Community service obligations and their implications

In Australia, Government Business Enterprises (GBEs) are in the process of review so that they may eventually be run on commercial lines in a competitive environment. Some of the services that are provided, particularly by the monopolistic utilities, are non‐commercial but are required under various governments’ social policies. The GBEs that can identify and cost these community service obligations can be recompensed from the budget. The problems and benefits of the identification, costing and funding processes are discussed as well as some concerns raised by the corporatisation process.