PUBLIC SECTOR PERFORMANCE REPORT 2006

Report No 3 - May 2006

This first Public Sector Performance Report for 2006 brings to notice the results of two examinations.

Management of the Waterwise Rebate Program

The Waterwise Rebate Program is part of the State Government’s Water Strategy to encourage Western Australians to use water more efficiently. Introduced in February 2003, it offers rebates on 13 different water saving products. Approximately 225 000 rebates had been paid out to 189 000 households at a cost of $26 million at the end of December 2005. The program is administered by the Water Corporation of Western Australia with oversight on behalf of the Government by the State Water Council.

What the examination found...

• Rebate applications are processed by the Water Corporation in an accurate and timely manner. Applications are processed and paid within 11 days on average.
• The Water Corporation has been effective in making the public aware of the program with 87 per cent of surveyed respondents advising that they knew of the program.
• The program has achieved water savings though the extent and cost of water saved is difficult to estimate. Notwithstanding this, our analysis suggests that the rebate program is cost effective relative to new water sources.
• Public statements have overstated the extent of water savings generated by the program. The stated savings have been based on the assumption that persons who purchased a water saving device and received a rebate only purchased the product because of the rebate. It does not refl ect those persons who would have purchased the product even if a rebate were not offered. The extent that the rebate infl uences purchase decisions is unknown.
• The rebate program lacks specific goals and targets. Development of clear goals and targets would enable more focused delivery of available funds and clarify the purpose and success of those types of rebate that have a very low uptake or that do not appear to be cost effective.

What should be done?

• The State Water Council should ensure that specific targets are established to enhance the planning and monitoring of the program.
• The Water Corporation should ensure that reports to the State Water Council are presented with a range of possible uptake scenarios when calculating water savings and the associated costs per kL of the Waterwise Rebate Program.
• Appropriate levels of integrity and reliability should be applied to public statements and reports about the extent of water savings from the rebate program.

Regulation of Animal Feedstuffs, Hormonal Growth Promotants and Veterinary Chemicals

Animal feedstuffs, hormonal growth promotants and veterinary chemicals have important implications for trade and the human food chain. The use of hormonal growth promotants is subject to specific legislation in Western Australia (WA). The regulation of chemicals in the production of animals produced for human consumption is largely limited to the manufacture of animal feedstuffs. WA has no legislation controlling the general use of veterinary chemicals in production animals, although a very small number of chemicals including growth promotants are specifically controlled through existing Acts. New legislation to address this weakness is expected to be introduced into Parliament in 2006.

The Department of Agriculture and Food (DAFWA) regulates and controls the production of animal feedstuffs and audits against national guidelines. Almost its entire focus is on managing Bovine Spongiform Encephalopathy (BSE) otherwise known as ‘Mad Cow’ disease with the balance of its focus on the regulation of Hormone Growth Promotants (HGP) in beef cattle. BSE has never been detected in Australia.

What the examination found...

• Feedstuffs and HGP are regulated by DAFWA in accordance with legislation and national guidelines.
• There has been significant delay in introducing regulations to control the use of veterinary chemicals. The need for control was recognised by DAFWA in 1999. New regulations are currently being drafted but are not expected to be in operation until the second half of 2006. Without these regulations, DAFWA has no control over inappropriate use of veterinary chemicals.
• DAFWA does not have a response plan in the event that feedstuffs contaminated with Restricted Animal Material are fed to ruminants. A national body with DAFWA representatives has been established to address this matter but the date of completion is unknown.

What should be done?

DAFWA should make all efforts to ensure that regulations controlling the use of veterinary chemicals are implemented without further delay.

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