7. Hon PAUL SWAIN (Labour—Rimutaka) Link to this
to the Minister of Commerce
How is the Government changing competition law to promote effective use of public investment in Crown companies?
Hon LIANNE DALZIEL (Minister of Commerce) Link to this
The Government is announcing today our intention to amend the Commerce Act to allow State-owned enterprises and Crown research institutes to cooperate for mutual benefit under ministerial direction without being subject to the competition requirements in the Commerce Act. Although the Government recognises the general benefits of competition, this proposal was targeted at areas where a collaborative approach would be in the public interest.
Can the Minister advise how the Commerce Act currently provides for interconnected companies to collaborate without breaching the competition provisions of the Act?
Hon LIANNE DALZIEL Link to this
The Act already allows interconnected private sector companies to work together, as they are treated as a single entity under the Act. This essentially exempts them from the prohibitions against anti-competitive behaviour. The Government’s decision will see State-owned enterprises and Crown research institutes other than Meridian Energy, Mighty River Power, and Genesis Energy treated as interconnected bodies in terms of the Act. This is a very positive announcement in terms of the potential benefits of maximising cooperation within the public sector as currently occurs in the private sector.