Commerce Commission declines interim authorisation for banks to collectively negotiate over cash-in-transit services

Commission chair Dr John Small says commissioners "are not satisfied that the potential benefits of permitting collective bargaining would outweigh the potential detriments". Photo / Mark Mitchell

The Commerce Commission has declined an application allowing for collective negotiating over cash-in-transit services.

The New Zealand Banking Association (NZBA), a group of banks and other parties, including major retailers, are seeking to collectively negotiate with Evergreen International LLC (Armourguard).

The commission said it was continuing to consider NZBA’s application for full authorisation, and its interim decision should not be taken to indicate that the commission will or will not grant the full requested authorisation.

Cash-in-transit services transfer money and other valuables between banks, ATMs and retail stores.

“All commissioners agreed that this was a finely balanced decision,” said commission chair Dr John Small.

“However, on the information provided, the majority of commissioners are not satisfied that the potential benefits of permitting collective bargaining would outweigh the potential detriments.”

The commission, informed by submissions, analysed a wide range of possible public benefits and detriments, including those arising from effects on the usage of cash-in-transit services, the sharing of information and the timing of investment.

The commission’s consideration of the full authorisation is continuing, with a draft determination to be released for consultation in due course.

Associate commissioner Nathan Strong dissented on the decision.

“Commissioner Strong’s dissenting view is that granting interim authorisation and allowing the participants to begin collective negotiations would preserve the potential for the benefits of collective negotiation to be realised should the commission grant full authorisation, and that this outweighed the potential detriments of interim authorisation,” Small said.

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