State of the Environment Report 2010/2011 - Liverpool City Council

PART 3 / Our Statutory Reporting
Requirements
109
Companies in
which we had
a controlling
interest
Council held 100 per cent controlling
interest in the Bulldogs Sports and
Community Foundation Limited registered
in May 2002. The Bulldogs Sports and
Community Foundation Limited went
into liquidation on the 2 June 2010 as
per advice received from Dean Willcocks
Insolvency Solutions. The net proceeds of
the liquidation amounted to $6,309.34 and
was used to pay legal fees outstanding.
The company was deregistered 11 April
2011 with the Australian Securities and
Investment Commission.
Competitive
neutrality
In April 1995, representatives of the
Commonwealth and all State and Territory
governments met and ratified the National
Competition Policy. The principle of
competitive neutrality is based on the
concept of a ‘level playing field’ between
persons competing in the market place.
The principle applies only to the business
activities of councils and not to their nonbusiness,
non-profit activities. Compliance
with the principle is required unless it
can be demonstrated that the costs of
implementation outweigh any benefits for
the community.
In relation to local government, it is
accepted that some business activities
will have a significant economic impact.
A threshold of $2 million annual sales
turnover/ annual gross operating income
has been chosen as a reasonable measure
of economic significance for the purpose
of applying a corporatisation model and
pricing requirements. In these cases, the
benefits of applying competitive neutrality
are expected to outweigh the costs.
Businesses over this threshold are called
Category 1 business activities. Business
activities under this threshold are called
Category 2 businesses.
Council has determined that the provision
of car parking at the Warren Serviceway
Carpark is a business activity and is
classified as a Category 2 business. Details
of the revenue, expenses and assets held
for the business are outlined in the Special
Purposes Financial Reports provided as
Part 4 of this annual report – Our Financial
Statements
A complaints handling mechanism that
complies with the NSW Local Government
Act 1993 and the National Competition
Policy is in place. Council’s Complaint
Handling Policy and Procedure are
available on Council’s website.
Council did not receive any competitive
neutrality complaints during 2010-11
Liverpool City Council ANNUAL REPORT
Liverpool City Council ANNUAL REPORT