LMH COnsulting Group

Competitive Neutrality And Public Interest Tests

The aim of competitive neutrality policy is to account for inequalities between private businesses and government businesses that are due to public ownership of the business.

Competitive neutrality requires councils to remove or offset any net competitive advantages arising from government ownership of significant business activities. Similarly, competitive neutrality allows councils to offset any disadvantages associated with public ownership of a business.

We work with council’s to provide guidance and support in relation to the application of the National Competition Policy to council services, in particular we assist councils:

  • Determine the ‘significant business’ status of council business activities
  • With competitor and market analysis
  • Identify competitive advantages and disadvantages
  • Identify the most appropriate costing methodology to determine ‘real business costs’
  • Write or compilation ‘public policy objectives’
  • Identify and analyse alternative costing or subsidy measures
  • Prepare of public interest documentation and community feedback proformas

The following provides an overview of the range of projects we have completed:

  • Competitive Neutrality Review / Public Interest Test advising consultant (Mornington Peninsula Shire Council)
  • Competitive Neutrality Review / Public Interest Test for Aquatic Facilities (Baw Baw Shire Council)
  • Competitive Neutrality Review / Public Interest Test for Warragul Arts Centre (Baw Baw Shire Council)
  • Competitive Neutrality Review / Public Interest Test for the Esso BHP Billiton Wellington Entertainment Centre (Wellington Shire Council)
  • Aquatic Facilities Public Interest Test (Brimbank City Council)
  • Public Interest Test for Childcare Facilities (Melbourne City Council)
  • Public Interest Test for Childcare Facilities (Brimbank City Council)

Helpful Reference Documents
Competitive Neutrality Guide to Implementation (DTF, 2000)

National Competition Policy and Local Government: A revised statement of Victorian Government policy (December 2008, DPCD)

Cost Allocation Methodology: Guidance Note (VCEC, 2007)

Helpful Links
For the Victorian Competition and Efficiency Commission www.vcec.vic.gov.au

 

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