PETERS/VRIESENDORP 2.3 Exclusively public activities andor performance of other commercial activities Privatization and liberalization have led to shifting boundaries between the govemment sector and the private domain. One of the consequences of this is that public tasks are also implemented by private-law organization foms. But the reverse is also true: as a result of liberalization, activ ities engaged in by govemment bodies have tumed mto marketactivities. An example: through the creation of a market with several players, the activ ities of the -originally monopolist- Koninklijk Nederlands Meteorologisch Instituut [Royal Dutch Meteorological Institute] ha ve become market activ ities. As long as the activ ities of an organization are unequivocal -either exclusively govemmental or exclusively market-oriented, the boundary between government'and'manket' is shifting but can still be drawn with respect to the organizations themselves. A problem, however, is that in practice it does not work that way. Private enterprises have taken over government activities, but combine them with clear market activities. On the other hand, govemment organizations ar entering into the market in competition with third parties. In this way, revenues are generated in a time when govemment policy is one of retrenchment. But policy-makers have also consciously aimed in the same direction because a competing government' is said to work more cost-effectively and to be more client-oriented. An example is the Landelijk selectie- en opleiding instituut politie INational Police Selection and Training Institute], which also provides courses and trainings for priva te com panies. The consequences of these developmen twofold: com petition arises between the govemment and the private sector, and the can lead to unfair competition, and on the other hand, there is the risk of govemment money being employed for the sidelines. To keep these consequences under control, legislative action is now being undertaken. The Framework Act on Autonomous Administrative Authorities 7 contains a provision that the various activities engaged in by private-law legal entities must be administered and accounted for separately. In viewof the shifting boundary, the question arises why this is not prescribed in this act with regard to public-law legal entities also. 8 It may be rehted to a highly controversal bill"Regulations concerning market activities of governmental organizations and conceming companies which ha ve a special position as prescribed by the govemment", or Market and Govemment Act, for short. In this act, the rules of entry and the rules of conduct are stipulated for govemmental organizations and state companies together with companies with specal rights. As a result, it is a bill that is strongly inspired by competition law As regards this problem, these legislative projects show an interesting distinction between a public part' in the accounts and a private part. Yet, the This eample i taken from Kamersnkken[ Parlamentary document]1, 2001/02, 2805 P 17 Kamerstukken[ Parlamentary documents]11, 2000M01, 27426, nos 1-3. See JA. F. Peters, The Framework Act Independent Administrative Bodies: A First Introduction, Tiidschriff Privatisering 20005 l02,28050,Nos.1-2.PETERS/VRIESENDORP 6 2.3 Exclusively public activities and/or performance of other commercial activities Privatization and liberalization have led to shifting boundaries between the government sector and the private domain. One of the consequences of this is that public tasks are also implemented by private-law organization forms. But the reverse is also true: as a result of liberalization, activities engaged in by government bodies have turned into market activities. An example: through the creation of a market with several players, the activities of the - originally monopolist - Koninklijk Nederlands Meteorologisch Instituut [Royal Dutch Meteorological Institute] have become market activities. As long as the activities of an organization are unequivocal - either exclusively governmental or exclusively market-oriented -, the boundary between `government' and `market' is shifting but can still be drawn with respect to the organizations themselves. A problem, however, is that in practice it does not work that way. Private enterprises have taken over government activities, but combine them with clear market activities. On the other hand, government organizations are entering into the market in competition with third parties. In this way, revenues are generated in a time when government policy is one of retrenchment. But policy-makers have also consciously aimed in the same direction because a `competing government' is said to work more cost-effectively and to be more client-oriented. An example is the Landelijk selectie- en opleidingsinstituut politie [National Police Selection and Training Institute], which also provides courses and trainings for private companies.16 The consequences of these developments are twofold: competition arises between the government and the private sector, and the government becomes ever more `infected' by market activities. On the one hand, this can lead to unfair competition, and on the other hand, there is the risk of government money being employed for the `sidelines'. To keep these consequences under control, legislative action is now being undertaken. The Framework Act on Autonomous Administrative Authorities17 contains a provision that the various activities engaged in by private-law legal entities must be administered and accounted for separately. In view of the shifting boundary, the question arises why this is not prescribed in this act with regard to public-law legal entities also.18 It may be related to a highly controversial bill "Regulations concerning market activities of governmental organizations and concerning companies which have a special position as prescribed by the government", or Market and Government Act, for short.19 In this act, the rules of entry and the rules of conduct are stipulated for governmental organizations and state companies together with companies with special rights. As a result, it is a bill that is strongly inspired by competition law. As regards this problem, these legislative projects show an interesting distinction between a `public part' in the accounts and a `private part'. Yet, the 16. This example is taken from Kamerstukken [Parliamentary documents]II, 2001/02, 28 050, no. 3, p. 13. 17. Kamerstukken[Parliamentary documents]II, 2000/01, 27 426, nos. 1-3. 18. See J.A.F. Peters, The Framework Act Independent Administrative Bodies: A First Introduction, Tijdschrift Privatisering 2000/5. 19. Kamerstukken II 2001/02, 28 050, Nos. 1-2