3000 kb - Mid Western Regional Council - NSW Government

Other Government Initiatives
Efficient Operation
Federal Government
Competition Policy
Asset Management
Financial
Assistance
Pricing and
Developer Charges
The Department of Local Government is concerned that councils
generally are well managed.
The Federal Industry Commission Report on the Australian Water
Industry is concerned to ensure efficient use of resources -
natural, physical and financial. Its 1992 Report's
recommendations were wide-ranging and covered matters such
as pricing reforms and structural reforms (eg amalgamation of
authorities).
In 1995 the Council of Australian Governments (COAG) ratified
the National Competition Policy. Of particular significance to the
water and sewerage functions of Council is the application of
competitive neutrality to operations. The purpose of this is tho
have councils “operate under similar competitive pressures to
those experienced by the private sector”.
The NSW Government has embraced these principles and set in
motion a number of policies to increase the efficiency and the
competitiveness of this type of business area. (Refer to the NSW
Government Policy Statement on the Application of National
Competition Policy to Local Government.)
The NSW Government, which has ultimate responsibility for water
and sewerage in the State, is concerned to ensure that the $7
billion asset base in country towns water supply and sewerage
schemes under the care of Local Government, is well managed.
The NSW Government has been providing grants for the
development and improvement of water supply and sewerage
schemes in country areas, under the Country Towns Water,
Sewerage and Drainage Program which is now administered by
the Department of Energy, Utilities and Sustainability.
The Minister for Energy, Utilities and Sustainability has made
changes to the subsidy provisions. The main changes are the
requirement to implement best industry management practices
and the withdrawal of subsidies for growth related capital works.
These changes are outlined in the publication Country Towns
Water Supply and Sewerage Program: Technical and Financial
Assistance Available to Councils.
In July 1993, a new Local Government Act was enacted. Section
64 of the new act specifies that councils apply development
contributions in accordance with the provisions of the Water
Supply Authorities Act. Section 25 (formerly under Section 27
which no longer exists) of that act authorises the water authority
to levy a charge on a developer towards the cost of works serving
the development. These works may be existing, projected, or
both.
Guidelines are issued from time to time by the Minister for
Energy, Utilities and Sustainability. These guidelines, which
include a methodology for calculating development contributions,
were issued in February 2003.
Appendices
Mid-Western Regional Council
Strategic Business Plan for Sewerage