9. DAVE HEREORA (Labour) Link to this
to the Minister of Commerce
How do today’s announcements on the outcomes of the review of Parts 4 and 4A of the Commerce Act 1986 contribute to the Government’s economic transformation agenda, in terms of its focus on promoting investment in infrastructure?
Hon LIANNE DALZIEL (Minister of Commerce) Link to this
I cannot state it better than the acting chief executive of Vector, who said today that the decisions highlighted the Government’s clear intent to provide the right incentives and regulatory certainty for infrastructure companies to invest and innovate with confidence. He said: “The focus on forward looking incentives rather than backward looking means we can concentrate on building the future.” This is precisely the outcome that the Government wanted to achieve with the review, and I believe that the new approach will promote clarity, certainty, timeliness, and predictability for business—all of which are features of a credible and effective regulatory regime.
What are the new features of the proposed regulatory framework for businesses that face little or no competition but are important to the economy?
Hon LIANNE DALZIEL Link to this
The most significant change that will improve the regulatory environment is that the methods for establishing costs—the input methodologies—will be set in advance by the Commerce Commission, and will be subject to merits review by way of appeal to the High Court. These input methodologies will then provide the basis for implementing appropriate regulatory control, which will include information disclosure, negotiate-arbitrate, and a customised pricing option to replace the thresholds regime. This means businesses will be given certainty, which will encourage them to invest in infrastructure and to innovate, for the benefit of future generations of New Zealanders.
Peter BrownNoting that answer, is the Minister aware that the airline industry is having long-run battles with our major airports over charges, and can she inform the House whether the proposed review of Parts 4 and 4A of the Commerce Act will address this concern and bring these long battles to an end?
Hon LIANNE DALZIEL Link to this
I am very aware of the publicity surrounding those issues, and although I cannot give a cast-iron guarantee as to the outcome of the battle to which the member refers, it does look positive, because the chief executive of Auckland International Airport said, after commending the thorough process that we had adopted, that the airport was “committed to making the proposed legislative environment work to the fullest potential, and we look forward to our airline customers joining us in that commitment.” The chief executive of the Board of Airline Representatives of New Zealand said: “We were just asking for some rules and a referee, and it looks as though we are going to get them.” Our message seems to have got through finally, and we are really appreciative of that.