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National Sceptical About Price Control

National has reservations about the need for price controls on airfield activities at Auckland International Airport, National's Transport spokesperson Belinda Vernon said today.

"We will be disappointed if it is necessary for price controls to be introduced as raised in the Price Control Study of Airfield Activities.

"Price control should be a last resort, necessary only where abuse of position exists and where more light handed measures can't deliver the same results.

"The need for price control must be unambiguous. We believe there are other ways to manage airport pricing and the Commerce Commission itself acknowledges that other mechanisms may be effective in the report.

"National supports a light-handed regulatory regime and expects operators to work within that framework. The market works best when operators act responsibly without price controls being imposed.

"The draft recommendation to impose price control flows from a wide range of calculations and considerations, many of which are subjective and open to dispute. We believe the case must be strong before resorting to the price control mechanism.

"The Commerce Commission has asked for input on a wide range of issues. The final decision then rests with the Minister and could have serious implications for the infrustructural sector," Ms Vernon said.

Ends


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