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• Commerce Act Pts 4/4A/5 Review

• Authorisation and Clearance

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44. It is recommended that the Committee

1. Note On 22 May 2006 the Minister of Commerce announced that the clearance and authorisation provisions under part 5 of the Commerce Act will be reviewed;

2. Note Final policy proposals on the Part 5 review were due in November 2007 [EDC Min (07)10/5];

3. Note Submissions on the review of Part 5 indicate that while there are some administrative and low level policy issues that can be progressed quickly, there are several issues require additional time to develop robust policy proposals;

4. Agree that the following issues be progressed through the Regulatory Improvement Omnibus Bill;

4.1 Allow the Commerce Commission to seek the following types of orders from the High Court in relation to undertakings that have been approved as a condition of a merger clearance or authorisation decision and have not been complied with:

4.1.1 to comply with the undertaking;

4.1.2 to pay a pecuniary penalty to the Crown;

4.1.3 to compensate any other person who has suffered loss, injury or damage as a result of non compliance; and/or

4.1.4 to comply with any other order the Court considers appropriate;

4.2 Enable third parties to join an action by the Commerce Commission to enforce an undertaking;

4.3 Enable the Commission to approve minor variations of undertakings upon application from parties;

4.4 Remove the requirement to hold a conference within 20 working days of the expiry of the 10 working day notification period;

5. Agree that the current provisions under the Commerce Act for the use of lay members in Commerce Act cases are suitable and appropriate and no change is required;

6. Agree that officials will report to the Minister of Commerce on other issues relating to the efficiency and effectiveness of the merger and trade practices clearance and authorisations systems by 30 June 2008;

7. Agree that this Cabinet paper should be made publicly available on the Ministry of Economic Development's website;

8. Invite the Minister of Commerce to issue drafting instructions to Parliamentary Council to give effect to the above proposals.