Published in the National Business Review of 12 October 2007
Commission chair Paula Rebstock has issued another of her blunt warnings: cartels are affecting the competitiveness of New Zealand businesses at home and in export markets.
Seven of the ten high priority competition cases due for prosecution by the Commission involve "hard core" cartels.
"We would normally expect to initiate one or two competition cases per year, but as a result of the behaviour coming to our attention, we expect to take four to six cases in each of the next two years," she says
"Cases we are currently investigating are affecting the critical energy and transportation infrastructure sectors, and the health sector. They are affecting building costs, and office supplies, packaging, and inputs into basic industrial processes."
Ms Rebstock says the Commission is prosecuting more cartels than before.
"This is partly due to increased investigative expertise, and partly due to the Commission's Leniency Policy, which offers immunity from prosecution for the first cartel member who blows the whistle on their co-conspirators."
Markets with annual turnovers of up $500 million were affected although some markets were as small as $2-3 million dollars a year.
"These cartels are being led by New Zealanders in some cases and in others (they are) initiated by overseas companies."