WIDER POWERS FOR PRICES COMMISSION

Press, Volume CX, Issue 32394, 5 September 1970, Page 44

WIDER POWERS FOR PRICES COMMISSION

(N.Z. Press Association) WELLINGTON, Sept. 4. Wider powers will be given to the Trade Practices and Prices Commission with the enactment of legislation introduced in Parliament today by the Minister of Industries and Commerce (Mr Shelton). The Trade Practices Amendment Bill makes seven significant changes to the 1958 act. They are:—

The Commission will be empowered to order that harmful effects of a trade practice should be reversed. The power will be used after an inquiry has found the practice contrary to public interest. Trade practices which in the opinion of the Examiner of Trade Practices appear to be objectionable may be held in abeyance by order of the Commission until an Investigation or an inquiry is held. The examiner may present the points for and against in an investigation into a trade practice of doubtful nature without a recommendation on a course of action. At present he reports only in cases in which he finds practices clearly contrary to public interest. The Commission, on the application of the examiner and after hearing all interested parties, may order all traders in a defined field to notify the examiner of particulars or specific types of trade practices in which they may be emerging. This will allow the examiner to concentrate on particular areas where he believes that harmful trade practices may be prevalent. The Commission will deem a practice contrary to public interest if its effect is to prevent or limit competition in the production, manufacture, supply, transportation, storage, sale, or purchase of any goods. It will be guided by the principle that competition is desirable, and until the contrary is proved, any restriction will be’ found unreasonable. Collective pricing arrangements will rank as prohibited practices. This means that action may be taken in the courts against such practices unless the prior approval of the Commission is obtained in the case of new pricing practices. It is proposed that in future

all appeals against decisions of the Commission should be heard by the Administrative Division of the Supreme Court At present appeals go to the Trade Practices’ Appeal Authority.

Minor changes proposed include ’ higher penalties for offences. Individuals will be liable to fines up to $lOOO (instead of $800) and companies up to $5OOO ($4OOO at present). The examiner will be empowered to issue a warrant calling on firms to produce particulars when he meets difficulty in obtaining information for the purpose of an investigation. The Labour spokesman on industries and commerce (Mr W. W. Freer, Mt Albert) said the Opposition welcomed the bill, which was long overdue. In reply to Mr B. P. MacDonnell (Lab., Dunedin Central), the Minister said car leasing was not covered by the bill, but his department was well advanced with the preparation of draft regulations to deal with this. The bill was given a first reading, a second reading pro forma, and referred to the Commerce Committee.