EXEMPT PROPRIETARY COMPANY ANNUAL REPORTING REQUIREMENTS: PUBUC INTEREST OR BUREAUCRATIC EMPIRE-BUILDING?

Abstract: Australian small business enterprises, operated as exempt proprietary companies, are exposed to numerous statutory requirements. The Corporations Law Simplification Taskforce has proposed a number of changes with the stated objective of minimising the statutory burdens faced by small business. One of the recommendations of the taskforce is that most exempt proprietary companies be exempted from the requirement to supply key financial data in annual returns lodged with the Australian Securities Commission. This paper provides a review of the existing statutory responsibility for exempt proprietary companies to prepare annual returns including key financial data and lodge them with the ASC. A common justification offered for the introduction and continued maintenance of annual reporting requirements has been the protection of the public interest. The “public choice” theory of regulation provides alternative explanations for the regulation, including the promotion of producer interests or the promotion of the interests of the regulatory agency responsible for the administration of the legislation, the Australian Securities Commission, and other government departments such as Attorney-General's, Finance and Treasury. The existence of alternative explanations raises the possibility that the regulation is not motivated exclusively by the public interest. Indirect evidence of the usefulness of the annual reporting requirements was gathered with a consideration of the quality of the key financial data disclosed in annual returns. More than 40% of the annual returns lodged by a sample of exempt proprietary companies, during the years 1986 to 1989, contained key financial data which was inconsistent with being extracted from a properly prepared balance sheet (where assets minus liabilities equal shareholders' equity). The possibility that the maintenance of annual reporting requirements is not in the public interest, and the limited reliability of key financial data disclosures made, offers some support for the recent recommendations of the Corporations Law Simplification Taskforce that annual reporting requirements for small business enterprises be modified.     

Market-based incentives and residential municipal solid waste

Coalitions of free-marketeers, politicians, and environmentalists increasingly are turning to the use of market-based incentives in formulating environmental policy. One promising application of market-based incentives is in the management of residential municipal solid waste. This article focuses on unit-based pricing programs established in conjunction with community recycling programs. Using data gathered through telephone and mail surveys of 21 cities, we demonstrate the strong potential for unit pricing to improve the efficiency of residential solid waste management.     

SEMATECH and collaborative research: Lessons in the design of high-technology consortia

This article reviews the experience of SEMATECH as a model for high-technology research consortia. SEMATECH's original aims of developing next-generation manufacturing technology proved hard to achieve, and the program has refocused on generic technology and the equipment industry infrastructure. Though more modest, these new objectives have produced significant tangible results. The study considers the reasons for the change and implications for consortium design. This is contrasted with the history of other major collaborative research programs in Japan, Europe, and the United States.     

Freedom and growth: Do constitutions matter?

This paper uses an augmented Solow model, with cross section data, to measure the effect on per-capita income of a) the entrenchment of various rights in a country's constitution and b) the level of economic freedom in a country, broadly construed. The results suggest that entrenchment,per se, of any single right seldom has a significant general economic effect, while the effect of economic freedom is significant and substantial. The paper then considers whether such evidence could support the proposition that “constitutions do not matter.” While it concludes otherwise, it does caution against incurring excessive negotiation costs to obtain entrenchment of a comprehensive “wish list” of rights.     

Rent seeking and the welfare cost of trade barriers

This paper estimates the potential social cost of trade barriers using the Harberger and the Tullock/Posner approaches for a sample of U.S. food and tobacco manufacturing industries. In addition, it tests the relationship between the computed welfare losses and special-interest political activity (PAC contributions). If all rents were dissipated through rent seeking, the social cost of trade barriers would be about 12.5 percent of domestic consumption and would be particularly large for sugar and milk products where quotas are the main instrument of protection. Furthermore, the results indicate that welfare losses are positively associated with industry lobbying but the strength of such association is strongly dependent on industry concentration.     

The fragile politics of addiction

Suppose the optimizing consumer only has local information, then what? Obviously, there will be a random element of consumption. The link between the frequency distribution of consumption by person and preference surface is worked out. Under convex preferences there will be a unimodal distribution and conversely. A local optimizing theory of addictive behavior is developed from nonconvex preferences. The resulting bimodal distribution of consumption implies a nonrobust outcome for median voter politics. Such a local optimizing model of addiction is compared with globally optimizing models of addiction.     

Streams,springs, and stones: Ontario public service reform in the 1980s and the 1990s

Abstract: Since the era of reform triggered by the Committee on Government Productivity during the early 1970s, there has been surprisingly little writing about public service reform in Ontario. This article surveys developments since the early 1980s, reviewing the changes that occurred during the Davis, Peterson, and Rae governments pertaining to the structure and integrity of the public service, human resource development, relocation, accountability regimes, reorganization and restraint initiatives, to name only a few. We review the rise and fall of the Tomorrow Project, and how the Rae government developed an interest in public management issues as part of its policy and restraint agendas. As a frame for our analysis, we invoke the metaphor of “streams, springs, and stones” to convey not only the breadth and complexity of public service reform but also its enduring themes and issues. Sonirnnire: Depuis l'époque des réformes déclenchées par le Comité sur la productivité gouvernementale vers le début des années 1970, curieusement peu d'auteurs se sont penchés sur la réforme de la Fonction publique en Ontario. Cet article s'intéresse à l'évolution qui s'est produite depuis le début des années 1980, examinant les changements survenus sous les gouvernements Davis, Peterson et Rae en ce qui concerne la structure et l'intégrité de la Fonction publique, le développement des ressources humaines, les déménagements, les régimes d'imputabilité, ainsi que les initiatives de reorganisation et d'austérité, pour ne citer que ceux-là. Nous analysons la montée et la chute du Projet “ Demain ” et comment le gouvernement Rae a commencéà s'intéresser aux questions de gestion publique dans le cadre de son programme oû figuraient l'austérité et la définition des politiques. Pour encadrer notre analyse, nous faisons appel à la métaphore des “ courants, sources et pierres ” pour indiquer non seulement l'ampleur et la complexité des réformes de la Fonction publique mais aussi sa probématique et ses thèmes permanents.