Corporatization as a means of improving water quality: the experience in Victoria, Australia.
Factors including fragmentation, a lack of direction, poor accountability, poor water quality, and a sizable state government subsidy contributed to the rural water industry in Victoria, Australia, in 1993. In 1993 the state government set out parameters for reform to change the size, structure, performance, and culture of the water industry. The path taken was not privatization, but corporatization. Tools used included amalgamation of organizations; separating water provisions from local government; changing the composition and reporting mechanisms of the boards; establishing clear benchmarks and performance criteria; making information publicly available; and providing a commercial orientation. The outcomes of the reforms were to be a focus on water quality and effluent management. In 2001, 15 water authorities were in place. There were significant improvements in accountability, finances, and performance. The authorities provided information on performance to both the state and the public. Reductions of operating costs have been in the range of 20-35%, with savings put back into new infrastructure. Water quality has significantly improved in a number of parameters and effluent management has also improved. This paper describes the challenges faced before the reform process, the reforms initiated, and the outcomes. It argues that privatization is not the only path to improvement: Developing a corporate structure and accountability can also deliver substantial improvements.
Martin
Narelle
N
St. Catharines, Ontario, Canada. nmartin@niagara.com
D019985:Benchmarking; D003132:Commerce; D006801:Humans; D011362:Professional Corporations; D012941:Social Responsibility; D013219:State Government; D017749:Total Quality Management / Q000458:organization & administration*; D014739:Victoria; D018508:Water Purification / Q000191:economics* / Q000592:standards*; D014881:Water Supply / Q000191:economics / Q000592:standards*