Roy Heather: Commerce Commission (International Co-operation and Fees) Bill — First Reading 
Roy Heather: Commerce Commission (International Co-operation and Fees) Bill — First Reading 
[Volume:663;Page:11271] 
Hon HEATHER ROY (Deputy Leader—ACT) 
: 
 I rise to speak on behalf of the ACT Party to the first reading of the Commerce Commission (International Co-operation and Fees) Bill. The ACT Party is pleased to support this bill at its first reading. As the Minister of Commerce stated in his first reading speech and as other members have also noted in the House tonight this bill contributes to the objective of the single economic market with Australia. As Minister of Consumer Affairs responsible for the Fair Trading Act and the Credit Contracts and Consumer Finance Act I support this bill and the measures that it puts in place. 
The bill will facilitate increased cooperation between the Commerce Commission and the Australian Competition and Consumer Commission which will allow for better trans-Tasman enforcement of competition and consumer laws. It also provides for the Commerce Commission to undertake investigative assistance and exchange of information with other overseas competition and consumer regulators. 
The Commerce Commission (International Co-operation and Fees) Bill is the result of a 2004 recommendation from the Australian Productivity Commission for increased cooperation between the Commerce Commission and the Australian Competition and Consumer Commission. The Productivity Commission’s report addressed both the Australian and New Zealand competition and consumer protection regimes. It identified and assessed options for better administration and enforcement of Australian and New Zealand competition and consumer protection laws. Following a comprehensive analysis of costs and benefits the Productivity Commission’s report supported the option of investigative assistance which is the option that has been chosen in this bill. 
The Productivity Commission found that the option of investigative assistance comprised a number of desirable features that this bill has picked up. These include the local regulator retaining discretion. It may choose not to comply with a request for assistance from a foreign regulator if to do so would be inappropriate. There are clear lines of accountability and national procedural safeguards which should be retained. Conditions may be imposed relating to maintaining confidentiality of the information obtained and transmitted and a degree of ministerial oversight is provided for within the bill. The Productivity Commission’s recommendations were accepted by both the New Zealand Government and the Australian Government and are incorporated into the single economic market outcomes framework as the Hon Simon Power has already noted. 
In 2007 Australia enacted legislation to allow enhanced cooperation between the Australian Competition and Consumer Commission and overseas regulators. The Commerce Commission (International Co-operation and Fees) Bill is our equivalent legislation. This bill also takes a wider than trans-Tasman view. Similar issues do of course arise across a number of different jurisdictions. For instance the advertising of all-inclusive air fares and mobile phone roaming fees are good examples. Obtaining information from equivalent regulators would enable the Commerce Commission’s investigations to be more efficient and effective. The current provisions in the Commerce Act 1986 and the Fair Trading Act 1986 constrain the Commerce Commission’s ability to share information— 
Mr DEPUTY SPEAKER 
: I am sorry to interrupt the member. There are a number of conversations going on over here that are distracting me from listening to what the member is saying. I ask members to quieten down so that I can hear what the Minister is saying. 
Hon Member 
: Government members should know better. 
Mr DEPUTY SPEAKER 
: I am standing. If members want to continue their conversations at length that is what the lobbies are for. I am sorry to interrupt the member. 
Hon HEATHER ROY 
: The current provisions in the Commerce Act 1986 and the Fair Trading Act 1986 constrain the Commerce Commission’s ability to share information and provide assistance to equivalent overseas regulators. Not only does the existing legislation constrain the commission it also serves to constrain overseas regulators from providing assistance to the commission as cross-jurisdictional assistance tends to be based on reciprocity. This bill serves to address these issues. 
The bill currently provides that in order for compulsorily acquired information to be shared with an overseas regulator a Government cooperation arrangement must be in place between those two Governments. This arrangement must cover a range of high-level concerns including consideration of the legal framework in the overseas jurisdiction New Zealand’s international obligations potential consequences for New Zealand businesses and consumers and the rules around the use and security of information. There must also be consultation with the Privacy Commissioner and the arrangement is then made. 
Governmental cooperation arrangements ensure consideration of wider principles at the highest level in both jurisdictions. The New Zealand Government receives a commitment from the overseas Government. This places the arrangement on a morally binding level not unlike a treaty. It is foreseen that such arrangements may be concluded as part of future free-trade arrangement negotiations. 
Since this bill was tabled in September 2008 the Government has received feedback that having governmental cooperation arrangements only may be too constraining for some jurisdictions. As the Hon Simon Power has said consideration will be given to allowing the Commerce Commission to enter into an agency cooperation arrangement with an overseas regulator subject to ministerial approval. Prior to granting approval to an agency cooperation arrangement the Minister would need to take into account international obligations and the legal framework in the overseas jurisdiction. This alternative option of an agency cooperation arrangement would address circumstances where governmental cooperation was not necessary or not possible whilst preserving the safeguards of a governmental arrangement. The ACT Party supports this bill and its intent to enhance enforcement of competition and consumer protection laws in a global economy.