Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Government needs to ensure competition and fair prices

Government needs to ensure competition and fair prices in insurance industry

New Zealanders could face insurance premium hikes if the National Government continues to sit on its hands over competition in the sector, Green Party Co-leader Dr Russel Norman said today.

IAG is moving to buy the insurance company Lumley and further increase its already dominant position in the New Zealand insurance market.

“This move highlights the need for the Government to adopt recommendations from the Productivity Commission aimed at protecting competition in service industries,” Dr Russel Norman said.

IAG currently owns the NZI, AMI, and State brands, which together make up 40 percent of the $5 billion New Zealand insurance industry. Owning Lumley would boost IAG’s market share to over 50%. The Productivity Commission has recently issued its second interim report on improving productivity in the services sector, recommending strengthening the Commerce Act to prevent abuses of market power.

“It’s not healthy for industries like insurance to be overwhelmingly dominated by a single company; the Government needs to strengthen competition law to ensure families and businesses get fair prices,” said Dr Norman.

“If IAG becomes the owner of the majority of the New Zealand insurance industry, the decrease in competition could result in higher premiums for customers and bigger profits for IAG’s offshore owners.

“The Government needs to listen to the Productivity Commission’s recommendations on boosting competition in service industries. In particular, improving section 36 of the Commerce Act to restrict the exercise of market power would help to prevent situations where industries become dominated by a single player, as is happening in insurance,” said Dr Norman.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TV3 Videos: Key's Flip-Flop Over Whale Oil Texts | Slater
Reaction: Greens | More
Dim-Post Link: The Very Odd Slightly Left Of Centre

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel.

Ludicrously, the public has been given exactly one day to make submissions on these major infringements of their civil liberties. Despite Finlayson’s misleading signals on RNZ that these are only stopgaps until next year’s full review of our security laws, the measures in question will not, in fact, expire until 2018.

Why the insane rush? Good question. More>>

 
 

Parliament Today:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news