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Exporters to benefit from shipping regulation changes

Hon Craig Foss
Minister of Commerce
8 April 2013 Media Statement
Exporters to benefit from shipping regulation changes

Commerce Minister Craig Foss today announced that international shipping to and from New Zealand will be regulated under the Commerce Act, improving oversight and delivering competitive outcomes for exporting industries.

Mr Foss says the changes agreed to by Cabinet will remove the 25-year-old sea shipping regulatory regime and bring the industry into line with general competition law.

“New Zealand is well-served by international shipping operators, with 18 companies operating here, but the current industry-specific regime is outdated and no longer appropriate,” says Mr Foss.

The changes will be introduced through the Commerce (Cartels and Other Matters) Amendment Bill, currently before the Commerce Select Committee.

“By bringing international shipping services under the Commerce Act, we are ensuring there is effective oversight of an industry vital to our exporters.

“The Government’s Business Growth Agenda lays out our ambitious goal to increase the ratio of exports to GDP to 40 per cent by 2025. A healthy, competitive and well-regulated shipping industry is an important part of achieving this.

“This Bill promotes economic growth by enabling pro-competitive collaboration between firms, while also deterring hard-core cartel conduct,” says Mr Foss.

The Productivity Commission report into international freight transport services recommended strengthening regulation of competition for international sea freight and air freight services. Work is continuing on the regulation of competition in international air services.


ENDS

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