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Budget 2012-2013 Budget Paper No.3 The Budget



Budget 2012-2013 Budget Paper No.3 The Budget

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Tabled paper 1785


Tabled Papers for 11th Assembly 2008 - 2012; Tabled Papers; ParliamentNT




Tabled By Delia Lawrie


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273 Community Service Obligations This part of Budget Paper No. 3 provides information on community service obligation (CSO) payments to the Territorys government business divisions (GBDs) and government owned corporation (GOC). Where Government specifically requires a GBD or GOC to carry out activities which the GBD or GOC would not elect to do on commercial grounds or would only undertake commercially at higher prices, such functions are designated as CSOs. CSOs allow the Government to achieve identifiable community or social objectives which would not be achieved if left to economic or market forces. Government CSO policy is aimed at identifying the noncommercial functions performed by GBDs and GOCs, making the functions transparent and their delivery accountable to the community. To ensure that noncommercial functions do not adversely impact the financial performance of the GBD or GOC, the policy provides compensation through the provision of the CSO. The provision of CSOs by the purchasing agency through budget funding or acceptance of a lower shareholder return has three important implications: the promotion of a commercial culture within GBDs and GOCs; transparent budget funding and reporting, providing confidence to competitors that CSOs are not being used to underwrite commercial operations at the expense of competitors; and it provides an opportunity for regular review of activities funded as CSOs. Territory Government CSO payments for 201112 and 201213 are listed by purchasing agency and presented in the following table, with a subsequent discussion on CSOs and their key components.