Cabinet paper: Review of the Clearance and Authorisation Provisions under the Commerce Act 1986

To: The Chair, Cabinet Economic Development Committee

On the 6 November 2007 the Government made a set of decisions on the Review of the Authorisation and Clearance provisions (Part 5) of the Commerce Act 1986. The proposed amendments to the Commerce Act 1986, to be included in the Regulatory Improvement Omnibus Bill, are:

• Enabling the Commission to apply to the High Court to enforce undertakings to divest shares or assets approved as a part of a clearance or authorisation of a merger;
• Allowing the Commission to consider and accept minor variations to approved undertakings to divest shares or assets; and
• Removing the 20 day statutory timeframe within which the Commission is required to hold a conference.

A further issue, whether the cases in which lay members can be appointed should be widened, has also been analysed within this review, with the conclusion that the current provisions remain suitable and appropriate.

MED officials intend to undertake further targeted consultation on the remaining issues between now and April 2008. If you have any further questions about the process please send them to commerceactreview@med.govt.nz.

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