OFT launches
consultations on calculating direct benefits to consumers and on
prioritisation of work
OFFICE OF FAIR
TRADING News Release (136/07) issued by The Government News Network
on 25 September 2007
The OFT is today
launching consultations on the way it calculates the direct
financial benefits to consumers of its work and on the way it
prioritises which projects should be started and whether work on
existing projects should continue.
The consultation on measuring direct benefits to consumers sets
out how the OFT proposes to assess performance against one of its
key targets. The target is to deliver direct financial benefits to
consumers of at least five times the amount the OFT costs
taxpayers. Direct benefits to consumers from OFT actions include
price decreases after remedying anti-competitive activity, but
also improvements in quality or the benefits consumers gain from
making better informed choices.
Other important benefits of OFT work, such as deterring future
anti-competitive behaviour or increasing confidence in markets are
not included in this target.
The consultation on prioritisation principles forms part of the
OFT's continued commitment to a more targeted and transparent
approach to its work. This consultation is inviting stakeholders
to contribute their views on what principles should underline the
OFT's future priorities and explains how the OFT currently
understands a range of issues, including consumer welfare.
Following the consultations the OFT will publish the way it
calculates direct financial benefits to consumers of the work it
carries out as well as details of how the OFT's work is prioritised.
The consultation documents can be found at http://www.oft.gov.uk
NOTES
1. As announced in the Budget 2007, the OFT has agreed with HM
Treasury new performance targets for the 2007 Comprehensive
Spending Review (CSR07), covering the financial years 2008-09,
2009-10 and 2010-11. The Performance Framework will be used as a
basis of HM Treasury's assessment of the OFT effectiveness in
the next Spending Review. In October, HM Treasury intends to
publish the CSR, which will provide a high level outline of the
OFT settlement. The OFT Annual Plan 2008/9, to be published in
March 2008, will provide more detail on how we intend to meet our agreement.
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT
reports and consumer information leaflets are available free
from:
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