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Rising to the challenges

OFT publishes Annual Plan 2006-7 consultation

229/05    14 December 2005

The consultation draft of the OFT's Annual Plan 2006-7 is published today.

Download Annual Plan 2006-07 consultation paper (pdf file 217 kb)

It highlights work that the OFT will undertake in its five existing priority sectors:

• consumer credit – to produce new guidance for business following the passage of the consumer credit bill and to develop a risk-based licensing system
• healthcare – continuing to define its role, messages and targets for advocacy and enforcement in this large and important sector
• construction and building – publishing a summary of its work and achievements in this sector – covering building work and supplies, new buildings and housing services – by April 2007
• mass-marketed scams – continuing its annual scams campaign and focusing on enforcement and educating consumers to spot the tell-tale signs of a scam
• interaction between government and markets – continuing to promote a pro-competition culture in the public sector, advising government on policy issues, new legislation and regulatory impact assessments and providing training and seminars on competition.

In the coming year, the OFT will continue to root out and stop hardcore offenders, whether cartels or bid-rigging in the competition field or persistent or flagrant offenders in the consumer field.

Introducing the draft Plan, Philip Collins, OFT Chairman, said:

'Three themes run through our draft Plan: continuity, challenges and change. The OFT has achieved considerable successes over the past year, it will build on these past successes and learn from experience and constructive external criticism. It will ensure that its work will be of the highest quality, and that it communicates clearly and effectively both internally and externally, and that it evaluates the outcomes of its work. The tremendous change the organisation has gone through over years will continue and deepen to enable the OFT to deliver on the challenging agenda of making UK markets work well.'

The draft Plan welcomes the recent Government decision to entrust the OFT with new roles in relation to consumer law and trading standards, initially proposed by the Hampton report for a separate entity. During the coming year the OFT will play an active role in implementing the Hampton objectives.

It says that the recent National Audit Office report on competition enforcement is a valuable contribution to appraising and refocusing OFT work. After several years of experience of new legislation the NAO report recognised the OFT's intellectual leadership and intellectual reputation and the steps the OFT has taken, or will be taking, in the three areas identified by the NAO; prioritisation and resourcing, case management and measurement and communication of achievement.

The Plan also sets out how the OFT evaluates its work (see note 2).

NOTES

1. Recent OFT successes highlighted in the Plan are: in its consumer work, launching nationally the first OFT-endorsed consumer codes of practice. Pioneering the use of the EC Injunctions Directive to bring the first cross-border court action to protect UK consumers. Winning an important High Court case on misleading prices discount advertising. Working with the Trading Standards Service to target consumer scams and on a comprehensive programme of education and Enterprise Act training for the Service. Working with the Department of Trade and Industry on the new Consumer Credit Bill and planned OFT takeover of responsibility for Consumer Direct. In specific markets, the OFT delivered comprehensive reports in care homes, property searches and public subsidies and launched a number of new studies, including the Pharmaceutical Price Regulation Scheme and the commercial use of public information. Two market references were made to the Competition Commission, on Northern Ireland banking and directory advertising services. In its competition work: a decision against Mastercard's collective setting of its domestic UK interchange fee, and issuing a statement of objections on similar issues against Visa. Issuing a statement of objections against 50 independent schools in respect of their information sharing agreement. Successfully defending appeals against OFT decisions in the Genzyme and replica football kit cases in the Competition Appeal Tribunal (CAT). Investigations were carried out into a number of cartels in the construction industry including, and in conjunction with the Serious Fraud Office, the first raids carried out using criminal enforcement powers where proceedings are pending. Finally, the OFT's merger control work has been highly rated by users.

2. On evaluation its work the Plan sets out the OFT's current benchmarks:

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