Competitive Neutrality – the obstacle

August 7, 2025

Has the author, Stewart Sweeney, not heard of Competitive Neutrality? It is a policy adopted by all levels of Australian Governments — in the late 1990s — that prohibits us using such competitive advantages as we — through our governments — may possess in competition with the private sector; it would be “unfair”.

I believe that it was the adoption of this policy — backed by I know not what — that caused local authorities to stop providing social housing and today explains the convoluted finances of the Housing Australia Future Fund and the National Restoration Fund.

We fund the Productivity Commission to oversee this policy and receive and investigate complaints; it is one of the PC’s four core activities and particular mention is made on the PC website of the use of funds obtained at special rates. Why we should fund anyone to protect third parties from us doing our very best to meet our needs is beyond comprehension.

Until this policy is totally rescinded and this core activity of the PC defunded, there will remain this major obstacle to our government “coming back” to being a significant economic force for the public good, the Commonwealth.