Commenting on the Commons public accounts committee’s report on Ofcom and the effectiveness of converged regulation, South Norfolk MP Richard Bacon, a member of the committee, said:
“On the face of it, Ofcom is discharging its duties adequately. The communications market functions quite well and competition is driving down prices for consumers. However, there are deeper concerns surrounding the way Ofcom provides value for money.
“Five organisations were merged to create Ofcom, but the expected benefits of the merger were not made clear and it is uncertain exactly how much money was saved. Ofcom has also been double-counting some savings across a number of years and it is hard to judge Ofcom’s performance because, although Ofcom sets out what it wants to achieve for consumers, it doesn’t say how success will be measured.
“Ofcom’s budgeting process is back-to-front. Whilst most organisations set their budget based on their future plans, Ofcom operates under a funding cap and sets its future plans based on the level of the cap. This may ensure Ofcom stays within its funding limits but it also removes any incentive Ofcom has to work towards better value for money.
“Ofcom must address these issues, particularly the barriers that prevent Ofcom from being held to account and ensuring value for money”.
10 February 2011
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PAC REPORT: