Power Simon: Commerce Commission (International Co-operation and Fees) Bill — First Reading 
Power Simon: Commerce Commission (International Co-operation and Fees) Bill — First Reading 
[Volume:663;Page:10950] 
Hon SIMON POWER (Minister of Commerce) 
: 
 I move  
That the Commerce Commission (International Co-operation and Fees) Bill be now read a first time. 
 At the appropriate time I intend to move that the bill be referred to the Commerce Committee for consideration. 
This bill proposes reform and it proposes amending the Commerce Act the Fair Trading Act and the Credit Contracts and Consumer Finance Act to enable greater cooperation between the Commerce Commission and its fellow overseas competition and consumer regulators. This bill is part of the single economic market outcomes framework which was jointly announced by Prime Ministers Rudd and Key in August last year. As Mr Key said in his Prime Minister’s statement to the House at the beginning of this year this Government wants to give the single economic market a new impetus this year. The Australian Government passed legislation in 2007 to enhance the ability of the Australian Competition and Consumer Commission—the ACCC—to provide assistance to overseas regulators. 
Hon Lianne Dalziel 
: The bill was introduced when? 
Hon SIMON POWER 
: I am getting there. Just to satisfy my colleague the Hon Lianne Dalziel the next sentence in my speech states: “This bill was introduced by the previous Minister of Commerce immediately prior to the election in 2008.” 
Hon Lianne Dalziel 
: What took you so long? 
Hon SIMON POWER 
: It took me three paragraphs. 
Hon Lianne Dalziel 
: No we are just getting to the first reading. 
Hon SIMON POWER 
: We do not want to be too bipartisan about these things! 
Chris Hipkins 
: But 18 months? 
Hon SIMON POWER 
: I have been busy. 
The bill provides for the Commerce Commission to use its statutory powers to assist the Australian Competition and Consumer Commission and other overseas competition or consumer regulators with an investigation. The bill will promote more effective and efficient enforcement of competition and consumer protection laws in a global economy. Business today increasingly operates in multiple jurisdictions and parallel investigations or proceedings in relation to a particular company are becoming increasingly common and complex. For example recent international cartel cases that the Commerce Commission has pursued or is pursuing include cartels relating to cardboard wood chemicals gas-insulated switchgear and air cargo. The first two have a trans-Tasman element to them and the latter two are concerned with wider global coordinated activity. Effective enforcement in the global economy means that the Commerce Commission not only needs to be vigilant but also needs to be able to provide assistance to and obtain information from other overseas regulators. 
This bill complements the Trans-Tasman Proceedings Bill which is currently before the Justice and Electoral Committee. That bill seeks to implement the agreement on trans-Tasman court proceedings and regulatory enforcement which again was signed by the previous Minister of Justice in July 2008. The Trans-Tasman Proceedings Bill aligns the process for resolving trans-Tasman civil disputes and therefore dovetails with the purpose of this bill which aims to facilitate mutual assistance from the investigative stages through to enforcement proceedings in competition and consumer law cases. 
This bill requires a cooperation arrangement between Governments to be in place before any compulsorily acquired information or assistance can be provided to an overseas regulator. A cooperation arrangement will enhance the commission’s ability to obtain assistance from overseas regulators in two ways. First it will help the Commerce Commission to obtain information gathered by overseas regulators during their own investigations that is relevant to a competition or fair trading investigation in New Zealand. In return the Commerce Commission can reciprocate by responding to similar requests from overseas regulators. Second the bill will allow the Commerce Commission to ask overseas regulators to gather information in their jurisdictions on the commission’s behalf. 
Since the bill was tabled some time ago feedback has been received that questions whether the Government to Government cooperation arrangement should be the only means for overseas regulators to access investigative assistance from the Commerce Commission. For example one alternative could be to provide for Ministerial approval of a regulator-to-regulator arrangement subject to specific safeguards being met. I would like to invite the select committee and submitters to consider this specific matter. It is important to note that the bill provides safeguards for New Zealand interests including requirements to consider such matters as the nature of relevant overseas competition or consumer protection laws any relevant privacy issues and the framework in the overseas jurisdiction for dealing with what will generally be sensitive information. Those safeguards will ensure that compulsorily acquired information and investigative assistance are provided and used only for an authorised purpose. 
One of the key expectations underlying a cooperation agreement is that of reciprocity to ensure that the arrangement will result in benefits to New Zealand. To promote transparency the bill also sets out publication requirements for cooperation arrangements. I am interested in hearing from the public through the select committee process as to whether the bill should contain explicit provisions to deal with national-interest considerations particularly in relation to foreign policy. 
The bill also sets out requirements that the Commerce Commission must take into account before providing investigative assistance or compulsorily acquired information to an overseas regulator. Those matters reflect the intention to ensure that the requested assistance or sharing of information relates to a proper and authorised purpose. The bill requires the Commerce Commission to obtain written undertakings from the overseas regulator that such information will not be used against the person who provided the information in criminal proceedings in the overseas jurisdiction. The bill also requires the commission to notify parties to whom compulsorily acquired information relates as soon as practicable after it has provided such information to the overseas regulator. However such notice will not be required if the Commerce Commission considers it would compromise the commission’s or the overseas regulator’s investigation or if it would be impractical. 
Access to material that is privileged such as draft witness statements and other court documents often has the potential to have a significant impact on investigations or proceedings. The bill provides for the protection of privileged documents that the commission may provide to an overseas regulator and vice versa. 
The bill also makes changes to the regulation-making powers in the Commerce Act in order to require refunds for clearance and authorisation application fees and for fee exemptions to be made for small to medium sized enterprises. I further invite the select committee to consider whether alternatives to fee exemptions would be more appropriate such as providing for a tiered system of fees. 
Ultimately this bill is about ensuring that the Commerce Commission has the appropriate range of tools to effectively detect investigate and enforce New Zealand competition and consumer protection laws in global markets whilst ensuring there are safeguards in place to protect the New Zealand public interest. It is in the interest of consumers and businesses alike that regulators cooperate with one another and coordinate their efforts where possible particularly as we strive for a single economic market. I commend this bill to the House.