The Australian Competition and Consumer Commission and the New Regime

The Australian Competition and Consumer Commission (ACCC) is the national regulator in the new competition regime. It acts as the public guardian against anti-competitive or unfair business activities. The ACCC's task is to promote competition where it is limited; to preserve competition where it is effective; and to safeguard the position of consumers in their dealings with business. Its efforts are directed primarily at fostering business compliance with the national competition and consumer law, the Trade Practices Act 1974. The commission tries to persuade, coax or cajole businesses into pursuing their interests within the legally defined boundaries of fair competition. Where that proves insufficient, the commission becomes the enforcer. The ACCC can coerce businesses — through court orders and penalties — into rectifying their behaviour where they operate outside the boundaries of the law. It also has the capacity to hold businesses publicly accountable for the prices they set. Underlying these ACCC functions is an ulterior objective: to enhance the material welfare of Australians by promoting, wherever practical, a more competitive and efficient economy.     

National Competition Policy

Economic reform in Australia certainly did not start with the Hilmer Report — it has been underway for the last 15 or so years. It began with financial deregulation and floating of the Australian dollar in the 1980s and the reduction of tariff protection, and includes more recent initiatives such as moving from the centralized wage fixing system to more flexible enterprise bargaining arrangements, restructuring of government business enterprises, developments in public administration and most recently the focus on competition policy.     

Thinking Ahead: Strategic Foresight and Government

The technique of strategic foresight — developing policy based on long-run scenario planning — has much to offer Australian governments. By paying greater attention to identifying emerging issues, and drawing on a broad range of information sources, policies are more likely to prove durable and effective. Drawing on examples from the private sector, and from governments in the UK, USA and Australia, I outline what strategic planning entails, and how it might be implemented.     

Unlocking the Alienation: A Comparative Role for Alien Torts Legislation in Post-colonial Reparations Claims?

This article continues the themes developed in a previous paper looking at reparations for past wrongs in post-colonial Australia. It narrows the focus to examine the scope of the law of tort to provide reparations suffered as a result of colonisation and dispossession, with particular emphasis on the assimilation policies whose legacy is now known emphatically, although it ought not be exclusively, as the Stolen Generations. The search for more than just words is particularly topical in light of the Australian Prime Minister’s formal apology in early 2008. This highly symbolic step must not lose momentum. That momentum could be both political and legal. In the latter context, we explore here the concept of alien tort, in the light of current Australian tort jurisprudence, which has thus far proved inadequate to achieve compensation for the harms suffered. Taking a comparative approach, procedural and substantive developments are to better deliver justice consistent with community values. In particular, the greater acceptance of psychological harm as actionable tortious conduct in Canada and the United States is examined. The article further examines the scope for stolen children to bring suit under the US Alien Tort Claims Act 1789. While the Australian government enjoys sovereign immunity in the courts of the United States, non-state organisations such as churches that were complicit in the forcible removals may be subject to United States jurisdiction wherever they have a presence in that country. The procedural and substantive elements of such a claim are discussed. In particular, the relevant cause of action, the issue of forum non conveniens and the statute of limitations will be analysed to map out whether a claim could be developed and successfully prosecuted.     

Symposium: Exporting Government Services

To explore the prospects for exporting government services, guest symposium editor RFI Smith invites three agencies to comment on their experience. This overview stresses the need to specify carefully costs and benefits in taking operations offshore — both in strict financial terms and in dealing with perception and accountability issues.
The prospects for exporting public sector skills and services are at the same time tantalising and frustrating. After initial enthusiasm in the 1970s and 1980s, the management of export programs has turned out to be complex, demanding and not without controversy. Such programs have challenged their proponents to be at once sophisticated in business management, rigorous and transparent in public accountability, and sensitive to the capabilities and ambitions of private sector providers of similar services. Further, after approximately 10 to 20 years of experience in different Australian jurisdictions, aims, methods and estimates of results remain diverse.     

THE POLITICS OF MICROECONOMIC REFORM: STRUCTURING A GENERAL MODEL1

Abstract: This paper examines the current endeavours to render the Australian economy more economically efficient. While the case for microeconomic reform is clear in economic theory, Australian public policy analysts are less sanguine about the possibilities for its long-term success. This paper seeks to develop the parameters of a simple general model to explain both why microeconomic reform proposals are dominant today on the Australian policy agenda and, more importantly, what the conditions are for their success or failure. This general model provides a framework that will allow further elaboration in case studies of particular episodes of microeconomic reform.
The paper concludes pessimistically; micro-economic reform has been subsumed into the normal political agenda contests of Australian party politics. The pressures of such "politics" inclines Australian reforming towards incrementalism, rather than the Simon-style rationalism implicit from micro-economics. This mode of policy implementation will inhibit microeconomic reform in the longer term.     

Reviews

Book reviewed in this article:
Profiles of Government Administration in Asia JOHN HALLIGAN and MARK TURNER for the Australian Public Service Commission (Canberra, AGPS, 1995, 179pp)
Profiles of Government Administration in Asia JOHN HALLIGAN and MARK TURNER for the Australian Public Service Commission (Canberra, AGPS, 1995, 179PP)
Globalization and the ASEAN Public Sector SIRAJUDDIN H SALLEH and LEDIVINA V CARIO (eds) (Kuala Lumpur, Asian and Pacific Development Centre, 1995, 433pp)
The Struggle for Australian Industrial Relations B DABSCHECK
Gender, Politics and Citizenship in the 1990s BARBARA SULLIVAN and GILLIAN WHITEHOUSE (eds)
Tunnel Vision: The Failure of Political Imagination JAMES WALTER
Postmodern Public Administration: Towards Discourse CHARLES J. FOX and HUGH T MILLER
Postmodern Revisionings of the Political ANNA YEATMAN
Henry Mayer. Mayer on the Media: Issues and Arguments RODNEY TIFFEN (ed.)     

Investing in Not‐for‐Profit Sector Capacity: The Australian Capital Territory's Community Sector Development Program (CSDP)

In 2013 the Australian Capital Territory (ACT) government's Community Services Directorate (CSD) initiated a suite of projects designed to address the not‐for‐profit (NFP) community services sector's capacity to adapt to a rapidly changing policy and operational environment. In common with other Australian governments, the ACT relies upon NFP organisations to deliver a wide range of community‐based human/social services. The procurement of services rendered to, or on behalf of, government by a third party provider under contract accounts for about 94% of the CSD's investment in the NFP community services sector. The ACT government, therefore, has a vested interest in ensuring that NFP providers are operationally capable, financially viable, and economically sustainable. Accordingly, the government launched a Community Sector Reform Program (CSRP) focussing on red tape reduction, sector development, and the establishment of a community sector outcomes framework. What lessons might the CSRP offer for other jurisdictions?     

Changing the Boundaries but Keeping the Disproportionality: The Electoral Impact of the Fifth Periodical Reviews by the Parliamentary Boundary Commissions for England and Wales

Parliamentary boundary reviews in the UK are undertaken to remove — as far as is practicable — inter-constituency variations in the number of electors. Their impact has almost invariably favoured the Conservative party — largely because population shifts between reviews tend to favour Labour with the movement of electors away from the inner cities and old industrial areas. That has been the case again with the Fifth Periodical Reviews conducted by the Boundary Commissions for England and Wales. The next general election will thus be slightly easier for the Conservatives to win than if the boundaries used for the 2005 contest were to be retained. But not much easier. Recent elections have seen very substantial biases operating in the translation of votes into seats favouring Labour. The biases are the result of the interaction of several geographies — of constituency size, abstentions and party support- only one of which (size) is directly tackled by the reviews. Unless those other geographies are changed the next two or three UK general elections are likely to see a continuation of these marked biases.     

The Potential for Local Diversity in Implementation of the National Competition Policy

Australian governments have embarked on a major effort to improve the competitiveness of the economy by adoption of a national competition policy (NCP). The policy extends the scope of trade practices legislation to encompass the public sector and professions, modernises policy in the areas of pricing and access powers, and is intended to revitalise the microeconomic reform agenda. The intended result is an integrated national economy, more uniform and consistent business regulation across the country and improved levels of competitiveness. But, there is an inherent tension between the imperatives for harmonisation, uniformity and reduced regulation on the one hand and tendencies for local diversity and increased regulation on the other. This article explores this tension with illustrations taken from three key aspects of the policy — opportunities for institutional diversity, treatment of the public interest and the prognosis for an integrated national, competitive market. The potential for each jurisdiction in Australia to take diverse and problematic approaches to the implementation of competition policy is then re-examined through the mechanism of a specialised case study involving the regulation of access to gas pipelines in Western Australia.     

National Competition Policy and the Australian Taxi Industry

This article outlines the Australian Taxi Industry Association's (ATIA) perspective on the development of the National Competition Policy (NCP). The ATIA has been actively involved in the issue since the establishment of the Hilmer Inquiry into National Competition Policy in 1992.
The Australian taxi industry is regulated by state and territory governments. Taxi industry regulations are designed to facilitate the provision of high-quality and comprehensive taxi services to the community and disadvantaged groups. One element of this regulatory structure involves the sale, or lease, of taxi plates by state and territory governments as a revenue-raising measure.
This revenue-raising by governments produces two different effects. On the one hand taxi plate owners having purchased taxi plates from the government (or leased) have an interest in the value of the plate, as well as in continuing to provide quality services. On the other hand some observers see taxi plate values as inherently unacceptable and needing to be reduced, or abolished, by allowing unrestricted access to the taxi industry.
These competing views have provided much of the impetus for the debate associated with the taxi industry and the NCP. The industry believes that NCP has the potential to impact adversely on taxi 'markets' and consumer interests.     

THE FINANCIAL MANAGEMENT STRATEGY OF THE VICTORIAN COALITION GOVERNMENT

Abstract: This article reviews the budget sector financial management strategy of the Victorian Coalition government in the crucial period from its election in October 1992 up to the 1993–94 budget. The twin goals set by the Coalition were the elimination of the current account deficit, and the reduction of debt levels. Given infrastructure pressures, the debt reduction goal will be a difficult one to achieve. More precisely, it will be a difficult one to achieve without relying upon instruments such as assets sales, which the Coalition has viewed as artificial debt reduction techniques. The capital expenditure plans embodied in the 1993–94 state budget were not consistent with the debt reduction plans specified only months earlier by the Coalition. Victoria's debt levels are quite moderate even by OECD standards. What makes debt levels a real issue for the state is the narrowness of the tax bases of the Australian states, and the fact that Victoria is taxing at something like its maximum levels (at least, without coordinated multi-state tax increases). It is argued that, if the states could be confident that their revenue positions would hold firm (concretely, that revenue and grants as a proportion of GSP would remain constant), the appropriate debt policy goal for Victoria would be stabilisation — rather than reduction — of its debt/GSP ratio. However, the foreshadowed trend reduction of real commonwealth grants, as part of the so-called national savings campaign, makes it appropriate for Victoria — given the circumstances in which it finds itself — to target the reduction of debt/GSP levels.     

Effective Corporatisation Legislation: The Fundamental Issue in Port Management

It is now some seven years since the restructure of Australian ports and their transformation into corporatised entities. This strategy was adopted in an endeavour to improve efficiency by distancing government from day to day operations - that element that was perceived to be the cause of sub-optimal performance. While there is widespread agreement that port performance has improved significantly, dissatisfaction persists and the belief that continued political intervention is preventing ports' commercial potential from being realised. This paper investigates these issues but argues that political intervention per se should not be the focus of research as the fundamental cause of sub-optimal performance. Rather political intervention is an effect of a more fundamental problem — an inappropriate legislative framework — and the focus of research should be on the legislation and corporatisation model in which political intervention is mandatory.     

The Executive Divided Against Itself: Cohabitation in France, 1986–1988

From March 1986 to May 1988 France was headed by a leftist President and a rightist Prime Minister. The background to this unusual situation is presented, and the experience itself — referred to as cohabitation — is discussed in detail.
The complex game that the two executive leaders played during the period was regulated by the constitutional rules, conditioned by the electoral calendar and the narrowness of the prime minister's coalition majority, and moderated by public approval and the existence of a bipartisan foreign and defense policy.
The 1986–1988 experience did not overtax the constitutional system, but cohabitation under different conditions could be destabilizing. Cohabitation is like the possibility of the US president being selected by the House of Representatives: not highly probable but possible, not necessarily dangerous but possibly so, and something that arouses little enthusiasm.     

British Nationalism and Europe: A Medieval Comparison

This paper draws attention to the notable parallels between the problems faced by John Major and his government over Europe and a comparative situation from the 13th century. It shows that nationalism has been a leading force in politics for far longer than chronocentric analysis has allowed and that rulers — whether kings or prime ministers — ignore it at their own cost.     

Competitive Tendering and Contracting in the Australian Public Sector

The Hilmer reforms, and recent reports from the Industry Commission, advocate a significant shift toward competitive tendering for Australian public services. This article discusses the policy debate in the light of recent developments in the economic theory of contracts.
It will be argued that, although more intense competition can, on some occasions, generate apparent efficiency gains, it can also generate efficiency losses. Following Stigler, it will be argued that the general tendency for competition to generate cost reductions may be explained in terms of increased work intensity, and does not therefore involve a net social welfare gain. Such issues will be examined in relation to the Industry Commission (1995b) draft report on Competitive Tendering and Contracting by Public Sector Agencies, with particular attention to the issue of net social welfare benefits of contracting out. It is suggested that the Industry Commission estimates of efficiency gains available through contracting out are based on an incomplete sample, ignore the social transfer implied in reducing costs and are unlikely to hold for many sections of the public sector.     

Mandate, Independence and Funding: Resolution of a Protracted Struggle Between Parliament and the Executive Over the Powers of the Australian Auditor-General

This paper examines a political struggle in the Australian federal sphere over parliament's right, exercised through the Office of the Auditor-General, to oversee the accounts and management practices of the executive and entities created by legislation to deliver public services. The period from the early 1970s witnessed a dramatic shift in the method of delivering government services to the community and an increasing attention to economy, efficiency and effectiveness in their administration and delivery. The Australian government has increasingly used private sector organisational models and modern management and accounting practices to deliver a wide range of services. The rise of these 'new public management' practices resulted in an erosion of traditional parliamentary oversight of government management and reporting activities. This historical analysis is based upon Porter's (1981) processual analytical framework. The analysis focuses on the action of groups such as the executive, parliamentary committees and the Office of the Auditor-General as evidenced in documents produced in response to critical events. Models developed by Funnell and Cooper (1998) are used to characterise the transition of public sector audit from a traditional administrative model to a corporatist model.     

Electoral Politics and The Corporate System: The Question of Support*

Much analysis has pointed to the impact of interest organisations on policy-making. This paper focuses on the importance of interest organisations at the mass level. The sympathies of citizens for parties and interest organisations are compared, and it is shown (a) that organisations more often than parties are 'neutral objects'; for the citizens and (b) that most citizens — even members of the organisations — rate parties higher than they do interest organisations. Finally, it is shown that organisational membership only has a small impact on political views in a policy field (labour market relations), which should be highly relevant for the organisations. In sum, interest organisations have hardly at the mass level replaced parties as main objects of affection and orientation.     

The Equality of Public School District Funding in the United States: A National Status Report

For over 30 years, the distribution of educational opportunities and the equality of education funding across communities has generated considerable interest among policy makers, the public, and the courts. This article takes advantage of national data sets to examine funding equality across school districts in 49 states for fiscal years 1992 and 1995. It presents rankings of each state's funding equality and explores factors that may be related to the level of equality within states and to changes across years.
The analyses suggest that, overall, within-state equality improved slightly between 1992 and 1995, although most states' relative rankings changed little during the period. States with fewer school districts relative to students tended to have a more equal distribution of education dollars than states with more districts. States with higher proportions of revenues provided by state governments generally showed a more equitable distribution of resources than states in which districts were more dependent on local revenues.     

Evaluating the Evaluation Strategy as an Instrument for Budgetary Control

This article reports recent research undertaken on the contribution of program evaluation to that part of the budget process for which the Australian public service has carriage. It examines the degree of success which the Labor government's evaluation strategy attained in serving budget agency information purposes. The research is not conclusive, only indicative. Based on two sets of evidence — interviews with officers in the Department of Finance¹ and an analysis of survey results on the use of evaluation in the budget — it contends the evaluation strategy has had only a marginal impact on central budgetary processes. By documenting changes in the approaches of budget officials the article reports the impact of program evaluation on the core function of Finance — the provision of policy advice relating to the expenditure priorities of government.