Transport competition exemptions considered

Commerce Minister Craig Foss has asked the Commerce Select Committee to examine competition regimes for international shipping and international civil aviation.

Earlier this year, the New Zealand Productivity Commission released its report into International Freight Transport Services, which recommended changes to the competition regimes for international shipping and international civil aviation.

“The recommendations are closely related to the Commerce (Cartels and Other Matters) Amendment Bill,” says Mr Foss.

“The changes in the Bill should remove any uncertainty as to whether particular behaviours are lawful and provide additional safeguards for parties wishing to participate in pro-competitive, efficiency enhancing arrangements. 

“It is appropriate to consider whether parallel regimes for shipping and civil aviation are the best way to regulate competition in those sectors, or whether they should be transitioned to the general regime under the Commerce Act.   

“The Government is committed to supporting New Zealand businesses trading overseas.  This means that freight transport services need to be as efficient as possible.  Strengthening the competition regimes that apply to international shipping and international civil aviation is one mechanism that the Government is investigating to achieve this,” says Mr Foss.

For information on the Commerce (Cartels and Other Matters) Amendment Bill visit www.med.govt.nz/cartels

 For information on the Productivity Commission International Freight Services Report visit http://www.productivity.govt.nz/inquiry-content/1508?stage=4.