitan to m etrop olitan N ew Sou th Wales w as im p ortant in m aintaining social cohesion in ru ral areas. The Governm ent is confid ent that its gam ing m achine p ackage p erm its m arket restriction only to the p oint of m inim ising the p otential for ind ivid u al an d social harm . The Governm ent also believes that the new ly created m arket for trad eable gam ing m achine entitlem ents is a p ro-com p etitive m easu re that offsets som e of the restrictions in the p ackage. 10.4 Minor and other Gambling The N CC has requ ested fu rther inform ation on the p u blic interest case su p p orting restrictions in the Gambling (Two Up) A ct 1998 (The Act). The N CP review of the Act w as com p leted in Sep tem ber 1998. The Act p rohibits the p laying of Tw o Up in N ew Sou th Wales, excep t for p lay on Anzac Day and in the m ining com m u nity of Broken H ill. The Act p rescribes the trad itional ru les of the gam e, requ ires it to be p layed on a not-for-p rofit basis on Anzac Day and requ ires that p rofits m ad e in Broken H ill be ap p lied to the p rom otion of tou rism . The objectives of the legislation are to m inim ise the ad verse social effects from gam bling and to ensu re that w here Tw o Up is p erm itted , gam es are cond u cted honestly and free from crim inal influ ence. The exem p tions for Anzac Day and for Broken H ill are based on recognition of the u niqu e historical and cu ltu ral associations of the gam e. The ru les of Tw o Up offer low er retu rns to p layers than other form s of gam bling and the gam e is therefore less attractive to p layers than other gam es, d iscou raging continu ou s o r ad d ictive p lay. Ad d itionally, lifting of restrictions on the availability of Tw o Up is u nlikely to have a m ajor im p act given the cu rrent variety of gam bling op tions. H ow ever, d eregu lation w as not recom m end ed as it w as fou nd it m ay encou rage entry of u nscru p u lou s op erators ru nning u nfair gam es, incu rring ad d itional costs of ensu ring com p liance w ith ru les and p rotecting p layers. Su bm issions to the review of the Act su ggested that there w as no p u blic d em and for increased availability of the gam e. The joint review of the Charitable Fundraising A ct 1991 and the Lotteries and A rt Unions A ct 1901 w as com p leted in May 2001. Governm ent end orsed the recom m end ations of the review in Sep tem ber 2002 and introd u ced am end ing legislation (Lotteries and Art Unions Am end m ent Bill 2002) on 11 Decem ber 2002. The Bill w ill be reintrod u ced w hen Parliam ent resu m es in 2003. The p rim ary objectives of the legislation are to ensu re integrity and fairness in the cond u ct of charitable fu nd raising and au thorised lottery activities, to p rom ote the m inim isation of harm from these activities, and to assist the ongoing viability of charitable organisations, w hich contribu te p ositively to the com m u nity. The Act contains restrictions on w ho m ay cond u ct gam ing activities, sets ou t the typ e and ru les of au thorised lottery gam es and contains restrictions on cross bord er p articip ation. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 32 The review fou nd that regu latory arrangem ents p rovid e a net p u blic benefit and are effective in achieving objectives. The review recom m end ed that regu lations generally be retained , bu t that certain restrictions on com p etition in the Lotteries and A rt Unions A ct be relaxed . These inclu d e rem oval of restrictions on the m axim u m valu e of cash p rizes that m ay be offered in conju nction w ith a trad e p rom otion, rem oval of restrictions on crossbord er ad vertising and sales (su bject to m eeting p robity stand ard s) and the introd u ction of a negative licensing system for gam es of chance cond u cted by registered clu bs . 10.5 TAB Investment Licence Und er the Liquor A ct 1982, TAB Lim ited w as granted a 15-year exclu sive licence com m encing 14 March 2000 to su p p ly gam ing m achines to hotels; finance the acqu isition by hotels of gam ing m achines; and to share in p rofits d erived from the op eration of gam ing m achines that TAB Lim ited has su p p lied and / or financed . The licence now op erates u nd er the Gaming M achines A ct 2001. The investm ent licence offers an alternative w ay for hotels to finance the p u rchase of gam ing m achines and for clu bs to access Statew id e-linked gam ing m achines. It enables TAB to com p ete w ith the financial arrangem ents offered by other financial institu tions, and therefore p rovid e s hotels and clu bs w ith a m ore com p etitive environm ent for financing the acqu isition of gam ing m achines. For the 2003 assessm ent, the N CC has ind icated that N ew Sou th Wales shou ld p rovid e the p u blic interest case su p p orting the exclu sive investm ent licence for TAB Lim ited . The Governm ent is concerned to ensu re the fitness of ind ivid u als w ho are in d irect control of, and p rofit from , gam ing op erations. By requ iring ind ivid u als w ith a financial interest in gam ing op erations to m eet p robity stand ard s and be ap p roved by control au thorities, the Governm ent can ensu re that u nd esirable elem ents or p ersons are exclu d ed . These controls also p rovid e som e assistance in m inim ising harm throu gh p roblem gam bling. TAB Lim ited , as the hold er of a nu m ber of gam bling licences, has satisfied gam bling p robity obligations. The host venu es (hotels) w ill also have satisfied p robity obligations. The exclu sive licence com p lies w ith the Com p etition Princip les Agreem ent becau se: the benefits of the restriction to the com m u nity as a w hole ou tw eigh the costs; the cond u ct au thorized u nd er an investm ent licence w ill increase com p etition in the relevant m arkets; the m onop olistic behaviou r of the hold er of the exclu sive investm ent licence w ill be lim ited by com p etition in the relevant m arkets; the restriction w ill assist in m aintaining resp onsible gam bling p olicies; and the objectives of the legislation can only be achieved by restricting com p etition. Before the introd u ction of an investm ent licence: N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 33 ap p roved gam ing d evices cou ld only be su p p lied to hoteliers by the hold er of an am u sem ent d evice d ealer‟s licence (a d ealer) or the hold er of an am u sem ent d evice seller‟s licence (a seller); only a p erson ap p roved by th e Liqu or Ad m inistration Board (the Board ) cou ld finance the acqu isition of ap p roved gam ing d evices, and the Board w ou ld not ap p rove a d ealer or a seller; and a hotelier cou ld only share receip ts from an ap p roved gam ing d evice w ith a p erson w ho had a financial interest in the hotel w hich had been d eclared to the Licensing Cou rt. The Governm ent‟s reasons for introd u cing the investm ent licence w ere: to assist sm aller hotels to acqu ire ap p roved gam ing d evices that com p ly w ith the „X stand ard ‟ ad op ted by the Board in 1995. All ap p roved gam ing d evices w ere to com p ly w ith this stand ard by 31 Decem ber 2000. Many sm aller hotels ap p eared to requ ire assistance to finance the rep lacem ent of non -com p lying ap p roved gam ing d evice; and to facilitate the introd u ction of the State Wid e Linked Jackp ots System (SWLJS) by p erm itting TAB to finance ap p roved gam ing d evices in hotels. The N CC has accep ted that TAB‟s exclu sive licence in relation to SWLJS and the other exclu sive licences granted to TAB u nd er the Links Act and the Totalizator Legislation A mendment A ct 1997 com p ly w ith clau se 5(5) of the Com p etition Princip les Agreem ent. Introd u cing the investm ent licence has increased com p etition in the m arkets for the su p p ly of ap p roved gam ing d evices and the financing of the acqu isition of ap p roved gam ing d evices, by giving hoteliers a choice betw een: ou tright acqu isition from a d ealer or a seller; ou tright acqu isition from the hold er of an investm ent licence; acqu isition from a d ealer, seller or the hold er of an investm ent licence w ith som e form of financing from a financier not otherw ise connected to the gam ing ind u stry; and acqu isition from the hold er of an investm ent licence w ith som e form of financing or sharing of p rofits. The m onop olistic cond u ct of the hold er of the exclu sive investm ent licence w ill be lim ited by com p etition from d ealers and sellers in relation to su p p lying ap p roved gam ing d evices, and from financiers not otherw ise connected to the gam ing ind u stry in relation to financing the acqu isition of ap p roved gam ing d evices. H istorically, d ealers and sellers have been restricted from financing or sharing in the p rofits of ap p roved gam ing d evices becau se of the p otential conflicts of interest and p robity issu es that arise if d ealers or sellers have a stake in the p rofits of the ap p roved gam ing d evices that they sell to hoteliers. Recognising the social costs of gam bling, the Governm ent is p articu larly concerned to m aintain resp onsible gam bling p olicies; N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 34 allow ing d ealers and sellers to share in the p rofits of ap p roved gam ing d evices m ight u nd erm ine these p olicies. To d ate, 14 venu es have entered financial arrangem ents w ith TAB Lim ited u nd er the investm ent licence, for 154 gam ing m achines. 10.6 Racing and Betting For the 2003 assessm ent the N CC is seeking fu rther evid ence to su p p ort the p u blic interest case to retain restrictions on p hone betting lim its on bookm akers, fu nd ing arrangem ents and cross-bord er betting. It is noted that the above issu es are cu rrently being exam ined by a Cross-Bord er Betting Taskforce, w hich w as established by the Conference of Au stralasian Racing Ministers (of w hich N ew Sou th Wales is a m em ber) in May 2002. The Taskforce w as com m issioned to investigate and rep ort on a range of cross-bord er betting m atters in clu d ing betting lim its, fu nd ing, variations in bookm aker op erating cond itions and cross-bord er ad vertising restrictions. The Taskforce w as to ad d ress all m atters of national significance to the racing ind u stry w ith the view to m aking recom m end ations to Racing Ministers regard ing the long-term viability of the Au stralian racing ind u stry. Major issu es su ch as the p roblem of free rid ing on the costs of p rod u cing the racing p rod u ct w ere sp ecifically inclu d ed . Ad d itionally, the term s of reference for the Taskforce sp ecified the im p lications of N CP m u st be consid ered . The Taskforce rep orted in October 2002. The Conference of Au stralasian Racing Ministers is d u e to consid er the national ind u stry resp onse to the rep ort in Ap ril 2003. The N CC noted in its 2002 Assessm ent that the $200 m inim u m lim it on bets p laced over telep hone w ith a bookm aker m ay restrict com p etition, albeit p robably only to a lim ited d egree. Ahead of the Conference resp onse, the N ew Sou th Wales Governm ent red u ced the bookm aker telep hone m inim u m bet level on or at m etrop olitan gallop ing m eetings from $200 to $100 on 25 Febru ary 2003. Minim u m bet restrictions on non - m etrop olitan gallop ing, harness and greyhou nd betting have also been rem oved . The m inim u m telep hone bet levels now ap p licable in N ew Sou th Wales on bookm aker racing betting are now broad ly in line w ith the m ajority of Au stralian ju risd ictions (Victoria, Sou th Au stralia, Western Au stralia and Tasm ania). The ap p licable level in Qu eensland is cu rrently $150. N ew Sou th Wales has p u blicly su p p orted the Taskforce p rocess and efforts to achieve national consistency in betting regu lation. The Governm ent w ill be reexam ining N ew Sou th Wales betting regu lation, inclu d ing those areas of concern to the N CC, follow ing finalisation of Conference d eliberations. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 35 11. 11.1 Planning, Construction and D evelopment Architects The Prod u ctivity Com m ission com p leted a national review of architects legislation on behalf of States and Territories in 2000. On 11 Decem ber 2002, the N ew Sou th Wales Governm ent introd u ced the Architects Bill 2002, w hich p rovid es for the rep eal of the A rchitects A ct 1921 and im p lem entation of reform s agreed u nd er the national Working Grou p resp onse to the review . This Bill w ill be reintrod u ced follow ing the resu m p tion of Parliam ent in 2003. The m ajor restriction p rop osed by the Bill, consistent w ith the ap p roach that w ill be taken in other ju risd ictions, w ill be to restrict the u se of the title „architect‟ to those that are registered u nd er the new Act. The title w ill only be p rotected w hen u sed in connection w ith bu ild ing and constru ction , thereby allow ing the title „architect‟ to be freely u sed in other ind u stry areas, su ch as inform ation technology. Any firm that em p loys an architect m ay also u se the title or any of its d erivatives u p on notifying the Architects Board of its „nom inated ‟, or su p ervising, architect, rep lacing cu rrent restrictions that requ ire a firm to have one third of its d irectors as architects as a p recond ition for u se. Consistent w ith Prod u ctivity Com m ission recom m end ations, the Architects Bill d oes not contain any restrictions that p revent non -architects from the p ractise of bu ild ing d esign. Und er the Bill, the Board w ill also be requ ired to p rovid e a p athw ay to registration that recognises the exp erience and skills of non-architect bu ild ing d esigners. This is relevant for the p u rp oses of m eeting criteria u nd er N ew Sou th Wales‟ State Environm ental Planning Policy 65, w hich lim its the right to d esign certain classes of m u ltip le u nit resid ential bu ild ings to registered architects. 11.2 Surveyors The review of the Surveyors A ct 1929 w as com p eted in Au gu st 2001. The find ings and recom m end ations of the review , w hich w ere accep ted by the Governm ent, w ere ou tlined in N ew Sou th Wales‟s 2002 rep ort to the N CC. The Surveyors A ct 2002 (the Act) w as assented to on 29 October 2002. The Act rep ealed the Surveyors A ct 1929 and rem oved the p reviou s restrictions relating to the nam ing and ow nership of su rveying firm s and on ad vertising. The Act retained the system of registration of su rveyors, as recom m end ed by the review . The review fou nd that there w as a net p u blic benefit in m aintaining this system to ensu re the integrity of the State cad astre (register of land bou nd aries). 11.3 Valuers A review of the V aluers Registration A ct 1975 w as com p leted in Febru ary 2000. While the review fou nd that the im p act of existing regu lations on com p etition w as not significant, 36 N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 it recom m end ed that a negative licensing regim e rep lace the cu rrent registration schem e. The review also p rop osed the introd u ction of core regu lations p rovid ing for qu alification and p ractise requ irem ents, and d iscip linary action. In Ap ril 2000, the Governm ent gave in-p rincip le ap p roval to the review ‟s recom m end ations, su bject to fu rther consu ltation. The consu ltation p rocess fou nd , contrary to assu m p tions w ithin the original review , that an increasing nu m ber of consu m ers are d ealing d irectly w ith valu ers and valu ers are exp eriencing d ifficu lty in obtaining p rofessional ind em nity insu rance d u e to instability in the insu rance ind u stry. There w as evid ence that introd u cing a negative licensing schem e w ou ld consid erably increase the risk of financial losses being borne by consu m ers if incorrect valu ations w ere given. The m argin of benefits from red u ction in regu lation u nd er a negative licensing schem e w ou ld not offset these risks. The Governm ent d ecid ed in May 2002 to retain p ositive licensing as the regu latory op tion p rovid ing the greatest net p u blic benefit. The Governm ent also ap p roved reform s to im p rove the efficien cy of the existing schem e and to red u ce the regu latory bu rd en on valu ers. These inclu d e the introd u ction of a single licence arrangem ent to rep lace the cu rrent system of five licences, creation of a m ore flexible system of qu alification and com p etency stand ard s and the introd u ction of three-year p eriod s for registration to rep lace the cu rrent requ irem ent for annu al renew als. The Valu ers Bill 2002 w as introd u ced into Parliam ent on 11 Decem ber 2002 and w ill be reintrod u ced w hen Parliam ent resu m es in 2003. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 37 12. Competitive N eutrality N ew Sou th Wales has com p lied w ith its com p etitive neu trality obligations as requ ired u nd er the Com p etition Princip les Agreem ent. The N ew Sou th Wales Annu al Rep orts to the N CC for the year end ing 2000 and for 2002 p rovid ed a com p rehensive accou nt of the ap p lication of com p etitive neu trality p rincip les in N ew Sou th Wales, inclu d ing the com p laints hand ling p rocess (2002 Annu al Rep ort p ages 42 and 43; Annu al Rep ort for the year end ed Decem ber 2000 p ages 3 to 28). In 2002, the Governm ent released a revised version of the N ew South W ales Government Policy Statement on the A pplication of Competitive N eutrality and also released a Policy Summary of the Competitive N eutrality Complaints Handling M echanism . Attachm ent 2 p rovid es an u p d ated list of N ew Sou th Wales General Governm ent agencies that are requ ired to ap p ly com p etitively neu tral costing and p ricing p rincip les to good s and services. 12.1 Competitive N eutrality Complaints Du ring the rep orting p eriod , the Governm ent d id not receive any new requ ests for com p etitive neu trality com p laints to be referred for investigation to either the Ind ep end ent Pricing and Regu latory Tribu nal or the State Contracts Control Board . 12.2 2000-01 Rates of Return for Government Businesses The N CC has requ ested com m ent on the Prod u ctivity Com m ission‟s rep ort Financial Performance of Government Trading Enterprises 1996-97 to 2000-01, w hich stated that rates of retu rn on cap ital for som e N ew Sou th Wales Governm ent Bu siness Enterp rises (GBEs) w ere below the 5.8 p er cent retu rn on 10 year Com m onw ealth Bond s. In the first instance, N ew Sou th Wales notes that all significant N ew Sou th Wales Governm ent bu sinesses are requ ired to seek ap p rop riate recovery of cap ital costs, as set ou t in the N ew Sou th Wales Treasu ry‟s Com m ercial Policy Fram ew ork and Gu id elines for the Pricing of User Charges. The low retu rns rep orted by the Prod u ctivity Com m ission are largely attribu table to the d ifferences in ap p roach taken by the Com m ission and the N ew Sou th Wales Ind ep end ent Pricing and Regu latory Tribu nal (IPART) to estim ating the valu e of GBE asset bases. IPART regu lates the p ricing of m ost of the bu sinesses covered by the Com m ission in its rep ort d u e to their m onop oly characteristics. The Prod u ctivity Com m ission u ses the average book (or accou nting) valu e of assets for the p u rp oses of rate of retu rn calcu lations. In com p arison, IPART u ses an average Regu latory Asset Base (RAB) ap p roach in relation to revenu e recovery in its p ricing d eterm inations. The IPART ap p roach exclu d es those elem ents of the book valu e asset base that d o not w arrant a retu rn on cap ital (su ch as u neconom ic assets, excess cap acity, strand ed assets or d evelop er contribu tions). The p ractical d ifference betw een the N ew Sou th Wales IPART‟s and the Prod u ctivity Com m ission ‟s ap p roach to estim ating an asset base can be N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 38 su bstantial. For exam p le, w hereas the Ju ne 2000 book valu e of Syd ney Water‟s assets w as $13.1 billion, the valu e of its RAB w as $5.4 billion. The RAB ap p roach is consid ered to p rom ote m ore ap p rop riate d ecision m aking by N ew Sou th Wales GBEs. It is im p ortant to note that the effective asset retu rns set by IPART are based on w eighted average cost of cap ital rates that exceed the Com m onw ealth Bond rate. For exam p le, IPART has allow ed w ater u tilities a real p re-tax rate of retu rn of arou nd 6.5 p er cent for the cu rrent three-year p rice p ath. The m agnitu d e of the d ifference in valu e betw een book valu e assets and RAB how ever m eans that som e N ew Sou th Wales GBEs w ith long-lived assets m ay continu e to earn „book valu e‟ retu rns below the Com m onw ealth Bond rate . Certain entities‟ low retu rns are also attribu table to significant losses (abnorm al item s). These entities‟ p erform ances w ere typ ically affected by events su ch as cap ital restru ctu res that occu r infrequ ently and can be hard to p red ict. For exam p le, TransGrid incu rred a $160 m illion loss on p rep aym ent of their d ebt p ortfolio, red u cing the retu rn on equ ity to -9.6 p er cent in 2000-01, d ow n from 10.4 p er cent in 1999-2000. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 39 13. Structural Reform of Monopolies Com p rehensive inform ation on the stru ctu ral reform of p u blic m onop olies w as p rovid ed in the N ew Sou th Wales Annu al Rep ort to the N CC for the year end ed 2000 (p ages 29 to 33). Up d ated inform ation on N ew Sou th Wales Governm ent Bu siness Enterp rises that have been corp oratised or p rivatised or have been assessed as p otential cand id ates for corp oratisation or p rivatisation in the m ed iu m term is p rovid ed at Attachm ent 3. Du ring 2001-02, the N ew Sou th Wales Governm ent corp oratised three Governm entow ned entities: 1. Waste Service, on 1 Sep tem ber 2001; 2. Land com , on 1 Janu ary 2002; and 3. The Snow y Mou ntains H yd ro Electricity Au thority, on 28 Ju ne 2002. On 7 Febru ary 2003, Pacific Pow er International, a w holly ow ned su bsid iary of Pacific Pow er p rovid ing engineering services to th e energy sector, w as sold to Connell Wagner. N ew South Wales Report on the Application of N ational Com petition Policy. March 2003 40 Attachment 1: Update on planning and land-use reform projects Project Original Timeframe Status at March 2002 Current status (March 2003) 1. Develop m ent of p olicy op tions for integrated ap p rovals system . Review of referral and concu rrences in local p lanning p olicies. Discu ssion Pap er 1996 Complet ed Integrated Develop m ent am end m ents com m enced 1 Ju ly 1998. Underw ay The p rovision of greater strategic d irection p rovid ed by the p lanFIRST reform s w ill have the effect of red u cing the level of referrals and concu rrences. Underw ay Local p lans w ill be review ed and am end ed as p art of PlanFIRST. It is envisaged that local p lans w ill set ou t the vision for the fu tu re and the strategies and actions need ed to get there. Local p lans w ill be based on a single, com p rehensive p lanning strategy for a local governm ent area w hich ad d resses the key social, econom ic and environm ental issu es relevant to the fu tu re of the area. 2. 1996-98 3. Extend Gu arantee of Prom p t Service to concu rrent ap p rovals u nd er the Environmental Planning and A ssessment (EP&A ) A ct. Review of m u ltip le controls on land clearing State Environm ental Planning Policy (SEPP) 46. 1997 Complet ed N ew concu rrence p rocesses in p lace since 1/ 7/ 98 red u ce tim efram es from 80 d ays to 60 d ays. Complet ed SEPP 46 w as rep laced by the N ative V egetation Conservation A ct 1997, w hich cam e into force on 1/ 1/ 98, follow ing a d etailed p u blic consu ltation and review p rocess. 4. 1996 Rep ort on SEPP 46 to be su bm itted to the Prem ier before 1996. N SW Report on the Application of N ational Com petition Policy: March 2003 41 Project Original Timeframe Status at March 2002 Current status (March 2003) Complet ed A d ecision has been m ad e to im p lem ent PlanFIRST ad m inistratively at this stage. When d evelop ing regional strategies u nd er PlanFIRST, regional foru m s w ill be requ ired to take natu ral resou rce m anagem ent p lans into accou nt. 5. Integration of total catchm ent m anagem ent objectives in p lanning instru m ents. 1996-97 TCM review rep ort w as su bm itted to Parliam ent March 1997 Underw ay A Governm ent White Pap er: Plan First – Review of Plan M aking released Febru ary 2001. The White Pap er p rop osed to integrate catchm ent m anagem ent objectives into new Regional Strategies: integrated , strategic p lanning instru m ents u nd er the EP&A Act, that w ill ap p ly to every region of N SW. It is exp ected that the p lanFIRST legislation w ill requ ire that asp ects of natu ral resou rce m anagem ent p lans that relate to land u se and environm ental p lanning and requ ire regu lation w ill be im p lem ented throu gh the EP&A Act. This w ill occu r throu gh their inclu sion in Local Plans. Draft legislation is being finalised for introd u ction into Parliam ent in the first half of 2002. 6. Exam ine feasibility of incorp orating p lans for: river, land , and habitat m anagem ent; environm ental p rotection; and forestry reserves into p lanning instru m ents u nd er the EP&A Act. 1997 Underw ay Governm ent White Pap er: Plan First Review of Plan M aking, released Febru ary 2001. A key them e of the White Pap er is the integration of all p olicies and p lans for environm ental and land u se issu es into one local p lanning instru m ent for each Local Governm ent Area (LGA), one regional strategy for each region and one state p lanning p olicy d ocu m ent. Complet ed A d ecision has been m ad e to im p lem ent PlanFIRST ad m inistratively at this stage. When d evelop ing regional strategies u nd er PlanFIRST, regional foru m s w ill need to take natu ral resou rce m anagem ent p lans into accou nt. N SW Report on the Application of N ational Com petition Policy: March 2003 42 Project Original Timeframe Status at March 2002 Current status (March 2003) Underw ay The Governm ent introd u ced the Coal M ine Health and Safety A ct 2002 in resp onse to a review of safety at coal m ines. The Act rep ealed the Coal M ines Regulation A ct and com p lem ents the OH S Act. In Decem ber 2002, the Governm ent introd u ced into Parliam ent a d raft Mine H ealth and Safety Bill, follow ing a review of safety in m etalliferou s m ines and qu arries. The d raft Bill p rop oses to rep eal and rep lace the M ines Inspection A ct 1901. Follow ing fu rther consu ltation w ith safety exp erts, ind u stry and em p loyee rep resentatives, it is intend ed that the new legislation w ill be introd u ced into Parliam ent in 2003. 7. Review and reform of regu lations affecting m ining. Am algam ate to p lanning fram ew orks from 1997-2000 Underw ay Com p rehensive review of m ines legislation is u nd erw ay. Position p ap er com p leted in Au gu st 2001. 8. Review and reform of regu lations affecting m aricu ltu re. Review and reform of regu lations affecting forestry inclu d ing the corp oratisation of State Forests. Legislation to be introd u ced in Au tu m n Session 1997 to achieve p hased im p lem entation. Complet ed N CP Review com p lete. The Review confirm s net p u blic benefits from cu rrent regu lations. The Plantations and Reafforestation A ct and Cod e com m enced in Decem ber 2001 The op tion to establish State Forests as a State Ow ned Corp oration has been canvassed . H ow ever, the d ecision has been m ad e not to p roceed w ith this ap p roach. State Forests is a Pu blic Trad ing 9. N SW Report on the Application of N ational Com petition Policy: March 2003 43 Project Original Timeframe Status at March 2002 Current status (March 2003) Enterp rise and op erates u nd er a fram ew ork w hich requ ires: the ap p lication of com m ercially based targets of rates of retu rn, d ivid end s and cap ital stru ctu res; regu lar p erform ance m onitoring; the p aym ent of State taxes and Com m onw ealth tax equ ivalents; the p aym ent of risk-related borrow ing fees; and exp licitly fu nd ed social p rogram s ie. ‘Com m u nity Service Obligations’. 10. Review of s90 EP&A Act ‘head s of consid eration’ for d evelop m ent consent. Complet ed Section 79C of the reform ed EP&A Act introd u ces generic head s of consid eration stream lining old p rocesses. 1996-97 Complet ed Com p leted w ith the introd u ction of State-w id e com p lying/ exem p t d evelop m ent in Ap ril 2000. 85 p er cent of cou ncils in N SW have som e form of com p lying/ exem p t d evelop m ent. Complet ed Reform s to d evelop m ent assessm ent system introd u ced 1 Ju ly 1998 contain certification for bu ild ing and su bd ivision. 11. Review p otential for increasing ‘as of right d evelop m ents’. 12. Consid er p otential for p rivate certification of bu ild ing, su bd ivision w ater and sew erage ap p rovals. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2003 44 Project Original Timeframe Status at March 2002 Current status (March 2003) 13. Integrate bu ild ing and p lanning ap p rovals. 1996-97 Complet ed Reform s to d evelop m ent assessm ent system com bined the d evelop m ent, bu ild ing and su bd ivision ap p roval p rocesses. Underw ay See N o. 18 below . Underw ay Und er p lanFIRST it is exp ected that each local cou ncil w ill d evelop a new single local p lan based on a locality p lanning ap p roach. It is therefore likely that there w ill be few er zoning classifications. Cou ncils w ill also have the assistance of Dep artm ent of Urban and Transp ort Planning staff to d evelop these p lans therefore it is likely that there w ill be greater stand ard isation of d efinitions and stand ard s across local p lan s. In ad d ition, in Decem ber 2002 the Develop m ent Assessm ent Foru m (DAF) w hich inclu d es rep resentatives of States, local cou ncils and ind u stry bod ies, released a stu d y Comparative Performance M easurement and Benchmarking of Planning and Development A ssessment Systems. The DAF is cu rrently review ing su bm issions received . 14. Exam ine zoning p rohibitions for anti-com p etitive effects; consid er w id er ad op tion of p erform ance stand ard s. 1996-97 15. Review and reform d evelop m ent w ithou t consent (SEPP 4) for change of u se in ind u strial areas. 1998 Complet ed Und ertaken throu gh the establishm ent of the new categories of Exem p t and Com p lying Develop m ent u nd er the N SW Report on the Application of N ational Com petition Policy: March 2003 45 Project Original Timeframe Status at March 2002 Current status (March 2003) EP&A Act. 16. Consid er com bining d evelop m ent and re-zoning ap p lications. Review heritage ap p rovals and consid er better integration w ith Develop m ent Ap p roval/ Bu ild ing Ap p roval (DA/ BA) p rocesses. Consid er p otential for stand ard ising consent cond itions, zoning classifications and d efinitions of p erform ance stand ard s. 1998 Complet ed EP&A Act am end ed to allow for this situ ation. Complet ed H eritage ap p rovals now integrated u nd er the EP&A Act. H eritage Act am end m ents stream line the p rocess if d evelop m ent accord s to a Conservation Plan. Underw ay Und er p lanFIRST it is exp ected that each local cou ncil w ill d evelop a new single local p lan based on a locality p lanning ap p roach. It is therefore likely that there w ill be few er zoning classifications. In ad d ition, as cou ncils w ill have the assistance of PlanningN SW staff to d evelop these p lans it is likely that there w ill be greater stand ard isation of d efinitions and stand ard s across local p lans. PlanningN SW is review ing the final set of stand ard d efinitions p rod u ced by DAF for inclu sion as p art of the p lanFIRST reform s. Underw ay The PlanFIRST initiative is still u nd erw ay (see p reviou s colu m n). In Decem ber 2002 the Develop m ent Assessm ent Foru m (DAF) w hich inclu d es rep resentatives of States, local cou ncils and ind u stry bod ies, released a stu d y Comparative Performance M easurement and Benchmarking of Planning and Development A ssessment Systems. The DAF is cu rrently review ing su bm issions received . Planning N SW has also d evelop ed BASIX. BASIX is a com p rehensive w eb-based p lanning tool for cou ncils and p rop onents of resid ential d w ellings to assess the p otential p erform ance of their d evelop m ent against an agreed set of su stainability 17. 1996-97 18. 1998 N SW Report on the Application of N ational Com petition Policy: March 2003 46 Project Original Timeframe Status at March 2002 Current status (March 2003) ind ices. 19. Stage II review of p ollu tion control acts to stream line and rationalise licensing p roced u res. 1996-97 Complet ed The Protection of the Environment Operations A ct 1997 (PoEO Act) and regu lations com m enced on 1 Ju ly 1999, rep lacing five core p ollu tion control statu tes and p rovid ing for stronger environm ent p rotection, w hile stream lining the licensing p rocess. Bu sinesses now requ ire only one environm ent p rotection licence that recognises the ongoing, long-term natu re of op erations. Complet ed Review com p leted . N ew W ater M anagement A ct 2000 being im p lem ented . Underw ay Practice notes on cond itions relating to integrated d evelop m ent have been released as p art of the p u blication Guiding Development: better outcomes. Complet ed Gu id elines w ere issu ed in Sep tem ber 1997. Relevant am end m ents to the EP&A Act cam e into effect in Ju ly 1998. Complet ed The Planning N SW w ebsite contains com p rehensive inform ation abou t the integrated d evelop m ent fram ew ork. 20. Review w ater legislation and licensing. 1996-97 21. 22. Develop fram ew ork for Coord inated / Integrated Develop m ent Ap p roval Cond itions and other requ irem ents and ad vice on the u se of the fram ew ork. Develop Best Practice Gu id elines for a Coord inated / Integrated Develop m ent Ap p roval System for Mining and Extractive Ind u stry. 1996-97 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2003 47 Project Original Timeframe Status at March 2002 Current status (March 2003) 23. Develop Best Practice Gu id elines for Planning Focu s. Develop Best Practice Gu id elines for Com m u nity Consu ltation. Review of end angered sp ecies legislation so as to integrate licences and DAs. 1996-97 Complet ed Gu id elines have been p rep ared . Underw ay Gu id elines w ill be released as p art of the p lanFIRST p ackage. Exp ected m id 2002. Complet ed The Threatened Species Conservation A ct 1995 am end ed the N ational Parks and W ildlife (N P&W ) A ct 1974 to integrate licences and d evelop m ent ap p lications/ consents w ith resp ect to harm ing, p icking threatened sp ecies p op u lations or ecological com m u nities. See s18A (3) (b) of the N P&W Act. The am end m ent took effect on 1/ 1/ 96. Underw ay The gu id elines Community Engagement in the N ew South W ales Planning System w ere released in early March 2003. 24. 1996-97 25. 26. Ad op t reform ed Au stralian Bu ild ing Cod e (as p erform ance stand ard s) w ith m inim al variations. Convert siting ru les to p erform ance stand ard s. 1996-97 Complet ed Perform ance-based 1996 Bu ild ing Cod e of Au stralia w as ad op ted in N SW. Complet ed Fire stand ard s p rovisions w ere rep ealed on 1 Ju ly 1999. These siting stand ard s are now controlled via the p erform ance-based Bu ild ing Cod e of Au stralia, and cou ncils’ Local Environm ent Plans (LEPs) and Develop m ent Control Plans (DCPs). Other siting requ irem ents are controlled u nd er LEPs and DCPs 27. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2003 48 Project Original Timeframe Status at March 2002 Current status (March 2003) w here necessary. 28. Extend and im p rove p erform ance benchm arking of local cou ncils. 1996-97 O ngoing The Govt continu es to im p rove its local cou ncil com p arative p erform ance inform ation. PlanningN SW is w orking on a p rogram to m easu re the effectiveness of the d evelop m ent assessm ent system . An au d iting p rogram of cou ncils’ p erform ance w ill fu rther d ecentralise d evelop m ent assessm ent fees. Underw ay It is exp ected that the p lanFIRST reform s w ill lead to a sim p lified p lanning system w ith greater room for com m u nity consu ltation. This is exp ected to red u ce d isp u tes at the d evelop m ent assessm ent and ap p roval stage. Complet ed N SW has exam ined the p otential for consolid ating relevant statu tes into a single Act. N SW has d ecid ed , how ever, on an integrated p olicy fram ew ork, w hich w ill continu e to involve sep arate environm ental p lanning and natu ral resou rce m anagem ent legislation. O ngoing 29. Pu blic consu ltation to im p rove op eration of cu rrent ap p roval rights and d isp u te resolu tion system . 1997 Underw ay The gu id elines Community Engagement in the N ew South W ales Planning System w ere released in early March 2003. 30. Exam ine the p otential for consolid ating land , w ater and related natu ral resou rce m anagem ent legislation into a single statu te. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2003 49 Attachment 2: Significant N SW General Government sector agencies required to implement pricing principles Government Agency/Activity GGE (ABS)2 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Treasury Monitor3 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ User4 Charges √ Sig5 Min6 No. Government Purpose (ABS)1 (01) General Public Services 1 2 3 4 5 6 7 8 9 10 11 12 13 14 (03) Public Order & Safety 15 16 17 18 19 20 21 22 23 24 25 26 27 (04) Education 28 29 (05) Health 30 31 (06) Social Security & Welfare 32 33 34 35 36 37 38 39 40 (07) Housing & Community Amenities 41 Audit Office of NSW Cabinet Office Community Relations Commission Independent Commission Against Corruption Legislature Local Government, Dept of Ombudsman's Office Parliamentary Counsel's Office Premier's Department Public Trustee Registry of Births, Deaths and Marriages State Electoral Office State Records Treasury Attorney General's Dept Corrective Services, Dept of Crime Commission, NSW Director of Public Prosecutions, Office of Fire Brigades, NSW Judicial Commission of NSW Juvenile Justice, Dept of Legal Aid Commission Police Integrity Commission Police, Ministry for Police, NSW Rural Fire Service State Emergency Service Board of Studies, Office of the Department of Education and Training Health Care Complaints Commission Health, Dept of Aboriginal Affairs, Dept of Ageing, Disability and Homecare, Dept of Commission for Children and Young People Community Services Commission Community Services, Dept of Home Care Service Office of the Children’s Guardian Rental Bond Board Women, Dept for √ Aboriginal Housing Office √ √ √ √ N SW Report on the Application of N ational Com petition Policy: March 2003 52 42 43 44 45 46 47 48 Environmental Trust Environment Protection Authority Honeysuckle Development Corporation Home Purchase Assistance Fund Planning, Dept of Storm Water Trust Waste Planning & Management Fund √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ No. Government Purpose (ABS)1 (08) Recreation & Culture Government Agency/Activity GGE (ABS)2 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Treasury Monitor3 √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ User4 Charges √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Sig5 Min6 49 50 51 52 53 54 55 56 57 58 59 60 62 63 64 65 66 67 (09) Fuel & Energy 68 69 70 71 72 (10) Agriculture, Forestry, Fishing & Hunting 73 74 75 76 77 (11) Mining, Mineral Resources, Manufacturing & Construction 78 79 Art Gallery of NSW Arts, Ministry for the Australian Museum Casino Control Authority Centennial Park and Moore Park Trust Film and Television Office, NSW Gaming and Racing, Dept of Heritage Office Historic Houses Trust of NSW Luna Park Reserve Trust Museum of Applied Arts and Sciences National Parks and Wildlife Service Royal Botanic Gardens and Domain Trust Sport and Recreation, Dept of State Library of NSW State Sports Centre Trust Sydney Entertainment Centre Sydney Olympic Park Authority Coal Compensation Board Electricity Tariff Equalisation Ministerial Corp. Ministry of Energy and Utilities Mineral Resources, Dept of Sustainable Energy Development Authority √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Agriculture, Dept of Fisheries, NSW Land and Water Conservation, Dept of Rural Assistance Authority Safe Food Production NSW √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Building & Construction Industry - Long Service Payments Corporation Public Works and Services, Office of the Minister √ √ √ √ √ √ N SW Report on the Application of N ational Com petition Policy: March 2003 53 (12) Transport & Communications 80 81 82 83 84 85 (13) Other Economic Affairs 86 87 88 89 90 91 92 93 94 95 96 (14) Other Purposes 97 98 Crown Property Portfolio Crown Finance Entity √ √ √ √ √ √ √ √ Fair Trading, Dept of Independent Pricing & Regulatory Tribunal Industrial Relations, Dept of Insurance Ministerial Corporation Land and Property Information NSW Registry of Encumbered Vehicles State and Regional Development, Dept of Superannuation Administration Corporation Tourism NSW WorkCover Authority Worker's Compensation (Dust Diseases) Board √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Information Technology and Mgmt, Dept of Motor Accidents Authority Office of the Co-ordinator General of Rail Roads and Traffic Authority Transport NSW Waterways Authority √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √ Key to Attachment 2: 1 2 3 4 Categories as p er the Au stralian Bu reau of Statistics (ABS) in Standard Economic Sector Classifications of A ustralia (SESCA ) 1998. General Governm ent Enterp rises (GGEs) as d efined by the ABS in GFS A ustralia: Concepts, Sources and M ethods. These agencies/ activities are m onitored by Treasu ry on the basis of a risk and m ateriality assessm ent. A u ser charge is a volu ntary p aym ent by a consu m er to a PTE or a general governm ent entity for services p rovid ed . Paym ent is com m ercial rather than regu latory and p rovid es an id entifiable benefit to the p ayer. (ABS: GFS A ustralia: Concepts, Sources and M ethods). The existence of u ser charges is a broad ind icator of a bu siness activity. Significant > $2 m illion u ser charges revenu e p .a. (as based on 2002–2003 Bu d get estim ates). Minor < $2 m illion u ser charges revenu e p .a. (as based on 2002–2003 Bu d get estim ates). 5 6 N SW Report on the Application of N ational Com petition Policy: March 2003 54 Attachment 3: N SW Government Business Enterprises that have been or are intended to be corporatised or privatised No. Industry Government Business Enterprise ABS PTE1 Treasury Monitoring2 Category3 Already Priv’n Corp’n Date Priv’n(P)/Corp’n Comments Electricity 1 2 Australian Inland Country Energy √ √ √ √ 1 1 √ √ 1/3/96 1/7/01 Absorbed Broken Hill Water Board Merger of former Advance Energy, Great Southern Energy and NorthPower. 3 4 5 6 7 8 10 11 Delta Electricity Energy Australia Eraring Energy Integral Energy Macquarie Generation Pacific Power International Power Coal Pty Ltd Snowy Mountains Hydro Limited √ 12 TransGrid √ √ √ √ √ √ √ √ √ √ √ √ √ 3 √ √ √ 1 1 1 1 1 1 √ √ √ √ 1/3/96 1/3/96 2/8/00 1/3/96 1/3/96 7/2/03 (P) 29/07/02(P) 28/06/02 Former subsidiary of Pacific Power Former subsidiary of Pacific Power Jointly owned with Victoria and the Commonwealth. 1 14/12/98 Formerly part of Pacific Power √ Finance 13 14 15 Axiom Funds Management Corporation Government Insurance Office (GIO) NSW Treasury Corporation (TCorp) PFE √ √ 3 √ 4 1 √ √ 16/5/97(P) 16/7/92(P) 1983 N SW Report on the Application of N ational Com petition Policy: March 2003 55 No. Industry Government Business Enterprise ABS PTE 1 Treasury Monitoring 2 Already Category 3 Date Priv’n(P)/Corp’n Comments Priv’n Corp’n 16 State Bank of NSW √ √ 4 √ √ 31/12/94(P) Gaming & Recreation 17 18 NSW Lotteries Totalizator Agency Board of NSW (TAB) √ √ √ √ 1 4 √ √ 1/1/97 6/98(P) Ports & Waterways 19 20 21 Newcastle Port Corporation Port Kembla Port Corporation Sydney Ports Corporation √ √ √ Transport 22 23 Freight Rail Corporation Rail Infrastructure Corporation √ √ √ √ 4 1 √ √ 21/2/02(P) 1/1/01 Sold in conjunction with sale of NRC Merger of RAC and RSA √ √ √ 1 1 1 √ √ √ 1/7/95 1/7/95 1/7/95 N SW Report on the Application of N ational Com petition Policy: March 2003 56 No. Industry Government Business Enterprise ABS PTE 1 Treasury Monitoring 2 Already Category 3 Date Priv’n(P)/Corp’n Comments Priv’n Corp’n Water 24 25 26 27 Coleambally Irrigation Hunter Water Corporation Murrumbidgee Irrigation Sydney Water Corporation √ √ √ √ √ √ √ 1 √ √ √ √ 9/6/00(P) 1/1/92 12/2/99(P) 1/1/95 1 Misc 27 28 29 30 31 32 33 34 35 First Australian National Mortgage Acceptance Fish Marketing Authority Jenolan Caves Reserve Trust Landcom State Forests of NSW Superannuation Administration Corporation Sydney Market Authority Waste Recycling and Processing Corporation √ √ √ √ √ √ √ 1 √ √ √ √ 3 3 1 1 1 √ 26/7/99 1/11/97(P) 1/9/01 √ 31/10/94 Advisory Board has been established. 1/1/02 √ 5 √ 31/10/94(P) NSW Gov 25% shareholder only N SW Report on the Application of N ational Com petition Policy: March 2003 57 Key to Attachment 3: 1 Public Trad ing Enterprises (PTEs) and Pu blic Financial Enterprises (PFEs) as d efined by the Australian Bureau of Statistics (ABS) in Standard Economic Sector Classifications of A ustralia (SESCA ) 1998. GBEs m onitored by Treasury on a quarterly or half–yearly basis are w ithin the Com m ercial Policy Fram ew ork (CPF). On the basis of a risk and m ateriality assessm ent, Treasury has id entified five financial m onito ring program s. These are categorised as follow s: (1) Quarterly reporting and m onitoring for:  all State Ow ned Corporations (SOCs);  all d ivid end paying GBEs;  those GBEs w hich are assessed as having the potential in the m ed ium term to becom e d ivid end paying; an d  high risk/ m ateriality GBEs. (2) H alf–yearly m onitoring for GBEs in the m ed ium risk/ m ateriality category. (3) Portfolio m onitoring exclusively by the relevant Minister, w ith relatively low risk exhibited . (4) Post–privatisation m onitoring for GBEs that are no long er ow ned by the Governm ent. As the Governm ent m ay bear ongoing financial risks, these require id entification and m anagem ent. Frequency of monitoring w ill vary d epend ing upon circum stances of sale and the right of the Governm ent to access inform ation. Ma jor privatised GBEs are to be review ed at least on a quarterly basis. (5) Businesses w here the State has a m inority interest as a sharehold er are m onitored quarterly, assum ing that the sharehold ing is m aterial and / or the business is exposed to particular trad ing/ operating risks. 2 3 N SW Report on the Application of N ational Com petition Policy: March 2003 58