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Option Five: Make a Decision to Impose Price Control on Major International Airports under the Current (or Amended) Commerce Act


Cabinet Paper: Commerce Act Review - Airports

Hon Annette King, Minister of Transport and Hon Lianne Dalziel, Minister of Commerce
[ Last Updated 22 November 2007 ]


63. This option would move the major international airports straight to price control under Part 4 of the Commerce Act, as recommended by the Commerce Commission in 2002 for AIAL, and WIAL if it increased its prices (which it subsequently did).

64. Departments consider that price control should not be considered without a full inquiry. It is a relatively high cost option, and, unlike information disclosure (and negotiate/arbitrate), does not encourage the parties to seek a commercial agreement.


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