Press Release - Progress Report on Maintaining
Competition in Markets
5 March 2009
The Office of Fair Trading has improved its operations following
recommendations on maintaining competition in markets made by the
National Audit Office and Committee of Public Accounts in 2005 and
2006. According to an NAO progress report published today, the OFT
now needs to concentrate its efforts on strengthening the skills
and experience of its staff at key management grades, and be
clearer on how long it expects its investigations will take.
The OFT has now freed up resources by directing its work to
areas that have the most impact. The decision to refocus on higher
priority cases has however led to a perception that the OFT is less
interested in smaller markets, with a risk that its deterrent
effect will be reduced in these markets. The OFT has taken steps to
address this perception, launching investigations into more local
markets such as in construction and bus transport.
The time taken to process high profile cases has been reduced by
introducing better project management and more flexible ways of
working, including using bigger teams and temporary legal staff.
Compared to earlier high profile cases which took over 4 years to
progress to an advanced stage, investigations into airline fuel
surcharges and marine hoses reached the same stage in 18 months. In
three cases (airline fuel surcharges, dairy products and tobacco)
parties have agreed to pay a total of up to £373 million in
fines.
The OFT has also brought criminal charges in two cartel cases
for the first time under the Enterprise Act, one of which to date
has resulted in criminal convictions. The OFT recognises that some
of its cases are still taking too long.
The OFT operates in a competitive labour market and still
continues to face challenges in attracting and retaining talented
staff. The OFT has provided project management and leadership
training to its staff, but it needs to sustain and increase this
work in order to continue to recruit and retain staff at key
management grades.
Tim Burr, head of the National Audit Office, said
today:
"The Office of Fair Trading has made a determined effort
to address the weaknesses found in the earlier reports. But there
is more to do, and the OFT needs to make sure competition
enforcement remains in the public eye and businesses are left in no
doubt as to what they must do to comply with the law."
Notes for Editors
- The National Audit Office published its report The Office of
Fair Trading: Maintaining competition in markets (HC 593) on 17
November 2005. It is available from the NAO website
http://www.nao.org.uk/whats_new/0506/0506593.aspx. The Committee of
Public Accounts also published a report on this subject in 2006 and
this report is available from
http://www.publications.parliament.uk/pa/cm200506/cmselect/cmpubacc/841/841.pdf
- The NAO report released today looks specifically into the OFT’s
competition enforcement and market study work. The OFT spent
approximately £26 million (around 33 per cent) of its £78 million
expenditure in 2007-08 on its competition work (£18 million) and
market studies (£8 million).
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 15/09
All enquiries to Phil Groves, NAO Press Office:
Tel: 020 7798 5339
Mobile: 07770 678 477