This part reports on the ACCC's and the AER's performance for 2009−10, based on the performance reporting framework provided in the 2009−10 Treasury portfolio budget statements (PBS). The ACCC and the AER jointly report against one program and one outcome, as set out in Figure 3.1.
| Drivers | Trade Practices Act 1974 Portfolio budget statements ACCC and AER business plans |
|---|---|
| Program | Australian Competition and Consumer Commission |
| Strategies |
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| Outcome | Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services |
In 2009–10 the ACCC revised its outcome statement:
Lawful competition, consumer protection, and regulated infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services.
The underpinning program objective, deliverables and performance indicators were changed to reflect the new reporting arrangement. Figure 3.2 shows the relationship between Outcome 1 and its program and legislative objectives.
| Outcome 1 | |
|---|---|
| Program 1—Australian Competition and Consumer Commission | |
| Promoting vigorous, lawful competition and informed markets (TPA parts IV, VII, XIA) and encouraging fair trading, protection of consumers and product safety (TPA parts IVA, IVB, V, VA, VC, Trade Marks Act 1995 and Copyright Act 1968) | Regulating national infrastructure services and other markets where there is limited competition (TPA parts IIIA, VIIA, X, XIB, XIC; National Gas Law 2008; National Gas Rules; National Electricity Law 2005; National Electricity Rules, Airports Act 1996; Broadcasting Services Act 1992; Radiocommunications Act 1992; Telecommunications Act 1997; Telecommunications (Consumer Protection and Service Standards) Act 1999; Water Act 2007; Wheat Export Marketing Act 2008)1 |
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In order to achieve Outcome 1, in 2009−10 the ACCC continued to promote compliance with competition, fair trading and consumer protection laws through the use of effective compliance strategies and appropriate enforcement action.
The ACCC and AER also continued to support competition in national infrastructure services and markets where competition is less effective, through efficient and effective regulation and, in certain markets, price monitoring.
In achieving its outcome, the ACCC consults with stakeholders and provides assistance to parliamentary committees considering legislation or other matters which relate to the ACCC's responsibilities.
The ACCC and the AER continue to engage with stakeholders through regular meetings of their consultative committees. Key developments in 2009−10 were the creation of the AER Customer Consultative Group and the Fuel Consultative Committee.
The Small Business Consultative Committee met in October 2009 and June 2010 to discuss a range of key small business trade practices concerns, including the ACCC's enforcement and compliance activities, the Australian Consumer Law and amendments to the Trade Practices Act 1974 such as those relating to clarity in pricing and the criminalisation of cartel conduct.
The Franchising Consultative Committee met in October 2009 and June 2010 to consider trade practices concerns relating to the franchising sector, as well as other franchising issues. In particular, the committee discussed the ACCC's franchising-related enforcement and education actions, exclusive dealing notifications, and a conflict resolution survey conducted by Griffith University.
The Consumer Consultative Committee held meetings in July 2009, December 2009 and March 2010. Issues discussed included unit pricing, the Australian Consumer Law, mobile premium services and social media.
The Health Sector Consultative Committee met in August 2009 and considered a number of issues including ACCC enforcement action, complaint statistics and the credentialling of medical professionals.
In November 2009 and April 2010 the Infrastructure Consultative Committee met and discussed issues relating to the practice of regulation across different infrastructure sectors, as well as proposed regulatory reforms announced by government. Specific topics discussed included critical issues facing members' industries, current regulatory reform in telecommunications, the development of a national port strategy and a new project concerning the state of the market for corporate debt. During 2009−10, Infrastructure Australia became a member of the committee.
The Fuel Consultative Committee, which held its first meeting in April 2010, was established to provide an opportunity for dialogue between the ACCC, the fuel industry and motoring organisations. The committee was also formed to improve the ACCC's understanding of key issues in the fuel industry. At the first meeting, issues discussed included developments in relation to biofuels (in particular, ethanol-blended petrol), historical pricing trends and the findings of the ACCC's 2009 Monitoring of the Australian petroleum industry report.
The inaugural meeting of the AER Customer Consultative Group was held in February 2010, and the group met again in June 2010. Among the issues discussed at these meetings were the AER's retail work program, retail pricing guidelines and the draft National Energy Customer Framework.
In 2009−10 the ACCC and the AER made submissions, responded to requests for comment or gave evidence to parliamentary inquiries as follows.
The ACCC provided a submission to the committee in July 2009 and appeared before the committee in November 2009.
The committee sought clarification from the ACCC on issues raised in submissions and during public hearings. The ACCC provided a response in November 2009.
The committee sought comment from the ACCC on specific questions. The ACCC provided a response in October 2009.
The ACCC appeared before the committee in October 2009.
The ACCC appeared before the committee in April 2010.
The ACCC appeared before the committee in October 2009.
The ACCC appeared before the committee in February 2010.
The ACCC appeared before the committee in April 2010.
The ACCC appeared before the committee in January 2010.
The ACCC appeared before the committee in September 2009 and October 2009.
The ACCC provided a briefing to the committee in June 2010.
The AER appeared before the committee in September 2009. The committee also sought comment from the AER on specific questions, to which the AER provided a response in May 2010.
The ACCC appeared before the committee in July 2009, April 2010 and June 2010.
The ACCC has a service charter stating the values that guide its service, the standard of service individuals and businesses can expect and the steps they may take if these standards are not met. The service charter is available from the ACCC website and each ACCC office.
The ACCC is committed to:
The ACCC undertakes to follow up telephone messages within two business days and to respond within 28 days to correspondence requiring a response. The Chief Executive Officer undertakes to respond within 14 days to written complaints about the standard of the ACCC's service.
The infocentre received two unsubstantiated complaints against the service charter. The Chief Executive Officer responded to both complaints within 28 days of receipt and each complaint was resolved effectively.
There are no factors, events or trends influencing the ACCC's performance this financial year.