Section 2: Outcomes and outputs information

Outcomes and output groups

The map below shows the relationship between government outcomes and the contributing outputs for the Australian Competition and Consumer Commission (ACCC). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.

Map 2: Outcomes and output groups

Output cost attribution

The ACCC uses a process of cost allocation to estimate the costs of each output in Table 2.1.

The cost of each output is comprised of direct and indirect costs. Direct costs are assigned to outputs according to detailed cost profiles. Indirect costs that comprise corporate and overhead items such as information technology, accommodation and human resource management are allocated to outputs based on a consumption (cost driver) basis.

Changes to outcomes and outputs

There are no proposed changes to the outcome or outputs.

Outcome 1 — Description

To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets.

The ACCC’s role is to administer the Trade Practices Act 1974 and to perform functions under other Commonwealth legislation and State and Territory Competition Policy Reform Acts.

The ACCC seeks to:

• promote effective competition and informed markets;
• encourage fair trading and protect consumers; and
• regulate the infrastructure services market and other markets where competition is restricted.

Measures affecting Outcome 1

Australian Competition and Consumer Commission — strengthening capacity to foster competitive, fair and informed Australian markets

The Government will provide $46.7 million over four years and a $22 million equity injection in 2004-05 to enable the Australian Competition and Consumer Commission to effectively deal with an increased number of matters and maintain its levels of service delivery to the community.

The provision of an equity injection is a financial transaction within the general government sector and consequently has no direct impact on the fiscal balance.

Australian Energy Regulator

The Government will provide $8.4 million in 2004-05 (including $1.9 million capital funding) to fund the establishment of the Australian Energy Regulator. The total cost of the Regulator in 2004-05 is expected to be $10.7 million, of which $2.3 million represents a transfer from existing funding of the Australian Competition and Consumer Commission.

The Regulator, expected to be established by 1 July 2004, will have initial responsibility for the economic regulation of wholesale electricity and transmission networks and key rule enforcement functions. The Regulator will exercise powers under an agreed new national energy legislative framework, and undertake the sector-specific regulatory functions previously exercised by the Australian Competition and Consumer Commission and the National Electricity Code Administrator.

The responsibilities of the Regulator are to be extended to include gas transmission by 30 June 2005 and distribution and retailing (other than retail pricing) by 2006, following development of an agreed national framework.

The Regulator will be a constituent part of the Australian Competition and Consumer Commission but will also operate as a separate legal entity.

The cost of the establishment and operation of the Regulator will be recovered from industry once an appropriate mechanism is established.

Future funding for the Regulator will be considered in the context of the 2005-06 Budget.

Outcome 1 — Resourcing

Table 2.1 shows how the 2004-05 appropriations translate to total resourcing for Outcome 1, including revenues from government (appropriations), revenue from other sources, and the total price of outputs.

Table 2.1: Total resources for Outcome 1

1. C1 and E1 show the links back to Table 1.1.
2. Further details on special accounts appear in Table 1.6.

Outcome 1 — Contribution of outputs

The ACCC’s outputs of compliance with laws and competitive market structures reflect the Australian Government’s decision to foster competitive, efficient, fair and informed Australian markets.

The outputs reflect the activity that the ACCC undertakes to fulfil its role and functions. The Australian Government seeks to enhance the social and economic welfare of Australians, which the ACCC seeks to contribute by:

• promoting effective competition and informed markets;
• encouraging fair trading and protecting consumers; and
• regulating the infrastructure services market and other markets where competition is restricted.

The ACCC commits to meet these goals through effective and timely outcomes in the public interest, and to communicating its actions and results to the community at large.

Performance information for Outcome 1

Table 2.2: Performance information for Outcome 1

Table 2.2: Performance information for Outcome 1 (continued)

Evaluations

Stakeholder views will be sought on the effectiveness of the ACCC’s actions.

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