Public benefit test
Queensland Government Statement
In 2005 the Queensland Government announced that it would undertake a Public Benefit Test to examine ways of improving the safety and quality of disability services, whether delivered or funded by government or in the private sector.
The National Competition Policy requires a review to be conducted whenever governments consider regulation of a previously unregulated sector.
Synergies Economic Consulting was engaged to conduct a National Competition Policy Review, including a formal Public Benefit Test, to investigate whether:
- any further regulation of the disability services sector would introduce anti-competitive measures for both disability service providers and disability service workers; and
- the costs and benefits of further regulation of the disability services sector would be in the best interests of the community.
The Public Benefit Test is designed to ensure that before any extended regulation is introduced, the government knows whether any benefits gained from further regulating service providers would be outweighed by costs to consumers of the services, such as people with a disability.
The National Competition Policy Review Report concluded that there is no evident service failure in the unfunded sector and that the size and extent of that market is not likely to be significant compared to the government-funded sector. This conclusion is supported by further research undertaken by the former Disability Services Queensland (DSQ) regarding the size and extent of the unfunded non-government sector. A further regulatory burden on a small market could result in increased costs to service providers in complying with any new regulatory requirements.
While the conclusion of the report was that there was no compelling reasons to extend existing regulation of disability services at this time, the Queensland Government remains committed to the delivery of high-quality, safe and accountable services to people with a disability. This is demonstrated by a number of key projects being undertaken by the Department of Communities (Disability Services) including Growing Stronger: Investing in a better disability service system and the Funding Policy Project.
Public Benefit Test Executive Summary/Competition Impact Statement |
Last reviewed: 17 September 2009