Document Index Portfolio Budget Statements Australian Competiton and Consumer Commission

Section 2: Outcomes and Outputs Information

• Outcomes and Output Groups
• Outcome 1
• Measures in the 1999-2000 Budget
  • Tax Reform and Price Exploitation -- Expense
    • Budget Measure Purpose
  • Telecommunications -- Australian Competition and Consumer Commission -- Additional Functions and Powers -- Expense
    • Budget Measure Purpose
• Resources for Outcome 1
• Contribution of Outputs to Outcome 1
• Performance Information for Outcome 1
  • Evaluations
  • Competitive Tendering and Contracting

OUTCOMES AND OUTPUT GROUPS

The map on the following page shows the relationship between Government outcomes and the contributing outputs for the Australian Competition and Consumer Commission. Financial detail for Outcome 1 by output appears in Table 2.2 while non-financial information for Outcome 1 appears in Table 2.3.

	Australian Competition and Consumer Commission Chairperson:  Professor Allan Fels
	Overall Outcome Strong, sustainable economic growth and the improved wellbeing of Australians
	Outcome 1 To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets Total Price of Outputs: $51.395 million Agency Outcomes Appropriation: $50.872 million
	Output Group 1.1 Australian Competition and Consumer Commission
	Output 1.1.1 Compliance obligations pursuant to administration of Acts (Trade Practices Act, Prices Surveillance Act) and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments		Output 1.1.2 Competition initiatives, regulatory mechanisms, liaison and information

OUTCOME 1

The Australian Competition and Consumer Commission's role is to administer the Trade Practices Act 1974, State and Territory Application Acts, the Prices Surveillance Act 1983 and related other legislation.

The Commission seeks to maintain and improve competition and efficiency in markets, foster adherence to fair trading practices in well informed markets, promote competitive pricing wherever possible and restrain price rises in markets where competition is less than effective. It is especially concerned to foster a fair and competitive operating environment for small business.

In 1999-2000 additional resources have been provided to the Commission for tax reform retail price monitoring and for additional functions and powers relating to Telecommunications.

Table 2.1 shows the relationship between the programme structure for 1998-99 and the new outcome structure for the 1999-2000 Budget for Outcome 1.

Table 2.1: Relationship between Programme and Outcome Structure for Outcome 1

MEASURES IN THE 1999-2000 BUDGET

Tax Reform and Price Exploitation -- Expense

Budget Measure Purpose

The Government will provide additional resources until 2001-02 to the Australian Competition and Consumer Commission (ACCC) to monitor retail prices during the transition to A New Tax System.

The ACCC will:

• be given additional transitional powers to monitor retail prices. The ACCC will be required to monitor and report to the Treasurer on instances where consumers have not benefited from reductions in the tax rate, or have been exposed to greater than necessary price rises;
• provide information to the community at large through national television and radio advertising and publication; and
• take enforcement action where appropriate under the new prohibition price exploitation and related parts of the Trade Practices Act.

The transitional price oversight role for the ACCC will begin 12 months prior to the implementation of A New Tax System and will continue for a further two years after the date of introduction.

Telecommunications -- Australian Competition and Consumer Commission -- Additional Functions and Powers -- Expense

Budget Measure Purpose

The Government has decided to provide additional resources (for 1999-2000 only) for the ACCC to administer the new powers and functions proposed in the Telecommunications Legislation Amendment Bill 1998.

This measure will establish a more comprehensive information transfer, monitoring and reporting regime and will allow the ACCC to facilitate commercial infrastructure access negotiations. The additional powers and functions will enable the ACCC to achieve the Government's goal of increasing competition in the telecommunications industry and is a response to amendments proposed by the industry (including through submissions to the Senate Inquiry on the Telstra Privatisation).

The costs incurred in each financial year by the ACCC relating to telecommunications activities are recovered from the telecommunications industry through an annual carrier licence fee.

A review of the operation and effectiveness of the telecommunications competitive conduct scheme will be initiated before 1 July 2000. The ACCC's telecommunications resource requirements will be evaluated following the report of the review, and funding for 2001-02 will depend on the extent of continuing ACCC functions and powers.

RESOURCES FOR OUTCOME 1

Table 2.2 shows how the 1998-99 appropriation and programming structure relates to total resourcing for Outcome 1.

Table 2.2: Total Resources for Outcome 1

1. See Table 2.1 for details.

CONTRIBUTION OF OUTPUTS TO OUTCOME 1

Outcome 1 defines the ACCC's role in delivering government competition and consumer policy. The ACCC's output groups are described below and Table 2.3 provides performance information on the strategies chosen to deliver Outcome 1.

The Commission's outputs are as follows:

• Output 1.1.1: Compliance obligations pursuant to administration of Acts (Trade Practices Act, Prices Surveillance Act) and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments; and
• Output 1.1.2: Competition initiatives, regulatory mechanisms, liaison and information.

Output 1.1.1 assists in the achievement of the Government's outcome by improving compliance laws, reducing compliance costs and influencing community behaviour and confidence. Competitive markets are promoted through the administration and enforcement of the Trade Practices Act, Prices Surveillance Act and statutory responsibilities arising from parts of other relevant Acts and subordinate regulatory instruments. Important aspects include enforcement of the Acts' provisions relating to restrictive trade practices, consumer protection, authorisations, notifications and prices for goods and services under price control; the prohibition of certain misleading or deceptive conduct and unfair practices, the disclosure of consumer information relating to the supply of certain goods and services, and the promotion of product safety; and the promotion of information and, in particular, public awareness of the requirements of, and remedies available under the Acts.

Output 1.1.2 assists in the achievement of the Government's outcome by having a well regulated, informed competitive and fair market. This includes developing, implementing and promoting public awareness of regulatory frameworks, maintaining and fostering international developments to improve market conduct.

In seeking to achieve its outcome, the ACCC will:

• pursue enforcement of the law without fear or favour;
• maintain a focus on competition and consumer strategies as reflected in virtually all parts of the legislation administered;
• give the highest priority to the non-traded goods and services sector;
• pursue its published enforcement priorities; and
• foster compliance via education and publicity.

Monitoring of possible price exploitation as a consequence of A New Tax System's reforms will be a major ACCC activity from now until 2002.

PERFORMANCE INFORMATION FOR OUTCOME 1

Evaluations

No evaluations are planned for 1999-2000.

Competitive Tendering and Contracting

The ACCC is planning to market test its banking arrangements during 1999-2000.