Competition for trade hot enough for Government

By PAM GRAHAM

The Government says it will not intervene to boost competition among ports after an independent report has found that the industry is generally competitive.

The decision announced yesterday by Commerce Minister Lianne Dalziel and Transport Minister Paul Swain comes more than two years after the Government began looking into the issue.

An industry review recommended that the Commerce Commission investigate alleged anti-competitive and monopoly practises, but instead a report commissioned from Charles River & Associates found that ports' market power was limited and the industry had low barriers to entry.

"Regulation would be a relatively blunt instrument and would be unlikely to be effective in targeting the limited and isolated market power problems present in the ports sector," Dalziel said.

Swain said some port users were "captured" but this could be addressed by voluntary mediation and arbitration.