Policy statements

Policy Statements

The Independent Consumer and Competition Commission ("ICCC"), was established under the Independent Consumer and Competition Commission Act ("ICCC Act"). The ICCC derives its powers and primary functions from the ICCC Act; but also exercises its powers and responsibilities from other legislation.

The objective of the ICCC Act is to enhance the welfare of consumers in Papua New Guinea ("PNG"), through the promotion of competition and fair trade in the market, protection of consumer interests and regulation of prices and service delivery standards with respect to regulated entities in declared industries.

The establishment of the ICCC came as a direct result of a major regulatory reform conducted in 2001. It was predicated upon a number of important policy considerations and factors including:

(1) The importance and the need for economic regulation, as a means of correcting market failures and distortions, aimed at maximizing economic efficiency in industries through measures such as promoting competition, price surveillance and monitoring, consumer protection, third party access and setting minimum service delivery standards;

(2) The recognition by the Government of short comings of existing economic regulatory frame work; and

(3) The recognition by the Government that well-functioning markets require a strong foundation in effective governance and institutions that perform their mandated activities with predictability and in a transparent manner.

In terms of policy objectives, the ICCC is expected to play a major role in the Government's efforts of building on previous reforms and to sustain economic recovery but, the necessary building blocks must be in place before this can be done and this is where the ICCC comes in.

In a speech at the launching of the ICCC held on the 8th May, 2003, the then Treasurer of PNG, emphasized the need for the continuation of market-based macroeconomic policies, which promote investment in the context of low inflation and effective macroeconomic management but at the same time highlighted the Government's commitment to programs of economic reform and market liberalization. The Treasurer also foreshadowed that "regulation is not just about constraining the abuse of monopoly power...it is also concerned with managing the development of competition and the promotion of the Government's social and economic objectives".1

1 ICCC Corporate Plan and Priorities 2005 �� 2007, page 5

(1)	The importance and the need for economic regulation, as a means of correcting market failures and distortions, aimed at maximizing economic efficiency in industries through measures such as promoting competition, price surveillance and monitoring, consumer protection, third party access and setting minimum service delivery standards;
(2)	The recognition by the Government of short comings of existing economic regulatory frame work; and
(3)	The recognition by the Government that well-functioning markets require a strong foundation in effective governance and institutions that perform their mandated activities with predictability and in a transparent manner.