Demonstrating Compliance with Competitive Neutrality Policy
Dear Productivity Commission,
Competitive Neutrality (CN) aims to ensure that government business activities do not have an unfair advantage over private sector enterprises. The 2004 Guidelines for Managers publication provides information, but appears to be largely aspirational. Based on my review of publicly available information, there does not appear to be a requirement for a Commonwealth agency to demonstrate compliance with the CN policy.
I seek access to information under the Freedom of Information Act 1982 (FOI Act) regarding implementation of the Commonwealth's CN policy. I request any documents that address the Commonwealth government's expectations for compliance with CN policy, specifically any documents that establish implementation requirements for agencies to assess for CN applicability, document such assessments and report compliance with CN policy.
Yours faithfully,
Anonymous
Dear Anonymous
I refer to your FOI request seeking the following documents:
I seek access to information under the Freedom of Information Act 1982
(FOI Act) regarding implementation of the Commonwealth's CN policy. I
request any documents that address the Commonwealth government's
expectations for compliance with CN policy, specifically any documents
that establish implementation requirements for agencies to assess for CN
applicability, document such assessments and report compliance with CN
policy.
The focus of your request appears to be implementation of and compliance
with the Commonwealth’s competitive neutrality policy. As you may be
aware competitive neutrality is enshrined in the Competition and
Infrastructure Regulation Agreement (CIRA) between the Commonwealth,
States and Territories. There are a number of documents in the public
domain which appear to be in scope of you request.
COAG National Reform meeting agenda April 2007
[1]http://www.efa.com.au/Library/COAGNation...
The agenda at pages 26-52 set out the implementation plan agreed to by the
Commonwealth, States and Territories at that time.
Competitive Neutrality Matrix Reports
[2]http://www.federalfinancialrelations.gov...
Under CIRA, the Commonwealth, States and Territories are required to
report annually on competitive neutrality compliance, in observance with
the competitive neutrality report requirements. The annual reports can be
found at the bottom of the linked page. The 2016-17 report has not been
published as yet.
Competitive Neutrality Complaints Investigations
[3]https://www.pc.gov.au/about/core-functio...
The Australian Government Competitive Neutrality Complaints Office
investigates complaints about the Commonwealth Government businesses’
compliance with the competitive neutrality policy.
Competitive Neutrality Review
[4]https://consult.treasury.gov.au/market-a...
The Commonwealth Treasury is conducting a review of the Commonwealth's
Competitive Neutrality Policy. The linked page includes, among other
documents, the consultation paper and a link to published submissions.
The review is ongoing. As set out in the consultation paper: “Following
consultations and submissions, the CN Review Secretariat will make
recommendations to the Treasurer, including proposed revisions to the
Commonwealth’s competitive neutrality policy, and associated
implementation arrangements.” While the initial consultation period has
closed you may wish to follow the review.
Hopefully the information we’ve provided answers your questions. Please
let us know if the information provided meets your needs and if you’d like
us to assist you further. If you’re satisfied with the information please
let us know if you’d like us to assist you in withdrawing your
application.
Yours sincerely
Keston Clarke
FOI Coordinator
Dear FOI,
Thank you for the information. I have one remaining question.
You state that "Under CIRA, the Commonwealth, States and Territories are required to
report annually on competitive neutrality compliance, in observance with the competitive neutrality report requirements". However only six Commonwealth entities are addressed in the annual report. Does this mean that other Commonwealth agencies and entities are not required to comply? Does this mean that other Commonwealth entities are not required to report?
By way of example, you found a few years ago that PETNET Australia's business plan could put it in breach of competitive neutrality requirements. I don't think PETNET or parent ANSTO report their compliance with CN.
Yours sincerely,
Anonymous
Dear Anonymous
Thank you for your further questions about competitive neutrality compliance and reporting.
As you point out in your question, the CIRA only requires Government Business Enterprises to report annually in the Competitive Neutrality Matrix Report. Government Business Enterprises are identified in the competitive neutrality policy as significant by nature and required to comply. They are large, commercially focused government owned businesses that are established to fulfil a Commonwealth Government purpose. They face more stringent and regular reporting requirement than other government entities, as set out in the Commonwealth Government Business Enterprises – Governance and Oversight Guidelines (https://www.finance.gov.au/sites/default...).
There were only six Commonwealth Government Business Enterprises at the time of the last Competitive Neutrality Matrix Report in 2015-16. There are now eight Government Business Enterprises: https://www.finance.gov.au/gbe-directors....
You are correct that other significant government businesses such as PETNET are not required to report annually. They are, however, required to comply with competitive neutrality and their compliance can be examined as part of competitive neutrality complaints investigations and Ministerial decision making.
The Competitive Neutrality Review is currently examining compliance and reporting requirements for all government businesses. The review team would appreciate hearing from you if you have any comments you’d like to make about any aspect of the Commonwealth’s competitive neutrality policy. Please direct your enquiries to [email address].
Again, we hope the information provided answers your questions. Please let us know if the information provided meets your needs. If you’re satisfied with the information please let us know if you’d like us to assist you in withdrawing your application.
Yours sincerely
Keston Clarke
FOI Coordinator
Dear FOI,
Thank you very much for your assistance. I'm satisfied with the information provided.
Yours sincerely,
Anonymous