portfolio committee on economic development 09 march 2010
TRANSCRIPT
Portfolio Committee on Economic Development
09 March 2010
Mr Norman ManoimChairperson: Competition Tribunal
Tel: 012 394 3347Fax: 012 394 0169
Email: [email protected]
Ms Lerato MotaungRegistrar: Competition Tribunal
Tel: 012 394 3355Fax: 012 394 0169
Email: [email protected]
What we do
• Independent, specialised institution established by statute (Competition Act 89 of 1998)
• Regulates corporate mergers and adjudicates allegations of anti-competitive practices
Who sets our agenda?
• Competition Commission(Large mergers, prohibited practices)
• Private parties(Intermediate mergers, Interim reliefs,
Complaint referrals)
Priority
• Mergers
• Prohibited practices
Large Merger Trends
Tribunal hearing days for cases taking more than one day
Turnaround times for mergers
Mergers
Hearings setdown within target 79.41%
Orders issued within target 100%
Reasons issued within target 52.58%
What are we doing in 2010/2011?
Amendments to the Act?
(possible challenges if Act is proclaimed during this period)
Case Document Management and Performance Information
Software
Cases on our roll for 2010/2011
Complainant Respondent Alleged Contraventions Days AllocatedRukanani Coca Cola Sec 5(1) & (2)
Minimum resale price 5
Commission Astral Sec 4(1)(b)(i) and (ii) and Sec 8(c)Price fixingAllocating marketsAbuse of dominance
9
Commission Sasol Sec 8(d) (ii) and Sec 9Price discriminationRefusal to supply
9
Cases on our roll for 2010/2011 continued
Complainant Respondent Alleged Contraventions Days AllocatedCommission Rocla Sec 4(1)(b)
Price fixingAllocation of customersCollusive tendering
9
Commission SAB Sec 4(1)(b)(ii), Sec 5(2), Sec 8(d)(i) Market divisionResale price maintenance Inducement not to deal with other competitors
40
Commission DPI Plastics Sec 4(b)(i) Price fixing
9
How do we fund our activities?
• Filing Fees
• Dti grant
• Accumulated Surpluses?
Why do we get a surplus?
Grant Filing fee Interest Received
Total Income
Total Expenditure
Surpluses
R’m 37.97 70.83 8.32 117.13 97. 76 19.37
% 32.42% 60.47% 7.11% 100%
Tribunal funding over the 10 year period 1 Sep 1999-31 Mar 2009
Why will we need to retain our surplus?
3 Year Funding
Year Budget Committed
grant
Anticipated
filing fees and
interest
income
Expected
shortfall
Anticipated
accumulated
surplus after
shortfall
covered(in R’m) (in R’m) (in R’m) (in R’m) (in R’m) (in R’m)
Expected
opening
surplus
17.75
2010/2011 27.25 13.04 6.46 7.75 10
2011/2012 27.52 13.63 6.70 7.19 2.81
2012/2013 27.26 15.18 6.97 5.11 -2.3
TOTAL 82.03 41.85 20.13 20.05
Budget 2010/2011
Expenditure Category % R’m
Capital 15.86 4.32
Administration 7.32 2
Personnel 51.67 14.08
Training 5.77 1.57
Recruitment 0.40 0.11
Professional Services 16.23 4.42
Appeal court 2.75 0.75
Total 100 27.25
Who works for the Tribunal?
• 3 Full time Tribunal members• 7 Part time Tribunal members
(remunerated only for cases they hear)
• Staff complement of 13 in 3 divisions