Commerce Act reviewed

Fears that regulatory changes may make investment in key sectors uncertain have been addressed by a review of the Commerce Act.

The Government said yesterday that it would change the regulatory provisions of the act so there was more clarity about how regulation will occur and alternatives to price control.

The review also addressed how the regime could be tailored to New Zealand's size and how it could provide incentives to invest in infrastructure.

Investors in monopoly-dominated industries such as telecommunications and electricity have been nervous about regulations being imposed.

Telecom has headed that off by accepting a Government ruling it split into three businesses, and Vector and Auckland airport have been threatened in the past with pricing controls.

Auckland, Christchurch and Wellington airports have been placed under tighter disclosure rules.

Commerce Minister Lianne Dalziel and Energy Minister David Parker said the changes would give greater certainty around investment.

Changes to the Commerce Act will put existing powers to put goods and services under price control under the same framework as the thresholds regime for electricity lines companies.

The law is due to be introduced to Parliament next year.

- NZPA