Financial Performance of Government Trading Enterprises 2000-01 to 2004-05

The Productivity Commission has released an update on the financial performance of 85 Australian, State and Territory Government trading enterprises (GTEs). The report — Financial Performance of Government Trading Enterprises 2000-01 to 2004-05 also examines the capital structures of GTEs and capital withdrawal by State and Territory governments.

The 85 GTEs monitored in this report controlled assets valued at more than $186 billion and generated $63 billion in revenue, accounting for 86 per cent of all revenue generated by government owned businesses.

In 2004 05, aggregate profitability increased in the electricity, water and urban transport sectors compared with the previous year. Profitability declined in the railways, forestry and ports sectors.

Despite some improvement, a majority of the monitored GTEs failed to obtain commercial rates of return in 2004 05. The proportion of GTEs falling below this threshold has not changed significantly for over a decade.

Commissioner Mike Woods said that 'COAG's decision to reinvigorate reform through a new National Reform Agenda is timely because of the lack of long-term improvement in overall performance'. He added that 'the Commission's continued monitoring of GTEs will assist in evaluating the progress and gains from further infrastructure reforms'.

Financial performance monitoring of GTEs forms part of the Commission's research into the performance of Australian industries and the progress of microeconomic reform. The monitored GTEs provide services in key sectors of the economy — including electricity, water, urban transport, railways, ports and forestry.

Preliminaries
Cover, Copyright, Foreword, Contents, Abbreviations and explanations

PART A

Key Points

1 Introduction
1.1 Scope
1.2 Capital management
1.3 Report structure

2 Financial performance overview
2.1 Profitability
2.2 Financial management
2.3 Government transactions

3 Performance measures
3.1 Data
3.2 Performance indicators
3.3 Implications of future reporting standards
Attachment 3A

4 GTE capital structures
4.1 Recent trends
4.2 Current GTE capital structure policies
4.3 Optimal capital structures of GTEs
4.4 Further restructuring

5 Equity withdrawals
5.1 Equity withdrawal transactions
5.2 Profitability trends <5br /> 5.3 Financial management trends
5.4 Comparisons with the private sector

PART B

6 Electricity
6.1 Monitored GTEs
6.2 Market environment
6.3 Profitability
6.4 Financial management
6.5 Financial transactions
6.6 GTE performance reports

7 Water, sewerage, drainage and irrigation
7.1 Monitored GTEs
7.2 Market environment
7.3 Profitability
7.4 Financial management
7.5 Transactions with government
7.6 GTE performance reports

8 Urban transport
8.1 Monitored GTEs
8.2 Market environment
8.3 Profitability
8.4 Financial management
8.5 Transactions with government
8.6 GTE performance reports

9 Railways
9.1 Monitored GTEs
9.2 Market environment
9.3 Profitability
9.4 Financial management
9.5 Transactions with government
9.6 GTE performance reports

10 Ports
10.1 Monitored GTEs
10.2 Market environment
10.3 Profitability
10.4 Financial management
10.5 Transactions with government
10.6 GTE performance reports

11 Forestry
11.1 Monitored GTEs
11.2 Market environment
11.3 Profitability
11.4 Financial management
11.5 Transactions with government
11.6 GTE performance reports

12 Australian Government GTEs

A Monitored GTEs

References