Competitive neutrality & code of practice

Page content: Competitive neutrality | Competitive neutrality & cemetery trusts | Additional information related to the code

Competitive neutrality

Since April 1995 the Victorian Government has been party to the intergovernmental Competition Principles Agreement (CPA), which is one of three agreements that underpin National Competition Policy. Competitive Neutrality Policy Victoria sets out the Victorian approach to competitive neutrality.

Under the CPA, Victoria is obliged to apply competitive neutrality policy and principles to all significant business activities undertaken by government agencies (such as cemetery trusts), where the benefits of applying competitive neutrality exceed the costs. Essentially competitive neutrality is about ensuring that publicly owned entities such as cemetery trusts compete fairly in the market place with private suppliers of the same products and services.

Further information regarding competitive neutrality policy is available on the Victorian Competition and Efficiency Commission’s website.

Competitive neutrality & cemetery trusts

Section 112 of the Cemeteries and Crematoria Act 2003 provides for cemetery trusts to sell and supply memorials. Any cemetery trust that engages in these activities must ensure that they are informed about and comply with the principles of competitive neutrality.

To assist cemetery trusts to meet these obligations, the department has facilitated the development of a code of practice for the sale and supply of memorialisation products and services in Victorian public cemeteries. Adoption and implementation of the code is mandatory for all trusts that engage in these activities.

A review of the Code was finalised in June 2008. A detailed summary of feedback received as part of this review and the department’s response to this feedback is provided below.

Copies of the "Code of Practice relating to the sale and supply of memorialisation products and services by cemetery trusts and other alternative suppliers in Victorian public cemeteries" may be downloaded below, or can be obtained by contacting the Cemeteries and Crematoria Program.

Code of Practice (126kb, pdf)

Summary of Feedback on Code (70kb, pdf)

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Additional information related to the code

The code of practices makes reference to a range of related additional information; this information is provided below.

Section 6.2
The application form for the establishment or alteration of memorials or places of interment is available from the Cemeteries and Crematoria Association of Victoria (CCAV) website.

Section 6.2.2
Example of appropriate indemnity clause.

The Contractor indemnifies the cemetery trust against all Liability it may incur in respect of any Claim in respect of:

(a) personal injury or the death of any person; or
(b) loss of or damage to any property,

arising in any manner out of any negligent or unlawful act or omission or willful misconduct of the Contractor. Any liability under this clause will be reduced to the extent that Liability is caused or contributed to by the negligent or unlawful act or omission of the cemetery trust.

For the purposes of clause (insert number of clause above) 'Liability' includes all damages, costs, expenses or loss; and 'Claim' includes all demands, rights, actions, suits or proceedings of any kind.

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Section 8.2
Example of costs for trust-supplied memorial that should be incorporated in the relevant cemetery trust fee.

When determining the cemetery trust fee for a trust-supplied memorial, the following costs should incorporated into the trust fee:

• Purchase cost of memorial from manufacturer;
• Cemetery overheads (gas, electricity, administration);
• Storage o3 February, 2009f costs associated with building storage facility, expenses);
• Inspection and approval costs applicable to the establishment of the memorial as for externally supplied memorials;
• Costs associated with placement / establishment of the memorial; and
• Cost of marketing (including costs relating to the preparation and distribution of promotional material).

Note that where a trust sells memorials it must incorporate within its own fee structure any fees that it levies on independent suppliers of the same memorials such as permit and inspection fees, regardless of whether the trust requires such permits or inspections for trust supplied memorials.

Section 8.3
Examples of appropriate itemisation for cemetery trust customer invoices

1. "At-need" purchase of right of interment and interment in lawn grave

2. "At-need" purchase of right of interment and interment in public mausoleum

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