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PROGRESS REPORT on Implementing NCP in Western

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PROGRESS REPORT on Implementing NCP in Western FINAL PROGRESS REPORT Implementing National Competition Policy in Western Australia REPORT TO THE NATIONAL COMPETITION COUNCIL May 2004 - 2 - For further information please contact: Department of Treasury and Finance 197 St Georges Terrace Perth WA 6000 Telephone: +61 8 9222 9825 Facsimile: +61 8 9222 9914 1 INTRODUCTION ................................................................................................. 1 2 LEGISLATION REVIEW...................................................................................... 3 2.1 Progress with Legislation Review and Reform .......................................... 3 2.1.1 Review Program ................................................................................. 3 2.1.2 Reform Implementation .................................................................... 4 2.1.2.1 Bills Currently Before Parliament ............................................. 8 2.1.2.2 Bills Currently Being Drafted or Awaiting Drafting Priority .......................................................................................... 9 2.1.2.3 Legislation Reviews Near Completion .................................. 11 2.2 New Legislation ............................................................................................ 11 2.2.1 Gate-Keeping Process for New Legislation .................................. 12 2.2.2 Progress with Review of New Legislation ................................... 13 2.3 Legislation Review Matters Raised in Assessment Framework ............ 15 2.3.1 Specific Penalties .............................................................................. 15 2.3.1.1 Retail Trading Hours ................................................................ 15 2.3.1.2 Liquor Licensing ....................................................................... 17 2.3.1.3 Marketing of Potatoes .............................................................. 17 2.3.1.4 Marketing of Eggs ..................................................................... 18 2.3.2 Suspension Pool .................................................................................. 19 2.3.2.1 Agriculture ................................................................................. 19 2.3.2.2 Fisheries ...................................................................................... 24 2.3.2.3 Forestry ....................................................................................... 29 2.3.2.4 Transport .................................................................................... 32 2.3.2.5 Health ......................................................................................... 36 2.3.2.6 Legal Practices ........................................................................... 42 2.3.2.7 Occupational Licensing ............................................................ 43 2.3.2.8 Insurance .................................................................................... 54 2.3.2.9 Superannuation ......................................................................... 55 2.3.2.10 Workers Compensation ........................................................... 57 2.3.2.11 Petrol Pricing ............................................................................. 57 2.3.2.12 Consumer Protection ................................................................ 61 2.3.2.13 Education ................................................................................... 63 2.3.2.14 Community Services ................................................................. 64 2.3.2.15 Gambling .................................................................................... 65 2.3.2.16 Planning, Construction and Development Services ............ 67 2.4Outstanding non-priority legislation .......................................................... 71 3 COMPETITIVE NEUTRALITY ......................................................................... 72 3.1 Progress of Competitive Neutrality Reviews .......................................... 72 3.1.1 Gold Corporation ............................................................................. 73 3.1.2 Eastern Goldfields Transport Board .............................................. 73 3.1.3 State Supply Commission ............................................................... 75 3.1.4 Universities ....................................................................................... 75 3.1.5 TAFE Colleges .................................................................................. 78 3.1.6 Native and Plantation Forestry ...................................................... 80 3.1.6.1 Plantation Forestry .................................................................... 80 3.1.6.2 Native Forestry .......................................................................... 80 3.1.6.3The FPC‘s Profitability and Rate of Return ............................... 82 3.2 Competitive Neutrality Complaints.......................................................... 83 3.2.1 Complaints Handling Process ........................................................ 83 3.2.2 Complaints Received ....................................................................... 83 3.2.2.1 Complaints About the Competitive Activities for Government Owned Businesses ............................................. 83 3.2.2.2 Complaints Against Agencies not Formally Required to Comply with Competitive Neutrality .................................... 84 4 STRUCTURAL REFORM ................................................................................... 85 4.1 Electricity ........................................................................................................ 85 4.1.1 Background ....................................................................................... 85 4.1.2 Regulatory and Market Reform .................................................... 87 4.1.2.1 Wholesale Market ..................................................................... 87 4.1.2.2 Industry Licensing Regime ...................................................... 88 4.1.2.3 Third Party Access .................................................................... 88 4.1.2.4 Retail Contestability and Consumer Protection ................... 89 4.1.3 Structural Reform ............................................................................. 90 4.1.3.1 Implementation Timetable and Public Consultation ........... 90 4.2 Gas .................................................................................................................. 91 4.2.1 Background ....................................................................................... 91 4.2.2 Retail Contestability ......................................................................... 92 4.2.3 Access ................................................................................................. 94 4.2.4 Regulation ......................................................................................... 95 4.3 Rail ................................................................................................................. 95 4.4 Economic Regulation ................................................................................... 96 5 RELATED REFORMS ......................................................................................... 98 5.1 Water .............................................................................................................. 98 5.1.1 Water and Wastewater Pricing ...................................................... 98 5.1.1.1 Rural Water Services ................................................................ 98 5.1.1.2 Licence Fees ............................................................................... 99 5.1.1.3 Urban Water and Wastewater Sector ................................... 100 5.1.2 Water Management ....................................................................... 102 5.1.2.1 Establishment of Water Rights Systems .............................. 102 5.1.2.2 Provision of water to the environment ................................ 105 5.1.3 Water Trading ................................................................................. 106 5.1.3.1 Consistency of water entitlement arrangements with CoAG obligations .................................................................... 106 5.1.3.2 Transferable (Tradeable) Water Entitlements for Western Australia ................................................................................... 107 5.1.3.3 Local Trading Rules ................................................................ 109 5.1.3.4 Recent Trading Information .................................................. 109 5.1.3.5 Local by-laws ........................................................................... 109 5.1.3.6 Review of Trading Policy in Western Australia ................. 109 5.1.4 Institutional Reform ....................................................................... 110 5.1.4.1 Institutional Role Separation ................................................. 110 5.1.4.2 Integrated Catchment Management..................................... 110 5.1.4.3 Devolution of Irrigation Scheme Management .................. 111 5.1.5 National Water Quality Management Strategy ......................... 111 5.1.6 New Rural Water Infrastructure .................................................. 112 5.1.7 Public Education and Consultation ............................................. 112 5.1.8 Water Legislation ..........................................................................
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