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Guidelines for Setting Charges in the Public Sector [2002] (2002)

Publication Details

  • Guidelines for Setting Charges in the Public Sector [2002]
  • Published: 17 Dec 2002
  • Status: Current
  • Author: The Treasury
 

Guidelines for Setting Charges in the Public Sector [2002]

Published 1 Dec 2002
Page updated 27 Jun 2008

The Treasury first issued the 'Guidelines for Setting Charges in the Public Sector' in 1999. The guidelines apply to third party user charges for services where departments or Crown entities are monopoly suppliers. In 2002 the Treasury undertook a review of the guidelines to determine how they could be improved. The review involved consulting a sample of departments and other agencies, as well as a more general overview of charging activities. As a result, the Government endorsed this revised version of the guidelines in December 2002.

In June 2008 the Office of the Auditor-General revised their 1989 guidelines 'Guidelines on Costing and Charging for Public Sector Goods and Services' and they are now entitled 'Charging fees for public sector goods and services'. This revision was done in consultation with the Treasury. The new guidelines complement the Treasury guidelines.
 
See Charging fees for public sector goods and services on the Office of the Auditor-General website.

 

 

This document is available for download in Adobe PDF format only. An HTML version can be supplied on request from Information Services.

Contents  Download/Page range

Preface

Introduction

  • Objectives for user charges
  • Charges and taxes
  • Coverage
  • Holding down costs
  • Competitive neutrality
  • Stakeholder consultation
  • The structure of the guidelines 
  • Definition of terms
  • Application of guidelines 
  • Related documents

Definitions

1 Background

2  Options for the future

  • 2.1  Alternative public-sector provider
  • 2.2  Contestability
  • 2.3  Out-sourcing
  • 2.4  Devolution
  • 2.5  Technological and other changes

3  Outputs and outcomes

  • 3.1  Output/outcome analysis
  • 3.2  Public, club, private, or merit goods
    • 3.2.1  Public goods
    • 3.2.2  Club goods
    • 3.2.3  Private goods
    • 3.2.4  Merit goods
  • 3.3  Externalities and risk exacerbators

4  Options for  who to charge

  • 4.1  Transaction costs and compliance

5  Assessment of options

  • 5.1  Assessment and trade-offs
  • 5.2  Legal issues
    • 5.2.1 Taxes and charges
  • 5.3  Comparison with current policy

6  Cost structures

  • 6.1  Accounting systems
  • 6.2  Joint products
    • 6.2.1  Incremental costs

7  The structure of charges

  • 7.1  Charging at short run marginal cost
    • 7.1.1  Efficiency gains
    • 7.1.2  Revenue shortfall
    • 7.1.3  Net benefits of charging at short-run marginal cost .
  • 7.2  Charging at more than full cost
    • 7.2.1  Charges and capital costs
  • 7.3  Variations in charges
  • 7.4  Under- and over-recovery of costs
  • 7.5  Memorandum accounts
  • 7.6  Adjusting charging policy

8  Cost control

  • 8.1  Keeping costs down
  • 8.2  Output standards and levels

9  Consultation

charges-dec02.pdf (245 KB) pp. 26
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