that work has been done and will continue to be done while the Phase 2 reforms are being considered, we have considered the costs of that work to be sunk costs that are not affected by the reform options. A decision to implement Reform option B would result in the establishment of a regulator and a move to an FLCB. Those reforms would result in both establishment and ongoing costs as set out in Table 12. The costs have been identified based on preliminary discussions with governments, the NTC and the ACCC. It can be seen that Reform option B includes all the costs of Reform option A as well as additional costs associated with: additional scrutiny of road manager expenditures; a move by road managers to improve data information systems; a move to new systems to allow the regulator to benchmark assets and expenditure; the development of a customer service charter; and formalised consulting with an industry expert panel. Table 12: Costs arising under Reform option B Description of outcome Costs for regulator Costs for state and territory governments Establishment Regulator is established in Establishment costs of new 2019. regulator Move to an FLCB costs in establishing Input on setting FLCB process FLCB and increased cost for first No new / finance FLCB systems built by Increased cost for first FLCB jurisdictions; work is done manually. Establishing datasets and Developing a comparative Modifying information systems (in alignment with the analytical framework and tool technology systems revised Austroads Data to assess efficiencies in Standard) expenditure Establishing customer service Establishing customer service charter frameworks and arrangements Ongoing Expenditure submissions Staff costs in assessing first Collation of FLCB inputs for made by road managers FLCB and calculating revenue both expenditure and assets using templates in NTC Manual system or spreadsheet draft report on FLCB (same as Reform option A) prototype model Internal auditing of (NTC 2017) and making expenditure before submission best estimates based on to regulator current data. Additional costs of Additional costs in assessing Additional data costs undertaking scrutiny of prudency and efficiency of Establishment costs expenditure. expenditure Ongoing costs Establishment costs Regulated entities having a Ongoing costs data engagement person
that work has been done and will continue to be done while the Phase 2 reforms are being considered, we have considered the costs of that work to be sunk costs that are not affected by the reform options. A decision to implement Reform option B would result in the establishment of a regulator and a move to an FLCB. Those reforms would result in both establishment and ongoing costs as set out in Table 12. The costs have been identified based on preliminary discussions with governments, the NTC and the ACCC. It can be seen that Reform option B includes all the costs of Reform option A as well as additional costs associated with: additional scrutiny of road manager expenditures; a move by road managers to improve data information systems; a move to new systems to allow the regulator to benchmark assets and expenditure; the development of a customer service charter; and formalised consulting with an industry expert panel. Table 12: Costs arising under Reform option B Description of outcome Costs for regulator Costs for state and territory governments Establishment Regulator is established in 2019. Establishment costs of new regulator Move to an FLCB No new / finance systems built by jurisdictions; work is done manually. costs in establishing FLCB Increased cost for first FLCB Input on setting FLCB process and increased cost for first FLCB Establishing datasets and systems (in alignment with the revised Austroads Data Standard) Developing a comparative analytical framework and tool to assess efficiencies in expenditure Modifying information technology systems Establishing customer service charter Establishing customer service frameworks and arrangements Ongoing Expenditure submissions made by road managers using templates in NTC draft report on FLCB prototype model (NTC 2017) and making best estimates based on current data. Staff costs in assessing first FLCB and calculating revenue Collation of FLCB inputs for both expenditure and assets Manual system or spreadsheet (same as Reform option A) Internal auditing of expenditure before submission to regulator Additional costs of undertaking scrutiny of expenditure. Additional costs in assessing prudency and efficiency of expenditure Establishment costs Ongoing costs Additional data costs Establishment costs Ongoing costs Regulated entities having a data engagement person