The Australian Competition and Consumer Commission (ACCC) today announced it would not object to Australia Post’s Notification of price increases for the letter services over which it has a statutory monopoly. This decision by the ACCC follows an earlier objection to an Australia Post price increase proposal in December 2009.
The ACCC found that, in this Notification, Australia Post had responded to earlier objections. In particular, it had improved the quality and transparency of its demand forecasting approach, including using econometric forecasting methods, and implemented cost reduction measures, which should keep costs at a level more suitable to a firm forecasting declining volumes in the coming years.
Frontier (Australia) was engaged by the ACCC to critically assess Australia Post’s demand and cost input forecasts used in its notification. Frontier’s report is available here.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
The Australian Copyright Tribunal decided this week to significantly increase the fee that Australian gyms must pay in order to play music recordings in exercise classes. Currently, to play music recordings in classes, Australian gyms must have a licence from the Phonographic Performance Company of Australia (PPCA) on behalf of the owners of the copyright in the recordings.
Recent negotiations between the PPCA and gym owners over a new licence fee were unsuccessful. Therefore, the PPCA applied to the Australian Copyright Tribunal to resolve the dispute over fees. The Tribunal held a hearing in 2009 at which two Frontier employees gave detailed expert testimony. The Tribunal released its decision this week to increase the licence fee from 94 cents per class to $15.
Frontier (Australia) advised the PPCA throughout its negotiations. Dr Philip Williams and Dr Robert Bartels from Frontier provided expert evidence for the PPCA at the Tribunal.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
The Australian Sports Commission (ASC) was a major winner in the Australian Federal Budget, delivered on Tuesday 11 May. The ASC received funding of $325 million over four years for their programmes. This incorporates $195 million in new funding over four years – the biggest single funding injection in the history of Australian sport. Overall government spending on sport is projected to be a record $1.2 billion over four years. The ASC has also released its new strategic vision for sport in Australia, which sets out its priorities for enhancing the contribution sport makes to Australian society.
Frontier (Australia) advised the ASC on the economic value of sport in Australia, and on the role of the ASC in sports governance.
For more information, please contact Marita O’Keeffe at m.okeeffe@frontier-economics.com.au or call on +61 (0)3 9620 4488.
