privatisation of the gas distribution/retail businesses and the gas transmission business, subject to market conditions; commencement of a gas market on 1 September 1998; privatisation of Aluvic, which holds the State’s 25 per cent interest in the Portland Smelter; privatisation of V/Line Freight; restructuring of the Public Transport Corporation’s operations and sale via franchise contracts by March 1999; privatisation of the Victorian Plantations Corporation in 1998 through offers of longterm management and harvesting rights to bidders; and continued regulatory and structural reform of water. Details of some of these reform programs are set out below. In addition to the metropolitan reform package, the Government has announced other initiatives to improve water services across regional Victoria. Some $410 million has been injected into the 15 nonmetropolitan urban water business authorities during 199798. These funds will assist the businesses to accelerate investments to improve water quality and ensure compliance with EPA licences. The announced pricing reforms have achieved an average 18 per cent reduction in prices, ensuring that nonmetropolitan residents receive benefits of the same order as metropolitan water consumers. As part of the process of creating more commercial businesses, the practice of basing dividends paid by the nonmetropolitan urban water businesses on residential assessments will be replaced progressively by dividends based on profitability. The 1998-99 Budget provides for rural areas to fund 12 dam improvement projects and other catchment management projects. Under the funding package, the nonmetropolitan urban and rural water authorities have committed to ensuring efficient service delivery through competitive arrangements. The Government has encouraged the use of Design and Construct and, where appropriate, Build, Own, Operate and/or Transfer (BOO/BOOT) methods of procurement to ensure the private sector has the opportunity to maximise costeffective delivery of the required outcomes.
privatisation of the gas distribution/retail businesses and the gas transmission business, subject to market conditions; commencement of a gas market on 1 September 1998; privatisation of Aluvic, which holds the State’s 25 per cent interest in the Portland Smelter; privatisation of V/Line Freight; restructuring of the Public Transport Corporation’s operations and sale via franchise contracts by March 1999; privatisation of the Victorian Plantations Corporation in 1998 through offers of longterm management and harvesting rights to bidders; and continued regulatory and structural reform of water. Details of some of these reform programs are set out below. In addition to the metropolitan reform package, the Government has announced other initiatives to improve water services across regional Victoria. Some $410 million has been injected into the 15 nonmetropolitan urban water business authorities during 199798. These funds will assist the businesses to accelerate investments to improve water quality and ensure compliance with EPA licences. The announced pricing reforms have achieved an average 18 per cent reduction in prices, ensuring that nonmetropolitan residents receive benefits of the same order as metropolitan water consumers. As part of the process of creating more commercial businesses, the practice of basing dividends paid by the nonmetropolitan urban water businesses on residential assessments will be replaced progressively by dividends based on profitability. The 1998-99 Budget provides for rural areas to fund 12 dam improvement projects and other catchment management projects. Under the funding package, the nonmetropolitan urban and rural water authorities have committed to ensuring efficient service delivery through competitive arrangements. The Government has encouraged the use of Design and Construct and, where appropriate, Build, Own, Operate and/or Transfer (BOO/BOOT) methods of procurement to ensure the private sector has the opportunity to maximise costeffective delivery of the required outcomes.
state-budget-bp2-budget-statement-1998-99.docx