Review of Norfolk Island Government Business Enterprises (GBEs)

Media Release

19 December 2014

I have today, at the request of the Assistant Minister for Infrastructure and Regional Development, The Hon. Jamie Briggs, released the Deloitte Access Economics report “Norfolk Island government business analysis—November 2014”.

As many in the community will know, this is the latest stage of work that has been undertaken since 2013 to assist both the Norfolk Island and Australian Governments assess sustainable business models for the delivery of key services on Norfolk Island, including electricity supply and telecommunications.

The Report has found that:

  • There is limited scope to privatise GBEs (due to the market size; unclear financial performance and lack of reliable data; prohibitive investment requirements; Government financial reliance on GBEs);
  • It is possible to introduce elements of competition or market pressure without completely selling off the business;
  • A simple management outsourcing arrangement could be the best option in the short term for business efficiency, while still retaining the Government's revenue stream.

Australian Government funding has been committed as part of a suite of measures aimed at addressing Norfolk Island's deficit and improving public sector efficiency and economic development.

The report is available through the Department of Infrastructure and Regional Development's website at It is also available on my website at

The Deloitte Access Economics report will assist the Norfolk Island Government assess the operational efficiencies of its Government Business Enterprises and to support future decisions about how to structure and operate these businesses to ensure the community receives the best return.

Deloitte Access Economics to visit Norfolk Island early in 2015 for the next stage of work which will involve developing a cost of service, standardised governance structure and asset management information for each Government Business Enterprise in conjunction with the Administration of Norfolk Island.  I would to thank the senior officers of the Administration of Norfolk Island for their commitment of time and resources and the Norfolk Island Government for their cooperation with the this process.

His Honour the Hon. Gary Hardgrave