A review of the federal government’s almost 30-year-old competitive neutrality policy is being urged by the Productivity Commission amid recent moves by the Commonwealth to acquire or stand up new public enterprises.
According to the policy, introduced under Paul Keating, competitive neutrality “requires that government business activities should not enjoy net competitive advantages over” private sector competitors just because they are publicly-owned.
The 1996 policy applies to “significant businesses” that are publicly owned and aims to “remove resource allocation distortions arising out of public ownership” and support competition.
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