NATIONAL competition policy, the decade-long process that held states to account and fuelled far-reaching reforms and controversial privatisation, will be renewed under the Rudd Government.
COAG yesterday gave approval to revive the process, abandoned on the eve of the 2004 election in an acrimonious fight between the Howard government and the states.
Governments yesterday agreed to clear "political hurdles" to new nationally consistent laws in 27 areas this year before a raft of state elections begin from next year, including in Western Australia and Queensland.
The priority areas were likely to be occupational health and safety rules, payroll tax administration, building codes, trade and professional recognition, simplified accounting methods for the hospitality sector and Business Activity Statement (BAS) simplification.
Born out of a review by academic Fred Hilmer in 1992, National Competition Policy set benchmarks for state governments on services such as electricity, water and other infrastructure. Governments were encouraged to develop competition and not give unfair advantage to state-owned corporations.
Towards the end of the policy's life, there were calls to expand its reach to measuring performance on "human capital" such as health and education.
The COAG meeting yesterday started the step to reviving the process, expanding the role of the COAG Reform Council to monitor performance on health, education, housing and infrastructure, as well as setting out its deregulation agenda. There was no agreement yesterday on benchmarks and incentive payments.
The withholding of payments by the commonwealth under the old scheme for failing to meet reform benchmarks fuelled state opposition to the scheme.
COAG agreed yesterday to "accelerate and broaden" the regulation reduction agenda and to deliver significant improvements in Australia's competition, productivity and international competitiveness.
"Achieving these objectives would increase productivity in Australia by reducing the regulatory burden on business, particularly where regulation falls across jurisdictional boundaries, and by re-energising the micro-economic reform process," the COAG communique says.
Finance and Deregulation Minister Lindsay Tanner said acceptance of the implementation plan drawn up with his colleague Craig Emerson and the states gave a "unique opportunity to progress a reform agenda that stalled under the Howard government".
"COAG has also instructed the working group to go harder, faster and further in reforming business regulation," he said.
The new NCP benchmarks are likely to grow out of the 27 areas for deregulation agreed by the meeting yesterday.
As well as the priority areas such as OH&S rules, consumer and financial protection laws will be made uniform, as will food regulation, mine safety, electronic conveyancing and wine labelling regulations. Uniform standards for directors' liabilities were added to the list yesterday.
Premiers have agreed to accelerate national OH&S standards with a report back by July this year - a timetable that will put the NSW Labor Government on a collision course with state unions. NSW has higher standards than other states and the Iemma Government has previously been unable to win support for changes.
Sid Marris | March 27, 2008 | The Australian
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