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Victoria's Annual Report on the Implementation of NCP, March 2002, Volume 1

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Victoria's Annual Report on the Implementation of NCP, March 2002, Volume 1 National Competition Policy Volume 1: Main Report - March 2002 Report for the Third Tranche Assessment on Victoria’s Implementation of the National Competition Policy National Competition Policy Third Tranche Assessment on Victoria’s Implementation of the National Competition Policy Volume One: Main Report March 2002 National Competition Policy Third Tranche Assessment on Victoria’s Implementation of the National Competition Policy Summary of Contents Volume One: Main Report Part A: Overview Part B: Report on the Elements of the Policy Part C: Infrastructure Part D: Agriculture, Resources, Manufacturing and Services Volume Two: Supplementary Tables Part E: Legislation Review Part F: Competitive Neutrality Volume One i March 2002 Report for the Third Tranche Assessment on Victoria’s Implementation of the National Competition Policy Table of Contents 1. Executive summary ................................................................................................ 1 Part A: Overview...................................................................................................... 3 2. Progress in key sectors .......................................................................................... 5 Recent and prospective developments ....................................................................................................5 General National Competition Policy commitments...............................................................................5 Natural resource management..................................................................................................................6 Network infrastructure industries ...............................................................................................................7 Agriculture, manufacturing and services sectors ....................................................................................9 Rural and regional communities and Competition Policy....................................................................12 3. Assessment issues from 2001 ...............................................................................15 Natural resource management................................................................................................................15 Agriculture, manufacturing and services ................................................................................................18 Part B: Report on the Elements of the Policy.................................................... 25 4. Essential Services Commission and Infrastructure Reform ......................................27 Overview of progress.................................................................................................................................27 Regulatory highlights in 2000-01.............................................................................................................27 The regulatory culture applying to essential services ..........................................................................30 Establishment of the Essential Services Commission.........................................................................30 Challenges ahead......................................................................................................................................32 5. Legislation Review and COAG ...............................................................................35 Legislation review progress......................................................................................................................35 Compliance of legislation with legislation review commitments.........................................................35 Compliance with the conduct code obligations .....................................................................................36 Assessing compliance with the national standard setting obligation.................................................37 6. Competitive neutrality............................................................................................41 Background.................................................................................................................................................41 Competitive Neutrality Policy: Victoria 2002..........................................................................................42 Local government and Best Value Victoria............................................................................................43 Competitive neutrality complaints............................................................................................................45 Part C: Natural Resource Management............................................................... 53 7. Water ...................................................................................................................55 Summary of progress................................................................................................................................55 River health and allocations .....................................................................................................................56 Pricing and cost recovery - urban............................................................................................................61 Rural water services..................................................................................................................................66 Institutional reform .....................................................................................................................................67 8. Forestry and fisheries ............................................................................................71 Overview of progress.................................................................................................................................71 9. Mining and petroleum ............................................................................................75 Overview of progress.................................................................................................................................75 Part D: Network Infrastructure Industries........................................................... 77 10. Electricity............................................................................................................79 Overview of progress.................................................................................................................................79 11. Gas ....................................................................................................................87 Overview of progress.................................................................................................................................87 12. Road transport ....................................................................................................93 Overview of progress.................................................................................................................................93 Implementation of road transport reform................................................................................................93 Review of Dangerous Goods Act 1985..................................................................................................94 13: Rail transport ......................................................................................................95 Overview of progress.................................................................................................................................95 Structural reform of the Victorian rail industry.......................................................................................95 The access regime.....................................................................................................................................96 Certification .................................................................................................................................................97 Community service obligations ................................................................................................................97 14. Other transport (shipping and ports) .....................................................................99 Volume One iii March 2002 Overview of progress................................................................................................................................ 99 Further reviews.......................................................................................................................................... 99 Part E: Ag riculture, Manufacturing and Services............................................ 101 15. Agriculture and related industries .......................................................................103 Overview of progress..............................................................................................................................103 Coarse grains...........................................................................................................................................103 Wheat........................................................................................................................................................104 Dairy..........................................................................................................................................................104 Poultry meat.............................................................................................................................................104
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