Dean JacquiCOMMERCE (CARTELS AND OTHER MATTERS) AMENDMENT BILLThird ReadingHon JACQUI DEAN (Minister of Commerce and Consumer Affairs): I move That the Commerce (Cartels and Other Matters) Amendment Bill be now read a third time. This bill is an important action under the Business Growth Agenda to assist in improving the competition regime to protect consumers and also to promote innovation. The bill amends the Commerce Act of 1986 to allow pro-competitive collaboration between firms while also deterring hard-core cartel behaviour. The bill clarifies the scope of the prohibition in relation to cartel conduct. It specifically prohibits price fixing market allocation and output restrictions between competitors. To ensure the bill encourages collaboration the bill also includes two new exceptions: a collaborative activity exception and an exception for vertical supply agreements. The collaborative activity exception replaces the current joint venture exception and enables businesses to assess for themselves whether a proposed collaboration falls within its scope. It asks whether the collaborative activity has a legitimate collaborative purpose and whether a cartel provision is reasonably necessary to achieve that purpose. The exception for vertical supply arrangements ensures that vertical supply arrangements within a vertically integrated company are exempt except where they have an anti-competitive purpose. Where businesses are unsure whether an activity might risk breaching the Act the bill also introduces a clearance regime for collaborative activities. Businesses will be able to apply to the Commerce Commission to seek clearance for their arrangements which will provide businesses with greater certainty when needed. The bill also makes a number of other amendments to the Act including retargeting extraterritorial jurisdiction provisions introducing a new regime to regulate overseas mergers and amendments to improve the efficiency of the Commerce Commission's authorisation process. The bill transitions the competition regime for international shipping from the Shipping Act of 1987 into the Commerce Act. In addition it includes a new targeted exemption for specified international liner shipping activities such as vessel sharing. The introduction of the new exception will mean that ocean carriers will have certainty that specified shipping activities such as coordinating of sailing timetables and pooling of vessels will be exempt from the prohibitions in the Commerce Act against anti-competitive agreements. The exception should reduce the compliance costs for ocean carriers by providing greater certainty but continue to provide protection to New Zealanders against anti-competitive conduct. It will come into effect after a 2-year transitional period.There are many people to thank in relation to this bill. The previous commerce Ministers Simon Power Craig Foss and Paul Goldsmith are also responsible for this bill. I also thank the members of the Commerce Committee for their work on and contribution to this bill plus the many individuals and groups that made submissions as part of the policy and legislative processes that led to this bill. I commend the bill to the House.