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Commerce

Commerce Commission Should Bust Zespri Monopoly

Libertarianz leader Richard McGrath suggested the Commerce Commission justify its continued existence by stripping the Zespri cartel of its privileged position as a price-fixing coercive monopoly.

“Other exporters are free to market their products either alone or in voluntary groupings,” said Dr McGrath. “The freedom of association clause in the Bill of Rights Act should guarantee kiwifruit growers the ability to market their product without being forced to use Zespri.”

“If joining Zespri is the most profitable way to sell kiwifruit, then growers will probably join the cartel,” he added. “But growers should be allowed to sell on their own terms, and at the price they choose, without being forced to trade through Zespri.”

Dr McGrath also said that the Commerce Commission should refrain from interfering in domestic telecommunications, saying the Clark administration were correct in allowing Vodafone and Telecom to reduce their prices voluntarily. “What mobile phone companies charge their customers is none of the government’s business. If you don’t like cell phone charges, then don’t buy one. Alternatively, start a competing cellphone company.”

Libertarianz would abolish trade protectionism and promote an open market in all goods and services, with government intervention used only when coercion, fraud, and extortion violate individual rights.

ENDS

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