Commerce Commission Moving Forward

Associate Minister of Commerce Rodney Hide welcomes the steps the Commerce Commission is taking to improve the efficiency and effectiveness of its enforcement and regulatory functions.

Mr Hide said the Commerce Commission has built a formidable reputation for its enforcement work in policing anti-competitive behaviour and protecting consumers from unfair trade practices. Changes to the Commerce Act in 2008 also allow the Commission to work more closely with regulated firms to ensure they have incentives to innovate and to invest while protecting consumers from excessive prices.

"The Commission has grown and developed considerably in its role and functions over the last few years and plays a key role in the economy. However, at the same time there is a recognised need to further develop the organisation in a way that ensures it will be effective for the future."

Since his appointment last year Chief Executive Nick Hill has been leading a process of change at the Commission. He is proposing to reorganise the Commission into an enforcement arm and an economic regulatory arm to better deliver the distinct functions.

"We want to use a different structure, a fresh strategic focus, and a balanced portfolio of interventions to achieve results in a more cost effective manner," Mr Hill said.

The restructure supports steps under way to improve the organisation's impact, which include:

• Targeting of time and effort to increase impact;
• Increased pace and timeliness of decision-making;
• Stronger engagement with business, trade associations and consumer groups;
• Retention and development of talented people; and
• A higher level of transparency and accountability.

These steps pick up on recommendations made in the Government's Baseline Review of the Commission completed in November 2008. The Review noted the Commission could improve its effectiveness and efficiency through improvements to its operational and strategic decision-making.

A copy of the baseline review is available on the MED website, www.med.govt.nz