Progress in Microeconomic Reform

Australian governments made considerable progress with microeconomic reform in 1997–98, according to a report released by the Productivity Commission today.

The report - Microeconomic Reform by Australian Governments 1997–98 - found that, nationally, one of the main drivers of reform efforts continues to be the National Competition Policy.

State and Territory Governments have identified important reforms in the electricity, gas transport and water industries, particularly the introduction of access arrangements for Australia’s gas and rail industries, and the further development of the National Electricity Market.

The Commission’s report documents microeconomic reforms implemented by Australian Governments, based on information provided by all Commonwealth departments and State and Territory Governments. The report forms part of the Commission’s Annual Report Series.

Examining the reforms detailed in the report, it is apparent that microeconomic reform is affecting all sectors and levels of Government, enabling governments to lower the costs of providing services, and gains are starting to flow to consumers and businesses.

The report details government business enterprise reforms undertaken in 1997–98 including: structural reforms; the establishment of independent oversight authorities; and the corporatisation, commercialisation, and privatisation of its businesses. These included one third of Telstra, 14 airport leases and Victoria’s electricity businesses. The report also details regulatory and legislative reforms, the splitting of purchasing and service provider roles, pricing reforms, and tendering and contracting out.

Additional measures reported by jurisdictions for 1997–98 involved further progress in labour market reform, with increased onus on employers and employees to negotiate employment arrangements.

Other categories covered by the report include reforms to environmental management policies and trade policy reforms.