ACT welcomes removal of criminal sanctions in cartels Bill

December 8, 2015. 3:30pm

ACT Leader David Seymour has welcomed Government’s decision not to introduce criminal sanctions in the Commerce (Cartels and Other Matters) Amendment Bill. Mr Seymour wrote to the Minister’s office about this last year.

“Imposing cartel sanctions could inflict large economic costs on New Zealand through a chilling effect on legitimate collaborative business, reducing entrepreneurship and innovation.

“It’s easy to envisage how honest New Zealand businesspeople may be deterred from legitimate growth-enhancing activity for fear of imprisonment.

“Major concerns were shared by the Productivity Commission, Treasury, and major New Zealand businesses and law firms.

“The sanctions would cause particular harm to small businesses, which don’t have access to the legal expertise required to during competition law litigation.

“Furthermore, there is little evidence that cartels are a problem in New Zealand’s small open economy, or that criminalisation would be a more effective deterrent than the already large fines available.

“Other parts of the Bill are commendable. Namely, the introduction of a clearance regime allows businesses advance assurance that they launch collaborate initiatives without falling foul of the law.”

ENDS

© Scoop Media