Foss Craig: Commerce Commission (International Co-operation and Fees) Bill — Second Reading 
Text is incorporated into the Bound Volume 
Foss Craig: Commerce Commission (International Co-operation and Fees) Bill — Second Reading 
[Sitting date: 03 May 2012. Volume:679;Page:1973. Text is incorporated into the Bound Volume.] 
Hon CRAIG FOSS (Minister of Commerce) 
: 
 I move  
That the Commerce Commission (International Co-operation and Fees) Bill be now read a second time 
. I also move that the House take note of the Commerce Committee’s report on the Commerce Commission (International Co-operation and Fees) Bill.  
Global business is becoming increasingly complex with the growing interaction and collaboration between businesses under multiple jurisdictions. This bill seeks to authorise the Commerce Commission to assist equivalent overseas regulators in the enforcement of competition and consumer laws. One of the key underlying principles of the bill is reciprocity. If the commission is able to provide investigative assistance to overseas regulators this will provide the opportunity for overseas regulators to do the same. Over time this should promote deeper cooperation efforts between the Commerce Commission and overseas regulators which would promote a more effective and efficient investigation and enforcement of competition and consumer laws.  
The bill fulfils part of New Zealand’s duties under the single economic market framework jointly announced by Prime Ministers in August 2009. Australia enacted legislation in 2007 to allow enhanced cooperation between the Australian Competition and Consumer Commission—the ACCC—and overseas regulators. The Commerce Commission (International Co-operation and Fees) Bill is our equivalent legislation.  
I would like to acknowledge that this bill was introduced by the previous Labour Government under the former Minister of Commerce the Hon Lianne Dalziel. I understand that at the time it enjoyed and I hope it continues to enjoy broad cross-party support. The bill will serve to strengthen and build upon New Zealand’s existing cooperation and coordination efforts with Australia in the effective application and enforcement of competition and consumer laws.  
The bill amends the Commerce Act the Fair Trading Act and the Credit Contracts and Consumer Finance Act to enable the Commerce Commission to use its statutory powers to assist the Australian Competition and Consumer Commission or other overseas regulators with investigations. It sets out how the commission may share compulsorily acquired information and provide assistance to regulators from Australia and other countries. Importantly the bill has safeguard provisions requiring the commission to take specific public interest matters into account before responding to requests for assistance from overseas regulators to ensure that assistance is provided for a proper purpose.  
A Supplementary Order Paper to the bill has been tabled to amend the Telecommunications Act in order to promote enhanced cooperation between the Commerce Commission and overseas regulators in respect of telecommunications investigations. This would enable the commission to participate in investigations into cross-border telecommunications markets such as those related to international mobile roaming. The amendment would reflect the powers held by the Australian Competition and Consumer Commission in respect of its telecommunications work and would also enable New Zealand to further reciprocate the assistance that Australia can provide to us. I intend to move Supplementary Order Paper 26 during the Committee of the whole House stage. I note that because of changes to the Standing Orders the amendment set out on this Supplementary Order Paper which was tabled before the last election can now be considered without leave of the Committee of the whole House.  
At the first reading of the bill the Commerce Committee was invited to consider several issues regarding the bill’s application and I am pleased to see the committee has taken these matters into account and recommended amendments to the bill. More specifically the committee has recommended that regulator to regulator cooperation agreements should be allowed as an alternative to intergovernmental arrangements. I consider that this will provide flexibility to decide in the most appropriate and efficient way to implement mutual assistance arrangements. This also recognises that different jurisdictions also have different requirements about how mutual assistance arrangements are implemented. For example Australia does not prescribe the level at which a mutual assistance agreement is implemented but the United States requires such arrangements to be conducted at a Government to Government level.  
I am pleased to also note the committee’s recommendation regarding information-sharing situations where significant international trade concerns may arise. In particular the committee recommends that in such situations the Commerce Commission will consult with the Ministry of Foreign Affairs and Trade and with the Minister of Trade. This will enable the consideration of possible prejudicial effects on New Zealand’s international trade interests. Importantly it will ensure that the commission will provide assistance that aligns with our international trade interests.  
The committee has also recommended amending the bill so that it covers compulsorily acquired information that has been acquired both before and after this bill’s passage. This ensures that information able to be provided cannot be excluded by the presumption against retrospectivity. In the interests of keeping the legislative framework consistent I note that the committee has recommended amending the bill to ensure that protections in relation to the use of statements is targeted to those statements that are self-incriminating. This aligns the bill with the provisions of the Commerce Act as well as with the proposed amendments to the Fair Trading Act. I am of the view that the committee’s recommendations will improve the effectiveness of the bill both in fostering greater cooperation with overseas regulators and more effective enforcement action as well as in safeguarding the public interest.  
In summary I am confident that this bill will play an important role in promoting and deepening mutual assistance between the Commerce Commission and overseas regulators in enforcing competition and consumer law. Given the harm that anti-competitive and unfair trading practices can have on individuals businesses and the economy as a whole I consider that ensuring the commission is equipped with the modern tools for combating such behaviour in the global economy of today is essential. This is even more important in the context of supporting the Government’s objective of fostering a single economic market with Australia. As such I would like to conclude by thanking the members of the Commerce Committee for their work in considering the bill and by acknowledging the contributions of those who provided submissions on the bill. I commend this bill to the House.