Goldsmith PaulHon PAUL GOLDSMITH (National): I rise to speak on this the Commerce Amendment Bill. I do state that obviously there is widespread support across Parliament for strong and robust and effective competition laws because obviously our living standards and the health of our economy depend on vigorous competition within industries so that New Zealanders have access to the best price in whatever they are consuming. Whether it's power whether it's an ice cream or a bag of lollies or a TV or whatever it all relies on there being effective—Hon Shane Jones: Peanuts. Peanuts.Hon PAUL GOLDSMITH: —and robust competition. Peanuts are just as important.If you look at what we're trying to achieve in politics here in the National Party we're looking at trying to have a strong and robust economy that delivers high living standards for all New Zealanders. But as well as just generating high incomes—people only get ahead if their incomes are growing faster than the cost of living and so you do need to also put a great deal of attention on costs. That's why there has been so much concern around Auckland particularly recently with the extra costs that motorists have had to endure over the last little while. People can understand the global fluctuation of fuel prices but they also are very much concerned about the Government costs that have been added to it and so the net effect is quite considerable. Focusing on reducing the cost of living for New Zealanders is a fundamental focus of all politicians and particularly of the National caucus so it's important as part of that that we have good robust competition laws.Now we've heard a lot of what I would describe as flummery from the Prime Minister and various Ministers over the past few days in relation to fuel prices and the fleecing apparently that has been going on by fuel companies. I suppose the first point I would make is that we already have—and we have had for decades—strong laws in place to deal with any price fixing or collusion between companies or cartel behaviours in any industry. So if there is any suggestion that there is some sort of anti-competitive behaviour going on within that industry or any other industry the Commerce Commission right now—right here today and for the last 30 years or longer—has the strong robust powers to go in and hold those companies to account and if they find them guilty put very very substantial fines in their laps and potentially send them to jail. So that is the nature of competition law.That's not what we're talking about here today. What we're talking about here is the addition of the ability of the Commerce Commission to undertake market studies in a particular area. So if somebody has a look at a particular industry—say the banking sector or fuel—and says Well there's nothing in particular that creates a prima facie case for the Commerce Commission to go in and prosecute somebody. That threshold hasn't been met but we think there's something not quite right here." then we'll go and have a market study. Now there are some countries around the world that do this and there are some that don't. We haven't traditionally. This piece of legislation is introducing that market studies power and on balance National will be supporting that addition to the armoury that our competition regulator has available to it.The point that I want to make in the last half of my speech is that it does rely on a responsible Government and a responsible regulator because it is a significant wide-ranging power that we're putting in their hands. There is a real risk particularly in a small economy like ours that particular industries right across the economy will be subject to drive-by shootings by unscrupulous politicians in particular. That's the risk. I wasn't so worried about that risk when the National Party was in Government; I am more worried about that risk right now. The previous speaker of course Mr Jones has a long and rather famous record—Hon Shane Jones: Proud proud history.Hon PAUL GOLDSMITH: He would say it was proud; I would say it was something otherwise. But he has made a career of attacking particular industries and groups as we said—the supermarkets the airlines Fonterra the banks. In fact there's not too much in the way of big business in New Zealand that he doesn't think is reprehensible in some way or another at a particular time. He's made an art form out of just attacking them and getting headlines and has had the gall I suppose right here in this House in this debate to say that when it comes to the banks "I'll choose the timing of when I mount my attack on them." So arming that sort of Minister with this sort of weapon is a dangerous situation and so that is why it is so important that any Government with this tool available to it is disciplined.Of course we all have come to accept that that is the way that Mr Jones operates coming from a smaller party but when we see the Prime Minister of the nation operating in that way that's when many New Zealand businesses and New Zealanders have been deeply concerned. We have the Prime Minister talking about introducing market studies but also acting as the judge and the jury saying that the oil industry is fleecing New Zealanders. I don't know why she needs to have a study because she already knows the outcome. In the process of doing that she has been very funny with her numbers saying that there has been a big increase in the cost of petrol since Labour came into power and that only 6.8c of it comes from the Government—which is complete nonsense. The figure is well over 10c a litre in most of New Zealand and well over 20c a litre in Auckland when you include the regional fuel tax and that is a very significant part of the increase in the price of petrol. Of course it's not all of it but it is part of it. So the "Fleecer in Chief" certainly has been the Government itself in this area but that's the point.So the only point I'm making is that yes this could be a useful part of our competition armoury in a well-regulated and disciplined Government and so on balance we think this is a tool that we should have but it does rely on the Government of the day and the bureaucracy in the form of the Commerce Commission being disciplined in the way that it goes about it and not using this purely for political purposes when a particular Minister feels like they haven't had as much media coverage as they would've liked in the last couple of weeks and that it's time to ramp things up by attacking a particular industry.Why is this a concern for the average New Zealander? I mean lot of New Zealanders like to see our business leaders in trouble but ultimately we as consumers pay for everything that flows through the system in terms of costs that are added. Just as when it comes to the fuel pump the Prime Minister can rail about all sorts of things but the Government is adding everyday costs to undertaking normal business activity in New Zealand such as a 27 percent increase over the next three years in the minimum wage and if you don't think that that flows through to higher petrol prices you're dreaming. Of course it does and if you add all sorts of other costs as well as taxes and levies these things flow through to the costs that New Zealanders pay. An undisciplined approach to market studies in a particular industry can lead to millions and millions and millions of dollars being spent by lawyers over an extended period of time to undertake these studies. Don't for a moment think that these can be done for $25.50 down at Kmart or something like that; they are very very expensive things. That cost will be passed on to consumers.Again my simple message is yes this is a potentially useful part of the competition armoury in New Zealand as it is in many countries around the world but it must—must—be accompanied by a disciplined Government. From what we've seen so far from this Labour - Greens - New Zealand First alliance I am a little bit worried. Thank you Madam Assistant Speaker."