Queensland Consolidated Regulations

LOCAL GOVERNMENT REGULATION 2012 - REG 28

28 What are the key principles of commercialisation

The
"key principles of commercialisation" , for a commercial business unit, are—

(a) clarity of objectives, namely that the local government—

(i) gives the unit clear and non-conflicting objectives; and

(ii) sets specific financial and non-financial performance targets for the significant business activity; and

(iii) keeps activities relating to local government policy formulation, or that are of a regulatory nature, separate from the unit, wherever possible; and

(iv) clearly identifies the nature and extent of the community service obligations the unit must perform; and

(v) sets performance targets for the unit’s community service obligations; and

(vi) separately costs the unit’s community service obligations; and

(vii) appropriately compensates the unit for performing the community service obligations, and discloses details of the compensation to the public; and

(b) management autonomy and authority, namely that—

(i) the unit remains at arms-length to the local government in day-to-day operations; and

(ii) the local government gives the unit autonomy in day-to-day operations, subject to overarching monitoring; and

(iii) any directions the local government gives the unit to achieve non-commercial objectives are given in an open way; and

(iv) the unit uses its best endeavours to ensure the unit meets its performance targets; and

(c) accountability for performance, namely that—

(i) the local government monitors the unit’s performance against the performance targets; and

(ii) the unit must generally be subject to the management framework of the local government; and

(iii) the unit complies with all laws the local government must comply with; and

(d) competitive neutrality, namely that the unit complies with the competitive neutrality principle by—

(i) removing any competitive advantage or competitive disadvantage, wherever possible and appropriate; and

(ii) promoting efficiency of the use of resources to ensure markets are not unnecessarily distorted.