Review of the Australian Competition and Consumer Commission annual report 1995-96

Press release, 6 March 1998

GOVERNMENT AGREES TO COMMITTEE RECOMMENDATIONS ON ACCC

The Government has agreed to all of the Financial and Public Administration Committee's recommendations following the Committee's review of the ACCC's 1995-96 annual report.

"The activities of the ACCC are crucial in today's business environment, its role in the competition reform process and its responsibilities in relation to mergers and acquisitions continue to be the focus for much critical comment," said Committee Chairman, David Hawker MP.

"The Treasurer's agreement to request the Productivity Commission to undertake a study of the economic impact on and benefits to regional and rural Australia flowing from competition reforms is a major achievement."

"It has become increasingly apparent to the Committee that the benefits of competition need to be identified and publicised if community support for competition reforms is to be maintained."

"The undertakings process is a very useful tool and increased transparency will ensure that its credibility in the eyes of business will be maintained, the agreement to examine means by which this process can become more transparent can only improve the undertakings process."

"The Committee will continue to monitor the undertakings process and will consider the need for further changes if necessary."

Mr Hawker concluded "The agreement that the ACCC should put more effort and resources into evaluating the impact of its mergers decisions on market competition and report on the outcome of those examinations is good policy, it is very important to look back and evaluate the impact of past decisions, there are always lessons to be learnt."

"The Government's response to the report is an excellent outcome for the Committee and the community and clearly demonstrates the value of Parliamentary scrutiny."

Ends
6 March 1998
Email: EFPA.Reps@aph.gov.au

Further information:
David Hawker MP (Chairman) (02) 6277 4837
Chris Paterson (Secretary) (02) 6277 4587

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