Biggest changes in Commerce Commission's history: Annual Plan 2000-2001
Published04 Aug 2000
In his foreword to the Annual Plan 2000-2001 Commerce Commission Chair John Belgrave states: "This year is likely to see the biggest changes to the Commerce Commission's responsibilities since its inception as a stand-alone agency in 1986".
These changes include:
Proposed amendments to the Commerce Act that will likely affect the volume and complexity of Commerce Act work, particularly until new case law develops, and potentially on an ongoing basis.
Possible extensive new functions in the electricity industry as the Government considers the recommendations of the Ministerial Inquiry into that industry.
Potentially several new product safety and consumer information standards to be enforced through the Fair Trading Act.
These changes are in addition to our core business, which is likely to include:
about 14,400 enquiries and complaints about business practices
more than 420 investigations
about 280 business acquisitions being reviewed
more than 250 enforcement actions including about 40 court actions, 55 settlements and 165 warnings, and
about 40 applications for clearances or authorisations.
In addition to maintaining the Commission's baseline funding at $6.95 million (GST exclusive) for the 2000-2001 financial year, the Government has also approved the payment of up to $1.5 million (GST exclusive) to the Commission's Litigation Fund, should it be required. The Litigation Fund is available for major Commerce Act litigation. Last financial year the Commission spent $853,000 from its Fund.
"We have already adapted to new functions given to us in recent years under the Electricity Industry Reform Act, and under the Fair Trading Act in relation to various standards," Mr Belgrave said.
"Further, the trading environment is constantly evolving while anti-competitive and unfair trading behaviours are becoming more sophisticated. The rewards and risks to traders are high, and so traders are vigorous in developing new approaches and in defending them.
"These are certainly challenging times. I am confident that the professionalism and commitment of staff stands the Commission in good stead to respond to and meet the challenges ahead."
Copies of the Commission's Annual Plan are available from reception at its Wellington office, level 7 Landcorp House, 101 Lambton Quay, and from its Auckland and Christchurch offices.
