NCOSS Hot Issues: Utilities

The direct and indirect social usefulness of a public asset, service or utility;

The original purpose of the enterprise and whether that purpose remains valid, is being appropriately addressed through existing arrangements or could be satisfied by alternative arrangements;

Where the original purpose (as discussed above) has become redundant, the other social, redistributive or regulatory roles that have evolved must be taken into account;

The retention value of the enterprise measured against its sale value. Any calculation of retention value should incorporate both commercial and non–commercial functions;

The current structure of the market place (i.e. monopoly, oligopoly or competitive) and the public sector’s role as a competitor and/or regulator in that market;

The impact on specific groups or regional areas especially those groups or areas that are already disadvantaged. The assessment should include all factors including the real costs of compensation and/or support that will be needed if the role of the public sector were to change;

The impact on employment, skills, training and conditions and the protection of the existing workforce and/or the reform of industrial relations practices in any new enterprise or project;

The existing competing demands on the NSW public sector and existing budgetary constraints and/or the alternative sources of funds for public sector investment;

The current environmental impact and the need to continue to enhance environmental protection;

The administrative economies of scale and coordination that is facilitated by public ownership and control;

Appropriate weighting of long–term as well as short to medium term considerations; and

Where the money is going (i.e. ensuring that the proceeds of the disposal of assets are responsibly directed to priority public capital needs).