Competitive neutrality is the principle that a government business should not have a competitive advantage (or disadvantage) as a result of its government ownership. Competitive neutrality policies aim to promote fair and efficient competition between public and private businesses.
In its 2021 White Paper, the NSW Productivity Commission recommended that the Independent Pricing and Regulatory Tribunal (IPART) review the NSW Government’s competitive neutrality policy and processes (recommendation 4.14).
IPART commenced the review in November 2021 and will complete its report by May 2023. The purpose of the review is to evaluate the scope and effectiveness of the current NSW competitive neutrality policies and processes in ensuring a level playing field between government business activities (including the activities of state-owned corporations) and their non-government competitors.
The policies and processes under review include:
-
Section 173 of the Public Works and Procurement Act (NSW) (1912)
-
Pricing and Costing for Council Businesses – a Guide to Competitive Neutrality, July 1997
-
NSW Government Policy Statement on the Application of National Competition Policy to Local Government, June 1996
-
Department of Local Government - Guidelines on the Management of Competitive Neutrality Complaints, c. 1997
Further information about the review is available on the IPART website.