Restrictive trading remedy review

Press, 15 November 1984, Page 3

Restrictive trading remedy review

By

MICHAEL HANNAH

in Wellington Quicker remedies against restrictive trade practices were foreshadowed last evening by the Minister of Trade and Industry, Mr Caygill, as part of the Government’s strategy to restrain prices. In an address to the annual meeting of the Waikato Manufacturers’ Association in Hamilton, Mr Caygill said his department had a backlog of complaints from manufacturers or distributors which it had been unable to resolve, mainly because of deficiencies in the Commerce Act.

“It is unhelpful to business that it cannot obtain prompt remedy of such complaints,” he said.

Mr Caygill contrasted this with the Australian Trade Practices Act, which he described as a very effective piece of legislation. It enabled New Zealand companies to compete more in Australia, partly because it discredited pricing agreements between competitors, resale price maintenance by aliers, and restrictive isive dealing arrangements.

A review of the Commerce Act was- being done to provide extra protection for the consumer and to help industries become more efficient, he said. Mr Caygill conceded that the increased imports tender might not prove an effective discipline on the prices of some goods in the first two years. For this reason, both he and the Minister of Finance, Mr Douglas, had warned that excessive price rises would result in even more import licensing access or reduced tariffs.

“We hope that the knowledge of our preparedness to take such steps will make them unnecessary,” Mr Caygill said. Many people regarded it as a bold step to move almost completely to a situation of little price control, and he told manufacturers that its success or failure rested very heavily on their response. “I expect that you will exercise restraint to prevent excessive price rises. We must rid New Zealand of its 'cost-plus’ mentality if we are to develop efficient industry,” Mr Caygill said.