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 2002 Table of Contents 1. INTRODUCTION ......................................................................................................................................... 1 1.1 1.2 1.3 2. OVERVIEW................................................................................................................................................ 1 2002 NCP ASSESSMENT ........................................................................................................................... 2 STRUCTURE OF THIS REPORT .................................................................................................................... 2 ENERGY ........................................................................................................................................................ 4 2.1 2.2 2.3 ELECTRICITY ............................................................................................................................................ 4 GAS .......................................................................................................................................................... 5 PETROLEUM ............................................................................................................................................. 5 3. TRANSPORT ................................................................................................................................................ 6 3.1 3.2 3.3 3.4 3.5 TAXIS AND HIRE CARS ............................................................................................................................. 6 TOW TRUCKS ........................................................................................................................................... 7 DANGEROUS GOODS................................................................................................................................. 8 RAIL ......................................................................................................................................................... 8 PORTS AND SHIPPING ................................................................................................................................ 9 4. PRIMARY INDUSTRIES........................................................................................................................... 11 4.1 AGRICULTURE ........................................................................................................................................ 11 4.1.1 Grains .............................................................................................................................................. 11 4.1.2 Rice ................................................................................................................................................. 12 4.1.3 Poultry Meat ................................................................................................................................... 13 4.1.4 Veterinary Surgeons ........................................................................................................................ 13 4.1.5 Agricultural and Veterinary Chemicals ........................................................................................... 13 4.2 FISHERIES ............................................................................................................................................... 14 4.3 FORESTRY .............................................................................................................................................. 14 4.3.1 Forestry Legislation ........................................................................................................................ 14 4.3.2 Threatened Species Conservation Act............................................................................................. 15 4.4 MINING................................................................................................................................................... 16 5. HEALTH AND PHARMACEUTICAL SERVICES ................................................................................ 17 5.1 5.2 5.3 5.4 5.5 5.6 NURSES .................................................................................................................................................. 17 PHYSIOTHERAPISTS ................................................................................................................................ 17 PODIATRISTS .......................................................................................................................................... 18 PSYCHOLOGISTS ..................................................................................................................................... 18 DENTISTS................................................................................................................................................ 18 OPTOMETRISTS ....................................................................................................................................... 19 6. INSURANCE AND SUPERANNUATION ............................................................................................... 21 6.1 WORKERS COMPENSATION..................................................................................................................... 21 7. RETAIL TRADING ARRANGEMENTS ................................................................................................. 23 7.1 7.2 7.3 SHOP TRADING HOURS ........................................................................................................................... 23 LIQUOR LICENSING ................................................................................................................................. 23 FAIR TRADING AND CONSUMER PROTECTION LEGISLATION ................................................................... 24 8. PLANNING, CONSTRUCTION AND DEVELOPMENT ...................................................................... 26 8.1 8.2 8.3 8.4 8.5 PLANNING APPROVALS ........................................................................................................................... 26 ARCHITECTS ........................................................................................................................................... 26 SURVEYORS............................................................................................................................................ 26 VALUERS ................................................................................................................................................ 27 BUILDING AND RELATED TRADES .......................................................................................................... 27 NSW Report on the Application of National Competition Policy: March 2002 i 9. SOCIAL REGULATION ............................................................................................................................ 29 9.1 EDUCATION ............................................................................................................................................ 29 9.2 GAMBLING ............................................................................................................................................. 29 9.2.1 Casino Licence ................................................................................................................................ 29 9.2.2 TAB ................................................................................................................................................ 30 9.2.3 Lotteries .......................................................................................................................................... 31 9.2.4 Racing and Betting .......................................................................................................................... 31 9.2.5 Gaming Machines ........................................................................................................................... 32 9.2.6 Minor and Other Gambling ............................................................................................................. 33 9.3 CHILDCARE ............................................................................................................................................ 33 10. PROFESSIONS AND OCCUPATIONS NOT COVERED ELSEWHERE ....................................... 35 10.1 LEGAL PROFESSION ................................................................................................................................ 35 10.2 COMMERCIAL AGENTS, INQUIRY AGENTS AND SECURITY PROVIDERS ................................................... 37 10.3 OTHER PROFESSIONAL AND OCCUPATIONAL LICENSING ........................................................................ 38 10.3.1 Property, Stock and Business Agents .............................................................................................. 38 10.3.2 Conveyancers .................................................................................................................................. 38 10.3.3 Employment Agents ........................................................................................................................ 38 10.3.4 Finance Brokers .............................................................................................................................. 39 10.3.5 Pawnbrokers and Second Hand Dealers.......................................................................................... 39 10.3.6 Motor Dealers and Repairers .......................................................................................................... 39 10.3.7 Hairdressers .................................................................................................................................... 39 10.3.8 Boxers and Wrestlers ...................................................................................................................... 40 10.3.9 Entertainers ..................................................................................................................................... 40 10.3.10 Driving Instructors .......................................................................................................................... 40 11. 11.1 11.2 11.3 11.4 11.5 11.6 12. 13. COMPETITIVE NEUTRALITY ........................................................................................................... 41 APPLICATION IN NSW ............................................................................................................................ 41 COMPLAINTS ABOUT GOVERNMENT BUSINESSES ................................................................................... 41 FREIGHT RAIL CORPORATION ................................................................................................................. 42 ARRB TRANSPORT RESEARCH LIMITED ................................................................................................ 42 OTHER COMPLAINTS .............................................................................................................................. 42 COMPLAINTS ABOUT LOCAL GOVERNMENT ........................................................................................... 42 STRUCTURAL REFORM OF PUBLIC MONOPOLIES .................................................................. 43 ATTACHMENTS .................................................................................................................................... 44 ATTACHMENT 1: UPDATE ON PLANNING AND LAND USE REFORM PROJECTS .................................................... 46 ATTACHMENT 2: SIGNIFICANT NSW GENERAL GOVERNMENT SECTOR AGENCIES REQUIRED TO IMPLEMENT PRICING PRINCIPLES ........................................................................................................................................... 58 ATTACHMENT 3: NSW GOVERNMENT BUSINESS ENTERPRISES THAT HAVE BEEN OR ARE INTENDED TO BE CORPORATISED OR PRIVATISED ........................................................................................................................... 61 ii N SW Rep ort on the Ap p lication of N ational Com p etition Policy: March 2002 1. 1.1 Introduction Overview N ew South Wales is lead ing the w ay in im plem enting m any of the reform s need ed to m ake Australia m ore com petitive. In term s of N ational Com petition Policy (N CP), substantial progress has been m ad e against obligations contained in the three N CP Agreem ents signed by the Council of Australian Governm ents (COAG) on 11 April 1995. N ew South Wales has been assessed as com plying w ith the Cond uct Cod e Agreem ent, w hich extend s Part IV of the Trade Practices A ct 1974 (Cth) to all jurisd ictions. The Governm ent is also w ell ahead of other Australian jurisd ictions in the reform of the electricity, gas, w ater and road transport sectors, as required by the Agreem ent to Im plem ent the N ational Com petition Policy and Related Reform s. As a result of the electricity reform s, electricity custom ers have saved an estim ated $1.62 billion in real term s on their pow er bills in the six years to 30 June 2001. More recently, w ith the introd uction of full retail contestability, all electricity and gas custom ers can now choose their supplier. In the six years to 30 June 2001, real red uctions in charges for electricity, w ater, freight rail and heavy vehicles have saved the State’s businesses an estim ated $2.81 billion (in tod ay’s d ollars). N ew South Wales has introd uced other m ajor structural reform s und er the Com petition Principles Agreem ent (CPA). These r eform s includ e: ind epend ent price oversight of certain Governm ent Business Enterprises; the application of com petitive neutrality principles to Governm ent Business Enterprises; the system atic reform of public m onopolies; and third party access to services provid ed by significant infrastructure facilities. Rem aining issues for N ew South Wales, w hich have been id entified by the N ational Com petition Council (N CC), fall pred om inantly into the legislation review program und er clause 5(3) of the Com petition Prin ciples Agreem ent. The N SW Governm ent has a com m itm ent to com plete any outstand ing review and , w here appropriate, reform activity. H ow ever, in view of the substantial progress m ad e overall, these rem aining issues are consid ered to be of lesser im portance for the 2002 assessm ent. Thus far, a num ber of N CP review s have served as a vehicle for broad er regulatory reform s. This has resulted in better outcom es for N ew South Wales, not only in term s of com petition, but in other areas of governance and policy as w ell. For exam ple, rem oving d uplication, stream lining proced ures or introd ucing outcom es based rather than prescriptive regulation. N SW Report on the Application of N ational Com petition Policy: March 2002 1 Obligations und er clauses 5(5) and 5(6) of the CPA have also been incorporated into existing Governm ent processes. For new legislation, all agencies are required to take into account N CP principles in the d evelopm ent of proposals for Governm ent consid eration. Ad d itionally, the Governm ent requires legislation that restricts com petition to be review ed at least once every ten years. 1.2 2002 N CP Assessment This report to the N CC is subm itted in accord ance w ith the N SW Governm ent’s reporting obligations in the N CP Agreem ents. The purpose of the report is to d em onstrate the N SW Governm ent’s progress in im plem enting N CP obligations w ithin priority areas d efined by the N CC for the period 1 January 2001 to 30 March 2002. The report also forecasts review and reform activity to 30 June 2002. This report should be read in conjunction w ith the Governm ent’s five previous Annual Reports to the N CC covering the calend ar years 1996, 1997, 1998, 1999 and 2000. The Governm ent has also provid ed a Supplem entary Report to the N CC on gam bling and liquor legislation for the year end ed Decem ber 2000. This year, the m ain reporting task for N ew South Wales has been to ad d ress rem aining issues id entified by the N CC in the w orking papers provid ed to jurisd ictions in August-Septem ber 2001, and in the 2001 Assessm ent Report to the Com m onw ealth Treasurer. In preparing this report, the Governm ent has been substantially guid ed by the outcom e of d iscussions w ith the N CC in January this year. As requested by the N CC, the N SW Governm ent w ill report separately on progress m ad e in non-priority areas by 30 April 2002. Separate arrangem ents have also been agreed to report on the im plem entation of w ater reform obligations. Inquiries about this report m ay be d irected to the Inter -Governm ental and Regulatory Reform Branch, The Cabinet Office, telephone (02) 9228 5414. 1.3 Structure of this Report This report contains separate chapters, w hich ad d ress outstand ing N CP obligations (Chapters 2 to 10) in nine priority areas id entified by the N CC. These priority areas are: (a) (b) (c) (d ) (e) 2 Energy; Transport; Prim ary Ind ustries; H ealth and Pharm aceutical Services; Insurance and Superannuation; N SW Report on the Application of N ational Com petition Policy: March 2002 (f) (g) (h) (i) Retail Trad ing Arrangem ents; Planning, Construction and Developm ent; Social Regulation; and Professional and Occupational Licensing not Covered Elsew here. N ew South Wales d oes not have any rem aining issues to ad d ress in the com m unications sector, w hich is the N CC’s tenth priority area. The other chapters of the report (Chapters 11 and 12) provid e an overview of d evelopm ents in relation to com petitive neutrality and the structural reform of m onopolies. N SW Report on the Application of N ational Com petition Policy: March 2002 3 2. Energy The N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 confirm ed the substantial progress that the Governm ent had m ad e to com ply w ith N CP obligations in the energy sector (refer to pages 34 to 45). Ad d itionally, the Governm ent has successfully im plem ented the technical and regulatory arrangem ents need ed to support full retail contestability in electricity and gas in January 2002. This m ajor m ilestone m eans that electricity and gas custom ers in N ew South Wales can now choose their electricity and gas supplier. 2.1 Electricity N ew South Wales has m et its N CP obligations in relation to the Electricity Transmission A ct 1994 and the Energy A dministration A ct 1987. For the 2002 assessm ent, the N CC has asked for ad d itional inform ation on review activity for the follow ing statutes: the Electricity Supply A ct 1995; the Electricity (Pacific Power) A ct 1950; and the Electricity Safety A ct 1945. Extensive am end m ents w ere m ad e to the Electricity Supply A ct 1995 in late 2000 to facilitate the introd uction of full retail contestability for all electricity custom ers in N ew South Wales from 1 January 2002. Am end m ents includ e: the d efinition of separate d istributor and retailer roles and functions; the rights and liabilities of custom ers; custom er transfer m echanism s; m etrology proced ures; regulated r etail tariffs and charges; and the role of the Ind epend ent Pricing and Regulatory Tribunal. The Act d oes not contain any d istinct anti-com petitive provisions. A review of the Act is not appropriate at this stage, as the arrangem ents for full retail cont estability have only just com m enced . A review w ill take place after trend s in the new ly established com petitive m arket becom e clear. The Governm ent d oes not intend to review the Electricity (Pacific Power) A ct 1950. The functions of the entity established by this Act have been largely supersed ed through the establishm ent of a com petitive national electricity m arket. Pacific Pow er w ill not have a continuing role beyond the current calend ar year. The m ajority of Pacific Pow er’s functions, staff and assets have been transferred to the new entities of TransGrid , Macquarie Generation, Delta Electricity and Eraring Energy. In ad d ition, the Governm ent has announced its intention to sell Pacific Pow er International and Pow er Coal, and w ill com plete the w ind ing up of Pacific Pow er by the end of the calend ar year. Upon the w ind up of Pacific Pow er, Pacific Pow er’s equity in Pacific Solar w ill be transferred elsew here in the N SW Governm ent sector. 4 N SW Report on the Application of N ational Com petition Policy: March 2002 With regard to the Electricity Safety A ct 1945, review activity is still in progress. The review com m enced in 2001, and an Issues Paper w as released d uring August 2001. The review ’s report is currently being finalised . It is anticipated that the Governm ent w ill m ake a d ecision on the review ’s recom m end ations by June 2002. 2.2 Gas The N SW Governm ent has rem oved all legal barriers to full retail contestability for gas custom ers. The N CC has not raised any specific issues for the Governm ent to ad d ress for the 2002 assessm ent. 2.3 Petroleum For the 2002 assessm ent, the N CC has ind icated that it w ill exam ine N ew South Wales legislation in light of the national review process. The Petroleum (Submerged Lands) A ct 1982 is part of a national review of legislation, und ertaken in 1991, governing offshore petroleum d evelopm ent. The review ’s final report w as released on 25 August 2000. Given the need for N ew South Wales to m irror Com m onw ealth legislation, the Governm ent is aw aiting the preparation and introd uction of am end m ents by the Com m onw ealth before am end ing its ow n legislation. The tim etable for further action d epend s on Com m onw ealth progress. The Petroleum (On-Shore) A ct 1991 is also part of a national review of legislation, recently announced by the Com m onw ealth, governing on -shore petroleum . The Com m onw ealth has not yet initiated further d iscussions w ith jurisd ictions regard ing this review . Therefore, further action by N ew South Wales is not appropriate at this tim e. N SW Report on the Application of N ational Com petition Policy: March 2002 5 3. Transport The N CC’s w orking paper on transport includ es consid eration of review and reform activity relating to the regulation of taxis and hire cars, tow trucks, d angerous good s, rail, and ports and shipping. 3.1 Taxis and Hire Cars The Ind epend ent Pricing and Regulatory Tribunal (IPART) com pleted its review of taxi and hire car regulations contained in the Passenger Transport A ct 1990 d uring 1999. The N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 outlined IPART’s recom m end ations and the Governm ent’s response to those recom m end ations (refer to pages 117 and 118). For the 2002 assessm ent, the N CC has ind icated that m ore inform ation is need ed from N ew South Wales to assess w hether the Governm ent’s response ad d resses N CP obligations. Since January 2001, the overall supply of licences for Wheelchair Accessible Taxis has exceed ed the d em and for them . Interest in these licences rem ains low . The Governm ent has been w orking w ith potential operators to help stim ulate interest in ord er to m ake services m ore accessible for people w ith d isabilities. Overall, the Governm ent supports IPART’s recom m end ation that taxi licences be increased by five per cent each year. N egotiations continue w ith the ind ustry about a process for the staged release of new general and special licences and the introd uction of a public interest test to exped ite the licence app roval process. It is im portant to recognise, how ever, that the uptake of new taxi licences has been noticeably slow er as a result of the d ecline in travel generally since “Septem ber 11” and the collapse of Ansett. Som e taxi plates have been hand ed back to the Departm ent of Transport or put on hold . The Governm ent is also continuing to w ork w ith operators and netw orks to d evelop service stand ard s. These stand ard s w ill be im plem ented increm entally, w ith perform ance m onitoring through d ata reports from op erators. A d irect d ata link system into the taxi netw orks is being d eveloped for this purpose. Once im plem ented , this w ill provid e a m echanism to encourage im proved custom er service and to id entify areas w here changes in licences, regulation or other Governm ent controls are need ed . A consultant has been engaged to ad vise the Governm ent on reform ing com plaints hand ling processes. A new system is being d eveloped to provid e a single process for custom ers, regard less of w hether they contact netw orks or a Gov ernm ent agency. N etw orks w ill be m ad e m ore accountable for the quality of com plaints hand ling. A consistent approach to d river perform ance m anagem ent w ill also be ad opted . The new system w ill also allow the Governm ent to id entify trend s in the issues generating custom er com plaints to allow appropriate policy responses to be 6 N SW Report on the Application of N ational Com petition Policy: March 2002 d eveloped . It is anticipated that the new com plaints hand ling system w ill be initiated tow ard s the end of 2002. Follow ing a recom m end ation by IPART, the requirem ent for Governm ent ap proval of taxi schools has been rem oved . This has resulted in m ore taxi schools and low er fees. The Taxi Council currently supplies the course content to all schools. H ow ever, it is open for other parties to subm it alternative course content to the Dep artm ent of Transport for appraisal. IPART also recom m end ed that the regulation of taxis in rural areas be passed to the relevant local councils. Local governm ent and the taxi ind ustry expressed unanim ous opposition to this proposal. Therefore the recom m end ation w ill not be im plem ented . In relation to the hire car ind ustry, the Governm ent im plem ented the follow ing changes in Septem ber 2001 to significantly red uce barriers to com petition: (a) (b) (c) w ed d ing car and other restricted hire car operations are now totally exem pt from vehicle licensing and d river authorisation requirem ents; vehicle criteria for licensed hire cars have been significantly relaxed w ith the elim ination of arbitrary age lim its, w hile retaining quality stand ard s; and the fee for a short-term licence for Syd ney has been red uced from $16,100 per annum to $8,235 per annum , w ith a com m itm ent to review this in Septem ber 2003. Further changes have recently been introd uced to ensure a m ore equitable treatm ent of taxis and hire cars by elim inating inconsistencies in the available term s for shortterm licences. 3.2 Tow Trucks The Tow Truck A ct 1998 gives effect to a series of fund am ental regulatory reform s in the tow truck ind ustry. The reform s have been d eveloped in response to an ind epend ent review of the ind ustry, w hich id entified corruption and crim inal practices w ithin som e segm ents of the ind ustry. The review recom m end ed a fund am ental restructure of policy, enforcem ent and organisational elem ents governing tow truck regulation. Central to the reform s is the introd uction of a Job Allocation Schem e. The Job Allocation Schem e is being d eveloped through consultation w ith ind ustry and other stakehold ers to establish a system w hich is fair to legitim ate operators and d rivers, protects the rights of motorists, and ensures the speed y and safe attend ance of tow trucks at accid ent scenes. The com plexity of the system d esign and the technology issues required to introd uce the Schem e across the State requires a careful d evelopm ent and im plem entation process. The N SW Governm ent has given the N CC an und ertaking that a review of the Act w ill be initiated six m onths after the Job Allocation Schem e has com m enced . N SW Report on the Application of N ational Com petition Policy: March 2002 7 For the 2002 assessm ent, the N CC has sought a com m itm ent from the Governm ent regard ing the com m encem ent of the N CP review . Work has com m enced on the review . The Departm ent of Transport has initiated d esktop research to help facilitate the review process. Ministerial approval is being sought for the review ’s term s of reference and establishm ent of the review ’s steering com m ittee. The review ’s term s of reference w ill includ e an evaluation of the Job Allocation Schem e trial, w hich w ill com m ence shortly. As previously d iscussed w ith the N CC, the term s of reference w ill also includ e further analysis of the im p act of clause 69(2) of the Tow Truck Industry Regulation on interstate operators, incorporating ad vice from the N SW Crow n Solicitor on this issue. 3.3 D angerous Goods In March 2001, the N ational Occupational H ealth and Safety Council form ally d eclared the N ational Stand ard and the N ational Cod e of Practice as the basis of the national fram ew ork for the storage and hand ling of d angerous good s in the w orkplace. For the 2002 assessm ent, the N CC has ind icated that States and Territories w ill need to com m ent on their progress w ith im plem enting the N ational Stand ard . In 2001, the Governm ent finalised the im plem entation of the new Occupational Health and Safety A ct 2000 and the Occupational Health and Safety Regulation 2001. Both of these pieces of legislation have an im pact on the storage and hand ling of d angerous good s. They im pose d uties to ensure the health, safety and w elfare at w ork of em ployees, using a risk m anagem ent approach sim ilar to that of the N ational Stand ard . N ow that the Act and the Regulation h ave been finalised , the Governm ent has requested WorkCover to prepare a d etailed proposal for im plem enting the N ational Stand ard in N ew South Wales. This w ork w ill require a review of the Dangerous Goods A ct 1975 and its associated regulations, the Dangerous Goods (General) Regulation 1999 and the Dangerous Goods (Gas Installations) Regulation 1998. The review w ill ad d ress any N CP issues arising out of the d angerous good s legislation that are not covered by the N ational Stand ard . The N CC’s w orking paper states that N ew South Wales has released a proposed Dangerous Good s (General) Regulation for public com m ent. This is not correct. It is possible that this m istakenly refers to the Occupational Health and Safety Regulation, w hich w as released for public com m ent and has since been finalised . 3.4 Rail The sale of FreightCorp w as finalised on 21 February 2002 and accord ingly, issues concerning com petitive neutrality no longer exist. 8 N SW Report on the Application of N ational Com petition Policy: March 2002 In 1999, the N SW Governm ent com pleted a statutory review of the Rail Safety A ct 1993. Proposed am end m ents arising from this review w ere d eferred , how ever, pend ing Governm ent consid eration of the final report of the Special Com m ission of Inquiry into the Glenbrook rail accid ent. In N ovem ber 2001, the Governm ent announced significan t rail safety reform s in response to this Inquiry. These includ e the establishm ent of a Rail Safety Regulator w ithin the Departm ent of Transport, w hich has responsibility for safety regulation. The Rail Safety Regulator w ill use the pow ers and functions und er the Rail Safety A ct to accred it, aud it, inspect, enforce com pliance and investigate rail organisations in respect of their safety perform ance, and to report publicly. In ad d ition, an ind epend ent Rail Accid ent Investigation Panel w ill be established to investigate m ore serious accid ents and incid ents. For the 2002 assessm ent, the N CC has noted that responsibility for safety regulation should not be vested in the Rail Infrastructure Corporation, given its com m ercial operating responsibilities. As outlined above, the Rail Safety Regulator w ithin the Departm ent of Transport is responsible for rail safety regulation. The Rail Infrastructure Corporation ow ns and m aintains the N ew South Wales rail netw ork on behalf of the Governm ent and provid es access to passenger and freight operators. The Corporation w as form ed on 1 January 2001, und er the Transport A dministration A mendment (Rail M anagement) A ct 2000, as a statutory State Ow ned Corporation. Its principal objective is to d eliver safe and reliable passenger and freight services in an efficient, effective and financially responsible m anner. The package of am end m ents to the Rail Safety A ct, w hich is consistent w ith N CP principles, w ill be introd uced into Parliam ent shortly. Most of the changes have been d eveloped in response to the Glenbrook Inquiry. Further am end m ents arising from the earlier statutory review includ e: (a) abolition of application fees for accred itation in N ew South Wales. This reform respond s to com plaints from national operators, w ho have had to pay separate application fees to each jurisd iction from w hich they have sought accred itation; accred itation fees to be assessed accord ing to equitable and transparent form ula published by the Minister; and accred itation application and renew al processes to be stream lined . (b) (c) 3.5 Ports and Shipping The M arine Safety A ct 1998 rem ains substantially uncom m enced because the Com m onw ealth is yet to provid e N ew South Wales w ith ad vice on international m arine safety stand ard s. The Governm ent has m ad e a com m itm ent t hat the N CP review w ill be cond ucted 12 m onths after the Act is fully com m enced . N SW Report on the Application of N ational Com petition Policy: March 2002 9 A statutory review and N CP review of the Ports Corporation and W aterways M anagement A ct 1995 have both recently been com pleted . The N CP review ’s final report w as subm itted to the Minister for Transport in Decem ber 2001. The N SW Governm ent’s response to the final report is currently being prepared . It is anticipated that any subsequent reform s w ill be initiated by 30 June 2002. 10 N SW Report on the Application of N ational Com petition Policy: March 2002 4. Primary Industries The N CC’s w orking paper on p rim ary ind ustries includ es consid eration of N CP obligations in agriculture, fisheries, forestry and m ining. 4.1 4.1.1 Agriculture Grains The review of the N SW Grains Board , w hich is established und er the Grain M arketing A ct 1991, com m enced in 1998. The review ’s final report w as subm itted to the Minister for Agriculture in July 1999. The Governm ent w as giving d etailed consid eration to the review ’s final report and the ind ustry’s various view s w hen it w as ascertained that the Board w as in serious financial d ifficulty. The Governm ent initially d ecid ed , in August 2000, to retain the Board ’s vesting pow ers over coarse grains and oilseed s for a further five years, and that these pow ers then be sunsetted . Follow ing further ind ustry consultation, the Governm ent agreed in October 2000, that the Board ’s pow ers over barley, canola and grain sorghum w ould be retained for a five-year transitional period . The Board ’s w id e-ranging pow ers over all other com m od ities (ie, oats, sunflow er, safflow er, linseed and soybeans) w ould be d eregulated im m ed iately. The N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 explained the d ifferences betw een the review ’s recom m end ations and the Governm ent’s d ecision (refer to pages 123 and 124). The Grain M arketing A mendment A ct 2001, assented to on 14 Decem ber 2001, gives effect to the Governm ent’s d ecision. The Board ’s pow ers over barley, canola and grain sorghum have been sunsetted at 30 Septem ber 2005 in the am end ing legislation. The legislation also puts in place th e final ad m inistrative d etails for the w ind ing up and eventual d issolution of the Grains Board . Som e other aspects of the m arketing arrangem ents have been ad m inistratively d eregulated . For the 2002 assessm ent, the N CC has questioned how the Board ’s insolv ency strengthened the public interest in extend ing the Board ’s pow ers beyond the extent recom m end ed by the review . The N CC also asked w hat less restrictive alternatives w ere available to the Governm ent and w hy these w ere not consid ered viable. The Board ’s insolvency had the potential to und erm ine the viability of the entire N ew South Wales coarse grain ind ustry, significantly im pacting on em ploym ent and regional econom ies. At the tim e, there w as significant ind ustry concern over the Board ’s inability to offer trad ing positions in relation to its vested grains. Und er the pressing d ead line of an im m inent harvest, it w as necessary for the Governm ent to act both quickly and largely w ithin the existing legislative fram ew ork. This fram ew ork w as fam iliar to the financial backers of the Board and potential bid d ers for the trad ing business of the Board . Introd ucing substantially d ifferent arrangem ents N SW Report on the Application of N ational Com petition Policy: March 2002 11 w ould have involved significant d elays, and further und erm ined ind ustry confid ence. The Governm ent’s consid ered response provid ed a firm and equitable tim etable for the system atic reform of regulated m arketing of coarse grains and oilseed s in N ew South Wales. This approach d em onstrably provid ed the best outcom e for all concerned . 4.1.2 Rice The review of the Rice Marketing Board , w hich is established und er the M arketing of Primary Products A ct 1983, w as und ertaken in 1995. The review ’s final report w as subm itted to the Minister for Agriculture in Decem ber 1995. The review d em onstrated that w hile the current regulated regim e generated a net public cost in d om estic m arkets, this w as outw eighed by the net public benefit in the regulation of exported prod uct. The N SW Governm ent consequently d ecid ed against d eregulation, and retained the vesting pow ers of the Board . A new Proclam ation vesting rice in the Board for a further five years to January 2004 w as gazetted in Decem ber 1997. The Governm ent ad vised the Com m onw ealth Treasurer on 14 April 1999 that N ew South Wales agreed in principle to rem ove d om estic rice vesting arrangem e nts, cond itional on it being d em onstrated that all relevant issues have been properly resolved , and in particular that: (a) (b) the proposed Com m onw ealth single d esk rice export arrangem ents are feasible and practical, and d o not put export prem ium s und er any risk ; ind ustry view s are taken into account on the need for a transition period prior to the com m encem ent of proposed arrangem ents, and on the length of the initial period for w hich the Ricegrow ers’ Co-operative Lim ited w ould be given an exclusive export licen ce; and all other States are in agreem ent w ith the proposal. (c) N ew South Wales requested that the proposed m od el for consultation w ith other jurisd ictions includ e a possible three to five year d uration for the proposed national arrangem ents, and right of veto for rice exports for the Ricegrow ers’ Co-operative Lim ited as a transitional m easure. For the 2002 assessm ent, the N CC has ind icated that N ew South Wales w ill have m et its N CP obligation in relation to the Rice Marketing Board ’s m onopoly pow ers if it rem oves these pow ers und er State jurisd iction, follow ing the Com m onw ealth’s establishm ent of a rice export m onopoly. The N SW Governm ent is aw aiting the outcom e of the Com m onw ealth’s consultation process before m aking relevant reform s to State legislation. On 8 March 2002, the Prem ier w rote to the Com m onw ealth Treasurer seeking ad vice on progress of the Com m onw ealth’s consultation w ith other jurisd ictions on the proposed m od el. 12 N SW Report on the Application of N ational Com petition Policy: March 2002 4.1.3 Poultry Meat The review of the Poultry M eat Industry A ct 1986 com m enced in 1998. The review ’s final report w as subm itted to the Minister for Agriculture in N ovem ber 1999. The review w as contentious w ith no com m on ground being reached betw een poultry processors and contract grow ers. In March 2001, the N SW Governm ent com m issioned a second review to und ertake a public benefit assessm ent of the Act. Although this review conclud ed that the Act involves a net public cost, the benefits to ind ivid ual consum ers from d eregulation w ould be m arginal. The potential benefits w ould be d istributed a m ong processors, retailers and m any consum ers. It is estim ated that, if all the benefits w ere passed through to consum ers, the price red uction w ould be less than one per cent of the retail price of poultry m eat, or three cents per kilogram . Whether or no t the poultry m eat ind ustry is d eregulated , it is estim ated that approxim ately 20 per cent of grow ers w ill be forced to leave the ind ustry in the short to m ed ium term . On 13 N ovem ber 2001, the Governm ent d ecid ed not to d eregulate the N ew South Wales poultry m eat ind ustry. A form al response to both of the N CP review reports is being consid ered . In the m eantim e, the Poultry M eat Industry A ct 1986 w ill be exem pted from the Trade Practices A ct 1974 (Cth), so that grow ers and processors are not subject to legal challenge. The am end ing legislation w ill be introd uced into Parliam ent shortly. 4.1.4 Veterinary Surgeons The review of the V eterinary Surgeons A ct 1986 com m enced in 1997. The review ’s final report w as subm itted to the Minister for Agriculture in Decem ber 1998. For the 2002 assessm ent, the N CC has questioned w hy the N SW Governm ent has not yet respond ed to the review . The Governm ent has been und ertaking thorough public consultation on a range of com petition issues and w id er regulatory reform options. A less restrictive regulatory m od el is currently being prepared for Governm ent consid eration. It is anticipated that this m atter w ill be ad d ressed in the current session of Parliam ent. 4.1.5 Agricultural and Veterinary Chemicals The A griculture and V eterinary Chemicals (N SW ) A ct 1994 is part of a national review of agricultural and veterinary chem ical legislation com pleted in 1999. N ew South Wales is currently w orking tow ard s the im plem entation of the national review ’s recom m end ations in accord ance w ith the Signatories Working Group’s proposed response. The proposed response w as referred to the COAG Com m ittee on Regulatory Reform for consid eration. Legislation reform in N ew South Wales w ill follow the Prim ary Ind ustries Ministerial Council’s consid eration and end orsem ent of a new national fram ew ork. The Governm ent has also und ertaken a review of chem ical resid ues legislation in N ew South Wales. This review includ ed consid eration of the Stock M edicines A ct N SW Report on the Application of N ational Com petition Policy: March 2002 13 1989, the Stock Foods A ct 1940, the Fertilisers A ct 1985, the Stock (Chemical Residues) A ct 1975, and Part 7 of the Pesticides A ct 1978. The Pesticides A ct 1978 w as allocated to the Minister for the Environm ent on 5 April 1995. The other Acts review ed are allocated to the Minister for Agriculture. The review ’s final report w as subm itted to the Minister for Agriculture in 1998. The Governm ent respond ed to the review ’s N CP-related recom m end ations by am end ing the Fertilisers A ct in N ovem ber 1999. The Fertilisers A mendment A ct 1999 no longer requires the registration of brand nam es for soil im proving agents. It provid es for the setting of com position stand ard s for, and the m arketing of parcels of, soil im proving agents and trace elem ent prod ucts. Other Acts d o not require N CP am end m ents, how ever, a broad er regulatory reform proposal is currently being d eveloped for Governm ent consid eration. 4.2 Fisheries The review of the Fisheries M anagement A ct 1994 com m enced in 1999-2000. The Centre for International Econom ics w as com m issioned to und ertake the review and the review ’s final report w as subm itted to the Minister for Fisheries in May 2001. The report clearly d em onstrated a net public benefit associated w ith the legislation. The Governm ent has accepted the review ’s recom m end ation that the objects of the Act be am end ed to includ e the recognition of socio-econom ic benefits. The Fisheries M anagement A mendment Bill 2001 w as assented to on 11 Decem ber 2001. It is anticipated that the Governm ent’s response to the review ’s rem aining recom m end ations w ill be m ad e by 30 Jun e 2002. 4.3 4.3.1 Forestry Forestry Legislation State Forests is a public trad ing enterprise but it is not constituted as a State Ow ned Corporation. N ew South Wales has m et its N CP obligation, relating to com petitive neutrality and the separation of com m ercial and non-com m ercial activities, by: (a) (b) applying Part IV of the Trade Practices A ct 1974 (Cth) to State Forests; and applying the Financial Policy Fram ew ork, w hich requires the application of com m ercial based rates of return, d ivid end s and capital structures; perform ance m onitoring; paym ent of State taxes and Com m onw ealth tax equivalents; paym ent of risk related borrow ing fees; and explicitly fund ed Com m unity Service Obligations. For the 2002 assessm ent, the N CC has requested ad d itional inform ation on the review and reform process in the N ew South Wales forestry sector. The review and reform process, w hile not part of the N CP program , has id entified and rem oved anti-com petitive practices. 14 N SW Report on the Application of N ational Com petition Policy: March 2002 For exam ple, in N ew South Wales, environm ental legislation applies eq ually to public and private enterprises. The Plantation and Reafforestation A ct 1999, for exam ple, applies uniform ly to both Crow n and private plantations. Prior to this Act, private plantations w ere subject to approval processes, such as approval for incid ental native vegetation clearing, w hile State Forests’ plantations w ere not. The N CC has also queried w hether specific clauses of the Forests A ct 1916 (section 17) and the Plantations and Reafforestation A ct 1999 (section 9) are anti-com petitive. Section 17 of the Forests A ct 1916 provid es that a specified area of land w ill be d ed icated as a State Forest and , w ithin this, a specified area of land w ill be kept for reafforestation w ith exotic coniferous trees. The Governm ent consid ers that section 17 is not anti-com petitive. Instead , it reflects the Governm ent’s objective to d ed icate Crow n land for the purpose of native forestry. Section 9 of the Plantations and Reafforestation A ct 1999 provid es that authorisation is required for plantation purposes. The Act enables authorised plantations to be established and harvested in accord ance w ith a Cod e of Practice. Authorisation allow s plantations to be exem pt from som e environm ental legislation that w ould otherw ise apply. 4.3.2 Threatened Species Conservation Act For the 2002 Assessm ent, the N CC has also ind icated that N ew South Wales should ad d the Threatened Species Conservation A ct 1995 to its N CP legislation review sched ule. As previously reported , the Threatened Species Conservation A ct is illustrative of steps taken by the Governm ent to stream line approval processes. The Act aim s to prevent threatened species in N ew South Wales from becom ing extinct and to secure their recovery. It also aim s to prom ote ecologically sustainable d evelopm ent w hile conserving biological d iversity through ensuring proper im pact assessm ents. The presence of a threatened species d oes not prevent the consid eration of d evelopm ent or com m ercial activity. It is assessed together w ith the social and econom ic im pacts of d evelopm en t. Und er the Act, licences m ay be issued if harm or d am age is likely to occur to a threatened species, population or ecological com m unity. Approval requirem ents to harm or d am age a threatened species are integrated into the planning approval und er the Environmental Planning and A ssessment A ct 1995. If d evelopm ent consents or approvals are required und er the Environmental Planning and A ssessment A ct, then no ad d itional approval or licence is required und er the Threatened Species Conservation A ct. In introd ucing the Threatened Species Conservation A ct and subsequently review ing it und er the five-year statutory review requirem ent, the N SW Governm ent has been m ind ful of the need to m inim ise licensing and stream line approval requirem ents. Such requirem ents have only been im posed w here they are necessary and w here there is a net public benefit. N SW Report on the Application of N ational Com petition Policy: March 2002 15 The Governm ent is currently consid ering a num ber of am end m ents to the Act that w ill further stream line the threatened species assessm ent and approvals process. Therefore, the Governm ent is of the view that a separate N CP review of the Act is not required . 4.4 Mining The Coal M ines Regulation A ct (CM RA ) 1982 and the M ines Inspection A ct (M IA ) 1901 are both subject to parallel N CP review processes that are part of a fund am en tal review of all m ine safety legislation. In 1996, the Governm ent com m issioned a broad review of mine safety. While that review w as in progress a d isaster occurred at the Gretley m ine w hich caused the loss of four lives, and becam e the subject of a Jud icial Inquiry. The recom m end ations of the Inquiry w ere im plem ented in am end m ents to the CMRA and the MIA in 1998 and revision of the CMRA Regulations in 1999. The Mine Safety Review reported w hile the Jud icial Inquiry w as und erw ay. The review recom m end ed that alternate legislative m od els for m ine safety be exam ined . This recom m end ation w as the m ajor trigger for the broad review of the legislation, w hich has coincid ed w ith the N CP review s. So far, broad d iscussion papers and N CP issues papers have been prepared for both the CMRA and MIA, and public consultation on the papers has been und ertaken. Im portant observations arising from the first phase of the review are that: (a) (b) the CMRA and the MIA need to be am end ed to be consistent w ith the Occupational Health and Safety A ct 2000; and m ines still experience fatalities and serious injuries, and there is a need to m ove the ind ustry tow ard s a m ore system atic approach to safety m anagem ent. Since August 2001, the Governm ent has released N CP Issues Papers for both the Coal M ines Regulation A ct and the M ines Inspection A ct. Stakehold er com m ents on com petition policy issues have been incorporated into the d evelopm ent of position papers for both Acts. Due to the sensitivity of mine safety legislation, extensive stakehold er consultation has also been required in the preparation of the position papers. On 27 February 2002, the Governm ent approved the release of a position paper for the Coal M ines Regulation A ct and the preparation of d raft am end ing legislation. It is anticipated that this legislation w ill be introd uced into the current session of Parliam ent. H ow ever, its com m encem ent w ill be d elayed for at least 12 m onths in ord er to d evelop the subord inate legislation. A position paper for the M ines Inspection A ct is currently being d eveloped for Governm ent consid eration. It is unlikely that subsequent legislation reform s w ould be introd uced into Parliam ent before 2002-2003. 16 N SW Report on the Application of N ational Com petition Policy: March 2002 5. Health and Pharmaceutical Services The N CC’s w orking paper on health and pharm aceutical services includ es consid eration of review and reform activity pertaining to the regulation of nurses, physiotherapists, pod iatrists, psychologists, d entists and optom etrists. 5.1 N urses The review of the N urses A ct 1991 com m enced in 1999. The review ’s final report w as subm itted to the Minister for H ealth in February 2000. The review recom m end ed that nurses and m id w ives continue to be regulated . H ow ever, it also recom m end ed the relaxation of practice restrictions in the area of m id w ifery, as w ell as the creation of a separate register of mid w ives to increase flexibility and opportunities in the w orkforce. In N ovem ber 2001, the Governm ent approved the review ’s recom m end ations and the d rafting of legislation to im plem ent those recom m end ations. The review ’s final report has been publicly released . Am end ing legislation w ill be introd uced into Parliam ent d uring 2002. N ew South Wales has also enacted legislation allow ing for ad vanced nurse practitioners to have lim ited prescribing and referring rights. 5.2 Physiotherapists The review of the Physiotherapists Registration A ct 1945 com m enced in 1999. The review ’s final report w as subm itted to the Minister for H ealth in March 2001. The review recom m end ed that physiotherapists continue to be regulated . H ow ever, it also recom m end ed that controls on the num ber of professional titles be rem oved , and that the w hole-of-practice restriction on physiotherapists be replaced by a restriction on the use of prescribed electro-physical appliances. The review also recom m end ed that controls on ad vertising be brought in line w ith the Trade Practices A ct 1974 (Cth). In March 2001, the Governm ent approved the review ’s recom m end ations and the d rafting of legislation to im plem ent those recom m end ations. The review ’s final report has been publicly released . The N CC ind icated that the Physiotherapists Bill 2001, as introd uced , appeared to be consistent w ith N CP principles. Parliam ent passed the new Physiotherapists A ct 2001 in October 2001, and the Act received the Governor’s assent on 11 October 2001. Draft regulations have been prepared for consultation w ith stakehold ers. It is anticipated that the new Act w ill com m ence on 1 July 2002. N SW Report on the Application of N ational Com petition Policy: March 2002 17 5.3 Podiatrists The review of the Podiatrists A ct 1989 com m enced in 1999. The review ’s d raft final report has been com pleted and the Governm ent is consulting w ith stakehold ers. The m ajor proposal is to replace current w hole-of-practice restrictions on pod iatry w ith three core practice restrictions, w hich w ould allow pod iatrists, nurses and m ed ical practitioners to carry out foot treatm ents. It is anticipated that the final report w ill be com pleted in April 2002. The Governm ent w ill then consid er the outcom e of the review , w ith am end ing legislation likely to be introd uced into the current session of Parliam ent. 5.4 Psychologists The review of the Psychologists A ct 1989 com m enced in 1997-1998. The review ’s final report w as subm itted to the Minister for H ealth in Decem ber 1999. The review recom m end ed that psychologists continue to be regulated to m inim ise the risks of harm and injury. H ow ever, the review also recom m end ed the rem oval of restrictions on ad vertising and prem ises. A num ber of recom m end ations provid e clarity and accountability. In Decem ber 1999, the Governm ent approved the review ’s recom m end ations and the d rafting of legislation to im plem ent those recom m end ations. The final report has been publicly released . Parliam ent passed the new Psychologists A ct 2001 in October 2001, and the Act received the Governor’s assent on 11 October 2001. Draft regulations hav e been prepared for d iscussion w ith stakehold ers. It is anticipated that the new Act w ill com m ence on 1 July 2002. 5.5 D entists The review of the Dentists A ct 1989 com m enced in 1999. The review ’s final report w as subm itted to the Minister for H ealth in Mar ch 2001. The final report has been publicly released . Parliam ent passed the new Dental Practice A ct 2001 in October 2001, and the Act received the Governor’s assent on 11 October 2001. The Governm ent is consulting w ith stakehold ers on d raft Regulations. It is anticipated that the new Act w ill com m ence in the second half of 2002. The new Act d oes not im plem ent the review ’s recom m end ation that em ploym ent restrictions on d entists be rem oved . This is because the benefits to be obtained from rem oving the restriction w ould not offset the costs of establishing and enforcing an alternative schem e of penalties as proposed by the review . The Dental Practice A ct 2001 d oes, how ever, gives effect to the spirit of the review by allow ing registered health benefits organisations to em ploy d entists w ithout the 18 N SW Report on the Application of N ational Com petition Policy: March 2002 perm ission of the Dental Board . It is generally only health fund s that have ind icated interest in entering the m arket, and w ould be expected to be the m ain source of increased com petition if the restriction w as rem oved . Also, non-d entists w ill now be able to apply to the Dental Board for perm ission to em ploy d entists, and therefore run d ental practices, by d em onstrating that it is in the public interest that they be allow ed to d o so. As such, m ost of the benefit s of increased com petition that w ould have resulted from the rem oval of the em ploym ent restriction as proposed by the review w ill be attained und er the Governm ent’s approach. These benefits w ill take place w ithout the ad d itional costs of enforcing the review ’s proposed offence provisions. 5.6 Optometrists The review of the Optometrists A ct 1930 com m enced in 1997-1998. The review ’s final report w as subm itted to the Minister for H ealth in Decem ber 1999. The final report has been publicly released . The Optometrists Bill 2001 w as introd uced into Parliam ent on 23 October 2001. The Bill lapsed w ith the proroguing of Parliam ent on 23 February 2002. It is anticipated that the Governm ent w ill introd uce an am end ed Bill (Optometrists Bill 2002) into the current session of Parliam ent. The am end m ents m od ify the process for authorising optom etrists’ use of therapeutic d rugs in their professional practice. The Optometrists Bill m aintains the restriction on ow nership of optom etry practices and continues to restrict the p rescription of glasses and contact lenses to optom etrists and m ed ical practitioners. In relation to the restriction on ow nership, the progressive concentration of ow nership of optom etry services that w ould result from this change w ould not be in the public interest. Concentrated ow nership has the potential to und erm ine the viability of ind epend ent optom etrists and therefore em ploym ent opportunities, particularly in sm all rural and regional areas of N ew South Wales. The rem oval of restrictions on the ow nership of optom etry practices w ould , over tim e, red uce com petition in som e areas w ith only m arginal im provem ents in com petition in other areas that are alread y w ell served by com petitive optom etry m arkets. Furtherm ore, any net benefit arising from increased com petition in som e areas w ould not offset the costs involved in establishing a range of offences to ensure that professional stand ard s are m aintained in non -optom etrist ow ned practices. There is also a significant concern that patient care could be com prom ised by nonoptom etrist ow ners of practices because they are not bound by the sam e professional obligations and d uties as optom etrists. In sum m ary, the lim ited benefit of marginally increased com petition w ould not offset the costs of enforcing the proposed offence provisions, the potential for red uced com petition in som e optom etry m arkets, or the potential that non -optom etrist ow ners m ay com prom ise patient care. N SW Report on the Application of N ational Com petition Policy: March 2002 19 In respect of the review ’s recom m end ation that orthoptists be allow ed to prescribe glasses and contact lenses, there are concerns that m any practising orthoptists have qualifications und er a previous, less rigorous qualification regim e. Given that the ability to prescribe glasses and contact lenses d oes not effect m ost of the business of orthop tists, it is likely that the rem oval of this restriction w ould generate insufficient public benefits to offset the public costs that m ay result from the prescription of glasses and contact lenses by less-qualified orthoptists. 20 N SW Report on the Application of N ational Com petition Policy: March 2002 6. Insurance and Superannuation The N CC’s w orking paper on insurance and superannuation includ es consid eration of w orkers com pensation. 6.1 Workers Compensation The Grellm an Inquiry into w orkers com pensation recom m end ed com petitive m arket choice of insurer for em ployers w ithin a com p ulsory statutory fram ew ork. In October 1999, the Governm ent legislated to allow com petitive und erw riting of w orkers com pensation insurance. The collapse in 2001 of the H IH Insurance Group heightened interest in the exposure of statutory insurance schem es, includ ing w orkers com pensation, to the fortunes of com m ercial insurers. H ad statutory provisions not protected N ew South Wales’ schem e, the collapse of H IH w ould have resulted in approxim ately $800 m illion of w orkers com pensation policies becom ing unfu nd ed liabilities. The Governm ent d ecid ed in late 2001 to repeal those provisions in the W orkplace Injury M anagement and W orkers Compensation A ct 1988 that provid ed for com petitive und erw riting. This w as because the projected increase in prem ium s in a priv ately und erw ritten schem e w ould have been so great that it w ould have threatened the viability of som e sm all to m ed ium sized businesses, w ith significant flow -on social and econom ic effects to the w id er com m unity. For the 2002 assessm ent, the N CC has ind icated that N ew South Wales need s to im plem ent com petitive und erw riting or provid e a rigorous public interest case for m aintaining the Workers Com pensation Schem e. The Governm ent’s position is that the Workers Com pensation Schem e has und ergone fund am ental change, w hich should be allow ed to take effect before further changes are m ad e to the schem e. Therefore, the Governm ent has d ecid ed to cond uct a broad er, m ore d etailed review of the Workers Com pensation Schem e that w ould exam ine a num ber of issues relating to schem e d esign. In relation to und erw riting arrangem ents, the term s of reference provid e that the review should inquire into and m ake recom m end ations for the optim um und erw riting/ insurance arrangem ents that w ould support the Governm ent’s policy objectives. One of the options w ould be private und erw riting. It is anticipated that the review ’s final report w ould be subm itted for Governm ent consid eration in the second half of 2003. An im portant consid eration is that the review is taking place against a background of other review s of w orkers com pensation and insurance. This includ es the H IH Royal Com m ission, w hich is also likely to consid er the regulation of State-based insurance. It also includ es a review of the operations of the new Workers Com pensation Com m ission and w orkers com pensation am end m ents m ad e d uring 2001, to be N SW Report on the Application of N ational Com petition Policy: March 2002 21 und ertaken by the Ind epend ent Pricing and Regulatory Tribunal com m encing in April 2003. 22 N SW Report on the Application of N ational Com petition Policy: March 2002 7. Retail Trading Arrangements The N CC’s w orking paper on retail trad ing arrangem ents includ es con sid eration of legislation regulating shop trad ing hours, liquor licensing, and fair trad ing and consum er protection. 7.1 Shop Trading Hours There are no restrictions on Mond ay-to-Saturd ay trad ing hours in N ew South Wales. Part 4 of the Factories, Shops and Industries A ct 1962 restricts, in principle, the ability of general shops to trad e on Sund ays and public holid ays. Many exem ptions to this restriction are granted to achieve, in practice, an unrestricted trad ing hours environm ent. The process for assessing applications to rem ove the restrictions on shop trad ing hours w as outlined in the N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 (refer to page 165). Exem ptions are granted on the basis of em ploym ent effects, potential tourist d em and , im pact on the com m unity, other planning restrictions on the site, and any other relevant factors. There are only a few rem aining locality-based restrictions, includ ing Tenterfield , Inverell and Gilgand ra. The N CC has accepted that the anti-com petitive effects of Part 4 of the Act are negligible because of the exem ptions that are granted . H ow ever, for the 2002 assessm ent, the N CC has ind icated that there m ay be value in N ew South Wales rem oving the current provisions. Several m ajor regional centres are currently review ing their Sund ay trad ing arrangem ents. N ew South Wales w ill assess the appropriateness of Part 4 of the Act follow ing consid eration of the outcom e of this review activity. 7.2 Liquor Licensing The review of liquor and club m anagem ent p rovisions in the Liquor A ct 1982 and Registered Clubs A ct 1976 is in progress. For the 2002 assessm ent, the N CC has ind icated that N ew South Wales need s to: (a) provid e a convincing net com m unity benefit rationale to support the public need s test; or (b) rem ove the restriction, given that there is little, if any, evid ence of public harm d ue to the absence or aband onm ent of such tests in other jurisd ictions. The N SW Governm ent w ill release a Discussion Paper outlining a range of possible reform options shortly. These includ e a possible red uction in the num ber of liquor licence types, cutting red tape in the licence application process, and using local council planning controls to better protect local com m unity interests. The appropriateness of the public n eed s test is being consid ered in this context. N SW Report on the Application of N ational Com petition Policy: March 2002 23 A copy of this Discussion Paper w ill be provid ed to the N CC w hen it is publicly released . It is anticipated that a final d ecision on relevant com petition policy issues w ill be m ad e d uring 2002-2003, follow ing public consultation and further assessm ent of reform options. 7.3 Fair Trading and Consumer Protection Legislation For the 2002 assessm ent, the N CC has ind icated that N ew South Wales has m et its N CP obligations regard ing the Business Licences A ct 1990. This Act w as repealed by the Business Licences Repeal and M iscellaneous A mendments A ct 2001. The N CC has requested further inform ation regard ing the Prices Regulation A ct 1948 and the Retirement V illages A ct 1989. N ew South Wales confirm s that the Prices Regulation A ct 1948 w as review ed in 1996. The Governm ent approved the review ’s recom m end ation that prices regulation pow ers be transferred to the Ind epend ent Pricing and Regulatory Tribunal. The Prices Com m ission w as subsequently abolished and the requisite am end m ent giving effect to the proposed transfer of pow ers w as enacted in m id -2000. N ew South Wales also confirm s that the Retirement V illages A ct 1989 w as review ed in 1997-1998. The review ’s final report w as approved by the Governm ent and publicly released in late 1998. The review ’s final report consid ered the net public benefit of introd ucing a new Act to ad d ress consum er issues in the retirem ent village ind ustry. The new Retirement V illages A ct 1999 com m enced on 1 July 2000. Since the last reporting period , N ew South Wales has m ad e substantial progress w ith review and reform activity in other areas as d etailed below . The final report on the review of the Fair Trading A ct 1987 and Door to Door Sales A ct 1967 has been prepared and w ill be subm itted for Governm ent consid eration shortly. A num ber of consum er protection provisions in the existing Fair Trading A ct m irror those of the Trade Practices A ct 1974 (Cth). It is anticipated that any legislative am end m ents resulting from the review w ill be introd uced into Parliam ent in the second half of 2002. The final report on the review of the Funeral Funds A ct 1979 w as com pleted in N ovem ber 2001. The Governm ent approved the review ’s recom m end ations in February 2002, as w ell as the preparation of an exposure Bill to facilitate further public consultation. The review found that the im pact of the legislation on com petition w as not significant. H ow ever, the proposed new legislation w ill rem ove restrictions on funeral fund s w here these are not justified on public benefit ground s. For exam ple, the provisions relating to m inim um and m axim um num bers of fund d irectors and trustees; restrictions on the nom enclature of funeral fund s; and the cap on the level of m anagem ent fees and benefits paid . The final report w ill be publicly released shortly. 24 N SW Report on the Application of N ational Com petition Policy: March 2002 N ew South Wales w ill also enter into d iscussions w ith the Com m onw ealth to d eterm ine the feasibility and d esirability of includ ing funeral fund s in the financial services reform proposals or alternative existing prud ential super vision regim es. In relation to the Trade M easurement A ct 1989, N ew South Wales is participating in the national review of trad e m easurem ent legislation. The review is being cond ucted in accord ance w ith term s of reference and m ethod ology agreed by COAG. A scoping stud y of the com petition im pacts of the legislation w as prepared in 2001. The scoping stud y found that the legislation generates a net public benefit but that further review of restrictions on non -prepackaged m eat w as necessary. A d raft report on non-prepackaged m eat w as circulated to jurisd ictions d uring February 2002 and the review ’s Working Group is now finalising the report. The Report w ill need to be consid ered by the Stand ing Com m ittee of Officials on Consum er Affairs prior to consid eration by the Ministerial Council on Consum er Affairs. N ew South Wales is assisting the Queensland Office of Fair Trad ing to finalise this review . At this stage, it is anticipated that the Working Group’s final recom m end ations w ill be read y by April 2002 for con sid eration by the Stand ing Com m ittee and Ministerial Council. N SW Report on the Application of N ational Com petition Policy: March 2002 25 8. Planning, Construction and D evelopment The N CC’s w orking paper on planning, construction and d evelopm ent includ es consid eration of legislation regulating planning approvals, architects, survey ors, valuers, and build ing and related trad es. 8.1 Planning Approvals The N SW Governm ent’s N CP obligations includ e a com m itm ent to ad d ress 30 reform projects. These projects form part of the Governm ent’s planFIRST initiative. Of the 30 projects, 19 have been com pleted . The Governm ent is progressing the rem aining projects as show n at Attachm ent 1. For the 2002 assessm ent, the N CC has requested m ore inform ation from N ew South Wales regard ing the potential use of planning processes by existing businesses to restrict the entry of new businesses. The Governm ent consid ers that the interest of all affected parties should be consid ered as part of the assessm ent of a d evelopm ent application. Inappropriate use of the planning process to prevent the entry of new businesses is m ost effectively ad d ressed through a review of local planning provisions. In this regard , the Governm ent has initiated a num ber of changes to the planning process through planFIRST, w hich w ill involve a review of local planning provisions to pr event the potential m isuse of the process. 8.2 Architects The Prod uctivity Com m ission und ertook a national review of legislation regulating the architectural profession. Its report w as released in N ovem ber 2000. A Working Group w as subsequently established , u nd er the auspices of the Senior Officials of the States and Territories, to prepare a joint response to the Prod uctivity Com m ission’s report. N ew South Wales is participating in this Working Group along w ith representatives from all States and Territories. Although the d evelopm ent of the joint response has taken longer than originally anticipated , the process is now w ell ad vanced . The Working Group response has received broad acceptance from all jurisd ictions, w ith a d elay in form al end orsem ent by the ACT and N orthern Territory. It is anticipated that N ew South Wales w ill am end the A rchitects A ct 1921 d uring 2002-2003. 8.3 Surveyors The review of the Surveyors A ct 1929 com m enced in 2000. The review ’s final report w as subm itted to the Minister for Inform ation Technology in August 2001. The review recom m end ed that the objects of the Act be clarified and the system of registration of surveyors and the Board of Surveyors be retained . It recom m end ed 26 N SW Report on the Application of N ational Com petition Policy: March 2002 current stand ard s and requirem ents also be substantially retained but subject to ongoing review . The review further recom m end ed that consid eration be given to: d eregulating restrictions on the nam ing and ow nership of surveying firm s and on ad vertising; and possible changes to the Surveyors (Practice) Regulation 2001 to m ake it less prescriptive about the m ethod s of surveying. In October 2001, the Governm ent accepted the review ’s recom m end ations, in principle, and approved the preparation of am end ing legislation by 30 June 2002. Further public consultation has taken p lace in relation to these reform s. 8.4 Valuers The review of the V aluers Registration A ct 1975 com m enced in 1999. The review ’s final report w as subm itted to the Minister for Fair Trad ing in February 2000. The review recom m end ed a negative licensing schem e to replace the current registration schem e. The proposed schem e w ould involve core legislation that provid es for qualification and practice requirem ents, and d isciplinary action. Continuing professional d evelopm ent and professional ind em nity insurance w ould not be a com pulsory pre-cond ition to carry on business as a valuer. In April 2000, the Governm ent accepted the review ’s recom m end ations, in principle, and approved the preparation of an exposure Bill for further public consultation d uring 2000-2001. Ad d itional inform ation has subsequently been prepared on the public benefits and costs of alternative regulatory options. It is anticipated that a final reform proposal w ill be subm itted for Governm ent end orsem ent shortly. Am end ing legislation w ill be introd uced into Parliam ent d uring 2002. 8.5 Building and Related Trades For the 2002 assessm ent, the N CC has ind icated that N ew South Wales has not provid ed sufficient inform ation on the review of the Home Building A ct 1989 (previously the Building Services Corporation A ct 1989). The N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 provid ed an outline of the review of licensing in the hom e build ing ind ustry and the Governm ent’s response (refer to pages 175 and 199). The Governm ent confirm s that the Home Building Legislation A mendment Bill 2001 w as released for public consultation in March 2001 and enacted in July 2001. Various parts of the new Home Building Legislation A mendment A ct 2001 com m enced on 10 August 2001, 30 N ovem ber 2001 and 1 January 2002. It is anticipated that the rem aining parts of the Act w ill be introd uced progressively d uring 2002. As a result of uncertainties in the insurance m arket affecting the hom e w arranty schem e, it is anticipated that a num ber of further changes w ill be need ed to the Home N SW Report on the Application of N ational Com petition Policy: March 2002 27 Building A ct 1989 and the Home Building Regulation 1997. These changes w ill establish new arrangem ents in relation to the insurance requirem ents of the Act. On 13 March 2002, the N ew South Wales and Victorian Governm ents announced uniform changes to the H om e Warranty Insurance Schem es of both States. Key features of the changes are: (a) (b) (c) (d ) (e) the threshold for requiring insurance w ill increase from $5000 to $12,000; insurance w ill cover structural d efects for seven years and non -structural d efects for tw o years; high rise, m ulti-unit d evelopm ents w ill not be required to be insured und er the schem e; hom eow ners w ill be able to claim against insurance policies as a last resort, w here the build er is d ead , has d isappeared , or becom e insolvent; and provision for a catastrophe fund , fund ed by contributions from insurers and build ers, capable of supporting claim s above $10 m illion, and last resort claim s arising from ow ners of high rise units. 28 N SW Report on the Application of N ational Com petition Policy: March 2002 9. Social Regulation The N CC’s w orking paper on social regu lation includ es consid eration of N CP obligations in ed ucation, gam bling and child care. 9.1 Education For the 2002 assessm ent, the N CC has asked N ew South Wales to explain w hy its ed ucation legislation has not been review ed und er the N CP program , or that N ew South Wales agree to list the legislation for review . The N SW Governm ent d oes not intend to review its ed ucation legislation und er the N CP program at this tim e. Other existing review processes are und erw ay, or have been com pleted . A m ajor review of the Governm ent’s curriculum , assessm ent and reporting arrangem ents w as cond ucted in 1995 (the Eltis Review ). The McGaw Review w as also carried out in the sam e year, w ith a focus on reform s to the H igher School Certificate. The Governm ent is currently review ing the fund ing, regulation and accountability arrangem ents for non-governm ent schooling. The review m ay recom m end changes to the Education A ct 1990. In ad d ition, N ew South Wales is lead ing a national process through the Schools Resourcing Taskforce of the Min isterial Council on Ed ucation, Employm ent, Training and Youth Affairs (MCEETYA) on the fund ing and accountability of governm ent and non-governm ent schools across Australia. A m ajor part of this w ork w ill be to achieve national legislative consistency across all jurisd ictions. In relation to the Higher Education A ct 1988 and the V ocational Education and Training A ccreditation A ct 1990, both Acts have been recently review ed and am end ed . Extensive consultations w ere und ertaken w ith external stakehold ers, includ ing private provid ers and the university sector. Any further changes at present w ould und erm ine stability. Once these initiatives have been fully im plem ented , there m ay be an opportunity for the Governm ent to evaluate the legislation against N CP prin ciples. 9.2 9.2.1 Gambling Casino Licence The review of the Casino Control A ct 1992 com m enced in 1997-1998. The review ’s final report w as subm itted to the Governm ent in Decem ber 1998. The N ew South Wales Supplem entary Report to the N CC for the year end ed Decem ber 2000 noted that the Governm ent supported , in principle, the review ’s recom m end ations but referred the report to N SW Treasury for upd ating (refer to pages 4 and 5). N SW Report on the Application of N ational Com petition Policy: March 2002 29 It is anticipated that the revised report w ill be subm itted for Governm ent consid eration in April-May 2002. For the 2002 assessm ent, the N CC has ind icated that N ew South Wales w ill need to provid e the public benefit argum ents supporting its favoured approaches to probity, consum er protection and harm m inim isation. It is expected that the revised report w ill ad d ress these public benefit argum ents. 9.2.2 TAB The review of the Totalizator A ct 1997, und ertaken by the Centre for International Econom ics in 1998, conclud ed that there is a net public benefit from the TAB’s exclusive licensing arrangem ents. A copy of the clause 5(5) CPA analysis w as provid ed to the N CC. The N ew South Wales Supplem entary Report to the N CC for the year end ed Decem ber 2000 m ad e it clear that there w ere no issues raised in the Prod uctivity Com m ission’s 1999 Report on Australian Gam bling Ind ustries that suggested a need to vary the N ew South Wales position conveyed in the review ’s final report (refer to pages 6 and 7). For the 2002 assessm ent, the N CC has id entified further issues for Governm ent consid eration. In relation to w agering, the N CC has questioned the Governm ent’s rationale for granting an exclusive licence to TAB Lim ited . TAB Lim ited ’s exclusive w agering licence expires in 2012. As the Prod uctivity Com m ission acknow led ged in relation to the Australian Jockey Club, the cost of early term ination of such a contract w ould outw eigh the public benefit. After the current licence expires, the Governm ent m ay consid er the possibility of multiple w agering licences. In the m eantim e, N ew South Wales w ill continue to w ork w ith other jurisd ictions through the Australian Racing Ministers’ Conference and the COAG Com m ittee on Regulatory Reform to m inim ise any ad verse cross-bord er im pacts. In relation to gam ing m achines, the N CC has ind icated that N ew South Wales has not provid ed a public benefit case to support the TAB’s exclusive investm ent licence. It has also pointed to a potential conflict of objectives in so far as the TAB both m onitors the use of gam ing m achines across all venues, and profits from the use and supply of gam ing m achines through its investm ent licence. N ew South Wales is firm ly of the view that the 1998 review established a strong public benefit case to support TAB Lim ited ’s exclusive investm ent licence. Furtherm ore, the assertion that TAB Lim ited m ay have a conflict of objectives is incorrect. The legislation provid es for a 15-year exclusivity period , w hich com m enced on 14 March 2000. This licence enables TAB Lim ited to acquire gam ing m achines for supply to hotels, finance the acquisition of gam ing m achines by hot els, and share in 30 N SW Report on the Application of N ational Com petition Policy: March 2002 profits d erived from the operation of gam ing m achines that TAB Lim ited has supplied or financed . The investm ent licence offers a d ifferent w ay of financing gam ing m achines in hotels. It com petes w ith the financing options offered by other institutions. The N CC incorrectly assum es that TAB Lim ited is a gam ing m achine operator. TAB Lim ited d oes not control the operation of gam ing m achines in N ew South Wales – that is the responsibility of the hotel, even though ow nership of the gam ing m achines rests w ith TAB Lim ited . Guid elines and operating proced ures for TAB Lim ited und er the investm ent licence have received m inisterial approval. These also includ e harm m inim isation strategies and prohibition of exclusive arrangem ents w ith one hotel, or a lim ited num ber of hotels w ithin a particular geographic d istrict. The governing legislation authorised a 15-year exclusive licence to be given to TAB Lim ited for the establishm ent and operation of a central com puter system to m onitor the gam ing m achine operations w ithin registered clubs and hotels for integrity and taxation purposes. Internal controls and proced ures are in place w ithin TAB Lim ited for the operation of the centralised m onitoring system (CMS). These proced ures w ere closely review ed by the Departm ent of Gam ing and Racing, and ind epend ently review ed by the Governm ent’s Internal Aud it Bureau. The proced ures have received m inisterial approval. TAB Lim ited appears to be d iligent in ensuring that staff throughout its CMS and non-CMS operational units are aw are that CMS d ata about club and hotel gam ing operations m ust rem ain confid ential to the CMS unit. 9.2.3 Lotteries The Public Lotteries A ct 1996 and the N SW Lotteries Corporatisation A ct 1996 w ere not listed for N CP review as part of the Governm ent’s 1996 legislation review sched ule. For the 2002 assessm ent, the N CC has ind icated that form al review of this legislation is not required und er the Com petition Principles Agreem ent. H ow ever, there is an obligation und er clause 5(5) to d em onstrate that n ew legislation is accom panied by evid ence of consistency w ith N CP principles. N CP principles are being ad d ressed as part of the statutory five-year review s that are being und ertaken for both pieces of legislation. These review s need to be com pleted and tabled in Parliam ent by N ovem ber 2002. It is therefore anticipated that further inform ation w ould be provid ed to the N CC for the June 2003 assessm ent 9.2.4 Racing and Betting The N CP review of racing and betting legislation, includ ing the Racing A dministration A ct 1998, com m enced in 1998-1999. The review ’s final report w as subm itted to the Minister for Gam ing and Racing in Septem ber 2001. N SW Report on the Application of N ational Com petition Policy: March 2002 31 The final report recom m end ed that existing legislative restrictions on the cond uct of racing and betting be retained on the p ublic interest ground s of harm m inim isation, and ensuring probity, w ith the exception of a relaxation in arrangem ents regard ing corporate bookm akers. The N SW Governm ent accepted the review ’s recom m end ations on 3 Decem ber 2001. In relation to corporate bookm akers, the Governm ent is presently d rafting am end ing legislation to be introd uced into the current session of Parliam ent. This w ill give effect to the review ’s recom m end ation that licensed bookm akers be perm itted to use alternative operating structures. This change w ill facilitate fairer incom e tax arrangem ents, better m anagem ent of the risks associated w ith bookm aking, and im proved custom er service. Ad d itionally, the Governm ent has recently announced that the State turnover tax on bookm akers, in regard to both racing betting and sports betting, w ill be abolished from 31 March 2002. It is estim ated that this initiative w ill save the State’s bookm akers approxim ately $2.4 m illion each year and assist them to rem ain viable and com petitive w ith bookm akers in other States. The N CC has subsequently questioned the Governm ent’s d ecision to retain the $200 m inim um telephone bet lim it for racing bookm akers. The Governm ent’s view is that the public benefit case to retain this restriction w as sufficiently ad d ressed by the review . For the 2002 assessm ent, the N CC has ind icated that the Governm ent is still to provid e the public benefit argum ents for retaining restrictions in the A ustralian Jockey Club (A JC) A ct 1873. This Act w as review ed accord ing to N CP princip les in 1998-1999. The Governm ent accepted the review ’s public benefit assessm ent and recom m end ation that the lease arrangem ents in respect of Crow n land be review ed again in the course of the 10year N CP review cycle. The AJC’s exclusive occupation and use of the Rand w ick Racecourse w as renew ed in 1992 for a term of 50 years. The Governm ent is of the view that this lease agreem ent need s to be fulfilled . The potential cost of breaking the lease w ould far outw eigh the benefits of d oing so. 9.2.5 Gaming Machines The review of gam ing m achine provisions in the Liquor A ct 1982 and Registered Clubs A ct 1976 com m enced in 1999. The N ew South Wales Supplem entary Report to the N CC for the year end ed Decem ber 2000 ind icated that the review ’s progress w ould be consid ered in light of the final Governm ent policy on the availability of gam ing m achines in registered clubs and hotels (refer to pages 10 and 11). The Governm ent’s policy, also know n as the Gam ing Reform Package, w as announced on 26 July 2001. N CP principles w ere ad d ressed as part of the policy d evelopm ent process. 32 N SW Report on the Application of N ational Com petition Policy: March 2002 The new policy’s prim ary objective is harm m inim isation. The package, how ever, also incorporates a m arket-based approach d esigned to give registered clubs and hotels greater flexibility. The Gam ing Reform Package w ill be given effect by the Gaming M achines A ct 2001, d ue to com m ence in April 2002. This Act also sim plifies and stream lines the regulatory structure for the control and m anagem ent of gam ing m achines in N ew South Wales. In view of the substantial harm caused by problem gam bling, the Governm ent is confid ent that any costs associated w ith the Act are far outw eighed by the public benefits involved . For the 2002 assessm ent, the N CC has ind icated that the harm m inim isation reform s appear to fall w ithin the range of those end orsed by the Prod uctivity Com m ission and COAG, and so have alread y been show n to m eet the CPA test. H ow ever, N ew South Wales need s to provid e public benefit argum ents in support of the other key reform s. Public benefit issues are being ad d ressed in a report that is currently being prepared for Governm ent consid eration. 9.2.6 Minor and Other Gambling The review of the Charitable Fundraising A ct 1991 and the Lotteries and A rt Unions A ct 1901 com m enced in 2000. The Departm ent of Gam ing and Racing released an Issues Paper for public consultation in Decem ber 2000. It is anticipated that the final report w ill be subm itted to the Minister for Gam ing and Racing by the end of May 2002. 9.3 Childcare For the 2002 assessm ent, the N CC has ind icated that N ew South Wales w ill need to provid e the net public benefit argum ents to support restrictions on com petition in new child care legislation. The Children (Care and Protection) A ct 1987 currently regulates com m ercial child care services in N ew South Wales. The Governm ent w ill replace this legislation w ith regulatory provisions in the Children and Y oung Persons (Care and Protection) A ct 1998. A new consolid ated Regulation is being finalised . Consultants are currently preparing a Regulatory Im pact Statem ent that is required by the Subordinate Legislation A ct 1989. N CP principles are being ad d ressed as part of this process. It is anticipated that the d raft Regulation and Regulatory Im pact Statem ent w ill be released shortly. The 1996 Regulations are d ue to be repealed on 1 Septem ber 2002. The new Regulation, w hich supports the Proclam ation of Chapter 12 of the Children and Y oung Persons (Care and Protection) A ct 1998, w ill be introd uced before that d ate. N SW Report on the Application of N ational Com petition Policy: March 2002 33 34 N SW Report on the Application of N ational Com petition Policy: March 2002 10. Professions and Occupations not Covered Elsew here The N CC’s w orking paper on professions and occupations not covered elsew here includ es consid eration of N CP obligations in the legal profession, com m ercial agents, inquiry agents and security provid ers, as w ell as other professional and occupational licensing. 10.1 Legal Profession N ew South Wales lead s m ost other jurisd ictions in the transparency of regulation of the legal profession. It is also lead ing tw o w orking parties on legal profession reform und er the auspices of the Stand ing Com m ittee of Attorneys General. The final report on the N CP review of the Legal Profession A ct 1987 w as com pleted in 1998. As outlined in the N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000, the Governm ent is m aking good progress w ith the im plem entation of reform s (refer to pages 144 and 145). For the 2002 assessm ent, the N CC has ind icated that N ew South Wales w ill need to provid e a public interest case for the recent restrictions placed on the nature of ad vertising of w orkers com pensation services by legal practitioners. Since then the Legal Profession (A dvertising) Regulation 2002 (“the Regulation”) has also been gazetted (on 1 March 2002). The Regulation w ill prevent law yers from ad vertising personal injury services in the electronic m ed ia, an d restricts the m anner of ad vertising in the print m ed ia. The Governm ent acknow led ges that the restrictions raise N CP issues. H ow ever, there is a clear net public benefit in m aintaining afford able public liability insurance to w hich this restriction w ill contribute. The Regulation w as m ad e on the basis of evid ence that the increasing num ber of claim s and the cost of these claim s are contributing to an increase in public liability insurance prem ium s. This, in turn, is ad versely affecting non -governm ent service d elivery and sm all business. The evid ence is set out in the February 2002 J P Morgan Interim Insurance Survey (“the Trow brid ge Report”) and the February 2002 Report of the Queensland Governm ent’s Liability Insurance Task Force. The Governm ent is exploring other m eans of maintaining afford able public liability insurance but d id not believe that this particular m easure could be introd uced effectively in a less restrictive m anner, or by relying on the general provisions in respect of mislead ing or d eceptive ad vertising und er the Trade Practices A ct 1974 (Cth). N SW Report on the Application of N ational Com petition Policy: March 2002 35 For the 2002 assessm ent, the N CC has also raised the issue of professional ind em nity insurance. The review of the Legal Professions A ct 1987 recom m end ed that the m arket for insurance for solicitors be d eregulated . In Decem ber 2001, the Governm ent approved the preparation of legislation to establish new arrangem ents for solicitors’ insurance. The Governm ent’s proposal is to establish a new m utual fund to cover all solicitors except those w ho have exem ptions. Solicitors w ould be required to m eet the cost of running the fund through a levy on their prem ium s. The levy w ould be approved by the Attorney General. It is anticipated that the fund w ould be ad m inistered by an insurer that is selected by an ind epend ent Board , w hich d oes not represent the Crow n. All or part of the liabilities of the fund w ould be re-insured by com m ercial insurers. The proposed arrangem ents w ill also accom m od ate firm s that operate in m ore than one jurisd iction and seek to effect insurance in another jurisd iction. It is anticipated that legislation to give effect to the new arrangem ents w ill be introd uced into the current session of Parliam ent. The m utual fund w ill be review ed after it has been in operation for tw o years, having regard to changing m arket cond itions. Currently, the Governm ent consid ers that the proposed m utual fund is the m ost appropriate w ay forw ard . The cost of professional ind em nity insurance has risen significantly in the past 12 m onths. The Trow brid ge report found that consid erable d isplacem ent in the m arket for professional ind em nity insurance occurred follow ing the d em ise of H IH , and prem ium s rose by approxim ately 20 per cent. A m utual fund is cushioned against such fluctuations. The Governm ent’s concern is that d eregulation could lead to a substantial num ber of solicitors being unable to obtain insurance because of present m arket cond itions. Such a result could red uce the num ber of legal service provid ers, and therefore com petition. Insurers confirm ed this concern d uring public consultations. They d id not support d eregulation at present because of uncertainty in w orld insurance m arkets follow ing the events of 11 Septem ber and the H IH collapse. In particular, insurers expressed a relu ctance to participate in a schem e that involved d irect contracting betw een solicitors and insurers. The perceived problem for insurers is the risk that a single insurer m ight attract a d isproportionate num ber of the poor risk solicitors, resulting in a loss. Insurers’ representatives ind icated that this risk w ould probably d eter them from participation in a d eregulated m arket at the m om ent. Insurers expressed a w illingness to act as re-insurers for all or part of the liabilities of a m utual fund because this w as perceived to lim it their exposure. The risk of the 36 N SW Report on the Application of N ational Com petition Policy: March 2002 legal profession as a w hole is relatively clear because of the extensive claim s history held by Law Cover, w hich has arranged insurance for solicitors since 1987. To ensure that the cost of insu rance reflects the risk of an ind ivid ual solicitor, the legislation w ill provid e for risk rating of insured practitioners. The m utual fund approach is supported by a report provid ed by actuaries, w hich confirm s that a m utual arrangem ent offers the m ost cost effective m od el and offers very good consum er protection, especially for run -off cover. 10.2 Commercial Agents, Inquiry Agents and Security Providers The review of the Commercial A gents and Private Inquiry A gents A ct 1963 com m enced in N ovem ber 2001. An Issues Paper w as released in January 2002 to assist interested parties to participate in the review process. The review ’s final report is in preparation and , at this stage, it is anticipated that any legislative reform s w ill be introd uced into the current session of Parliam ent. For the 2002 assessm ent, the N CC has ind icated that there is insufficient inform ation on the review of the Security (Protection) Industry A ct 1985. The N CC also ind icated that the Governm ent’s public interest justification for the restr ictions in the Security Industry A ct 1997 is not ad equate to enable assessm ent of N CP com pliance. The Security (Protection) Industry A ct 1985 w as repealed by the Security Industry A ct 1997, w hich cam e into effect on 1 July 1998. The 1997 Act follow s the recom m end ations in the Report of the Inquiry by Mr Justice Peterson of the Ind ustrial Relations Com m ission into the Transport and Delivery of Cash and Other V aluables Industry. This inquiry resulted from a reference from the Minister of Ind ustrial Relations und er the s 345(4) of the Industrial Relations A ct 1996 m ad e after incid ents of arm ed robbery and shootings of security guard s led to concerns about safety in the security ind ustry. The inquiry w as public and heard extensive evid ence from the security ind ustry, clients of the security ind ustry and others w ith an interest. The report is publicly available. Another report taken into account in d rafting the legislation w as the Report of the Royal Com m ission into the N SW Police Service (the Wood Royal Com m ission) in 1997. This report also resulted from extensive public hearings. The Governm ent d id not list the Security Industry A ct 1997 for N CP review as part of the 1996 legislation review sched ule. H ow ever, N CP principles w ere ad d ressed in d eveloping the legislative proposal. The legislation is fund am entally based on public interest ground s. It is prim arily intend ed to red uce: the risk of crim inal activity in the security ind ustry; the risk of financial loss to businesses; the risk to public safety; the risk to security guard s w orking in the ind ustry; and the risk from d ishonest or untrained security guard s, w ho som etim es carry firearm s. N SW Report on the Application of N ational Com petition Policy: March 2002 37 10.3 10.3.1 Other Professional and Occupational Licensing Property, Stock and Business Agents The review of the Property, Stock and Business A gents A ct 1941 com m enced in 1997. The review ’s final report w as subm itted to the Minister for Fair Trad ing in February 2001. The recom m end ations includ ed com petency stand ard s as a com ponent of entry requirem ents, com pulsory professional ind em nity insurance, and annual licence renew al. In July 2001, the Governm ent accepted the m ajority of the review ’s recom m end ations, in principle, and approved the preparation of an exposure Bill for further public consultation. The Governm ent d ecid ed not to ad opt the review ’s proposal to replace the current m ulti-licensing system w ith a single licence regim e. The reason w as that a single licensing schem e could d ecrease the com petency of agents and erod e consum er protection. Consultation on the exposure Bill has been com pleted . It is anticipated that the Governm ent w ill reintrod uce the Bill into the current session of Parliam ent. 10.3.2 Conveyancers The review of the Conveyancers Licensing A ct 1995 com m enced in 1999. The review ’s final report w as subm itted to the Minister for Fair Trad ing in October 2001. The Governm ent is currently consid ering a proposal arising from the recom m end ations of the review . It is anticipated that am end ing legislation w ill be introd uced into Parliam ent d uring 2002. 10.3.3 Employment Agents The review of the Employment A gents A ct 1996 com m enced in 2000. The review ’s final report w as subm itted to the Minister for Fair Trad ing in February 2001. The review recom m end ed that the requirem ent to be licensed as an em ploym ent agent be abolished . It also recom m end ed the repeal of the Act and the am end m ent of the Fair Trading A ct 1987 to includ e specific consum er protection m echanism s in relation to the use of em ploym ent agents. In February 2002, the Governm ent accepted the review ’s r ecom m end ations, in principle, and approved the preparation of an exposure Bill for further public consultation d uring 2002. It is anticipated that a final reform proposal w ill be subm itted for Governm ent end orsem ent shortly. The final report w ill also be publicly released . It is anticipated that am end ing legislation w ill be introd uced into Parliam ent d uring 2002. 38 N SW Report on the Application of N ational Com petition Policy: March 2002 10.3.4 Finance Brokers The review of the Credit (Finance Brokers) A ct 1984 com m enced in 2000. The review ’s final report w as subm itted to th e Minister for Fair Trad ing in June 2001. The review recom m end ed the repeal of the Act and the insertion of a new part into the Consumer Credit A dministration A ct 1995 to regulate the cond uct of finance brokers. It also recom m end ed a num ber of am end m ents to im prove the effectiveness of consum er protection. In February 2002, the Governm ent accepted the review ’s recom m end ations, in principle, and approved the preparation of an exposure Bill for further public consultation d uring 2002. It is anticipated that a final reform proposal w ill be subm itted for Governm ent end orsem ent shortly. The final report w ill also be publicly released . It is anticipated that am end ing legislation w ill be introd uced into Parliam ent d uring 2002. 10.3.5 Paw nbrokers and Second Hand D ealers The review of the Pawnbrokers and Second Hand Dealers A ct 1996 com m enced in 2000. The review ’s final report w as subm itted to the Minister for Fair Trad ing in N ovem ber 2001. It is anticipated that the Governm ent w ill m ake a d ecision on the fin al report shortly, w ith any legislative am end m ents introd uced into Parliam ent d uring 2002. 10.3.6 Motor D ealers and Repairers The review of the M otor Dealers A ct 1974 and M otor V ehicle Repair A ct 1980 com m enced in 1996-1997. The review ’s final report w as subm itted to the Minister for Fair Trad ing in 2000. The Governm ent consid ered the results of the review in April 2000. In February 2001, the Minister released an exposure Bill containing a num ber of key proposals arising from the review for public com m ent. These proposals w ere outlined in the N ew South Wales Annual Report to the N CC for the year end ed Decem ber 2000 (refer to pages 149 and 150). Consultations follow ed w ith peak ind ustry, insurer and consum er groups. As a result a num ber of changes w ere m ad e to the exposure Bill. In October 2001, the Governm ent approved the M otor Trades A mendment Bill 2001 for introd uction into Parliam ent. The Bill contained am end m ents intend ed to free -up com petition in the m otor trad e and repair ind ustry, w hilst at the sam e tim e ensuring consum er protection. The first stage of the M otor Trades A mendment A ct 2001 com m enced on 1 March 2002. 10.3.7 Hairdressers The review of Part 6 of the Factories, Shops and Industries A ct 1962 relating to the regulation of haird ressers com m enced in 2000. An Issues paper w as released in June 2000 to facilitate public consultation. N SW Report on the Application of N ational Com petition Policy: March 2002 39 Further d iscussions and negotiations w ith a range of stakehold ers are taking place in the preparation of the review ’s final report. It is anticipated tha t the Governm ent w ill m ake a d ecision on the final report by 30 June 2002. 10.3.8 Boxers and Wrestlers The review of the Boxing and W restling Control A ct 1986 com m enced in 2000. The review ’s final report w as subm itted to the Minister for Sport and Recreat ion in February 2002. It is anticipated that a final reform proposal w ill be subm itted for Governm ent end orsem ent shortly. It is anticipated that am end ing legislation w ill be introd uced into Parliam ent d uring 2002. 10.3.9 Entertainers The review of the Entertainment Industry A ct 1989 com m enced in 2001. An Issues Paper w as released in Septem ber 2001 to facilitate public consultation. The review ’s final report is currently being prepared . It is anticipated that the Governm ent w ill m ake a d ecision on th e final report by 30 June 2002. 10.3.10 D riving Instructors The review of the Driving Instructors A ct 1992 com m enced in 1997. The review ’s final report w as subm itted to the Minister for Transport in Septem ber 2001. It is anticipated that the Governm ent w ill m ake a d ecision on the final report by 30 June 2002. 40 N SW Report on the Application of N ational Com petition Policy: March 2002 11. 11.1 Competitive N eutrality Application in N SW N ew South Wales has com plied w ith its com petitive neutrality obligations as required und er the Com petition Principles Agreem ent. The N ew South Wales Annual Report to the N CC for the year end ed 2000 provid ed a com prehensive account of the application of com petitive neutrality in N ew South Wales, includ ing the com plaints hand ling m echanism (refer to pages 3 to 28). This report w ill focus on subsequent d evelopm ents. The N SW Governm ent Policy Statem ent on the Application of Com petitive N eutrality w as first published in June 1996, as required und er the Com petition Principles Agreem ent. This w as revised in January 2002 to provid e an upd ate to the 1996 Policy Statem ent in relation to: (a) (b) (c) the fram ew ork applying to N SW Governm ent businesses; costing and pricing guid elines for N SW Governm ent businesses; and m echanism s for consid ering com petitive neutrality com plaints against N SW Governm ent businesses. The upd ated Policy Statem ent on the Application of Com petitive N eutrality is available on the N SW Treasury w ebsite (w w w .treasury.nsw .gov.au ). The N SW Governm ent’s Policy Sum m ary of the Com petitive N eutrality Com plaints H and ling Mechanism w as also issued in January 2002. It is available on The Cabinet Office w ebsite (w w w .cabinet.nsw .gov.au ). In June 2001, N SW Treasury released Guid elines for Pricing of User Charges to provid e ad vice on how Governm ent agencies should ensure that good s and services sold in contestable m arkets are costed and priced in a com petitively neutral m anner. These Guid elines, w hich replace the N SW Treasury Working Paper Pricing Principles for User Charges issued in October 1997, are available on the N SW Treasury w ebsite. The N SW Governm ent agencies that are required to im plem ent pricing principles are show n Attachm ent 2. The N SW Governm ent is in the process of provid ing com m ent on the N CC’s Staff Research Paper on com petitive neutrality policy. 11.2 Complaints about Government Businesses The com petitive neutrality com plaints hand ling m echanism in N ew South Wales involves tw o stages. Firstly, the party lod ging a com plaint is to approach the relevant Governm ent agency to clarify and attem pt to resolve the m atter. Second ly, if necessary, the Prem ier refers the m atter to the Ind epend ent Pricing and Regulatory Tribunal or the State Contracts Control Board for ind epend ent assessm ent. This m ay N SW Report on the Application of N ational Com petition Policy: March 2002 41 happen in circum stances w here the com plainant is not satisfied w ith the response of the agency concerned . During the reporting period , the Governm ent d id not receive any new requests for com petitive neutrality com plaints to be referred either to the Ind epend ent Pricing and Regulatory Tribunal or the State Contracts Control Board for investigation. 11.3 Freight Rail Corporation The sale of FreightCorp w as finalised on 21 February 2002 and accord ingly, issues concerning com petitive neutrality no longer exist. 11.4 ARRB Transport Research Limited As noted in the previous report, the Com m onw ealth Com petitive N eutrality Com plaints Office (CCN CO) had w ritten to the Prem ier in N ovem ber 2000, ad vising that it had received a com plaint against ARRB Transport Research Lim ited . ARRB is a public com pany w hose ten m em bers are the State and Territory road authorities, the Com m onw ealth Departm ent of Transport and Regional Services, and the Australian Local Governm ent Association. It provid es technical and research services ad d ressing transport problem s. The com plainant alleged that ARRB w as in breach of the com petitive neutrality policy of each of its m em ber Governm ents. As ARRB is controlled by m ore than one Governm ent, N ew South Wales agreed that the com plaint should be referred to the CCN CO for investigation. In August 2001, the CCN CO released the report of its investigation into ARRB. It found that the operations of ARRB d id not breach the com petitive neutrality principles of its m em ber Governm ents. 11.5 Other Complaints During the reporting period , The Cabinet Office received three w ritten com plaints regard ing alleged breaches of com petitive neutrality. The parties w ere inform ed of the N SW Governm ent’s com petitive neutrality com plaints hand ling m echanism and ad vised to ad d ress their com plaints to the r elevant Governm ent agencies in the first instance. N o further action has been required from The Cabinet Office to d ate. 11.6 Complaints about Local Government During the reporting period , the Departm ent of Local Governm ent d id not receive any com petitive neutrality com plaints that need ed to be referred to a local council for initial investigation. Sim ilarly, the Departm ent of Local Governm ent w as not requested to review any responses to com plaints against local councils. 42 N SW Report on the Application of N ational Com petition Policy: March 2002 12. Structural Reform of Public Monopolies Com prehensive inform ation on the structural reform of public m onopolies w as provid ed in the N ew South Wales Annual Report to the N CC for the year end ed 2000 (refer to pages 29 to 33). The report id entified those N SW Governm ent Business Enterprises that have been corporatised or privatised or have been assessed as potential cand id ates for corporatisation or privatisation in the m ed ium term . Upd ate inform ation is provid ed at Attachm ent 3. N SW Report on the Application of N ational Com petition Policy: March 2002 43 13. Attachments Attachment 1: Update on planning and land-use reform projects Attachment 2: Significant N SW general Government sector agencies required to implement pricing principles Attachment 3: N SW Government Business Enterprises that have been or are intended to be corporatised or privatised 44 N SW Report on the Application of N ational Com petition Policy: March 2002 Attachment 1: Update on planning and land-use reform projects Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Complet e Integrated Develop m ent am end m ents com m enced 1 Ju ly 1998. Underw ay Cu rrent review of p lan m aking (p lanFIRST) is seeking to rem ove referrals and concu rrences in local p lans via a m ore strategic ap p roach to local p lanning. It is p rop osed that local p lans w ill take accou nt of the requ irem ents of other agencies in the p erm issibility and assessm ent of d evelop m ent. 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. 1. Develop m ent of p olicy op tions for integrated ap p rovals system . Discu ssion Pap er 1996 2. Review of referral and concu rrences in local p lanning p olicies. 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. 1997 Complet e 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. 4. Review of m u ltip le controls on land clearing State Environm ental Planning Policy (SEPP) 46. 1996 Rep ort on SEPP 46 to be su bm itted to the Prem ier before 1996. Complet e 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. N SW Report on the Application of N ational Com petition Policy: March 2002 46 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Underw ay 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. 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 en t 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 oses 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. 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. Underw ay See p reviou s. N SW Report on the Application of N ational Com petition Policy: March 2002 47 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) 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. 7. Review and reform of regu lations affecting m ining. Am algam ate to p lanning fram ew orks from 19972000 Underw ay N SW Dep artm ent of Mineral Resou rces is cu rrently cond u cting review s of the M ines Inspection A ct 1901 and the Coal M ines Regulation A ct 1982. Underw ay N CP review of the Fisheries M anagement A ct 1994 has com m enced . An issu es p ap er w as released in N ovem ber 2000 and the final rep ort is in p rep aration. 8. Review and reform of regu lations affecting m aricu ltu re. Complet e 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 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 48 9. 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. Underw ay The Plantations & Reafforestation A ct 1999 cod ified environm ental stand ard s and p rovid ed a stream lined , integrated schem e for establishing, m anaging, and harvestin g tim ber on p u blic and p rivate land . The A ct is a key p art of N SW’s forestry reform p rocess and is also d esigned to m eet N CP obligations for stru ctu ral and com p etitive neu trality. N SW Report on the Application of N ational Com petition Policy: March 2002 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) 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 e 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 e 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 e 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 b-d ivision w ater and sew erage ap p rovals. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2002 49 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Complet e 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. 13. Integrate bu ild ing and p lanning ap p rovals. 1996-97 14. Exam ine zoning p rohibitions for anticom p etitive effects; consid er w id er ad op tion of p erform ance stand ard s. 1996-97 Underw ay The White Pap er: Plan First - Review of Plan M aking p rop oses a locality p lanning ap p roach as op p osed to that of land -u se zoning in local p lans. This ap p roach p laces em p hasis on d esired p lanning ou tcom es thereby m inim ising the need for p rescrip tive lists of p erm issible and p rohibited land u ses. A general aim of the reform s is to red u ce the u nnecessary u se of p rohibitions in p lanning instru m ents. Underw ay See N o. 18 below . 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 e 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 EP&A Act. Complet e EP&A Act am end ed to allow for this situ ation. 16. Consid er com bining d evelop m ent and re-zoning ap p lications. 1998 N SW Report on the Application of N ational Com petition Policy: March 2002 50 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Complet e 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. 17. 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. 1996-97 18. Consid er p otential for stand ard ising consent cond itions, zoning classifications and d efinitions of p erform ance stand ard s. 1998 Underw ay DUAP 1 w orking w ith cou ncils via ad visory notes to im p rove consent cond itions. A set of stand ard cond itions or p rincip les of cond itions is being w orked on to achieve greater consistency. The White Pap er: Plan First - Review of Plan M aking p rop oses a locality ap p roach to local p lanning to rem ove zoning classifications. DUAP is aw are of the w ork of the 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 1 DUAP has been renamed as PlanningNSW 51 N SW Report on the Application of N ational Com petition Policy: March 2002 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) 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 lan FIRST reform s. Develop m ent Assessm ent Foru m (DAF) to d evelop national stand ard d efinitions and w ill m ake a su bm ission on the DAF d iscu ssion p ap er on these issu es. 19. Stage II review of p ollu tion control acts to stream line and rationalise licensing p roced u res. 1996-97 Complet e 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, longterm natu re of op erations. Complet e Review com p leted . N ew W ater M anagement A ct 2000 being im p lem ented . 20. Review w ater legislation and licensing. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2002 52 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) 21. 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. 1996-97 Underw ay DUAP has been w orking on Best Practice Gu id elines and ed u cation requ irem ents w ith agencies involved in Integrated Develop m ent as p art of the p u blication of Guiding Development: better outcomes. 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. Further ed u cation initiatives are likely to be forthcom ing w ith the exp ected am end m ents to Part IV of the EP&A Act. Complet e 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 e Gu id elines have been p rep ared . 22. 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 23. Develop Best Practice Gu id elines for Planning Focu s. 1996-97 N SW Report on the Application of N ational Com petition Policy: March 2002 53 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Underw ay Gu id elines w ill be released as p art of the p lanFIRST p ackage. Exp ected m id 2002. 24. Develop Best Practice Gu id elines for Com m u nity Consu ltation. 1996-97 Underw ay In conju nction w ith the p lan m aking review , a com p anion d ocu m ent to the Plan First White Pap er has been p laced on p u blic exhibition. The d ocu m ent, Ideas for Community Consultation: A discussion on principles and procedures for making consultation work w ill form the basis for a DUAP gu id eline d ocu m ent for best p ractice in com m u nity consu ltation. 25. Review of end angered sp ecies legislation so as to integrate licences and DAs. Complet e 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. 1996-97 Complet e Perform ance-based 1996 Bu ild ing Cod e of Au stralia w as ad op ted in N SW. 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. N SW Report on the Application of N ational Com petition Policy: March 2002 54 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Complet e 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 ancebased 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 w here necessary. 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. 27. Convert siting ru les to p erform ance stand ard s. 1996-97 28. Extend and im p rove p erform ance benchm arking of local cou ncils. 1996-97 Complet e N CP obligations are com p leted . This is how ever an ongoing p rocess for N SW. 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 Prop osed changes to p lan m aking w ill see increased op p ortu nities for com m u nity consu ltation before and d u ring the p lan m aking p rocess. As a resu lt of increased com m u nity 'ow nership ' of p lanning instru m ents, red u ced d isp u tes at the d evelop m ent assessm ent and ap p roval stage are exp ected . N SW Report on the Application of N ational Com petition Policy: March 2002 55 Project Original Timeframe Status at D ecember 2001 Current Status (March 2002) Complet e 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. 30. Exam ine the p otential for consolid ating land , w ater and related natu ral r esou 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 2002 56 Attachment 2: Significant N SW general Government sector agencies required to implement pricing principles 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 42 43 44 45 46 47 48 Aboriginal Housing Office Environmental Trust Environment Protection Authority Honeysuckle Development Corporation Ministerial Development Corporation Planning, Dept of Storm Water Trust Waste Planning & Management Fund x x x x x x x x x x x x x x x x x x x x x x x x x 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 x x x x x x x x x x x x x x x x x x x x x x x x x x Health Care Complaints Commission Health, Dept of x x x x x x x x Board of Studies, Office of the Department of Education and Training x x x x x x x x 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 Service, NSW Rural Fire Service State Emergency Service x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 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 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Government Agency/Activity GGE (ABS)2 Treasury Monitor3 User4 Charges Sig5 Min6 N SW Report on the Application of N ational Com petition Policy: March 2002 59 No. Government Purpose (ABS)1 (08) Recreation & Culture Government Agency/Activity GGE (ABS)2 x x x x x x x x x x x x x x x x x x x x x x x x Treasury Monitor3 x x x x x x x x x x x x x x x x x x x x x x x User4 Charges x x x x x x x x x x x x x x x x x x x x x x Sig5 Min6 49 50 51 52 53 54 55 56 57 58 59 60 61 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 (12) Transport & Communications 80 81 82 83 84 85 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 Olympic Coordination Authority 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 x x x x x x x x x x x x x x x x x x x x x x Agriculture, Dept of Fisheries, NSW Land and Water Conservation, Dept of Rural Assistance Authority Safe Food Production NSW x x x x x x x x x x x x x x x x x x Building & Construction Industry - Long Service Payments Corporation Public Works and Services, Department of x x x x x x 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 x x x x x x x x x x x x x x x x x x x x N SW Report on the Application of N ational Com petition Policy: March 2002 60 No. Government Purpose (ABS)1 (13) Other Economic Affairs Government Agency/Activity GGE (ABS)2 x x x x x x x x x x x x x Treasury Monitor3 x x x x x x x x x x User4 Charges x x x x x x x x x x Sig5 Min6 86 87 88 89 90 91 92 93 94 95 96 (14) Other Purposes 97 98 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 Crown Property Portfolio Crown Transactions x x x x x x x x x x x x x x x x Key to Attachment 2: 1 2 3 4 Categories as per the Australian Bureau of Statistics (ABS) in Standard Economic Sector Classifications of A ustralia (SESCA ) 1998. General Governm ent Enterprises (GGEs) as d efined by the ABS in GFS A ustralia: Concepts, Sources and M ethods. These agencies/ activities are m onitored by Treasury on the basis of a risk and m ateriality assessm ent. A user charge is a voluntary paym ent to a PTE or a general governm ent entity paid by a consum er for services provid ed . It is of a com m ercial rather than a regulatory nature and provid es an id entifiable benefit to the payer. (ABS: GFS A ustralia: Concepts, Sources and M ethods). The existence of user charges is a broad ind icator of a business activity. Significant > $2 m illion user charges revenue p.a. (as based on 2001–2002 Bud get estim ates). Minor < $2 m illion user charges revenue p.a. (as based on 2001–2002 Bud get estim ates). 5 6 N SW Report on the Application of N ational Com petition Policy: March 2002 61 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 Monitor2 Cat.3 Already Priv’n Corp’n Date Priv’n(P)/Corp’n Comments Electricity 1 2 3 4 5 6 7 8 9 10 11 Finance 12 13 14 15 Gaming & Recreation 16 17 NSW Lotteries Totalizator Agency Board of NSW (TAB) x x x x 1 4 x x 1/1/97 6/98(P) Axiom Funds Management Corporation Government Insurance Office (GIO) NSW Treasury Corporation (TCorp) State Bank of NSW PFE x x x 3 4 1 4 x x x x 16/5/97(P) 16/7/92(P) 1983 31/12/94(P) Australian Inland Energy and Water Country Energy Delta Electricity Energy Australia Eraring Energy Integral Energy Macquarie Generation Pacific Power International Power Coal Pty Ltd Snowy Mountains Hydro Electricity Authority TransGrid x x x x x x x x x x x x x x x x x x x x x x 1 1 1 1 1 1 1 1 x x x x x x x 1/3/96 1/7/01 1/3/96 1/3/96 2/8/00 1/3/96 1/3/96 Absorbed Broken Hill Water Board Merger of former Advance Energy, Great Southern Energy and NorthPower. Formerly part of Pacific Power Former subsidiary of Pacific Power – intention to sell announced Former subsidiary of Pacific Power. Jointly owned with Victoria and the Commonwealth. 3 1 mid 2002(P) (target) mid 2002 (target) 14/12/98 N SW Report on the Application of N ational Com petition Policy: March 2002 62 No. Industry Government Business Enterprise ABS PTE1 Treasury Monitor2 Cat.3 Already Priv’n Corp’n Date Priv’n(P)/Corp’n Comments Ports & Waterways 18 19 20 Newcastle Port Corporation Port Kembla Port Corporation Sydney Ports Corporation x x x x x x 1 1 1 x x x 1/7/95 1/7/95 1/7/95 Transport 21 22 Freight Rail Corporation Rail Infrastructure Corporation x x x x 3 1 x x 21/2/02(P) 1/1/01 Sold in conjunction with sale of NRC Merger of RAC and RSA Water 23 24 25 26 Coleambally Irrigation Hunter Water Corporation Murrumbidgee Irrigation Sydney Water Corporation x x x x x x x 1 1 1 1 x x x x 9/6/00(P) 1/1/92 12/2/99(P) 1/1/95 Misc 27 28 29 30 31 32 33 34 35 Department of Public Works and Services 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 x x x x x x 1 5 3 3 1 1 1 1 x x NSW Gov 25% shareholder only 31/10/94(P) Advisory Board has been established. 1/1/02 x x 26/7/99 1/11/97(P) 1/9/01 x x x x N SW Report on the Application of N ational Com petition Policy: March 2002 63 Key to Attachment 3: 1 Public Trad ing Enterp rises (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 onitoring 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; and  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 longer 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. Major 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 2002 64