Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
The Australian Government requires agencies to measure their intended and actual performance in terms of outcomes. Government outcomes are the results, impacts or consequences of actions by the Government on the Australian community.
The ACCC's outcome and output groups are described below, specifying the performance indicators and targets used to assess and monitor the performance of the ACCC in achieving government outcomes.
2.1.1 Outcome 1: To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets
Outcome strategy
To achieve its outcome the ACCC has two outputs seeking:
- compliance with competition, fair trading and consumer protection laws and appropriate remedies when the law is not followed; and
- competitive market structures and informed behaviour.
Key strategies aimed at achieving the outcome and outputs are:
- promotion of vigorous, lawful competition and informed markets;
- encouragement of fair trading and protection of consumers; and
- regulation of national infrastructure services (such as communications, bulk water, energy, rail, airports and post) and other markets where there is limited competition.
Key actions with medium and longer term effects are:
- detect and stop cartel conduct;
- support and protect competition in markets that rely on networks with natural monopoly characteristics;
- pursue firms that abuse their market power;
- prompt delivery of authorisation and notification decisions, particularly in the field of small business collective bargaining arrangements;
- assess mergers promptly and efficiently, taking effective action to prevent competition concerns arising from mergers across all industries;
- identify and focus effectively on national and cross‑border (including international) consumer protection issues;
- pursue and achieve appropriate remedies for false and deceptive conduct, particularly if widespread detriment results;
- facilitate and encourage fair trading conditions between big and small firms;
- work cooperatively through the Australian Energy Regulator to provide a single consistent and independent regulator of the energy sector that encourages competition within and between the gas and electricity markets to benefit industry and consumers;
- regulate and advise on industries where market structures are changing, including where the market structure impedes effective competition (eg water and communications); and
- monitor prices to assess and advise on the effect of market conditions (including deregulation) on the price levels of specified goods and services, including groceries, petrol, stevedores, and a range of airport prices including car parking.
Outcome 1 resource statement
Table 2.1 provides additional detail of Budget appropriations and the total resourcing for the outcome.
Table 2.1: Total resources for outcome 1
Note: Departmental splits by output, are indicative estimates and may change in the course of the budget year as government priorities change.
Contributions to outcome 1
Output group 1.1 — Australian Competition and Consumer Commission | |
|---|---|
Components of output group 1 are: Output 1.1.1 — Compliance with competition, fair trading and consumer protection laws and appropriate remedies when the law is not followed; and Output 1.1.2 — Competitive market structures and informed behaviour. | |
| Output 1.1.1 — Compliance with competition, fair trading and consumer protection laws and appropriate remedies when the law is not followed | |
| Key performance indicators | 2008‑09 target |
Actions (investigation, litigation, communications) taken to prevent or stop anti-competitive conduct. |
Unlawful conduct ceased — 15 enforcement outcomes. Effective and appropriate remedies. Reach of publicity, liaison and education activities undertaken — 1.1 million publications; 380 media releases. Mandatory codes of conduct support a competitive market. Parliamentary inquiries and government agencies assisted to develop policies and processes. |
Businesses or individuals who are possibly in breach of the law are encouraged to come forward to assist ACCC investigations through the immunity for cartel conduct and cooperation policies for enforcement matters. |
Immunity policy to be communicated and utilised. |
Use all powers at our disposal to prevent and stop misleading, deceptive and unconscionable conduct especially when it causes widespread consumer detriment or raises national issues. |
Cease unlawful conduct. Effective and appropriate remedies. Reach of publicity, liaison, consultation and eduction activities undertaken — 1.1 million publications; 380 media releases. Parliamentary inquiries and government agencies assisted to develop policies and processes. |
Support the ability of small business to trade with larger firms in a fair, yet robust environment. |
Reach of publicity, liaison, consultation and education activities undertaken. Collective bargaining notification processes to be within statutory timeframes and decisions communicated. Cease unlawful conduct ceased. |
Provide immediate information to hundreds of callers each week, distributing publications through print and the web, and by providing special programs to reach small, isolated or disadvantaged groups. |
Calls and emails handled timely. Callers responded to within organisational guidelines. Publications distributed. Website accessible and a source of relevant and up to date information. |
Conduct campaigns that target industries and sectors where the risk of failure to comply with the Act is high. |
Targeted campaigns where the need is indicated. |
Advise government on the need for new or amended product safety standards, product recalls, bans and warning notices. |
Parliamentary inquiries and government agencies assisted to develop policies and processes. Publicity, liaison and education activities undertaken. |
Take enforcement action when products breached the safety standards. |
Cease unlawful conduct. Effective and appropriate remedies. |
| Output 1.1.2 — Competitive market structures and informed behaviour | |
| Key performance indicators | 2008‑09 target |
Assess the competition effects of mergers, acquisitions or asset sales. |
Mergers assessed within statutory guidelines. All public merger decisions published on the ACCC website. |
Certain anti-competitive practise in industries and professions to be authorised when it is assessed that the public benefits exceed detriments. |
Decisions are made within statutory and organisational timeframes. Timely communication of decisions. |
Facilitated and encouraged competition in markets that depend on access to monopoly services so that the benefits of utility regulation are spread throughout the Australian economy. |
Complied with statutory reporting requirements — 3 annual reports delivered to the Minister; one 6 monthly report; two quarterly reports. 4 access undertakings (Telecomms regime) assessed. 9 access undertakings (digital radio regime) assessed. 50 determinations (Telecomms access regime) made. Review declarations of 8 declared services (Telecomms regime). Finalise 9 decisions on exemption applications. Parliamentary inquiries and government agencies assisted to develop policies and processes. |
Establish access terms, conditions and prices that balance the interests of infrastructure owners, users and the broader public. |
Effectiveness of access regimes evidenced by price levels and service delivery standards. Businesses using monopoly services pay prices that more closely reflect efficient costs. |
Provide incentives that stimulate efficient investment in and use of services with natural monopoly characteristics. |
Regulatory reports, determinations, and issues papers are timely and accessible. Robustness and accuracy of methodology evidenced by industry acceptance. |
Regulatory processes that support efficient resource allocation including investment in the regulated businesses are predictable and consistent. |
Reach of publicity, liaison, consultation and education activities undertaken. Robustness and accuracy of methodology evidenced by industry confidence in regulation. |
Monitor and advised the government and public on prices to assess the effect of market conditions on the price levels of specified goods and services. |
Accurate and timely information about prices of those goods and services monitored. Government and public advised in an accurate and timely manner. |
Publicise the outcomes of access arbitrations, arrangements and undertakings; and monitoring activities and inquiry findings. |
Publicity, liaison and education activities undertaken. |
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