Financial Performance of Government Trading Enterprises 1996-97 to 2000-01

The Productivity Commission has released a report on the financial performance of 64 Commonwealth, State and Territory government businesses. These businesses provide essential services such as electricity, water and urban transport, as well as railway and port infrastructure. Combined, their revenues were $55 billion in 2000-01 and they controlled assets valued at more than $145 billion.

The report provides data on firms’ financial performance over time. It also allows comparison of performance among businesses in the same industry.

The Commission’s Chairman, Gary Banks, said ‘the Commission finds that some businesses are still not operating on the fully commercial basis that owner governments intended’.

During 2000-01, performance against all profitability measures declined in most sectors. Many businesses did not earn commercial returns. For some businesses, there have been no signs of improvement.

This study forms part of a continuing program of research into the performance of economic infrastructure industries and the impact of microeconomic reforms.