Labour on business

Press, 2 November 1981, Page 6

Labour on business

PA Wellington Stem new anti-trust and pro-competition policies would be introduced by a Labour government, as part of a drive to improve competitiveness and efficiency in the New Zealand business sector, and hold prices, according to the Labour policy for competitive business released V by its associate Shadow Minister for Trade and Industry. Mrs Ann Hercus. . ■ It emphasised that the encouragement of genuine competition in the market place, and a clampdown on restrictive monopolies, was an important element in Labour’s growth strategy. Mrs Hercus said the New Zealand, economy could be divided into three sections: • Some reasonably competitive sectors “bf both public and private enterprise, for example, much of the retail sector. 7 .

• Some State-owned monopolies such as the Post

Office, the Electricity Division, and the Railways. • Other sectors of private enterprise which are dominated by monopolies, olignopolies, price-fixing rings, and other restrictive trading practices. “The Government has a responsibility to ensure that State-owned monopolies are efficient, and to act with restraint in settling charges and prices. “Equally the Government has a responsibility to ensure that the same principles apply to private enterprise monopolies and other businesses which trade without effective price competition.” The key elements in Labour’s policy are therefore: • Support for, and where necessary, strong and effective legislation to promote competition. • A determination to inhibit or control anti-competitive forces in New Zealand. • A new commission with

expanded functions and resources to replace the present Commerce Commission. • Wide-ranging powers to have monopoly and conglomerate inquiries undertaken by the new commission. • An effective mechanism for the new commission to examine all substantial merger or takeover proposals. • A closer monitoring of restrictive trade practices, particularly to protect small and medium-sized businesses. • Price Control concentrating oh those private and public enterprises which use monopoly power to fix' prices. Mrs Hercus said that the new commission would require a balanced mix of interests including business, ' trade union, and consumer representation. “We will appoint people of - merit who understand and are prepared to administer the spirit and intent of the rules, with a-minimum of red tape and a maximum of open hearings.” she said.