Posts tagged "Commerce Commission"

Commerce Commission nudges Fonterra towards greater transparency

[14 December/The Country] The Commerce Commission’s final report on the latest season’s milk price manual gave Fonterra Cooperative Group a ‘pass’ mark, saying there were no major concerns over the latest amendments, however the Commission noted that it is looking for more transparency from the dairy processor. The Commission said it will take a closer...

Shareholders Association voting against PGG Wrightson’s $421 million deal

[23 October/NZ Herald] The New Zealand Shareholders’ Association has said that it will vote against the deal to sell PGG Wrightson’s seed division to DLF Seeds, a Danish co-operative.  While the lobby group recognises that the offer is attractive at face value, particularly given the $292 million capital return it will trigger, it notes the...

Fonterra’s milk price calculations higher than competition – Commission

[14 June/NZ Herald] The Commerce Commission said Fonterra’s estimated risk in calculating the cost of financing milk processing operations was too low, which resulted in it calculating a higher milk price than its competitors. The cost of financing feeds into the calculation of the milk price Fonterra paid its customers. Commerce Commission Deputy Chair, Sue...

Swaps case comes at uncomfortable time for Kiwi banks

[21 May/NZ Herald] Controversy over how New Zealand lenders sold a complicated financial product to farms have resurfaced during a bad time for the reputation of the Australasian banking sector. It was revealed that former Dargaville farmer, Renie Gibson, is suing Westpac after she lost her farm during the financial crisis. The action remains live. ...

Poultry suppliers quash claim of added water

[15August/Business Day] Poultry Industry Association of New Zealand Executive Director, Michael Brooks, is adamant that poultry suppliers are not pumping raw chicken with water to make it heavier following a complaint to the Commerce Commission by a home cook about the amount of water which came from his Countdown bought chicken. Mr Brookes said if...

More transparency sought on Fonterra sales

[15 August/Otago Daily Times] The Commerce Commission has issued its draft report on Fonterra’s 2017 farmgate milk price and while saying the price of $6.15 per kilo of milksolids has met the milk price monitoring regime they have called for the co-operative to be more forthcoming in the information it provides about sales outside of...

Godfrey Hirst loses bid to halt Cavalier’s domination of NZ wool scouring

 [30 November/ NZ Herald] The Court of Appeal has dismissed Godfrey Hirst’s appeal against earlier decisions by the Commerce Commission and the High Court to allow the merger of the wool scouring operations of New Zealand Wool Services International and Cavalier Wool Holdings. The Commerce Commission had allowed the merger that would create a monopoly...

ComCom releases milk price report

 [15 August/ Dairy News] The Commerce Commission has released its draft report on Fonterra’s base milk price calculation for the 2015/2016 dairy season in which the payout was $4.90 per kilogram of milk solids. The Commission was required to review Fonterra’s calculation each year at the end of the dairy season under the milk price...

No dairy deregulation needed, says Commission

[5 November/ Radio NZ Rural] Having been requested by the Minister for Primary Industries to review the regulatory structure surrounding the dairy industry, the Commerce Commission has released its draft findings which note that there remains insufficient competition in the dairy industry to warrant deregulation but does recommend some changes are made to the regulations. ...

Commerce Commission gives Fonterra’s milk price a tick of approval

[17 August/ Business Day: NZ Farmer] The Commerce Commission has approved Fonterra’s calculation of its base milk price for the 2014/15 season. Commerce Commission Deputy Chairwoman, Sue Begg said the calculation was largely consistent with both the efficiency and contestability purposes of the Dairy Industry Restructuring Act. The commission also praised the co-operative for the...

Independent South Island milk processors cross competition threshold, Guy says

[13 August/ National Business Review] Primary Industries Minister, Nathan Guy said independent processors collected 22 percent and 9 percent of all milk solids in the South and North Island’s respectively, triggering the expiry of pro-competition provisions under the Dairy Industry Restructuring Act (DIRA) in the South Island. Mr Guy said he was encouraged by new...

Wool scouring monopoly hearing delayed

[6 August/ Radio NZ Rural] The Commerce Commission has delayed a hearing of final submissions for the merger between Cavalier Wool Holdings and New Zealand Wool Services. The commission said it had received new information on property valuations relating to the takeover, and now needed more time to check the information.

Rural service firms accused of price fixing

[3 August/ Radio NZ Rural] The Commerce Commission has filed legal action against PGG Wrightson, Elders New Zealand and five individuals after claims of price fixing in connection with the introduction of the National Animal Identification Tracing Act. The commission claims agreements were made to fix the price of tagging un-tagged cattle at saleyards, increase...

ComCom to file court proceedings against Wrightson, Elders, Rural Livestock over price fixing

[7 July/ NZ Herald] The Commerce Commission is to file court proceedings against PGG Wrightson, Elders New Zealand and Rural Livestock by August. The commission claimed the three companies fixed fees charged during the adoption of the National Animal Identification and Trading Act 2012. If convicted, the companies could be hit by a maximum penalty...

Comcom investigates PGG Wrightson over NAIT scheme fees

[6 July/ NZ Herald] The Commerce Commission is to investigate PGG Wrightson over the fees the firm charged during the implementation of the National Animal Identification and Trading Act programme, which required nationwide tagging of cattle and deer in a bid bolster New Zealand’s response to biosecurity threats. The commission believed the company breached the...

Commerce Commission delays final wool scouring decision [29 June/ National Business Review]

The Commerce Commission has delayed its final decision on the proposed merger of Cavalier Wool Holdings and New Zealand Wool Services International until 28 August. The Commerce Commission explained that the delay was due to parties continuing to provide new information and submissions. Godfrey Hurst General Manager, Tania Pauling said that she is unhappy with...

Disagreement over Wool Industry Merger [25 May/ NZ Farmers Weekly]

The Commerce Commission has planned a conference in Wellington on June 10 to discuss the planned merger of Cavalier Wool Holdings and New Zealand Wool Services International. Carpet maker Godfrey Hirst had argued that a conference was needed to provide proper public scrutiny into the merger, as it believed too much information has been withheld...

Banks got off too lightly, negotiator says [8 May/ Radio NZ Rural]

Farm Debt Negotiator, Janette Walker said farmers should come together and take legal action for more compensation from banks, after ANZ, ASB and Westpac reached a $24.7 million settlement with the Commerce Commission over the way interest rate swaps were sold between 2005 and 2009. Both Ms Walker and Labour’s Primary Industries Spokesperson, Damien O’Connor...

ComCom likely to approve Cavalier, NZ Wool Services to merge scouring operations

[26 March/ National Business Review] The Commerce Commission is likely to allow Cavalier Wool Holdings and New Zealand Wool Services International to merge their two scouring operations, creating a wool scouring monopoly in New Zealand. The Commission believes the public benefits outweigh any loss of competition, as the rationalisation of the industry would lead to...

Advertising on milk formula for NZ infants facing ban

[5 March/ NZ Herald] The Commerce Commission has backed a proposal which bans the marketing of infant formula for babies under six months, including giving free samples to pregnant women, mothers and healthcare professionals as a sales inducement. Commerce Commission Chairman, Dr Mark Berry noted that restrictions on marketing and advertising typically reduces information for...

Westpac latest to settle, admits marketing of interest rate swaps likely to mislead or deceive some customers

[18 February/ NZ Herald] A Westpac settlement with the Commerce Commission revealed that it will pay up to $2.5 million to 38 farmers affected by its marketing of interest rate swaps in a way likely to mislead or deceive customers. The bank will also pay $250,000 to Rural Support Trusts and another $250,000 to the...

Westpac to pay over rural swap rates

[17 February/ Newstalk ZB] Westpac is to pay almost $3 million in a settlement with the Commerce Commission over the sale, marketing and promotion of interest rate swaps to its rural customers between 2005 and 2012, with $2.47 million being allocated to customers who made complaints and $500,000 in costs to the Commerce Commission and...

Fonterra gets Commerce Commission tick

[15 December/ NZ Farmer] The Commerce Commission’s annual report on the extent to which the Fonterra Co-operative Group’s milk price manual promotes the setting of a base milk price that provides incentives for the Co-operative to operate efficiently and provide contestability in the market, has found that Fonterra has been ‘largely consistent’ with the purpose...

Countdown happy at being exonerated under Commerce Commission inquiry

[20 November 2014/ National Business Review] Progressive Enterprises Managing Director, Dave Chambers said he felt exonerated by the outcome of a Commerce Commission inquiry into anti-competitive behaviour by Countdown, which was initiated by former Labour Party MP, Shane Jones who accused the chain of bullying behaviour against New Zealand suppliers. However, the Commerce Commission warned...