Through stringent cost-cutting and a fundamental restructuring of pricing policy, the Government has been able to achieve historic reform of public utilities and a dramatic improvement in their productivity.

While it has been our policy to take the hard but necessary decisions in relation to public sector reform, I have always maintained that the Government should pass these benefits onto the people of New South Wales at the earliest opportunity.

In the light of a deteriorating economic environment, I have become increasingly concerned about the need for urgent measures to protect the financial circumstances of our citizens. I am particularly concerned about the adverse impact which may be caused to families by substantial increases in public sector rates and charges.

I have therefore decided to institute a freeze in real terms on those Government rates and charges which impact substantially on the household budgets of all families in our State. The freeze will mean that increases in specific charges are to be kept to a minimum and, in any event, are not to be increased beyond the Consumer Price Index level.

The freeze is effective immediately and will remain in force for the next two years. It will apply individually to domestic usage charges/rates levied by the following organisations:

• Water Boards in all areas of the State;
• Electricity Commission and/County Councils;
• Local Councils (rate pegging);
• Roads and Traffic Authority (private vehicle
• registration and drivers, licences);
• State Rail Authority (passenger fares);
• State Transit Authority (passenger fares);
• Department of Housing (market rent arrangements).

Apart from these measures, I seek your co-operation to ensure that other minor charges affecting families are properly contained. obviously, a crucial component in any pricing review is the need to carefully and fully assess the financial impact on families.

I would also stress that these new arrangements seek in no way to abrogate the responsibility of all administrations to make every effort, when considering the need to increase relevant charges, to keep those increases to a minimum within the. CPI limit. Matters such as efficiencies and savings achieved by relevant administrations should be passed on, wherever practicable, to further assist the general public.

I should be pleased if you would take personal responsibility for ensuring that this initiative is adhered to within your administration. The Treasury will be available to assist Heads of Departments in drafting any guidelines which might be found to be necessary to assist in implementing this decision.

Nick Greiner, Premer