Source: http://www.legislation.govt.nz/sop/government/2019/0194/latest/whole.html
Timestamp: 2020-05-29 23:54:13
Document Index: 203339161

Matched Legal Cases: ['art 2', 'art 2', 'art 1', 'art 2', 'art 2', 'art 2']

Supplementary Order Paper No 194 (released 01 March 2019) – New Zealand Legislation
Supplementary Order Paper No 194
Proposed amendments to Commerce (Criminalisation of Cartels) Amendment Bill
This Supplementary Order Paper makes the following changes to the Commerce (Criminalisation of Cartels) Amendment Bill:
it amends clause 4, new section 82B to clarify that a person does not contravene the prohibition on cartel provisions if the person’s conduct comes within an exception to that prohibition (for example, the exception in section 31 of the Commerce Act 1986 for a collaborative activity):
it replaces the defences in clause 4, new section 82C with a single defence that relates to all exceptions to the prohibition on cartel provisions. The defence applies if the defendant believed on reasonable grounds that 1 or more exceptions applied to the relevant conduct. However, the defence only applies if the defendant’s belief is based on a mistake of fact. It does not apply if the belief is based on ignorance, or mistake, of any matter of law (for example, a misinterpretation of the provision that establishes the exception):
it moves the disclosure requirement for a defendant that was previously set out in new section 82B(2) to new section 82D(1). It also changes that requirement so that the details provided by the defendant need not “fully and fairly” inform the prosecution about the exception or defence they intend to raise (but must inform them). The SOP also adds a requirement for the court or Registrar to notify the defendant if the disclosure requirement applies (see new section 82D(2)):
it amends clause 4 to insert new section 82E, which sets out the consequences of a failure to comply with the disclosure requirement. New section 82E is similar to section 34 of the Criminal Disclosure Act 2008, which sets out the consequences of failing to disclose information as required by that Act:
it inserts new clause 12A, new section 107, which requires the Solicitor-General to establish a prosecutors panel, the members of which can conduct prosecutions under new section 82B:
it deletes clause 14, which would have amended the Criminal Procedure Act 2011 to provide that the offence in new section 82B is a category 4 offence under that Act. The effect of deleting clause 14 is that the offence is a category 3 offence under that Act. It also deletes clause 9, which would have required proceedings for offences against new section 82B to be heard in the High Court. Instead the trial court for the offence will be determined in accordance with the procedures applying to category 3 offences under the Criminal Procedure Act 2011.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=sop&subtype=government&year=2019&no=194&
The Ministry of Business, Innovation, and Employment produced a regulatory impact assessment on 27 November 2018 to help inform the new policy decisions taken by the Government relating to the contents of this SOP.
https://www.mbie.govt.nz/business-and-employment/business/competition-regulation-and-policy/reviews-of-the-commerce-act-1986/criminalisation-of-cartels-2018/
4 New sections 82B and 82C to 82E inserted
82C Defences in prosecution under section 82B
82C Defence relating to exceptions to cartel prohibition
82D Disclosure by defendant in cartel prosecution
82E Consequences of failure to disclose under section 82D
5 Section 30 amended (Prohibition on entering into or giving effect to cartel provision)
6 Section 31 amended (Exception for collaborative activity)
7 Section 44A amended (Exceptions in relation to international liner shipping services)
8 Section 44B amended (Further exception in relation to international liner shipping services (price fixing in relation to space on ship))
9 Section 75 amended (Jurisdiction of High Court)
10 Section 79B amended (Relationship between pecuniary penalties and criminal liability)
11 Section 80A amended (Restriction on indemnities relating to contraventions of section 30)
12 Section 82A amended (Exemplary damages for contravention of Part 2)
12A New section 107 inserted (Cartel prosecutors panel)
107 Cartel prosecutors panel
13 Schedule 1AA amended
Subpart 2—Amendment to Criminal Procedure Act 2011
14 Criminal Procedure Act 2011 amended
This Act is the Commerce (Criminalisation of Cartels) Amendment Act 2018.
This Act comes into force on the second anniversary of the date of Royal assent.
Part 1 Criminalisation of cartels
After section 82A, insert:
in contravention of section 30(1)﻿(a), enters into a contract or arrangement, or arrives at an understanding, that contains a cartel provision; and
intends, at that time, to engage in price fixing, restricting output, or market allocating; or
in contravention of section 30(1)﻿(b), gives effect to a cartel provision; and
intends, at the time the cartel provision is given effect to, to engage in price fixing, restricting output, or market allocating.
A defendant that wishes to claim that an exception in section 31, 32, 33, 44A(4) or (5), or 44B applies, or to rely on a defence in section 82C, must—
notify the prosecution of that fact within 20 working days after the defendant pleads not guilty (or at any later time with the leave of the court); and
at the same time, provide sufficient details about the application of the relevant section to fully and fairly inform the prosecution of the manner in which the exception or defence is claimed to apply.
An individual who commits an offence against this section is liable on conviction to imprisonment for a term not exceeding 7 years or a fine not exceeding $500,000, or both.
A person other than an individual that commits an offence against this section is liable on conviction to a fine not exceeding the greater of the following:
See the exceptions set out in Part 2, which relate to conduct that would otherwise contravene section 30(1)﻿(a) or (b).
Defences in relation to collaborative activity
In a prosecution under section 82B(1)﻿(a), it is a defence if, at the time of entering into the contract or arrangement, or arriving at the understanding, containing a cartel provision,—
the defendant and 1 or more other parties to the contract, arrangement, or understanding were involved in a collaborative activity; and
the defendant believed that the cartel provision was reasonably necessary for the purposes of the collaborative activity.
In a prosecution under section 82B(1)﻿(b), it is a defence if, at the time of giving effect to the cartel provision,—
the defendant and 1 or more other parties to the contract, arrangement, or understanding that contains the cartel provision were involved in a collaborative activity; and
In a prosecution under section 82B(1)﻿(b), it is a defence if—
the relevant cartel provision constitutes a restraint of trade; and
the defendant and 1 or more other parties to the contract, arrangement, or understanding were involved in a collaborative activity that ended before the defendant gave effect to the provision; and
at the time of giving effect to the provision, the defendant believed that the cartel provision was reasonably necessary for the purpose of the collaborative activity; and
Defences in relation to international liner shipping service
In a prosecution under section 82B(1)﻿(a), it is a defence if—
the cartel provision relates to restricting output or market allocating; and
at the time the defendant entered into the contract or arrangement, or arrived at the understanding, containing the provision, the circumstances in subsection (6) applied.
at the time the defendant gave effect to the cartel provision, the circumstances in subsection (6) applied.
the defendant and all other parties to the contract, arrangement, or understanding that contains the cartel provision were supplying an international liner shipping service in co-operation with each other; and
the co-operation improved the service supplied to owners or consignors of goods carried at sea; and
the cartel provision related to an activity ancillary to a specified activity (as defined in section 44A(8)); and
the defendant believed that the ancillary activity was reasonably necessary for the purposes of the co-operation.
In a prosecution under section 82B, it is a defence if, at the time of the alleged contravention, the defendant believed on reasonable grounds that 1 or more of the exceptions set out in Part 2 applied in relation to the conduct that constituted the alleged contravention.
However, the defence does not apply if the defendant’s belief is based on ignorance, or mistake, of any matter of law.
A defendant that wishes to claim that an exception set out in Part 2 applied in relation to the conduct that constituted the alleged contravention, or to rely on the defence in section 82C, must—
at the same time, provide sufficient details about the application of the relevant section to inform the prosecution about how the exception is claimed to have applied or how the defence will be relied on.
The court or the Registrar of the court must give written notice of the requirements in subsection (1) to a defendant who pleads not guilty.
This section applies if, at the hearing or trial of a defendant, the court is satisfied that—
evidence sought to be adduced by the defendant is, or is based on, information that should have been disclosed to the prosecution under section 82D; and
that information was not disclosed.
exclude the evidence; or
with or without requiring the evidence to be disclosed, adjourn the hearing or trial; or
admit the evidence if it is in the interests of justice to do so; or
exercise its powers under any other enactment or rule of law that deals with the failure of a party to comply with the directions of the court.
However, if it appears to the court that the defendant was not given notice in accordance with section 82D(2), the court—
must not order the exclusion of evidence under subsection (2)﻿(a); but
must adjourn the hearing or trial if the prosecution requests an adjournment.
Compare: 2008 No 38 s 34
In section 31(1), replace “section 30(a)” with “section 30(1)﻿(a)” .
In section 31(2), replace “section 30(b)” with “section 30(1)﻿(b)” .
In section 31(3), replace “section 30(b)” with “section 30(1)﻿(b)” .
In section 44A(4), replace “section 30(a)” with “section 30(1)﻿(a)” .
In section 44A(5), replace “section 30(b)” with “section 30(1)﻿(b)” .
In section 44B(1), replace “section 30(a)” with “section 30(1)﻿(a)” .
In section 44B(2), replace “section 30(b)” with “section 30(1)﻿(b)” .
After section 75(1)﻿(a)﻿(iii), insert:
In section 79B(1), replace “section 86B or 87B” with “section 82B, 86B, or 87B” .
In section 79B(2), replace “section 86B or 87B” with “section 82B, 86B, or 87B” .
In section 80A(1)﻿(b), after “imposed” , insert “; or” .
After section 80A(1)﻿(b), insert:
any costs incurred by person A in defending any criminal proceedings in which person A is convicted under section 82B.
After section 82A(2), insert:
After section 106A, insert:
The Solicitor-General must appoint a cartel prosecutors panel for the purpose of enabling prosecutions under section 82B to be taken speedily.
The Solicitor-General must consult with the chairperson before appointing the panel.
The panel must consist of those lawyers that the Solicitor-General considers appropriate.
Only members of the panel may conduct prosecutions under section 82B on behalf of the Crown.
In this section, lawyer has the meaning given in section 6 of the Lawyers and Conveyancers Act 2006.
In Schedule 1AA, clause 2(1), replace “Section 30(a)” with “Section 30(1)﻿(a)” .
In Schedule 1AA, clause 2(2), replace “Section 30(b)” with “Section 30(1)﻿(b)” .
In Schedule 1AA, clause 2(4), replace “section 30(b)” with “section 30(1)﻿(b)” .
This section amends the Criminal Procedure Act 2011.
Section 82B Offence relating to cartel prohibition