Commerce Commission - adjudication update

Media Release

Issued 24 December 2002-03/ 098

Commerce Commission - adjudication update

The Commerce Commission will carry over several adjudication decisions into the New Year, relating to its responsibilities under the Commerce Act 1986, Telecommunications Act 2001 and Dairy Industry Restructuring Act 2001.

Commerce Act

The Commission will continue its inquiry into the joint applications from Air New Zealand Limited and Qantas Airways Limited for market behaviour and structure authorisations under the Commerce Act. Interested parties must notify the Commission of their intention to make a submission on the applications by Tuesday 21 January 2003. Submissions are due by Friday 14 February 2003.

In addition, the Commission will commence its inquiry into Preussag Energie, Shell Exploration and Todd Petroleum Mining’s application for authorisation to enter into arrangements to jointly market and sell gas produced from the Pohokura field off the Taranaki coast.

The Commission has five market structure applications under consideration, including:

- Burns Philp & Company Limited’s application to acquire up to 100% of the share capital of Goodman Fielder Limited, due 23 January 2003;

- Gribbles Group Limited application to acquire the business and business assets of Alpha Scientific Limited, extended until 20 January 2003;

- Contact Energy Limited’s application to purchase 100% of the shares in Stratford Power Limited, and/or the assets of its Taranaki Combined Cycle Thermal Generation plant, extended until 29 January 2003;

- Genesis Power Limited’s application to purchase 100% of the shares in Stratford Power Limited, and/or the assets of its Taranaki Combined Cycle Thermal Generation plant, extension date to be confirmed; and

- Brambles New Zealand Limited’s application to acquire the business assets of GE Capital Returnable Packaging Systems Limited, extended until 17 February 2003.

Under the Commerce Act, the Commission has 10 working days after the date of registration to investigate a market structure clearance. This can be extended by agreement between the Commission and the applicant. According to the Act, the days in the period from 25 December to 15 January do not constitute working days.

Telecommunications Act

Under the Telecommunications Act, the Commission carries over the following determinations:

- TelstraClear Limited’s application for a determination of terms for the resale of a number of retail services offered by Telecom New Zealand Limited. The Commission released its draft report in November and will hold a public conference in February 2003;

- TelstraClear’s application for a determination of terms for the resale of Telecom’s residential local access and calling service and other retail services offered by Telecom to residential users. The Commission has announced its decision to investigate this application;

- TelstraClear’s application for a determination of terms for the interconnection of its fixed network with Telecom’s network. The Commission released its determination in November. It is currently processing pricing review requests from Telecom and TelstraClear;

- CallPlus Limited’s application for a determination in respect of interconnection and wholesale services with Telecom. The Commission received this application on 20 December, and will decide whether to investigate in the New Year; and

- a determination of Telecom’s TSO net cost for the period from December 2001 to the end of June 2002.

Dairy Industry Restructuring Act

Under the Dairy Industry Restructuring Act, the Commission carries over the following determinations:

- Independent Dairy Producers Limited’s application for a determination in respect of the price it has been required to pay the Fonterra Co-operative Group Limited (Fonterra) for raw milk; and

- the setting of a discount rate for calculating Fonterra’s annualised share value.

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