‘Anti-competitive’ Bill needs re-think

25 April 2007

‘Anti-competitive’ Bill needs re-think

Business NZ will argue against an ‘anti-competitive’ Bill in the Commerce Select Committee tomorrow.

The State-Owned Enterprises (AgriQuality Ltd & Asure NZ Ltd) Bill would override the Commerce Act by preventing the two state-owned meat inspection services from competing with each other, and would potentially allow them to merge.

Business NZ Chief Executive Phil O’Reilly says while the eventual merger of the two SOEs would not necessarily be a bad thing, it would need to happen in an environment in which there was still competition for meat inspection services, preferably with the private sector involved.

“It’s essential that we have competition in export meat inspection to help reduce costs for the meat industry and make our products more competitive on the world market.”

Mr O’Reilly said the Bill lacked any cost/benefit analysis or a Regulatory Impact Statement or Business Compliance Costs Statement that are generally required for Government Bills, and was being rushed through Parliament with insufficient time for submissions

“We suggest the Bill should be delayed to allow the proper processes to occur and to allow consideration of how improved competition would better serve our export needs.”

ENDS

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