Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Fuel Market Competition Questions

BusinessNZ says legislation requiring more transparent petrol pricing will probably be well-received, but there are concerns about the market study that prompted it.

The Government has announced it is drafting a Fuel Market Bill to introduce requirements for more transparent pricing by petrol retailers, and requirements for fair contracts between fuel wholesalers and retailers.

The Bill results from recommendations made following a market study into the fuel market last year.

BusinessNZ has concerns about market studies, set up to investigate whether certain markets may be anticompetitive.

It says investigating entire markets cannot do much more than simply turn up instances of anticompetitive behaviour by firms, if that is happening.

Restrictive trade practices and contracts lessening competition are already outlawed under the Commerce Act, and can be investigated and prosecuted accordingly.

Having an investigation into an entire market does not add to the value of being able to prosecute individual or groups of market participants for anticompetitive behaviour.

Meanwhile, market studies bring concerns of their own.

Market studies require all firms operating in a certain market to provide large amounts of commercially sensitive data to investigators, imposing significant compliance costs on those firms.

BusinessNZ says market studies are an intrusive power that can lead to regulated industries and increased regulation of the economy overall, and should be used with great care.

A market study, or the threat of a market study, could be used by a Government to influence firms to reduce prices or make other changes. This sort of influence could be popular with voters, but could be to the detriment of effectively functioning markets.

BusinessNZ says when the proposed Fuel Market Bill eventuates, it should receive firm scrutiny to ensure that its requirement for ‘fair contracts’ does not raise flags about governmental intervention in commercial contracts.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Wage Cuts, And The Listener’s Demise

Various levels of across the board wage cuts – 10%? 15% ?- are being mooted for workers in some of our larger firms, in order to help the likes of Fletchers, Mediaworks etc survive the Covid-19 crisis. It is extraordinary that unions should be having to explain to employers (and to the public) just how unfairly the burden of such a response would fall. Basically, if you’re on a salary in six figures, a 10-15% haircut can still be worn fairly lightly. If you’re employed at or below the median wage, losing 10% of your income can be a hammer blow... More>>

 
 

Government: Seeking Infrastructure Projects


The Government has tasked a group of industry leaders to seek out infrastructure projects that are ready to start as soon as the construction industry returns to normal to reduce the economic impact of the COVID-19 pandemic, Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones say...More>>

ALSO:


Police Commissioner: Christchurch Terrorist Pleads Guilty

Police acknowledge the guilty pleas in the Christchurch Mosque attacks prosecution that were entered in the Christchurch High Court today. The guilty pleas to 51 charges of murder, 40 charges of attempted murder and one charge of engaging in a terrorist ... More>>

ALSO:

Transport: $54 billion Investment In Draft GPS 2021

The Draft Government Policy Statement (GPS) 2021 on land transport confirms that the Government will invest a record $54 billion in its balanced transport policy over the next decade. More>>

ALSO:

Gordon Campbell: On The Loss Of Abortion Safe Zones

No doubt, last night’s defeat of abortion law reform provisions that would have created safe zones around abortion clinics will be portrayed, by some, as a victory for free speech. It isn’t. It was a victory for bigotry and intimidation directed ... More>>

ALSO:

Gordon Campbell: On National's Regulation Crusade

Lets step back in time now, to simpler days and to simple-minded solutions. So…. if National gets elected, landlords will once again be able to evict tenants at will, raise rents anytime they like, and ignore the need to install a healthy standard of heating in the homes they put out to rent. This promised ‘bonfire of regulations’ is being done in the name of cutting red tape... More>>

ALSO:

SMC - Expert Reaction: PF2050 Strategy

DOC has released a strategy to reach Predator Free 2050, along with an action plan through to 2025. The predator-free goal focuses on three groups of mammals: possums, three species of rats, plus stoats, ferrets and weasels... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels