10th Annual Competition Law & Regulatory Review

Recent court decisions, along with  proposals for reform from Government and the Commerce Commission could change dramatically the face of competition law and regulation in New Zealand.

About

Recent court decisions, along with  proposals for reform from Government and the Commerce Commission could change dramatically the face of competition law and regulation in New Zealand. Implications of these proposals could be far reaching on both the energy and telecommunications sectors. This intensive two day conference will bring you the latest thinking on the future of competition law and regulation from leaders in the field.

With Key note addresses from Hon. Simon Power, Minister of Commerce and Dr Mark Berry, Chair of the Commerce Commission, this carefully researched event will address the main concerns of industry while giving delegates the opportunity to put questions to an outstanding line-up of speakers. It will examine a wide variety of issues including:

• Five things that are wrong with the Commerce Act – proposals for reform
• The controversy over confidentiality
• Criminalisation of Cartels in Australia – should New Zealand follow suit?
• Regulatory reform of the Gas and Energy Sector
• Progress of the Regulatory Responsibility Bill
• Mobile Termination Rates – the debate continues

This event has become acknowledged as the key conference to get vital updates on Competition Law and Regulatory Review in New Zealand, so don’t miss out! Reserve your place today! Plus! Take advantage of our Early Bird price, register and pay before 5pm 4th December and save $300 off the full cost of the conference

Agenda

Agenda: Day 1

8.30

Registration & Coffee

9.00

Opening Remarks from the Chair

Brent Layton, Senior Fellow, NEW ZEALAND INSTITUTE FOR ECONOMIC RESEARCH

9.10

Ministerial Address: The future of Competition and Regulatory Law in New Zealand (Ministerial Address)

The Minister will review developments and discuss the Government’s policies and plans for competition and regulatory law.
• Trans-Tasman Harmonisation
• Government plans for Regulatory reform
• International developments and co-operative practices

Hon. Simon Power, Minister of Commerce

9.40

Commerce Commission Address

The Chair of the Commerce Commission will give its annual update on Competition and Regulatory Law in New Zealand.

Dr Mark Berry, Chair, Commerce Commission

1030

Morning tea

10.50

Five Things That are Wrong with the Commerce Act - Proposals for Reform

Mark will discuss the problems with the current legislation and suggest ways it could be improved.
• No clearance provision for restrictive trade practices
• Inadequate provisions dealing with protection of confidential information
• Lack of clarity around the Commission’s powers in interviews
• Authorisation process still unattractive to potential applicants
• Bar set too high for merger review

Mark Williamson, Partner, DLA PHILLIPS FOX

11.40

The Controversy over Confidentiality

Confidentiality issues when dealing with the Commerce Commission have recently been in the media. This session will examine:
• The powers of the Commerce Commission to treat information provided to them as confidential;
• The ability of the Commission to share confidential information provided to them with third parties;
• The powers of the Commission to impose s100 confidentiality orders during the course of an investigation, including a discussion of the recent High Court decision involving Air NZ and the Commission on this issue;
• What practical steps you should take when providing information to the Commission to maximise the chances of that information remaining confidential

James Craig, Senior Associate, SIMPSON GRIERSON

12.30

Lunch

1.30

Mergers and Acquisitions Focus

Developments in the regulation of Mergers and Acquisitions in New Zealand continue despite the drop-off in active transactions in 2009. John and Melissa will discuss and debate developments and proposals, both from a policy and a legal perspective, in respect of the:
• Commerce Act, in particular the acquisition clearance regime
• Overseas Investment Act, in light of the ongoing government review
• Takeovers Code, which the Panel has been busy reforming in specific areas over 2009

John Horner, Partner &; Melissa Pengelly, Senior Lawyer

2.20

Visa and Mastercard Case – Progress so Far

In 2006, the Commerce Commission and a group of major retailers issued civil proceedings against Visa and MasterCard and against participating banks. The allegation is that the schemes’ interchange fees and rules breach the restrictive trade practices provisions of the Commerce Act 1986. In August this year, the Commission settled with Visa and MasterCard, agreeing on some changes to fee setting procedures and to the rules. At the time of writing this outline, the Commission has not settled with the banks, nor have the retailers settled with either of the card schemes or with the banks. Any remaining claims will be heard at the High Court in Auckland, starting in October this year. This conference session will update the progress with the case and summarise the economics of payments schemes.

Stephen Gale, Director & Ben Gerritsen, CASTALIA ADVISORS

3.10

Afternoon tea

3.30

Cartels and Price Fixing in New Zealand

The Commerce Commission has stated that “detecting and taking action to stop and deter cartel activity is the Commission’s highest priority in the competition area” This session will examine the situation in New Zealand and abroad and discuss the major problems in the arena
• Is this the worst form of anti-competitive behaviour?
• Examining the Schneider decision
• Leniency policy – an aid to detection?

John Land, Partner, KENSINGTON SWAN
Leela Cejnar, Lecturer - Business Law, MACQUARIE UNIVERSITY

4.15

Criminalisation of Cartels in Australia – Should NZ Follow their Lead?

Cartelists in Australia now face up to 10 years in prison if they are discovered. With the UK, Australia, Canada and the US having criminalised cartels, will New Zealand now follow? This session will examine the likelihood of criminal sanctions being introduced in New Zealand, how it could be implemented, and what it might mean for lawyers dealing with Commerce Act investigations and litigation.

Hayden Wilson, Partner, KENSINGTON SWAN
Ben Hamlin, Senior Legal Counsel, COMMERCE COMMISSION

5.00

End of Day one and Networking Drinks

Agenda: Day 2

9.00

Welcome back from the Chair

Brent Layton, Senior Fellow, NEW ZEALAND INSTITUTE FOR ECONOMIC RESEARCH

9.10

Examining Section 36 of the Commerce Act in the Light of the 0867 and data tails cases

The Commerce Commission lost its appeal against a High Court decision over Telecom’s historic 0867 internet connection prefix scheme. In April 2008, the High Court found that Telecom did not use its dominant position in the market for fixed line retail telephone services to residential customers, or have an anti-competitive purpose when it introduced its 0867 package in 1999, and so did not contravene section 36. Section 36 cases are difficult to prove and this session will examine the recent cases and the arguments.
• Implications for future cases
• Should the Commerce Commission go ahead with an appeal to the Supreme Court?
• Report on section 36 – does it need amending?

Sarah Keene, Partner, RUSSELL MCVEAGH

10.00

Regulatory Reform of the Gas and Energy Sector

The prospect of allowing energy network companies back into electricity retailing has been raised in a new review into the energy sector released by the Government in August.
• Will the Government’s proposed reforms really increase competition in the market and deliver better security of supply?
• Why have we had 2 major rounds of reform in the energy sector in the last 2 years?
• Implications for abolishing the Electricity Commission and reallocating its responsibilities elsewhere
• The scope and function of the new Electricity Market Authority
• Issues around transmission
• Implications of restructuring the ownership of generation assets within the SOE generators, and the proposal to unpick at least part of the 1998 reforms under the Electricity Industry Reform Act 1998 by letting lines companies re-enter the retail market
• Ongoing implementation of the last round of reforms under the Commerce Amendment Act 2008

Nicholas Russell, Principal, CHEN PALMER

10.50

Morning tea

11.10

Regulation of Infrastructure Industries and Stimulating Sufficient Investment in these Regulated Industries

The Commerce Commission is required by the Commerce Amendment Act 2008 to develop “input methodologies” for the regulation of prices charged by electricity lines businesses. The allowed rate of return, or what the Commission terms the cost of capital, is central to these methodologies. Reconciling restraint on the cost of capital and incentive for investment is a complex and challenging task. This presentation examines the Commission’s approach and then develops guidelines for an efficient solution to this problem.

Dr Edward Hudson, Managing Director, e-dec Ltd

12.00

Implementation of Part 4 of the Commerce Act on Regulation of Energy and Airports

In October 2008, Part 4 of the Commerce Amendment Act introduced significant changes to the regulation of suppliers of electricity lines services, gas pipeline services and specified airport services at Auckland, Wellington and Christchurch airports. The purpose of these changes to Part 4 is to promote the long-term benefits of consumers. The changes are intended to ensure that suppliers of regulated services have incentives to innovate and invest, have incentives to improve efficiency at a quality that consumers demand, share the benefits of efficiency through lower prices and have a limited ability to extract excessive profits. This session will examine the implementation issues in the light of the discussion documents released and discuss the way forward.
• Will the changes benefit consumers?
• Can they lead to improved efficiency?
• Is price regulation necessary?

Alan Jenkins, Chief Executive, ELECTRICITY NETWORKS ASSOCIATION

12.45

Lunch

1.45

Progress of the Regulatory Responsibility Bill

The Regulatory Responsibility Taskforce has proposed legislation that could have a major impact on all forms of Government regulation. This session will examine the progress of the Bill, the recommendations of the Taskforce and the impact of the Bill on existing and new legislation.
• What are the key proposals of the Taskforce?
• Could they be improved?
• The views of business organisations on a ‘regulatory constitution’
• Where to from here? Government reactions and the parliamentary process.

Roger Kerr, Executive Director, NEW ZEALAND BUSINESS ROUND TABLE
Hon. Rodney Hide, MINISTER OF REGULATORY REFORM

2.30

Mobile Termination Rates – the Debate Continues – Panel Discussion

By the time of this conference, the Commerce Commission will have made recommendations on whether mobile termination rates should be regulated, and following the advent of the “Drop the rate Mate” campaign, this panel discussion will examine the likelihood of regulation being introduced, the pros and cons or regulation vs voluntary undertakings, and give the audience the opportunity to put their thoughts to the panel.
Chris Abbott, Regulatory Group Manager, TELSTRACLEAR
Bill McCabe, Chief Commercial Officer, 2 DEGREES MOBILE
Ernie Newman, Chief Executive, TUANZ

3.15

Afternoon tea

3.30

Development and Future of the Telco Market

This session will look at how the New Zealand Telco market has developed over time and consider what the future might hold.
• The future of fixed after local loop unbundling
• What will happen in the mobile market with greater competition as voice revenue growth stalls?
• How will fixed and mobile broadband evolve in a country of high internet users?
• How is NZ fitting in with international telecommunications regulatory trends?
• The impact of operational separation on the industry
• The challenges facing the industry going forward.

Hayden Glass, Head of Marketing Strategy, VODAFONE
Eric Hertz, CEO, 2 DEGREES MOBILE
Bryan Wilson, Head of Group Competition and Regulatory Strategy, TELECOM NZ
Rosalie Nelson, Research Manager, Telecommunications

4.15

The Government Broadband Scheme, Competition Law, and the New Telecommunications Paradigm

The Government’s goal for broadband investment is to accelerate the roll-out of ultra-fast broadband to 75% of New Zealanders. This will be supported by government investment of up to .5 billion alongside additional private sector investment, and be directed to open-access infrastructure.
• What learnings from the history of copper and mobile can be taken into the new fibre environment?
• How can users’ desire for choice and value be reconciled with the efficiencies of a single shared infrastructure?
• What measures are needed to ensure Local Fibre Companies will not engage in monopoly pricing or anti-competitive conduct?
• How can the need for investment certainty be met while still ensuring consumer protection against monopoly behaviour?

Ernie Newman, Chief Executive, TUANZ

5.00

Remarks from the Chair and Close of Conference

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