The Regulator Report lists recent changes, decisions and developments at the main New Zealand and Australian corporate, commercial and competition regulatory bodies. This edition of the Regulator Report covers the period from 11 March 2009 to 1 April 2009. For further details on any matter in this report, just click on the hyperlinks in each item.

The Treasury

Government to simplify overseas investment rules
The government is reviewing the overseas investment rules to "make foreign investment in New Zealand simpler and more attractive, while at the same time protecting sensitive land, assets and resources".

There are three broad parts to the overseas investment review, which will be led by the Minister for Land Information, Dr Richard Worth:

• Putting in place some immediate measures, such as ensuring that more applications are decided by the Overseas Investment Office, rather than Ministers.
• Considering changes to the Overseas Investment Regulations (which will require Cabinet approval).
• Considering changes to the scope of the overseas investment screening regime generally, which are likely to require amendments to the Overseas Investment Act.

A Technical Reference Group has been established to advise officials on the practicality of any amendments to the Overseas Investment Act and to provide suggestions on other improvements that can be made to the Act. Cabinet will consider recommendations from the review by 30 June 2009 and changes to the Overseas Investment Act will be open to public submissions through the select committee process.
Click here for more information
Click here to read the press release and the terms of reference for the review
Bell Gully Partner Andrew Petersen has been appointed as a member of the Technical Reference Group

Wholesale Guarantee Scheme fees reduced
Treasury Secretary John Whitehead has announced a drop in fees for the Wholesale Funding Guarantee Scheme, effective 26 March 2009.
Click here for more

Wholesale Funding Guarantee Facility - Kiwibank Limited
The Crown has signed a wholesale funding guarantee deed in respect of Kiwibank Limited.
Click here for more

Reserve Bank of New Zealand

March 2009 Reserve Bank Bulletin released
The Reserve Bank has released the March 2009 issue of the Reserve Bank of New Zealand Bulletin. This issue includes articles on:

• the financial vulnerability in the household sector;
• an interview with Eric Leeper, Professor of Economics at Indiana University which covers Professor Leeper's work on the modelling of fiscal policy and its interaction with monetary policy, how fiscal policy could be enhanced by making it more transparent, and the progress of fiscal and monetary policymakers so far in handling the current financial and economic crisis; and
• an overview of a recent workshop held at the Reserve Bank on technical advances in the forecasting of current or near-term economic conditions.

Click here to read the Bulletin

Ministry of Economic Development (MED)

Finance company failures - observations of the Registrar of Companies
The 2007/08 financial review of the MED (dated 19 March 2009) incorporates a report from the Registrar of Companies regarding the collapse of finance companies between 2006 and 2008 (including the Blue Chip property investment group of companies because Blue Chip's business model and subsequent collapse shared some of the same characteristics as the finance companies). The report summarises the registrar's observations on the supervisory framework and notes where the registrar believes it was inadequate, or where it failed to address the risks inherent in the business model adopted by these companies. In relation to the actions of the failed companies, particular mention is made of the quality of corporate governance, the concentration of loan risk and the use by some companies of new investments to repay maturing loans of existing investors. The report also comments on:

• the role of trustee companies and auditors as part of the supervisory framework;
• the lack of continuous disclosure obligations for unlisted issuers;
• the fact that the Blue Chip property investment products were structured to fall outside the prospectus requirements of the Securities Act 1978; and
• the lack of moratoria oversight for the nine finance companies that approved a restructure and/or moratoria on maturing loan repayments.

Click here to read the report

Securities Act review to include corporate trustees
Commerce Minister Simon Power has advised that the issues raised in a recent report about the role of corporate trustees in failed finance companies are to be addressed as part of a review into the Securities Act (see the item "Finance company failures - observations of the Registrar of Companies" above for further details). One option the minister is considering is fast-tracking the development of a trustee supervisory model. This model was suggested by the Review of Financial Products and Providers and would see the Securities Commission playing a stronger role in the supervision of trustees. The role of corporate trustees is also likely to be considered by the Capital Market Development Taskforce which is due to report to the minister later this year.
Click here for the press release
Click here for further details on MED's Securities Act review

Ministerial review of electricity market
The Energy and Resources Minister, Gerry Brownlee, announced on 1 April that a ministerial review of the electricity sector will start work immediately. The objective of the review is "to improve the performance of the electricity market and its institutions and governance arrangements in order to better achieve the government's objectives for the electricity sector". Mr Brownlee says "the government has concerns about security of supply, the affordability of electricity, and duplication of electricity sector governance".

Six experts have been appointed to the Technical Advisory Group established for the review: Brent Layton, David Russell, Lewis Evans, Stephen Franks, Toby Stevenson, and Miriam Dean. The Technical Advisory Group will be supported by the MED and is broadly modelled on the advisory group structure used in the first phase of the reforms to the Resource Management Act. There are two components to the review. The first phase will look at regulatory and governance issues, while the second phase will address issues of electricity market performance. The terms of reference for the review include a consideration of whether the Electricity Commission has too many roles, and roles that potentially conflict. The review does not extend to:

• the ownership and governance of SOEs;
• economic regulation of electricity lines, other than to the extent that institutional arrangements impinge on the wider electricity market; and
• wider energy sector regulation, such as gas regulation.

An indicative timetable included in the terms of reference is as follows:

Project phases	Estimated dates
Evaluation of options, liaison with minister(s)	April - May 2009
Cabinet approves early implementation options	June 2009 and then separate fast track process (including legislation if required)
Cabinet approval to release discussion paper	June 2009
Public consultation on discussion paper	July 2009
Analysis of submissions, development of final recommendations	August - September 2009
Cabinet agreement	October 2009
Preparation of legislation	November 2009 - January 2010
Legislation introduced	February 2010
Select Committee	March 2010 - May 2010
Introduction of changes	June 2010

Click here for the press release and to access the terms of reference for the review

Electricity Governance (Security of Supply) Amendment Regulations 2009 (SR 2009/40)
These regulations, which come into force on 9 April 2009, amend the Electricity Governance (Security of Supply) Regulations 2008. The 2008 regulations provide for the management and co-ordination of outages for security of electricity supply purposes under section 172D(1)(14) of the Electricity Act 1992. The amendments enable the Electricity Commission to require certain electricity industry participants (namely, electricity distributors, electricity retailers, line owners, and persons who use electricity directly from the grid) to prepare participant outage plans that will supplement the commission's security of supply outage plan. They also remove the offence for failing to comply with commission directions (previously in regulation 12). Instead, new regulation 16 provides that breaches of the Security of Supply Regulations are enforceable under the Electricity Governance Regulations 2003 in the same way as breaches of electricity governance rules.

Government releases broadband investment proposal
Communications and Information Technology Minister Steven Joyce is seeking feedback on the government's proposed model for investment in ultra fast broadband. The government is proposing to establish a Crown-owned investment company ("Crown Fibre Investment Co" or CFIC) to drive the government's investment. Under the proposal, CFIC will invest alongside private sector co-investors in regional fibre companies that will deploy and provide access to fibre optic network infrastructure in the 25 towns and cities covered by the initiative. The proposal is set out in a consultation document which can be found here: New Zealand Government Broadband Investment Initiative Proposal 31 March 2009. Submissions close on 27 April 2009.
Click here for the press release
Click here for information on the MED website

Submissions called for on the Insolvency Amendment Bill
Public submissions are now being invited on the Insolvency Amendment Bill which was introduced to Parliament on 9 March 2009. The closing date for submissions is Thursday 16 April 2009. The bill proposes to make some amendments to the Insolvency Act 2006 on the following:

• preventing fraudulent debts under the new No Asset Procedure (NAP) from being potentially cancelled when a person is discharged from that process;
• allowing the Official Assignee (OA) to extend the time period that a debtor is in the NAP process;
• strengthening of the insolvent gift provisions to enable the OA to cancel gifts made by a debtor in the period leading up to his or her bankruptcy; and
• providing improved access to the NAP and bankruptcy public registers to enable creditors to make informed lending decisions.

Click here for further information

Australia-New Zealand insolvency law programme
Following a meeting in Canberra on 18 March, Senator Nick Sherry, Australian Minister for Superannuation and Corporate Law and the Hon Simon Power, New Zealand Minister of Commerce issued a joint media statement announcing that both countries would immediately commence an examination of the trans-Tasman cross-border insolvency arrangements. This will cover all aspects of both countries' insolvency regimes, including:

• streamlining the recognition of cross-border insolvency proceedings;
• addressing the possibility of forum-shopping;
• facilitating information gathering;
• securing and realisation of property;
• dealing with attempts at corporate reorganisation;
• improving coordination between concurrent administrations;
• providing court and administrative assistance to practitioners;
• improving dispute resolution;
• addressing any regulatory gaps; and
• improving transparency and certainty under the trans-Tasman arrangements.

This agreement follows the passage by the Australian government of the Cross-Border Insolvency Act 2008 and New Zealand's earlier legislation, Insolvency (Cross-border) Act 2006, both of which implemented the United Nations Commission on International Trade Law's Model Law on Cross-Border Insolvency.
Click here to read the full press release

Government to amend section 92A of the Copyright Act
Prime Minister John Key announced at a post-cabinet press conference on 23 March that Cabinet had agreed that section 92A of the Copyright Act was not going to come into force as originally written. (See Copyright (New Technologies) Amendment Act 2008 Commencement Amendment Order (No 2) 2009). Section 92A would have required internet service providers (ISPs) to have a policy to terminate the internet account of repeat copyright infringers in appropriate circumstances. Cabinet acknowledged the need for legislation in this area but has decided to re-examine the legislation to address concerns of stakeholders and the government.
Click here for more

New member of the Capital Market Development Taskforce
Investment writer and commentator Mary Holm has joined the Capital Market Development (CMD) Taskforce. The CMD Taskforce is currently working on a plan for developing New Zealand's capital markets.
Click here for more
Click here for more information on the CMD Taskforce

The Department of Internal Affairs

Minister releases report of Royal Commission into Auckland Governance
On 27 March, Local Government Minister Rodney Hide released the Report of the Royal Commission into Auckland Governance. The commission proposes the dissolution of the Auckland Regional Council and all seven territorial authorities existing in Auckland, and the creation of a new single unitary authority called the Auckland Council. In addition to the elected governing body of the Auckland Council, local democracy will be maintained through six elected local councils operating within the unitary Auckland Council. Local councils will oversee the delivery of services by Auckland Council staff and will undertake local engagement in four urban and two rural districts.

The Auckland Council will be led by a mayor who is elected by all Aucklanders. The Mayor of Auckland will have greater executive powers than currently provided under the Local Government Act 2002, although these additional powers will still be more modest than in many international models of mayoralty. The Auckland Council will comprise 23 councillors, 10 of whom will be elected regionally by all Aucklanders. Eight councillors will be elected in four urban wards. Two will be elected in two rural wards. Provision has also been made for the election to the Auckland Council of two councillors by voters on the Maori electoral roll; and one councillor appointed by mana whenua through a mechanism specified by the commission in its report. The commission expects that the Auckland Council functions will centre on regional policy, investment, and planning; regional infrastructure and networks; and service delivery. The Auckland Council will also provide administrative services for itself and local councils for all back-office functions, including setting and collecting rates, accounting, treasury, asset management and other financial functions, human resources, payroll, and computer systems.

Prime Minister John Key has noted that the government is working on the commission's report as a matter of urgency because preparations need to be underway within weeks if the Auckland region is to be operating under a new governance structure in time for local body elections in 2010.
Click here to read the press release
Click here to access all information on the Royal Commission including an executive summary, the commission's full report, media releases, background information and useful links

Companies Office

Retrieve PPSR Financing Statement PINs online
The PPSR will soon provide clients with the ability to retrieve their Financing Statement (FS) PINs online. The new online service will enable Secured Party Groups who have misplaced their FS PINs to be emailed a list of their FS numbers along with their corresponding PINs.
Click here for more

New business industry description and code search available online
The Companies Office is introducing a search engine that will allow clients to search using keywords for their Business Industry Description and corresponding Business Industry Code.
Click here for more

Securities Commission

Commission finds disclosure in financial reporting 'satisfactory'
The Securities Commission has released its report on Cycle 8 of its Financial Reporting Surveillance Programme. The commission reviewed reports of 40 issuers which included a mix of listed and unlisted entities. All of the reports were prepared under the New Zealand Equivalents to International Financial Reporting Standards. The commission wrote to 35 issuers to seek clarification on a range of matters. The main areas identified where disclosure needed improving were:

• valuation and fair values;
• intangible assets;
• impairment of assets
• financial instruments;
• definition and classification of cash flows;
• management judgements and estimates; and
• related party transactions and key management personnel compensation.

Click here to read the report

Commission reviewing corporate governance disclosure
The Securities Commission has announced that is now reviewing reporting by issuers on their corporate governance as part of its ongoing financial reporting surveillance programme. The review involves assessing annual report and website disclosures of selected issuers against nine principles covering the core elements of good corporate governance.  The principles are set out in a corporate governance handbook for directors, executives and advisers, published by the Securities Commission in 2004. The commission will publicly report on the findings from this review and write to issuers in cases where disclosure can be improved.
Click here to read the news release

New Zealand's capital markets and the global financial crisis
Jane Diplock AO Chairman, Securities Commission New Zealand and Executive Committee, IOSCO gave a presentation to the Institute of Finance Professionals New Zealand Finance & Treasury Forum in Auckland on 17 March in which she outlined issues relating to the global crisis and its effects on New Zealand's capital markets. The presentation also mentions the initiatives being taken in New Zealand to improve access to capital for businesses and to reduce the costs of raising capital arising from the Capital Markets Development Taskforce interim report released in November 2008. Diplock notes that the commission decided in February 2009 to extend the scope of its current share purchase exemption (the Securities Act (NZX - Share and Unit Purchase Plans) Exemption Notice 2005) by increasing the amount that can be raised from existing shareholders, but final details for this are still being settled. She also noted that changes to the NZX Listing Rules were submitted to the Minister of Commerce in late February. The commission is advising the minister on public interest issues arising from the proposed listing rule changes on an urgent basis.
Click here for the transcript of the speech
Click here for Bell Gull commentary on the Securities Commission's proposed changes for share purchase exemptions
Click here for Bell Gully commentary on proposed changes to the Listing Rules

SECURITIES ACT EXEMPTION NOTICES

The following Securities Act Exemption Notices have been published for this period:

Securities Act (ING (NZ) Administration Pty Limited) Exemption Amendment Notice 2009
This notice, which came into force on 19 March 2009, amends the Securities Act (ING (NZ) Administration Pty Limited) Exemption Notice 2008 (the principal notice). The principal notice exempts ING (NZ) Administration Pty Limited (ING), from clause 4(1)(a) of Schedule 7 of the Securities Regulations 1983. This means that ING did not have to hold an annual meeting on or before 31 December 2008 to consider the financial statements of the ING Diversified Yield Fund and the ING Regular Income Fund (the schemes) for the year ending 30 June 2008. The conditions of the exemption require ING to summon a meeting to consider those financial statements on or before 31 March 2009. This notice:

• extends the expiry of the principal notice for 3 months; and
• further extends, until 30 June 2009, the time for ING to hold a meeting to consider the financial statements of the schemes for the year ending 30 June 2008; and
• adds further conditions of the exemption.

Securities Act (Short Form Prospectus) Exemption Notice 2009 (2009/50)
This notice (the 2009 Exemption), which came into force on 23 March, replaces with amendments the Securities Act (Short Form Prospectus) Exemption Notice 2002. The 2009 Exemption retains the existing exemptions in the 2002 notice on the existing conditions. The principal differences between the 2002 notice and the 2009 Exemption are:

• Issuers can now use the short form prospectus exemption where they have relied on provisions introduced into the Companies Act 1993 in June 2007 under which companies could make their annual report available to shareholders by advising them of their right to receive an annual report rather than sending the report.
• The conditions of the 2009 Exemption in respect of offers of guaranteed convertible securities differ slightly, to require the financial statements that are disclosed to comply with generally accepted accounting practice.
• The 2009 Exemption allows condensed interim financial statements which comply with NZ IAS 34 to accompany the short form prospectus, rather than full form interim financial statements which comply with the all of the requirements of New Zealand generally accepted accounting practice.

Click here for Bell Gully commentary on the 2009 Exemption

Securities Act (General Electric Company) Exemption Notice 2009
This notice exempts General Electric Company (General Electric) and its subsidiaries, and holders or offerors of previously allotted securities, (subject to conditions) in relation to securities offered to employees and directors of General Electric and its subsidiaries under an employee share purchase scheme. The exemption is from the prospectus and investment statement requirements of the Securities Act 1978 (but not the requirement for offers to be made in an authorised advertisement), the obligation to appoint a statutory supervisor and enter into a deed of participation, and certain other requirements of the Securities Act 1978 and the Securities Regulations 1983 (except regulation 8).

Takeovers Panel

TAKEOVERS CODE EXEMPTION NOTICES

The following Takeovers Code Exemption Notices have been published for this period:

Takeovers Code (Cynotech Holdings Limited) Exemption Notice 2009
This notice applies to acts or omissions occurring on or after 2 December 2008 and expires on 31 December 2011. Cynotech Holdings Limited (Cynotech) is a code company. The Takeovers Panel has granted retrospective exemptions to:

• certain shareholders of Cynotech (which includes Cynotech Securities Limited, Newmarket Securities Limited, 13 members of the Hawkins family, and Cathy Hutchinson (the specified persons)) from rule 7(d) of the Takeovers Code in respect of the allotment of voting securities in Cynotech resulting from the conversion of convertible preference shares and the exercise of warrants held by the specified persons, to the extent that the notice of meeting of shareholders of Cynotech to approve the allotment of the voting securities did not comply with rule 16(b) of the Code; and
• Cynotech from rule 16(b) of the Code in respect of the notice of meeting.

Takeovers Code (Speirs Group Limited) Exemption Notice 2009
Between June 2002 and August 2008 a number of transactions occurred that resulted in members of the Speirs family increasing their control percentage in Speirs Group Limited. These transactions included the acquisition of voting securities on-market, the transfer of voting securities from individuals to a family trust, and intra-family transfers. It is accepted that there are grounds on which it could be asserted that one or more of the Speirs family members involved in the transactions were associates of each other for the purposes of the Takeovers Code at the time of the transactions. This notice exempts retrospectively from rule 6(1) of the Code, certain members of the Speirs family in respect of those transactions. It is a condition of the exemption that enforceable undertakings given by members of the family to dispose of a number of securities equivalent to the total number acquired by the exempted persons in apparent breach of the Code are complied with.

Takeovers Code (BLIS Technologies Limited) Exemption Notice 2009
This notice relates to a pro rata renounceable rights issue proposed by BLIS Technologies Limited (BLIS). It applies to acts or omissions occurring on or after 13 March 2009 and expires on 31 May 2012. The Takeovers Panel has granted exemptions for:

• Edinburgh Equity Nominee Limited (Edinburgh) from rule 7(d) of the Takeovers Code to the extent that rule 7(d) requires the notice of meeting to be in accordance with rule 16(b) of the Code. The exemption from rule 7(d) is in respect of any increase of voting rights held by Edinburgh in BLIS as a result of the allotment of voting securities to Edinburgh on conversion of mandatory cumulative preference shares to be allotted to it under the rights issue, some associated underwriting arrangements, and an associated option; and
• BLIS from rule 16(b) of the Code in respect of the notice of meeting.

Treasury of the Commonwealth of Australia

Action on golden handshakes
On 18 March 2009, Treasurer Wayne Swan, and Minister for Superannuation and Corporate Law Senator Nick Sherry announced reforms aimed at curbing excessive "golden handshakes" - or termination payments - paid to company executives. The government will amend the Corporations Act to significantly lower the threshold at which termination payments must be approved by shareholders. The current threshold is up to seven times total annual remuneration. Under the government's reform, approval will be required for any termination payment exceeding one year's base salary. The government will also legislate to extend the range of executives whose termination payments can be subject to shareholder approval and broaden the definition of "termination benefit" to catch all types of payment and rewards given at termination.
Click here for the full press release

Regulation of director and executive remuneration in Australia
In addition to the reforms aimed at curbing excessive "golden handshakes" noted above, the Australian Government has referred the broader issue of executive remuneration to the Productivity Commission. The commission has been asked to undertake a public inquiry into the regulatory framework around remuneration of directors and executives of companies regulated under the Corporations Act. Specifically, the commission will consider:

• trends in director and executive remuneration in Australia and internationally;
• the effectiveness of the existing framework for the oversight, accountability and transparency of director and executive remuneration practices;
• the role of institutional and retail shareholders in the development, setting, reporting and consideration of remuneration practices;
• any mechanisms that would better align the interests of boards and executives with those of shareholders and the wider community; and
• the effectiveness of the international responses to remuneration issues arising from the global financial crisis.

The final report will be submitted to the Australian Government by 18 December 2009.
Click here for more

Corporate governance and financial performance in an Australian context
The Treasury has released a Working Paper that examines the relationship between a company's adoption of the Australian Securities Exchange Corporate Governance Council's Principles of Good Corporate Governance and Best Practice Recommendations (ASX Corporate Governance Principles) and its financial performance in the areas of shareholder performance, operating performance and one year sales growth for the top 300 Australian listed companies. The paper includes the following sections:

• A literature review of related studies conducted in the US, Australia, Germany, Great Britain, Korea and Switzerland.
• An outline of the recent reforms to corporate governance in Australia, providing a detailed explanation of the ASX Corporate Governance Principles and the motivation behind their introduction.
• A description of the study's data sources and summary statistics.
• The study's findings and a discussion of the empirical relationships between corporate governance and financial performance.
• Areas for further research.

The paper concludes that the study found companies with better corporate governance outperform poorly governed companies, particularly in relation to earnings per share and return on assets. The results also indicate that companies may find it beneficial to focus their efforts on improving corporate governance in the areas of board composition, remuneration, the formation of committees (that is, board, audit and remuneration committees), and those principles related to the structure of the company. However, data limitations prevented any causal inferences from being made.
Click here to read the full report

New Zealand Commerce Commission (NZCC)

Media releases

The NZCC has issued the following media releases:

• Commerce Commission - new Chair
  The NZCC has appointed a new Chair, Dr Mark Berry. Dr Berry, a specialist in competition law and economic regulation, was Deputy Chair of the commission between 1999 and 2001.
  Click here for more

Industry regulation and regulatory control

• Commerce Commission releases consultation document on Kaimai and Grate Kiwi disputes with Fonterra
  The NZCC has released a consultation document regarding disputes between Fonterra Co-operative Group Limited and both Kaimai Cheese Company Limited and The Grate Kiwi Cheese Company Limited.
  Click here for more

• Commerce Commission releases draft guidelines for credit fees
  The NZCC has released draft guidelines which inform creditors and consumers about the commission's approach to enforcing the fees provisions under the Credit Contracts and Consumer Finance Act. The commission is consulting on the guidelines before they are finalised.
  Click here for more

Mergers and acquisitions

• Commerce Commission consults on streamlined authorisation process guidelines
  The business and legal communities are being asked for input on a set of draft guidelines that outline a new authorisation process. After considering feedback, the commission will publish the finalised guidelines.
  Click here for more

Market behaviour

• Commerce Commission issues warning to Real Estate Network
  The NZCC has warned the Real Estate Network Limited (REN) that it and its members risk breaching the Commerce Act. REN is a cooperative company representing approximately 95 per cent of licensed residential real estate agents in and around Christchurch. Last year it adopted a by-law setting a minimum for commissions payable between its members.
  Click here for more

• Commerce Commission warns Schindler Lifts over alleged bid-rigging conspiracy
  The NZCC has issued formal warnings to Schindler Lifts New Zealand Limited (Schindler) and one current and one former employee for participating in a longstanding cartel arrangement which shared elevator installation contracts in the South Island. The NZCC alleges the cartel operated from the early 1980s until late-1995. The warning was issued following an admission from the Schindler manager concerned.
  Click here for more

Telecommunications

• Commerce Commission releases draft review of backhaul services
  The NZCC has released a draft report on backhaul services. Backhaul is the final link connecting competitors to Telecom's local loop, so those companies can provide services such as landlines and broadband to households.
  Click here for more

• Commerce Commission responds to mobile termination undertakings
  The NZCC has given feedback to three telecommunications companies on their proposed undertakings for mobile termination access services. The undertakings were submitted to the commission as an alternative to regulation.
  Click here for more

• Commerce Commission releases final requirements for regulatory financial reporting by Telecom
  The NZCC has issued the regulatory requirements for the accounting separation of Telecom. Under the requirements, Telecom must publish financial and other information about its retail, wholesale and network business activities. This information will be publicly available and is designed to inform a wide range of people about the operation and behaviour of Telecom's business activities.
  Click here for more

• Commerce Commission defers decision on national roaming investigation
  The NZCC has announced that it is deferring its decision on whether to investigate extending the regulation of the national mobile roaming service to include price.
  Click here for more

• Commerce Commission releases quarterly report on broadband quality
  The Epitiro/IDC report on New Zealand broadband quality for the December 2008 quarter has been released. The report examines the quality of broadband services provided by New Zealand's internet service providers as measured by Epitiro from central sites using the highest speed residential plans.
  Click here for more

Consumer issues

• Court of Appeal upholds commission's ability to pursue overseas residents
  The Court of Appeal has confirmed the New Zealand courts' jurisdiction over overseas residents alleged to have breached the Commerce Act.
  Click here for more

• Commerce Commission files waste oil domestic cartel case
  The NZCC has filed proceedings in the High Court in Auckland alleging the collusive fixing of prices in the waste oil industry.
  Click here for more

Australian Competition and Consumer Commission (ACCC)

ACCC media releases

The ACCC has issued the following media releases:

Mergers and acquisitions

• ACCC not to oppose proposed acquisition by Chinalco of interests in Rio Tinto
  The ACCC will not oppose the proposed acquisition by the Aluminium Corporation of China of various interests in Rio Tinto plc and Rio Tinto Limited as it would be unlikely to result in a substantial lessening of competition.
  Click here for more
  
  
• ACCC calls for comment on the proposed merger of the Australian mobile operations of Vodafone and Hutchison
  The ACCC has issued a Statement of Issues on the proposed merger of the Australian mobile operations of Vodafone and Hutchison.
  Click here for more
  

Market behaviour

• ACCC allows Wizard franchisees to collectively bargain with Aussie on terms of a new franchise agreement
  The ACCC has not objected to the collective bargaining notifications lodged by a group of franchisees of Wizard Home Loans in relation to negotiating aspects of franchise agreements with Aussie Home Loans and GE Money.
  Click here for more
  
  
• ACCC sinks illegal resale price maintenance
  The Federal Court of Australia has imposed penalties of more than $200,000 on Australia's largest manufacturer of aluminium boats for engaging in resale price maintenance.
  Click here for more
  
  
• ACCC considers collective bargaining by newsagents is in public interest
  The ACCC proposes to grant authorisation to collective bargaining arrangements designed to give newsagents a greater voice in the terms and conditions they receive from publishers and distributors of newspapers and magazines.
  Click here for more
  
  
• ACCC sees benefits in electricity works civil contractors accreditation scheme
  Five electricity distribution-network operators in Victoria are seeking authorisation from the ACCC for a proposal requiring civil contractors to be pre-qualified and approved in order to perform work on electricity infrastructure projects.
  Click here for more
  
  
• ACCC sees benefit in short-term exclusive arrangement for Woolworths' pay at pump facility
  The ACCC has decided not to oppose an exclusive arrangement between Woolworths and HSBC. Under the arrangement, the Woolworths Everyday Money Credit Card issued by HSBC, will be the only payment option at Woolworths' new contactless pay at pump facility for a limited period of time.
  Click here for more
  
  
• SA chicken growers to collectively bargain with Inghams
  The ACCC has allowed 18 chicken growers in South Australia to seek to collectively negotiate the terms and conditions of their growing contracts with Inghams Enterprises.
  Click here for more
  
  
• ACCC allows owner drivers in South-East Queensland to collectively negotiate
  Owner drivers have been granted authorisation to enable them to collectively negotiate the terms and conditions upon which they provide earthmoving services in the commercial and civil construction sectors in south-east Queensland.
  Click here for more
  
  
• ACCC proposes to authorise ATM sub-network fee free agreement
  The ACCC has proposed authorising an agreement between members of an ATM sub-network not to charge each others cardholders a fee for transactions at ATMs owned by members.
  Click here for more
  

Telecommunications

• Telcos told: raise standards or risk ACCC action
  The telecommunications industry must raise its standards in its treatment of consumers or risk increased ACCC scrutiny and action, ACCC Chairman Graeme Samuel has warned.
  Click here for more
  
  
• ACCC institutes proceedings against Telstra for alleged breach of standard access obligations
  The ACCC has instituted proceedings in the Federal Court in Melbourne against Telstra Corporation Limited for alleged contraventions of the Trade Practices Act 1974 and the Telecommunications Act 1997 in relation to its standard access obligations for the Unconditioned Local Loop Service and Line Sharing Service.
  Click here for more
  

Access

• ACCC commences declaration review for DDAS and ISDN
  The ACCC will hold a public inquiry to review the digital data access service (DDAS) and integrated services digital network (ISDN) declarations in regional areas.
  Click here for more
  
  
• ACCC proposes access arrangements for digital radio
  The ACCC will consult on a proposed access arrangement for the transmission service necessary for digital radio services, which are due to begin in Adelaide, Brisbane, Melbourne, Perth and Sydney no later than 1 July 2009.
  Click here for more
  
  
• ACCC issues MTAS pricing principles and indicative prices for 2009-2011 and draft MTAS declaration report
  The ACCC has issued final pricing principles and indicative prices for the domestic mobile terminating access service for the period 1 January 2009 to 31 December 2011.
  Click here for more
  
  
• ACCC issues final report on review of transmission declaration
  The ACCC has issued its final declaration report for the domestic transmission capacity service.
  Click here for more
  
  
• ACCC issues report on airport performance
  The ACCC has issued its annual airport monitoring report. Under the monitoring arrangements as set out by the Australian Government, the ACCC is responsible for reporting annually on quality of service relating to the supply of aeronautical services and facilities at Adelaide, Brisbane, Melbourne, Perth and Sydney airports, as well as aeronautical prices, costs and profits.
  Click here for more
  

Consumer issues

• Sports arbitrage - a fast way to lose your bucks
  The Australian Consumer Force Taskforce has warned consumers that getting involved in sports arbitrage is a fast way to lose money. The ACCC has received large numbers of complaints about promoters of such schemes.
  Click here for more
  
  
• Better protection for Australian consumers
  Monetary penalties for civil offences under the proposed Australian Consumer Law would enhance the ACCC's ability to protect consumers through better and more timely outcomes.
  Click here for more
  
  
• Company director 'knowingly concerned' in false nappy biodegradability claims
  The Federal Court of Australia has declared that a director who approved her company's advertising had been knowingly concerned in the company's misleading conduct.
  Click here for more
  
  
• Federal Court makes call on phone card advertising: False, misleading and deceptive
  Tel.Pacific had misled and deceived consumers over its international pre-paid phone card products, the Federal Court has found.
  Click here for more
  
  
• Black & Decker repeats 'Made in Australia' mistake
  For the second time, Black & Decker has supplied a sanding product incorrectly labelled as 'Made in Australia'.
  Click here for more