The Bell Gully Regulator Report lists recent changes, decisions and developments at the main New Zealand and Australian corporate, commercial and competition regulatory bodies. This edition covers the period from 14 November to 5 December 2007. For further details on any matter in this report, just click on the hyperlink below each item.

As this is our last issue for the year, we would like to take this opportunity to wish you all the very best for the holiday season and the New Year. Regulator Report will be back in February 2008.

Ministry of Economic Development (MED)

Review of Financial Products and Providers
In 2005 the Government announced a four-stage review of the regulation of non-bank financial products and providers to develop an effective and consistent regulatory framework and promote confidence and participation in sound and efficient financial markets. The latest development in the review is the introduction of the Reserve Bank of New Zealand Amendment Bill (No.3), which will require all deposit-takers to be licensed by the Reserve Bank of New Zealand.
To view a copy of the Bill click here
For a Bell Gully summary of the main aspects of the Bill click here

Government announces start date for new securities law
Cabinet has finally approved the regulations giving effect to the remaining changes to the securities law made when the Securities Legislation Bill was passed in October 2006. Market participants have been told they have three months to prepare for the implementation of the new law on 29 February 2008.

Most of the amendments to the Securities Act 1978 and the Takeovers Act 1993 made under the omnibus Securities Legislation Bill came into effect after it was passed last year. However, four key components of the new securities law have been kept on hold pending the approval of regulations. These include a new law on market manipulation, new disclosure requirements for investment advisers, changes to the insider trading law, and some minor changes to the substantial security holders' disclosure regime. These changes are set out in the Securities Markets Amendment Act 2006 and its accompanying regulations. Some outstanding provisions in the Securities Amendment Act 2006, the Takeovers Amendment Act 2006 and the Fair Trading Amendment Act 2006 (which have been dependent on the implementation of the Securities Markets Amendment Act) will also come into effect on 29 February 2008. The regulations enacted by Order in Council on 3 December are:

• the Securities Markets (Substantial Security Holders) Regulations 2007;
• the Securities Markets (Market Manipulation) Regulations 2007; and
• the Securities Markets (Investment Advisers and Brokers) Regulations 2007.

For the media release and access to these regulations click here

Greater certainty for businesses after Commerce Act review
On 22 November the Government announced its proposed changes to the regulatory control provisions (Parts 4 and 4A) of the Commerce Act following public consultation earlier in the year. Legislation to implement the changes will be introduced in 2008.

The Commerce Act Part 4 allows goods and services to be placed under price control and/or quality control where there is limited or lessened competition, and control would be in the interests of acquirers. Part 4A applies a 'thresholds' regime for electricity lines businesses, which enables price and quality control to be imposed if businesses breach thresholds set by the Commerce Commission. Under the proposed new regime Parts 4 and 4A come together in a single regulatory framework and include more clarity about how regulation will occur, introduce alternatives to price control, tailor the regime to New Zealand's small size and provide specifically for incentives to invest in infrastructure. The test for whether regulation may be imposed under the new regime becomes whether:

• there is little or no competition and prospect of competition and there is substantial scope for the exercise of market power, taking into account the effectiveness of existing regulation or arrangements; and
• the benefits of regulation in meeting the objectives of the (new) purpose statement clearly exceed the costs of regulation.

Key changes include:

• introducing powers to impose lighter-handed forms of incentive-based regulation, as an alternative to price control, such as information disclosure and encouragement for the negotiation/arbitration of outcomes;
• development and setting of input methodologies as soon as possible and as a standalone process; and
• providing for merits review by way of appeal to the High Court of the Commerce Commission's decisions on input methodologies.

Electricity Lines Businesses
The proposed amendments for electricity lines businesses include replacing the threshold regime within Part 4A with a default/customised price-quality path regime. This would require the Commission to specify a default price-quality path for the sector (similar to the setting of thresholds), which would provide an ex-ante, time-bound opportunity for an individual firm to seek a customised path. It is also proposed that 100% trust-owned electricity lines businesses would be subject to lighter-handed regulation.

Click here to read the Cabinet Paper on the review of Parts 4 and 4A
Click here to read the regulatory impact statement of the review of Parts 4 and 4A
Click here to read the media statement

Regulatory changes for airports after Commerce Act review
In addition to the proposed amendments to the Commerce Act noted above, the MED has released a Cabinet Paper recommending strengthening the economic regulation of Auckland, Wellington and Christchurch international airports, in response to submissions made on the review of Parts 4 and 4A of the Commerce Act. The current regulatory regime for airports comprises: information disclosure, a requirement to consult, a statutory right to set charges as they see fit under the Airport Authorities Act, and the threat of price control under the Commerce Act. The recommendation is for the current regime to be replaced with enhanced disclosure requirements, which would include information on how airport charges are set based on binding input methodologies developed by the Commerce Commission, along with active monitoring of the disclosed information by the Commerce Commission under the Commerce Act. Amending legislation is expected to be introduced in 2008 and it is envisaged that the new regime will be in place by 2010.
Click here to read the Cabinet Paper
Click here to read the media statement

Amendments to Trade Marks and Copyright Acts proposed
On 16 November, the Minister of Customs and Associate Minister of Commerce announced amendments will be made to the Trade Marks and Copyright Acts to enable Customs to take discretionary prosecutions against importers of counterfeit and pirated goods. Amendments will be included in the Trade Marks (International Treaties and Enforcement) Amendment Bill to be introduced early next year.
Click here to read the media statement

Improving New Zealand's investment environment
MED officials this year led a project to explore the role of New Zealand's financial system in the internationalisation of firms, and whether a more effective investment market could help New Zealand take its share of the benefits of a globalised market. A report on their findings was prepared to stimulate discussion in advance of a forum of business people and financial market participants that was held in Wellington on 27 November 2007.
Click here to access the report

Securities Commission

New securities law soon to be in place
On 9 November Neville Thompson of the Securities Commission spoke at the Financial Market Operations Association 2007 Conference on developments in New Zealand's securities market regulation over the last seven years. The speech includes an overview of the new securities law which comes into effect on 29 February 2008.
Click here to read the speech

Guide to New Securities Law 2008
The Securities Commission is preparing a Guide to the New Securities Law 2008, which will explain the changes made to the Securities Act 1978 and the Securities Markets Act 1988. In particular, it will cover changes made to the insider trading law, new law on market manipulation, changes relating to substantial security holder disclosure, and new law relating to investment adviser disclosure. The Commission plans to make the guide available electronically from its new securities law website (www.newsecuritieslaw.govt.nz) before the end of the year, and in hard copy by mid-January 2008.

Securities Act Exemption Notices

The following Securities Act Exemption Notices have been published:

• Securities Act (ABN AMRO Australia Pty Limited) Exemption Notice 2007
  This notice exempts ABN AMRO Australia Pty Limited, a company incorporated in Australia, from clause 4(1)(a) of Schedule 7 of the Securities Regulations 1983 to the extent that it applies to the holders of units in a particular Australian unit trust. The effect of the exemption is that ABN AMRO does not have to summon holders of the units to annual meetings to consider the financial statements of the unit trust. The relevant units, in respect of which the exemption is granted, are intended to be offered to the public in New Zealand, but not in Australia.

• Securities Act (Goodman (NZ) Limited) Exemption Notice 2007/340
  This notice exempts Goodman (NZ) Limited from certain provisions of the Securities Regulations 1983, subject to conditions, in respect of offers of units in the Goodman Property Trust. Specifically, the notice entitles Goodman (NZ) Limited to exclude some commercially sensitive information from the copies of supplemental letters from various banks that are attached to the registered prospectus.

• Securities Act (Canterbury Building Society) Exemption Notice 2007/350
  This notice exempts Canterbury Building Society (CBS), subject to conditions, from sections 33(3) and 53 to 53F of the Securities Act 1978 and relevant provisions of the Securities Regulations 1983, in respect of a proposed merger between CBS and Loan and Building Society (LBS). This will enable CBS, a building society registered under the Building Societies Act 1965, to make disclosure about the offer of its shares under the merger with LBS using the amalgamations provisions of Part 13 of the Companies Act 1993, as if CBS were a company.

• Securities Act (Canterbury Building Society) Exemption Notice (No 2) 2007/360
  This notice amends the Securities Act (Canterbury Building Society) Exemption Notice 2007 noted above by changing the expiry date of that notice from 31 December 2007 to 29 February 2008. The merger has not yet occurred and CBS has informed the Securities Commission that it requires more time to allow it to complete interim financial statements that are prepared in accordance with the Financial Reporting Act 1993, as if they were required to be registered under that Act.

• Securities Act (Fulton Hogan Limited) Exemption Notice 2007/358
  This notice exempts Fulton Hogan Limited and its subsidiaries (subject to conditions), in respect of equity securities issued by Fulton Hogan that are under its employee share purchase scheme from section 37A(1)(c) of the Securities Act 1978 and from relevant provisions of the of the Securities Regulations 1983, to allow Fulton Hogan to use an evergreen prospectus.

• Securities Act (Crédit Agricole S.A.) Exemption Notice 2007/351
  This notice exempts Crédit Agricole S.A., subject to conditions from regulation 3(2) of the Securities Regulations 1983 to the extent it requires certain information, statements, certificates, and other matters specified in Schedule 2 of the regulations to be contained in the registered prospectus, in respect of debt securities issued by Crédit Agricole.

• Securities Act (New Zealand Post Limited Pre-paid Debit Cards) Exemption Notice 2007/357
  This notice exempts New Zealand Post Limited, subject to conditions from certain provisions of the Securities Act 1978 and the Securities Regulations 1983, in respect of pre-paid debit cards issued by New Zealand Post Limited.

To view a list of all of the Securities Act Exemption Notices currently in force click here

Takeovers Panel

Takeovers Panel publishes reasons for Kerifresh decisions
The Takeovers Panel has published the reasons behind the decisions released on 9 November 2007 in relation to Kerifresh Limited. The Panel's decisions were made following a meeting on 7 November to consider matters raised in a complaint to the Panel about Kerifresh's trading activities. Background details of the Kerifresh decisions are in the last issue of Regulator Report.
To read the Takeovers Panel's statement of reasons click here

Takeovers Code Exemption Notices

The following Takeovers Code Exemption Notice has been published for this period:

Takeovers Code (Te Kairanga Wines Limited) Exemption Notice 2007
This notice relates to Te Kairanga Wines'(TKW) proposal to make a renounceable pro rata 3 for 2 rights issue of approximately 4.5 million ordinary shares to its existing shareholders. The Takeovers Panel has granted exemptions to Rangatira Limited, Hettinger Nominees Limited (both shareholders and underwriters of the rights issue) and TKW. TKW intends to obtain shareholder approval, in accordance with the Takeovers Code, for the potential allotment of shares to Rangatira and Hettinger under the underwriting agreement. The exemptions are required because TKW cannot comply with rule 16(b) of the Code, in respect of certain notice requirements before completion of the issue.

To view a list of all of the Takeovers Code Exemption Notices currently in force click here.

Ministry for the Environment

Climate Change (Emissions Trading and Renewable Preference) Bill
The Government tabled the Climate Change (Emissions Trading and Renewable Preference) Bill on 4 December. The bill's principal purpose is to amend the Climate Change Response Act 2002 to introduce a greenhouse gas emissions trading scheme in New Zealand. It also amends the Electricity Act 1992 to create a preference for renewable electricity generation by implementing a 10-year moratorium on new fossil-fuelled thermal electricity generation, except to the extent necessary to ensure the security of New Zealand's electricity supply. The Government has produced a factsheet on the bill.
To access the bill, the factsheet and related information click here

Board of Inquiry announces pre-hearing timetable and commencement date for hearing on Upper North Island Grid Upgrade Proposal
The Board of Inquiry has made public the submissions received by the Minister and a pre-hearing timetable on Transpower's proposal for a new electricity line in the upper North Island. The hearing on the proposal is expected to start on 25 March 2008.
For further information click here

NZX

AXE falls on ASX objections to competition
AXE ECN, a joint venture between NZX, Citi, CommSec, Goldman Sachs JBWere, Macquarie Securities and Merrill Lynch, has brought forward the launch of its new electronic order book and matching engine to trade ASX-listed securities. This follows the Australian Securities and Investment Commission's (ASIC) Consultation Paper (No. 86 – July 2007) on competition for market services, which shows widespread support for an injection of competition into the market. ASIC has now released its second Consultation Paper on Market Services, which focuses on resolving a narrow set of remaining issues and aims to deliver a positive regulatory landscape for market participants. AXE ECN encourages market participants to evaluate ASIC's paper and make positive submissions.
Click here to read the media release

New Zealand Commerce Commission (NZCC)

Media releases

The NZCC has issued the following media releases:

Industry Regulation and Regulatory Control

• Electricity Industry Reform Act: Commission grants exemption to Lloyd Morrison
  The NZCC has granted Lloyd Morrison an exemption under section 17 the Electricity Industry Reform Act 1998 in relation to his potential appointment to the board of Auckland International Airport Limited, an electricity lines business. Mr Morrison is already a Director of Wellington International Airport Limited and TrustPower Limited, both electricity supply businesses.
  Click here for more

Mergers and Acquisitions

• The Warehouse High Court decision
  The NZCC has noted its disappointment with the High Court's decision allowing the appeals of the three Foodstuffs co-operatives and Woolworths Ltd against the NZCC's decision declining clearance for either party to acquire The Warehouse. The NZCC is studying the judgment and will consider whether it will appeal the decision. (Bell Gully advised Woolworths Ltd in its application to the NZCC for clearance to acquire The Warehouse and in its subsequent appeal to the High Court over the NZCC's decision to decline that application.)
  Click here for more

• Court of Appeal confirms that NZ Bus acquisition of Mana Coach shares breached Commerce Act
  The Court of Appeal has upheld a High Court ruling that New Zealand Bus Limited (NZBL) breached section 47 of the Commerce Act (which prohibits business acquisitions that are likely to substantially lessen competition) when its offer to purchase 74% of Mana Coach Services' shares became unconditional. All other issues raised in the appeal proceedings remain to be determined by the Court of Appeal. NZBL and its parent company, Infratil, appealed the High Court's decisions on liability, penalty and costs. The NZCC cross-appealed the level of penalty ordered against NZBL and the court's decision not to impose liability on Infratil.
  Click here for more

• Sumitomo Forestry applies for clearance to acquire Carter Holt Harvey MDF assets in Rangiora
  The NZCC has received an application from Sumitomo Forestry Co Limited seeking clearance to acquire all of the medium density fibre board (MDF) assets and business operations of Carter Holt Harvey Limited (Building Supplies Division) situated in Rangiora. The New Zealand operations of Sumitomo Forestry are undertaken by a wholly-owned subsidiary company, Nelson Pine Industries Limited, which manufactures MDF in Nelson and sells it under the brand name GoldenEdge MDF.
  Click here for more

• DFS Group Limited applies for clearance to acquire The Nuance Group
  The NZCC has received an application from DFS Group Limited seeking clearance to acquire 100% of the shares in The Nuance Group. DFS is a Hong Kong-based company that operates onsite and offsite airport duty free stores in Auckland and Christchurch. DFS is jointly owned by LVMH Moet Hennessy Louis Vuitton and Robert Miller. Nuance is jointly owned by GECOS/Gruppo PAM SpA and Stefanel SpA, and is based in Switzerland.
  Click here for more

• Reasons for Transpacific Industries being cleared (with divestments) to acquire parts of EnviroWaste Services
  The NZCC has released its reasons for granting clearance to Transpacific Industries to acquire certain South Island solid waste collection businesses of EnviroWaste Services.
  Click here for more

• Cadmus and Provenco apply for clearance to merge
  The NZCC has received an application from Cadmus Technology Limited and Provenco Group Limited (both listed on the NZSX) seeking clearance for a merger transaction through which Cadmus and Provenco will amalgamate under Part XIII of the Companies Act 1993. Cadmus designs, develops and implements electronic point-of-sale payment solutions for merchant businesses in New Zealand and overseas. Provenco is a supplier of technology to businesses in New Zealand and overseas, which focuses on electronic fund transfer at point of sale (EFTPOS) and payment solutions, and is now extending across a range of technology applications for the retail environment.
  Click here for more

• Whitcoulls cleared to acquire Borders
  The NZCC has cleared A&R Whitcoulls Group Holdings Pty Limited to acquire 100% of the shares in Borders New Zealand Limited. Whitcoulls is an Australian proprietary company and is owned by Pacific Equity Partners Pty Limited. Borders is a wholly-owned subsidiary of Borders Group Inc., which is listed on the New York Stock Exchange.
  Click here for more

Market Behaviour

• Commerce Commission initiates legal action against alleged cartel
  The NZCC has filed civil proceedings in the Auckland High Court against a New Zealand company, its Australian parent company and four executives for alleged cartel behaviour in New Zealand's corrugated fibre packaging industry. The companies are Visy Board (NZ) Limited and Visy Board Pty Limited. The NZCC is also prosecuting four executives - three former or current Visy executives and one former Amcor executive. The NZCC's allegations centre on customer sharing, price-fixing and bid-rigging in relation to the supply of corrugated fibre packaging in New Zealand from 2000-2004. Some of the allegations in the claim are similar to those recently concluded in the Australian courts between the Australian Competition and Consumer Commission and Visy.
  Click here for more

Telecommunications

• Commission releases September report on telecommunications markets
  The NZCC has released its September quarterly monitoring report containing key statistics about telecommunications markets in New Zealand and overseas. Recent amendments to the Telecommunications Act have empowered the NZCC to monitor competition in telecommunications markets and their performance and development. This fourth report from the Commission builds on the previous three. The Commission will publish an annual report in early 2008 with a more detailed analysis of the state of telecommunication markets in New Zealand.
  Click here to access the report

• Commission selects Epitiro to monitor broadband quality
  The NZCC announced it has selected Epitiro Technologies Ltd to provide data to measure the quality of broadband services being provided in New Zealand in order for it to measure the impact of competition in broadband offerings. Epitiro will provide data on up to 10 of the largest ISPs from multiple sites around the country. Additionally, from early next year, Epitiro will provide New Zealand consumers with the opportunity to measure their ISP performance from their own PC.
  Click here for more

Consumer issues

• Hill & Stewart guilty of 14 charges under Fair Trading Act
  Appliance retailer Hill & Stewart has been fined $75,000 and ordered to pay $2,070 in costs in the Auckland District Court on 14 charges under the Fair Trading Act 1986 including:
• 11 charges relating to advertising prices of products as being interest-free when in fact they were more expensive than the cash prices;
• two charges relating to false representations about the cost of a washing machine;
• one charge relating to a representation that washing powder was supplied free with the purchase of a washing machine when in fact the cost of the powder was incorporated into the price of the goods.
  Click here for more

• Court injunction granted against Discount Premium Holidays
  New Zealand company Discount Premium Holidays Ltd (DPH), its affiliated Australian companies Key 2 Communications Pty Ltd and 24 x 7 Direct Pty Ltd, and the director of all three companies, Devang Parikh, have been ordered to stop breaching the Fair Trading Act, as a result of an injunction sought by the NZCC. In addition to granting the injunction, the court has made orders under section 42 of the Fair Trading Act requiring DPH to disclose certain information when telemarketing to New Zealand consumers. The Commission also intends to file criminal proceedings against all the parties, with applications for orders for refunds to aggrieved consumers under s43 of the Act.
  Click here for more

• ALT TV settles with NZCC over text and competitions
  ALT TV, an independently owned television station based in Auckland, has settled with the NZCC and agreed that not disclosing the cost of text messages and misleading viewers over the nature of a prize offered in a competition, may have contravened sections 11 and 17 of the Fair Trading Act.
  Click here for more

• Credit card users get over $24m back
  American Express International (NZ) Ltd has become the ninth financial institution to plead guilty to breaching the Fair Trading Act by failing to properly disclose its currency conversion fees in relation to American Express credit card and charge card transactions between 1 June 2002 and 23 August 2004. The company has been fined $250,000 and agreed to pay $1.3 million in compensation to affected customers. American Express will also pay $80,000 in costs to the NZCC.
  Click here for more

• Discharge without conviction overturned
  The NZCC has been successful in overturning the discharge without conviction of Naresh Shukla, director of 230 Marua Limited, a leather furniture company.
  In June 2007 Naresh Shukla and his company 230 Marua each pleaded guilty in the Auckland District Court to six charges of breaching the Fair Trading Act relating to:
• advertising furniture as being on sale when the price was the same as before, during, and after the sale; and
• claiming that the leather lounge suites on sale for $3,000 were sold by other retailers for $6,000 when this was incorrect.

The company was fined but Mr Shukla was discharged without conviction on the basis that his overseas travel for business may be unduly hampered by a conviction and that the consequences of a conviction would be out of proportion to the gravity of the offence. On appeal, the High Court has found that the expert evidence established only a likelihood of nuisance to Mr Shukla, in that he would have to explain his convictions to foreign immigration authorities. Accordingly, his acquittal was set aside and he was convicted and discharged on all matters.
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 seeks comment on the proposed acquisition of Borders Australia
  The ACCC has issued a Statement of Issues on the proposed acquisition of Borders Australia by Angus & Robertson. It seeks further information on certain competition issues that have arisen from the ACCC's market inquiries. Submissions from the market were required by 5 December 2007.
  Click here for more

Market Behaviour

• ACCC proposes to update authorisation allowing limited international tariff agreements
  The ACCC has issued a draft determination proposing to grant substitute authorisation to Qantas Airways Limited for tariff arrangements with designated airlines that are required under Australia's air service agreements with other countries, subject to the authorisation only offering protection under certain circumstances. The ACCC is seeking submissions from interested parties.
  Click here for more

• Victorian abalone quota holders penalised over cartel
  The ACCC instituted proceedings against 19 parties alleging breaches of the Trade Practices Act 1974 and the Victorian Competition Code. It alleged an arrangement for collective action about the pricing and provision of abalone harvested from the central abalone fishery zone in Victoria by eight abalone quota holders. The Federal Court in Melbourne found that the conduct contravened the primary boycott and price-fixing provisions of the Act and the Code. The trial ended in October this year with the respondents admitting the contraventions. Penalties totalling $927,500 have been imposed on the individuals and companies involved.
  Click here for more

• $190,000 penalties on TEAC, sales manager, for resale price maintenance
  The Federal Court of Australia has imposed penalties totalling $190,000 on TEAC Australia Pty Ltd and its national sales manager Warren Allison, for breaching the resale price maintenance provisions of the Trade Practices Act 1974. The ACCC instituted proceedings against TEAC and Mr Allison over conduct that sought to stop an independent retailer of electronic products from advertising prices below the 'go price' specified by TEAC.
  Click here for more

Consumer issues

• New allegations over conduct filed against StoresOnline
  The ACCC has filed an Amended Statement of Claim and Amended Application in the Federal Court of Australia in its legal proceedings against StoresOnline International Inc and StoresOnline Inc containing new allegations of false or misleading conduct.
  Click here for more

• ACCC court action against Arnott's Biscuits
  The ACCC has instituted proceedings in the Federal Court in Sydney against Arnott's Biscuits Limited for alleged contraventions of sections 52, 53(a) and 55 of the Trade Practices Act 1974 over the packaging and labelling of Arnott's Snack Right fruit pillow and fruit slice biscuits.
  Click here for more

• Sheepskin manufacturer stops false claims
  Australian manufacturer Tasman Sheepskin Tannery has given a court-enforceable undertaking that it will cease claiming its medical sheepskins meet a voluntary standard for these products where they fail to comply with the requirements of the standard. Whilst the standard is voluntary, Tasman Sheepskin Tannery risked breaching sections 52 and 53(a) of the Trade Practices Act 1974 by misrepresenting its medical sheepskins complied with this standard, where in fact they did not.
  Click here for more

• ACCC varies Australian Property Institute authorisation
  The ACCC has issued a determination varying authorisation granted to the Australian Property Institute (API) covering the API's code of ethics, rules of conduct and specific clauses of the API's constitution and by-laws along with relevant definitions.
  Click here for more

Access

• Release of the Mobile Terminating Access Service Pricing Principles Determination, rejection of Optus's undertaking
  The ACCC has issued the MTAS Pricing Principles Determination for 1 July 2007 to 31 December 2008. The Determination proposes an indicative price for the MTAS of 9 cents per minute from 1 July 2007 to 31 December 2008. The indicative prices were informed by the WIK Model, international cost benchmarks and other cost models. The ACCC also announced its final decision to reject the access undertakings submitted by Optus Mobile Pty Limited and Optus Network Pty Limited. The Optus 2007 Undertaking claimed 12 cents per minute was a reasonable price for the supply of the MTAS.
  Click here for more

• Notification of three telecommunications access disputes
  The ACCC has received notification under Part XIC of the Trade Practices Act 1974 of the following access disputes involving:
• Telstra Corporation Limited and Hutchison 3G Australia Pty Ltd relating to the price paid by Telstra to Hutchison for the Mobile Terminating Access Service;
• Agile Pty Ltd and Telstra Corporation Limited relating to the monthly and connection prices paid by Agile to Telstra for the Unconditioned Local Loop Service; and
• Soul Pattinson Telecommunications Pty Ltd and Telstra Corporation Limited relating to the monthly price paid by Soul to Telstra for the Unconditioned Local Loop Service.

The ACCC has begun the arbitration process for the disputes but given that the legislation contemplates that arbitrations be conducted in private, the ACCC will not make public comment at this stage.
Click here for more

• ACCC issues draft decision on GasNet
  The ACCC has issued its draft decision on GasNet's revised 2008-12 access arrangement. The draft decision provides for refurbishment and replacement investment of $75 million in GasNet's gas transmission network over the next five years, to maintain the reliability and security of supply, which is 28% above the amount approved for the current access arrangement period. The draft decision allows a nominal rate of return of 9.38%. The ACCC's proposed amendments to the access arrangement will result in an initial real average tariff increase of 16% to $0.34/GJ for 2008, as compared to a 36% increase to $0.40/GJ proposed by GasNet. GasNet and interested parties have until 14 December 2007 to respond to the ACCC's draft decision. The ACCC is due to issue its final decision in February 2008.
  Click here for more

• ACCC issues DDAS and ISDN declaration review discussion paper
  The ACCC has announced that it is holding a public inquiry to review the digital data access service (DDAS) and the integrated services digital network (ISDN) declarations in regional areas. The ACCC is seeking submissions on its discussion paper from stakeholders and interested parties by 21 December 2007 and expects to issue a draft report setting out its preliminary findings early in 2008.
  Click here for more