WATER ACT 2000 - SECT 638
Key commercialisation principles
WATER ACT 2000 - SECT 638
Key commercialisation principles
638 Key commercialisation principles
(1) The key commercialisation principles are the following—
(a) principle
1—clarity of objectives;
(b) principle 2—management autonomy and
authority;
(c) principle 3—accountability for performance;
(d) principle
4—competitive neutrality.
(2) The elements of principle 1 are as follows—
(a) the water authority will have clear, non-conflicting objectives;
(b)
specific financial and non-financial performance targets will be set for the
commercial activities of the water authority and stated in its performance
plan;
(c) any community service obligations of the water authority will be—
(i) clearly identified in its performance plan; and
(ii) separately costed;
(d) the water authority will be appropriately funded for its community service
obligations and any funding will be made apparent;
(e) the water authority
will be set performance targets for its community service obligations.
(3)
The elements of principle 2 are as follows—
(a) the water authority will be
required to use its best endeavours to ensure it meets its performance
targets;
(b) subject to this Act, the water authority will be given autonomy
in its day-to-day operations;
(c) government directions for the water
authority to achieve non-commercial objectives will be exercised in an open
way;
(d) in its day-to-day operations, the water authority will be at
arms-length to the State.
(4) The elements of principle 3 are as follows—
(a) the water authority’s board will be accountable to the Minister for the
authority’s performance;
(b) the authority’s performance plan will form
the basis for accountability;
(c) the authority’s performance will be
monitored by the chief executive against the performance targets specified in
its performance plan;
(d) government monitoring of the authority is intended
to compensate for the absence of the wide range of monitoring to which
corporations whose shares are listed on a stock exchange are subject.
(5) The
elements of principle 4 are as follows—
(a) the efficiency of overall
resource use is promoted by ensuring markets are not unnecessarily distorted;
(b) wherever possible and appropriate, advantages and disadvantages accruing
to the water authority because it is a statutory authority should be removed.
(6) Without limiting subsection (5) (b) , advantages accruing to the water
authority may be removed by requiring the authority—
(a) to pay to the State
amounts equivalent to—
(i) government taxes that are not otherwise payable
by the authority to the Commonwealth, State or local government; and
(ii) any
cost of funds advantage the authority obtains over commercial rates of
interest because of State guarantees given for providing the goods or
services; and
(b) to comply with Commonwealth, State and local government
requirements that apply only if the activity carried on by the authority were
carried on by a private sector business, including, for example, requirements
about protecting the environment and planning and approval processes.