Improved competition law positive for investment
Bringing New Zealand's competition law into line with Australia and other major world market economies makes sense to encourage investment from offshore, says the Chief Executive of the Employers and Manufacturers Association (Northern), Alasdair Thompson.
"There is evidence that the 'dominant' position test of the present Commerce Act provisions has not led to sufficiently vigorous competition in the New Zealand market," Mr Thompson said.
"Our present law has not removed monopolistic behaviour and consumers know this, so we strongly support measures that genuinely enhance market competition.
"Harmonising our law with Australia's and elsewhere will mean overseas investors will find it easier to comprehend as the case law applying to it can be drawn on.
"The fact that Government was prepared to introduce these changes sealed the $1.2 billion investment that Telstra Saturn is undertaking in rolling out its new telecommunications network and is an example of the sort of benefits New Zealand could gain with clearer rules in place.
"Nevertheless business will be looking for the opportunity to be consulted over this latest move by Government, on both the detail, and its implementation."