Govt businesses do well, but could do better: report.


A snapshot of government-run businesses has found those in the electricity, water and urban transport sectors improved their financial performance last year, but those controlling railways, forestry and ports suffered a decline in profits.
The Productivity Commission says reforms since the early 1980s have boosted the financial performance of government-run businesses but there is scope for more improvement.
Commissioner Mike Woods says government businesses have been slightly increasing their profitability over the past five years, but most still are not earning commercial rates of return.
"There's clearly opportunity for management within a number of enterprises to seek greater profitability and overall performance in delivering services to the public," he said.
"But also in a number of cases, the regime under which they operate does inhibit a bit their capacity to perform at optimum level."