Commerce Commission chairwoman Paula Rebstock

Commerce Commission chairwoman Paula Rebstock

Commerce Minister Simon Power has hinted at changes to the competition watchdog Commerce Commission amid big business calls for a crackdown.

Some firms are pressing the government to change its powers or unseat chairman Paula Rebstock whose term ends soon, according to a well-placed legal source.

Simon Power referred yesterday to a report by a prominent competition lawyer Grant David of Telecom's law firm Chapman Tripp who called for radical reform.

Power said yesterday he was "casting a fresh eye" on the Commission.

The commission - which decides issues like competition and which last has prevented sale of The Warehouse Group - also clashed last year with
big firms Telecom and Air New Zealand.

The lines company Vector is believed to have raised concerns in the past, but chairman Michael Stiassny said yesterday that a small
country like New Zealand needed a regulator like the Commission.

David - who said he wrote the article in a private capacity and without talking to Telecom - called for a "full review and disbanding the Commission.

Telecom chief executive Paul Reynolds - who has complained strongly about the Commission - denied Telecom is lobbying for change.

David said competition law may be a luxury that New Zealand could not afford and it may be a time for drastic change.

Three other competition lawyers approached by the Herald acknowledged tension between the Commission and business, and there was a case for changes.

One warned of dangers coinciding with the election of a new business friendly government.

"We have to extremely concerned that vested interests are seizing the political advantage and that personalities are playing a part in that," said the lawyer, who would not be named.

He said that a weak Commission would provide an advantage to dominant players in markets. The lawyer said that corporate criticism of
the Commission fell into two groups, with some calling for changes to the institution. But the push was more focussed on having Rebstock replaced.

Commission chief executive Nick Hill said that in tough economic times some businesses cry for a loosening of regulations.

"But it is also true that in tough economic times some businesses will resort to illegal tactics such as price-fixing and collusion not to compete, in order to try to keep afloat.