The Commerce Commission has received 16 submissions on the bid by a consortium of meat companies to buy the Weddel meat processing plants.
The 15 company consortium has applied for authorisation of restrictive trade practices in relation to the proposal to temporarily close the plants for a year with the option of closing them permanently.
Commission Deputy Chairman Warren Haddrell said the deadline for interested parties to make submissions to the Commission was yesterday evening.
Ten submissions oppose authorisation, one discusses points for and against, one is neutral and four support authorisation.
Concerns of those opposing authorisation include:
capacity reduction on the East Coast, particularly in some areas
reduced peak season capacity
the arrangement does not close the least efficient plants
the arrangement may hamper new entry to the industry
the arrangement in itself will not solve the meat industry's problems
Mr Haddrell said the Commission will consider the submissions and continue its investigation, interviewing industry participants and gathering further information. It will give its preliminary view of the application in a draft determination to be released by November 18.
Interested parties will be able to make submissions on the draft determination, a conference of interested parties will be held if requested and the Commission expects to make a final determination by late January.
The Commerce Act prohibits potentially anti-competitive behaviour, called restrictive trade practices. It also allows for authorisation of restrictive trade practices if the public benefit is greater than the detriment to competition.
Submissions have been received from: Nippon Meat Packers New Zealand Ltd, Gisborne District Council, Waikato Federated Farmers, N.K and Y.L.Wier Farmers Partnership, Federated Farmers Gisborne, Hawkes Bay and Tararua, the Retain Tomoana Group, Meat and Related Trades Workers Union of Aotearoa, Cambridge Chamber of Commerce, New Zealand Meat Producers Board, Waipa District Council, R.H. and M.A.Hood, C.J.Blake/Provincial Support Group, New Zealand Council of Trade Unions, S.Reed, G.Radich, one submission is confidential.
Media contact:Vince Cholewa, Communications Officer
