National Competition - Policy 10.3

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					    POLICY                               National Competition                                    10.3


    AREA                                 Business
    OVERVIEW                             Comply with the requirements of National Competition
                                         as it applies to Local Governement
                                         ROUS                  RRCC                 FNCW
    AUTHORISED BY COUNCIL
                                         15/03/2006
    REVIEW DATE                          Term of Council
    FILE                                 172                   843                  1294


BACKGROUND



POLICY

1.1      Categorisation of Council's Businesses
Based on the criteria specified in the NSW State Government Policy Statement on the
Application of the National Competition Policy, it has been determined that the following
activities are of a business nature at Rous Water:

     Category 1                                   Category 2
    Water Supply        Land Development - Perradenya
                        Commercial leases – currently comprising:
                        26 Bounty Street
                        56-60 Carrington Street and 33 Conway Street
                        20 Conway Street and 218-232 Molesworth Street (subleases)



The dominant criteria for selection of Category 2 activities, has been the existence of
competitors on a local and/or regional basis. Land development at Perradenya and
commercial leasing have been included in Category 2 businesses with annual turnover
under the $2 million threshold and both activities considered to be competing on the open
market.

1.2   Complaints Handling System
A complaint regarding competitive neutrality is defined as follows:

•          A complaint that Council has not met its requirements under the Policy Statement of
           "Pricing and Costing for Council business - a Guide to Competitive Neutrality as
           issued by Department of Local Government in July 1997. This includes a concern that
           Council has not established an effective complaints handling mechanism; OR
•          A complaint that Council has not abided by the spirit of competitive neutrality in the
           conduct of a business activity.

The complaints handling mechanism for Competitive Neutrality at Rous Water is
incorporated in the general policy for Complaints Handling.

Council will provide a summary of complaints and the results of those complaints in its
annual report.
    Secretarial use only                              Policy History             Version 2.0 15/03/2006
    Rous Policy No: 10.3             RRCC Policy No:                   FNCW Policy No:
    Authorised Council: 17/05/2000   Authorised Council:               Authorised Council:
 POLICY                               National Competition                                    10.3



1.3     1.3 Internal Reporting and Management Plan
All council’s activities are defined separately in the Management Plan and Budget. Activities
defined as Category 1 and Category 2 businesses will include additional financial information
relating to competitive neutrality issues. This includes items such as dividend payments,
taxation equivalent payments and return on capital invested. These types of issues are
addressed in a procedure relating to costing and pricing issues relevant to competitive
neutrality.




PROCEDURES




LEGISLATION




RELATED DOCUMENTS




CONTACT OFFICER




 Secretarial use only                              Policy History             Version 2.0 15/03/2006
 Rous Policy No: 10.3             RRCC Policy No:                   FNCW Policy No:
 Authorised Council: 17/05/2000   Authorised Council:               Authorised Council:

				
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Description: National Competition - Policy 10.3