Trans-Tasman Political Letter
For Immediate Release

Rebstock Steps Down, But Robust Legacy To Stay

The Trans Tasman Political Letter reports big corporates who heaved a sigh of relief at news Paula Rebstock was stepping down as chairperson of the Commerce Commission may be in for a shock. The Govt is insisting the Commission will continue to be as robust in its crackdown on corporate cartels and price-gouging as it became under Rebstock, noted for her forceful performance during 11 years at the Commission, five of them as chairperson.

Commerce Minister Simon Power says the Govt was "very keen" for her to stay on "but she informed me she wanted to pursue other interests." He said her skills were instrumental in raising the effectiveness of the Commission.

Despite such high praise, speculation is the Govt has been planning changes to the Commission which according to some of the country's major corporates had become too much of an activist watchdog, with a very sharp bite, rather than being a referee.

This week's issue of Trans-Tasman says US-born Rebstock made a number of influential enemies in regulating aspects of telecommunications, electricity, gas, and dairy industries. The Commission also blocked a merger between Qantas and Air NZ. Airlines were also under scrutiny for price-fixing. The Commission stopped Woolworths and Foodstuffs bidding for The Warehouse Group.

Her replacement, Mark Berry, a barrister who was Deputy Commissioner between 1999 and 2001, will take over as chairman for 18 months, while the Ministry of Economic Development undertakes a "competitive" recruitment process.

A senior Govt Minister told Trans-Tasman the Govt will strenuously back the regulator in enforcing competition law. "We are not sitting around listening to corporate whingeing, when they are found to be exercising monopolistic power. We want the Çommission to enforce the letter of the law, and stamp out cartel activity and any other corporate anti-competitive behaviour." This will be the message the new chairperson gets from the Govt.

ENDS

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