The Regulator Report lists recent changes, decisions and developments at the main New Zealand and Australian corporate, commercial and competition regulatory bodies. This edition of the Regulator Report covers the period from 1 May 2009 to 4 June 2009. For further details on any matter in this report just click on the hyperlinks in each item.

The Treasury

Budget 2009
Treasury has set up a home page for Budget 2009 (released on 28 May 2009) where all of the core budget documents and Treasury budget-related information can be found. The budget specifies three main objectives for the government in 2009/10: helping New Zealanders through the recession and supporting jobs; lifting productivity and raising New Zealand's international competitiveness; and taking steps to keep government debt under control.
Click here to access this home page

Bell Gully, in conjunction with CCH, has produced a report providing an in-depth analysis of Budget 2009. Click here to read this report

The Department of Internal Affairs

Auckland Transition Agency
The government has announced that Mark Ford, Chief Executive of Watercare Services Ltd and Chair of the Auckland Regional Transport Authority, is to head up the Auckland Transitional Agency (ATA). The other members of ATA will be Miriam Dean QC; John Law (local government politician, including seven years as mayor of the Rodney DC); Wayne Walden (businessman); and John Waller (chartered accountant and chair of the BNZ). ATA will manage the transition from the existing seven territorial authorities and one regional council, to a single unitary authority for Auckland and 20 to 30 Local Boards. ATA has six main areas to manage. They are:

• The creation of the Auckland Council and the Local Boards;
• Managing the organisational changes;
• Ensuring continued delivery of councils' and Council Controlled Organisations' responsibilities;
• Continued momentum of key projects such as the Rugby World Cup and waterfront development;
• Ensuring the transition process is well communicated to stakeholders; and
• Winding up existing organisations once the new organisation has been established.

Click here for the full press release

Auckland legislation
The government introduced the Local Government (Auckland Reorganisation) Bill and Local Government (Auckland Council) Bill to Parliament on 13 May 2009. On 23 May 2009, the Local Government (Auckland Reorganisation) Bill became the Local Government (Tamaki Makaurau Reorganisation) Act 2009.
Click here for further details and copies of the legislation
Click here to read Bell Gully commentary on this legislation

Ministry of Economic Development (MED)

Crown Minerals (Petroleum) Amendment Regulations 2009
These Amendment Regulations, which come into force on 12 June 2009, amend the Crown Minerals (Petroleum) Regulations 2007 (the 2007 Regulations).

The 2007 Regulations prescribe, among other things, the form and manner in which documents, including applications for permits and permit transfers under the Crown Minerals Act 1991, must be provided to the Secretary (the Chief Executive of the Ministry of Economic Development). In particular, Regulation 24(3) of the 2007 Regulations sets out the requirements for an application to the Minister of Energy under section 41(2) of the Crown Minerals Act to "otherwise deal with a permit", including the form of the application and that the permit holder must sign the application. If the permit holder is more than one person, Regulation 6 of the 2007 Regulations requires the application to be signed by each person or a person authorised to sign on behalf of each person.

The Amendment Regulations now provide that in such an application where the permit holder is more than one person (such as is typically the case in an upstream joint venture), the application need only be signed by the permit holder to whom the dealing directly relates, and not by the other permit holders. This amendment was in response to industry concerns that the requirement for a permit holder to obtain the consent of all other permit holders to otherwise deal with the permit was not operating as was intended at the time the 2007 Regulations were enacted and was causing delays to the Ministerial consent application process.

The corresponding Form 3 on which a permit holder must apply for Ministerial consent to otherwise deal with the permit has also been amended and can be accessed here.

Electricity Commission policy direction
Energy and Resources Minister Gerry Brownlee has released a revised policy direction for the Electricity Commission. The Government Policy Statement (GPS) sets out objectives and outcomes expected from the commission. "The changes are designed to reflect the government's policies, and particularly its desire to accelerate prudent grid investment. An important feature of the GPS is bringing forward the section that emphasises security of supply."
Click here for further details
Click here to read Bell Gully commentary on the revised GPS

Intellectual Property discussion document
The MED is seeking sector comments on the next round of negotiations on a multi-country Anti-Counterfeiting Trade Agreement (ACTA), a cooperative effort by governments to respond to the increase in global trade of counterfeit goods and pirated works. In May 2008, when announcing the government's decision to participate in the negotiations, the then Associate Minister of Commerce invited the public to indentify specific matters that should be the focus of the agreement for New Zealand. The closing date for this round of submissions is 29 June 2009.
Click here for further details

Securities Disclosure and Financial Advisers Amendment Bill
The Commerce Select Committee has examined the Securities Disclosure and Financial Advisers Amendment Bill and recommended that it be passed with some minor amendments. The bill responds to the current international financial crisis by removing unnecessary impediments to raising capital, while ensuring the timely disclosure of relevant information to prospective investors. It also includes provisions to remedy errors in the Financial Advisers Act 2008 that have come to light since that Act was passed.
Click here to access a copy of the full report
Click here to read Bell Gully commentary on the report and changes to the bill

Simplified disclosure prospectus regulations
In response to submissions made to the Commerce Select Committee on the Securities Disclosure and Financial Advisers Amendment Bill, MED has issued draft regulations underpinning the simplified disclosure prospectus (SDP) regime outlined in the Bill for consultation. These include regulations outlining the scope of the regime and details of the information to be provided in the SDP. Submissions on the draft regulations closed on 27 May 2009.
Click here to access a copy of the draft regulations
Click here for Bell Gully commentary on the regulations

Flying the nest
The MED has released a Draft MED Occasional Paper analysing company delistings from the NZX. Recent commentary has suggested an increasing trend in delistings from the NZX, particularly following a change in ownership to a single offshore owner. However, some of that commentary has been driven by anecdotal evidence with little data available on the extent of that delisting activity and on whether or not those patterns have changed recently. This study seeks to fill that gap by analysing the delistings from the NZSX between 1993 and 2007.
Click here to read this paper

The Principles of Capital Market Regulation
MED has released the handouts for Adrian Orr's presentation to the Legal Research Foundation conference on "Incorporated Regulation of New Zealand Capital Markets" held in Auckland on 1 May 2009. Adrian Orr is a member of the Capital Market Development Taskforce.
Click here to access these handouts

Securities Commission

Statement of Intent 2009-2012
The Securities Commission has released its Statement of Intent for the period 2009 to 2012. The commission notes that its priorities for 2009-2012 aim to restore and maintain investor confidence in the regulatory environment. The key priorities are:

• finance company enforcement to deter bad practices and market misconduct;
• implementation of the regime for supervision of financial advisers as soon as possible so that New Zealanders can have confidence in a competent and trustworthy industry;
• law reform and exemptions to facilitate capital raising so that firms have ready access to funds and investors receive good quality information;
• using international opportunities to improve confidence in New Zealand capital markets and in particular to encourage and facilitate investment in New Zealand; and
• raising public awareness and understanding about investing so that investors are equipped to make confident market decisions.

The commission notes that the Financial Advisers Act introduces new responsibilities which will have a profound effect on the work and structure of the commission over this period.
Click here to read the Statement of Intent

Speech to branches of the Institute of Financial Advisors
In a recent speech given by Minister of Commerce Simon Power to the Institute of Financial Advisors about the implementation of the Financial Advisers Act, the Minister also outlined some of the government's general priorities for the financial sector. These included:

• developing a single economic market with Australia and, in particular, elements of financial market regulation that the two countries can usefully seek to progress in partnership;
• making sure company owners are better informed of the capital market options available to them and more households hold capital market assets;
• the passing of the Securities Disclosure and Financial Advisers Amendment Bill and recent NZX listing rule changes;
• implementing revised securities regulations that will be more user-friendly and accessible to issuers;
• working on the "super-charged debt market" proposal that emerged from the recent Jobs Summit;
• undertaking a comprehensive review of the Securities Act to address long-standing issues in areas such as disclosure documents while considering new insights from the current crisis; and
• prioritising work on the trustee supervisory model to ensure accountability and sufficient competence of trustees.

Click here for a full transcript of this speech

Speech: The international regulatory environment
Jane Diplock AO (Chairman, Securities Commission New Zealand & Executive Committee, IOSCO) gave a speech to the Legal Research Foundation's conference on "Incorporated Regulation of New Zealand Capital Markets" held in Auckland on 1 May 2009. She discusses the international regulatory environment and the role of key players in the emerging global financial architecture. In Diplock's view, the global crisis will not be resolved without restoring confidence in capital markets and in the way the various market players conduct their business. She notes that restoring confidence in capital markets requires enhanced securities regulation and supervision in a coordinated fashion at the global level, and independent, strengthened, and well-funded regulators for implementation at the domestic level. It also requires greater coordination between regulators and standard setters in the securities, banking, and insurance sectors, and political will for implementation of international standards.

The speech also covers the potential that mutual recognition offers for the trans-Tasman market. Diplock believes that New Zealand and Australia should extend the concept of mutual recognition across the whole panoply of trans-Tasman financial services.

On the New Zealand front, Diplock gave a brief update on the current activities the commission is engaged in to make capital raising easier for companies and to reduce associated costs. She notes that the commission has exemption powers which may facilitate immediate implementation of some recommendations made by the Capital Markets Development Taskforce. In addition, the commission expects very soon to settle the policy of a new class exemption that will increase the amount listed companies can raise via a share purchase plan.
Click here to read a full transcript of the speech

Commissioner for Financial Advisers appointed
The Minister of Commerce, Simon Power, has announced the appointment of Annabel Cotton to the position of Commissioner for Financial Advisers for a period of up to 12 months. Due to other commitments, Ms Cotton is not available to be appointed for a five-year term.
Click here to read the full press release

Expressions of interest for Financial Advisers Code Committee
The Commissioner for Financial Advisers is seeking expressions of interest for membership of a Code Committee to be established under the Financial Advisers Act 2008. The Code Committee will be appointed by the Commissioner for Financial Advisers to prepare and periodically review the Code of Professional Conduct for Authorised Financial Advisers. Expressions of interest must be submitted by 11 June 2009.
Click here for more details

April issue of The Bulletin released
The Securities Commission has released the April issue of its quarterly newsletter, The Bulletin. The following topics are discussed in this issue:

• share purchase plans to help retail investors;
• financial adviser competence requirements;
• the Securities Commission's support for the government's response to the current financial crisis;
• the Commerce Committee's financial review of the 2007/08 performance and current operations of the Securities Commission;
• the banning of Propertyfinance advertisements for moratorium restructure;
• the Securities Commission's review of listed issuer's financial reports;
• international updates on IOSCO and the Financial Crisis Advisory Group; and
• the new standard providing principles and guidance to organisations in setting up compliance programmes published by Standards New Zealand.

Click here to access a copy of this publication

SECURITIES ACT EXEMPTION NOTICES

The following Securities Act Exemption Notices have been published for this period:

Securities Act (Rights, Options, and Convertible Securities) Exemption Amendment Notice 2009
This notice, which came into force on 29 May 2009, amends the Securities Act (Rights, Options, and Convertible Securities) Exemption Notice 2002. The principal notice provides certain exemptions in relation to new equity securities or units in a unit trust (new securities) that are allotted under the terms of, or on the exercise by any person of a right conferred by, a convertible security. The principal notice currently specifies that different sorts of convertible securities are involved depending on whether the new securities are equity securities or units. This notice inserts a new definition of convertible security that will apply regardless of whether the new securities are equity securities or units.

Securities Act (Kiwi Income Property Trust) Exemption Notice 2009 (2009/135)
The notice applies to the offer of units in the Kiwi Income Property Trust (KIP) by the manager of KIP (an NZX Limited issuer) under a unit purchase plan. It exempts the manager and trustee of KIP, subject to conditions, from sections 37 and 37A of the Securities Act 1978 and from the Securities Regulations 1983 (other than regulation 8). One of the conditions of the exemptions is that the manager of KIP must provide investors with an offer document that contains details of the unit purchase plan. This notice came into force on 15 May 2009 and expires on 31 December 2009.

Securities Act (SKYCITY Entertainment Group Limited) Exemption Notice 2009 (2009/114)
This notice applies to the offer of ordinary shares in SKYCITY Entertainment Group Limited (SKYCITY) under a qualifying share purchase plan. It exempts SKYCITY, subject to conditions, from sections 37 and 37A of the Securities Act 1978 and from the Securities Regulations 1983 (other than regulation 8). One of the conditions of the exemptions is that SKYCITY must provide investors with an offer document that contains details of the share purchase plan. This notice came into force on 5 May 2009 and expires on 31 December 2010.

Securities Act (Asian Development Bank) Exemption Notice 2009 (2009/122)
The notice exempts the Asian Development Bank (ADB) from sections 33(2), 37, 51, 52, 54 and 54B(3) of the Securities Act 1978 in relation to debt securities issued by the ADB. This notice came into force on 8 May 2009 and expires on 31 March 2014.

Securities Act (BBI Networks (New Zealand) Limited) Exemption Amendment Notice 2009 (2009/123)
This notice, which came into force on 9 May 2009, amends the Securities Act (BBI Networks (New Zealand) Limited) Exemption Notice 2009. This notice exempts BBI Networks (New Zealand) Limited ( BBINNZ ) and various other parties, subject to conditions, from sections 37, 37A, and 51 to 54 of the Securities Act 1978 in relation to the allotment on 17 May 2009 (or the next working day after that day) of securities resulting from the conversion of subordinated prime adjusting reset convertible securities issued by BBINNZ ( bonds ) pursuant to requests for conversion received from bond holders on or before 26 March 2009.

Securities Act (AMP NZ Office Trust) Exemption Notice 2009 (2009/124)
This notice exempts AMP Haumi Management Limited (the manager) as manager of the unit trust known as the AMP NZ Office Trust (the trust) from sections 34(2)(a) and 37A(1)(a) of the Securities Act 1978 and regulations 3(4) and 12(1) of the Securities Regulation 1983 in relation to an offer of units in the trust to existing unit holders and to persons in whose favour such an offer is renounced. Some of the exemptions are subject to conditions. This notice came into force on 13 May 2009 and expires on 31 December 2009.

Securities Act (Freightways Limited) Exemption Notice 2009 (2009/107)
This notice applies to the offer of listed ordinary shares by Freightways Limited (Freightways) under a qualifying share purchase plan. It exempts Freightways, subject to conditions, from sections 37 and 37A of the Securities Act 1978 and from the Securities Regulations 1983 (other than regulation 8). One of the conditions of the exemptions is that Freightways must provide investors with an offer document that contains details of the share purchase plan. This notice came into force on 1 May 2009 and expires on 31 December 2010.

Securities Act (American International Assurance Company (Bermuda) Limited) Exemption Notice 2009
This notice exempts, subject to conditions, American International Assurance Company (Bermuda) Limited (AIAB) and every person acting on its behalf from section 53E(1) of the Securities Act 1978. The exemption will allow AIAB to have its financial statements audited by its Hong Kong auditor. This notice came into force on 29 May 2009 and expires on 31 May 2014.

SECURITIES MARKETS ACT EXEMPTION NOTICES

The following Securities Markets Act Exemption Notice has been published for this period:

Securities Markets Act (Disclosure of Relevant Interests by Directors and Officers) Exemption Amendment Notice 2009 (2009/112)
This notice, which came into force on 30 April 2009, amends the Securities Markets Act (Disclosure of Relevant Interests by Directors and Officers) Exemption Notice 2004 (the principal notice). The Securities Commission extended the term of the principal notice from 30 April 2009 to 30 April 2014, except in respect of redundant exemptions, because it considers the reasons justifying the exemptions in the principal notice remain valid. In this notice the commission also:

• extends the scope of the exemption available in respect of overseas listed issuers that are listed on the NZX and in Australia or the United Kingdom to also cover circumstances where issuers are dual listed in Australia and on any of NZX's markets or have a primary listing in both New Zealand and the United Kingdom. This exemption is granted to avoid unnecessary duplication of disclosure;

• amends the conditions of the exemption relating to the manner of disclosure of aggregated multiple transactions in respect of relevant interests acquired under share top-up plans, dividend reinvestment schemes, and employee share schemes.

FINANCIAL REPORTING ACT EXEMPTION NOTICES

Under section 35A of the Financial Reporting Act 1993, the Securities Commission has issued the following Financial Reporting Act Exemption Notices:

Financial Reporting Act (Henderson Group plc) Exemption Notice 2009 (2009/140)
This notice exempts the directors of Henderson Group plc (Henderson Group) from various provisions of the Financial Reporting Act. The effect of the exemptions is to provide relief to the directors of Henderson Group where it has offered or offers securities in New Zealand under the Securities Act (Overseas Companies) Exemption Notice 2002 from the preparation, content, auditing, and filing requirements of the Act. These exemptions are granted on the conditions that Henderson Group prepares and publicly files its financial statements in accordance with Jersey law (its place of incorporation) and the listing rules of the LSE and ASX. The notice came into force on 22 May 2009 and expires on 31 May 2014.

Financial Reporting Act (American International Assurance Company (Bermuda) Limited) Exemption Notice 2009
This notice, subject to conditions, exempts the directors of American International Assurance Company (Bermuda) Limited (AIAB) from various provisions of the Financial Reporting Act. The effect of the exemptions is to provide relief to the directors of AIAB from the preparation, content, auditing, and filing requirements of the Act. The exemptions are granted on condition that AIAB prepares and publicly files financial statements that it is required to prepare under the financial reporting requirements of Hong Kong. The notice came into force on 29 May 2009 and expires on 31 May 2014.

Financial Reporting Act (Asian Development Bank) Exemption Notice 2009
This notice exempts the directors of the Asian Development Bank (the ADB) from various provisions of the Financial Reporting Act 1993. The effect of the exemptions is to provide relief to the directors of the ADB from requirements of the Act relating to the preparation, content, auditing, and filing of financial statements. The exemptions are granted on the conditions that the ADB prepares and publicly files financial statements that it is required to file under the laws of the United States of America, that those financial statements comply with generally accepted accounting practice in the United States (US GAAP) or International Financial Reporting Standards (IFRS), that they include or are accompanied by an auditor's report, and that the directors of the ADB add information or explanations as required to ensure that they give a true and fair view of the matters to which they relate. The notice came into force on 8 May 2009 and expires on 31 March 2014.

Takeovers Panel

Takeover Panel issues new Code Word
The Takeovers Panel has issued Code Word Number 25. This issue of Code Word contains the following two guidance notes:

• Guidance Note: Timing Rules in the Code. The purpose of this Guidance Note is to advise market participants on the panel's interpretation and application of the rules in the Code that relate to time; and

• Guidance Note: Rule 7(e) of the Code and Joint Holders or Controller of Voting Rights. The purpose of this Guidance Note is to clarify the application of rule 7(e) of the Code to joint holders or controllers of voting rights in a code company (for example, trustees of a family trust, or 'upstream' arrangements whereby a 'holding' company holds or controls the voting rights in a code company while two or more persons jointly hold or control the shares in the holding company).

The Code Word also includes a news release that the panel has delegated to the panel's executive staff the Panel's power to approve independent advisers under the Takeovers Code. This has been achieved by way of a formal delegation under section 73 of the Crown Entities Act 2004 and is limited to "straightforward" cases only (which, in practice, has been around half of the adviser applications received by the Panel).The delegation to the panel executive of straightforward adviser approvals is intended to improve turnaround times for the straightforward applications.
Click here for a copy of Code Word Number 25

Takeovers Panel consults on buybacks class exemption
The Takeovers Panel is seeking public comments on the class exemption for buybacks contained in clause 4 of the Takeovers Code (Class Exemptions) Notice (No 2) 2001. The consultation paper discusses the operation of this class exemption, identifies some issues in relation to it and then sets out a range of potential options for addressing the issues. The issues identified by the panel include:

• the class exemption may contain insufficient disclosure requirements in relation to buybacks occurring over a period of several years where a shareholder wishes to increase their control through another transaction;

• the class exemption contains no ongoing disclosure requirements in respect of the buyback; and

• some of the provisions of the class exemption are partly unclear on their face.

The panel is seeking comments specifically on its preferred option outlined in the paper through a questionnaire in the consultation paper. Closing date for submissions is 12 June 2009.
Click here to access the consultation paper

Takeovers Panel's Statement of Intent for 2009/10 to 2012
The Takeovers Panel has released its Statement of Intent relating to the 2009/2010 financial year and each of the following two reporting years. The panel notes that it intends to put greater emphasis on its policy functions during the current period of relatively quiet corporate activity. The panel intends to make recommendations to the Minister by June 2010 for a significant number of technical (low policy content) changes to the Code which have arisen out of the panel's experience administering the Code over the past few years.
Click here to access the Statement of Intent

TAKEOVERS CODE EXEMPTION NOTICES

The following Takeovers Code Exemption Notices have been published for this period:

Takeovers Code (Pike River Coal Limited) Exemption Notice 2009
This notice applies to acts or omissions occurring on or after 19 May 2009 and expires on 31 May 2011. The Takeovers Panel has granted exemptions for:

• New Zealand Oil & Gas Limited, and all of its wholly owned subsidiaries, (NZOG) from rule 7(d) of the Takeovers Code to the extent that rule 7(d) requires the notice of meeting to be in accordance with rule 16(b) of the Code. The exemption from rule 7(d) is in respect of any increase in NZOG's voting control as a result of the allotment of voting securities to it under the exercise of 2011 options; and

• Pike River Coal Limited from rule 16(b) of the Code in respect of the notice of meeting.

Takeovers Code (New Zealand Experience Limited) Exemption Notice 2009 (2009/139)
This notice applies to acts or omissions occurring on or after 22 July 2008 and expires on 31 May 2009. The Takeovers Panel has granted exemptions to Arthur Scace and Anthony Arrell from rule 6(1) of the Code in respect of any increase in their voting control of New Zealand Experience Limited resulting from the reduction in the number of trustees of the George R Gardiner Estate Trust.

The New Zealand Exchange (NZX)

NZX branching out
NZX is launching a futures market for trading whole milkpowder - but says the contracts will be settled only in cash, rather than physical delivery. NZX has plans to launch equity options, index futures and dairy commodity derivatives products over the coming year. It will open a new clearing house on November 20.
Click here for further details

Electricity Commission

Electricity Commission launches new supply security website
The Electricity Commission has launched a website, Supplyline, aimed at medium to large businesses, to help them monitor the security of the power system and interpret information about the level of risk and how it may impact on them. Supplyline was developed following the commission's review of the electricity system's performance during the dry winter of 2008. The review recommended that a central portal should be created to bring together key information about security of supply.
Click here for the press release
Click here to access the Supplyline website

High Court decision supports Electricity Commission grid upgrade review process
The High Court has turned down a request by New Era Energy for judicial review of the Electricity Commission's approval of Transpower's proposal for the North Island Grid Upgrade ( a major transmission project from Whakamaru to Pakuranga, Auckland).
Click here for further details

Australian Government: The Treasury

Access to share registers and the regulation of unsolicited off market offers
On 29 May 2009, the Minister for Superannuation and Corporate Law released for public consultation an options paper: Access to Share Registers and the Regulation of Unsolicited Off Market Offers. This paper puts forward a range of options to address the continuing practice by some entities of making undervalued, unsolicited off market share offers to shareholders. While many in the community recognise the poor value of these offers, more vulnerable investors continue to accept them without necessarily appreciating the risk of doing so.
Click here for further details

Australian Securities and Investment Commission (ASIC)

ASIC lifts ban on covered short selling of financial securities
ASIC has lifted the ban on covered short selling of financial securities with effect from 25 May 2009. Covered short selling of securities was temporarily banned on 21 September 2008 in circumstances of extreme market volatility. ASIC lifted the ban on covered short selling of non-financial securities on 19 November 2008 and advised the market on 5 March 2009 that the ban on short selling of financial securities would continue until 31 May 2009.
Click here for more details

New Zealand Commerce Commission (NZCC)

MEDIA RELEASES

The NZCC has issued the following media releases:

Industry regulation and regulatory control

• Commerce Commission finds that electricity companies have not breached the Commerce Act
  The NZCC has concluded its principal investigation into whether any participants in the wholesale or retail electricity markets may have breached Part 2 of the Commerce Act 1986. After a lengthy investigation and the preparation of a detailed economic analysis by Professor Wolak of Stanford University (the so-called Wolak Report), the commission has found no evidence of breaches of the Act, although it will be issuing one warning regarding a risk of a breach.
  Click here for more

Mergers and acquisitions

• Schering-Plough applies for clearance to merge with Merck
  The NZCC has received an application from Schering-Plough Corporation seeking clearance in relation to the proposed merger between Schering-Plough Corporation and Merck & Co, Inc.
  Click here for more

Market behaviour

• Update on Commerce Commission bank break fees investigation
  The NZCC has completed the first part of its investigation into banks' break fees. The commission has been investigating break fees charged by banks to ensure that the fees comply with both the Credit Contracts and Consumer Finance and Fair Trading Acts.
  Click here for more

Telecommunications

• Commerce Commission finalises review of backhaul services
  The NZCC has finalised its first review of backhaul services. Backhaul is the final link connecting competitors' networks to Telecom's local loop, so those competitors can provide services such as landlines and broadband to consumers. The review concluded that four routes that the commission had previously expected to be subject to competition are not competitive.
  Click here for more

Consumer issues

• Medical Mortgages Limited settles with Commerce Commission
  The NZCC has settled with a company that specialises in providing finance to medical professionals over the incorrect calculation of mortgage break fees. In the settlement, Medical Mortgages Limited admits breaching the Fair Trading Act by making misleading representations that it was entitled to charge break fees calculated using a different formula than the one set out in customers' contracts.
  Click here for more

• Commerce Commission will not appeal Avanti Finance decision
  The NZCC has decided that it will not appeal against the recent decision of the High Court in Commerce Commission v Avanti Finance Limited. The case related to the fee on full prepayment (or break fee) that Avanti charged to debtors who repaid their loans early.
  Click here for more

Australian Competition and Consumer Commission (ACCC)

ACCC MEDIA RELEASES

The ACCC has issued the following media releases:

Mergers and acquisitions

• ACCC not to oppose proposed merger of Vodafone and Hutchison
  The ACCC will not oppose the proposed merger of Vodafone and Hutchison's Australian mobile operations, after concluding that it is unlikely to substantially lessen competition in the relevant markets.
  Click here for more

Market behaviour

• ACCC proposes to allow agents to collectively bargain with Tabcorp
  The ACCC proposes to allow the TAB Agents' Association of New South Wales, on behalf of its members, to collectively negotiate agency terms and conditions, and resolve any disputes, with Tabcorp Holdings Limited.
  Click here for more

• ACCC considers electricity works civil contractors accreditation scheme in public interest
  A proposal for Victoria's electricity distributors to implement a common accreditation scheme for civil-works contractors will produce public benefits, the ACCC has decided. As a result, the ACCC will grant authorisation, which provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.
  Click here for more

• ACCC begins consultation on wheat export undertakings
  The ACCC invites submissions from participants in the wheat export industry on proposed undertakings lodged by Co-operative Bulk Handling Ltd, GrainCorp Operations Limited and ABB Grain Ltd relating to access to port terminal services for bulk wheat export at each of the export terminals they operate.
  Click here for more

• ACCC comments on Pratt proceedings
  The ACCC noted Justice Ryan's reasons on the question of admissibility of the four documents which have been the subject of separate legal proceedings in the Federal Court in relation to Mr Richard Pratt. Justice Ryan announced in the Federal Court on Monday 27 April that he had decided the documents in question were inadmissible in evidence in the main case.
  Click here for more

• ACCC institutes proceedings against Cathay Pacific Airways Ltd for alleged price-fixing of air freight
  The ACCC has instituted proceedings in the Federal Court against Cathay Pacific Airways Ltd. The ACCC alleges that between 2000 and 2006, Cathay Pacific Airways Ltd entered into over 70 arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge, a security surcharge and rates that were applied to air cargo.
  Click here for more

• ACCC allows AMS Mortgage Services Pty Ltd to waive home loan contract exit fees
  AMS Mortgage Services Pty Ltd proposes to waive the deferred administration fee for early termination of Wizard branded home loans where a customer chooses to refinance with Aussie Home Loans. The ACCC will permit this arrangement which involves third line forcing, after a notification was lodged by AMS.
  Click here for more

• ACCC allows proposed towage arrangements at Port of Gladstone
  The ACCC sees benefit in a proposed competitive tender process for towage services at the Port of Gladstone and will allow a related third line forcing notification to stand.
  Click here for more

• ACCC considers collective bargaining by Victorian lottery agents in the public interest
  The ACCC proposes to allow Victorian lottery agents to collectively negotiate the terms and conditions of their contracts with the two companies licensed to operate lotteries in Victoria, Tattersall's and Intralot.
  Click here for more

• ACCC institutes proceedings against alleged pyramid scheme participant
  The ACCC has instituted proceedings in the Federal Court in Perth, Western Australia, against Cosic Holdings Pty Ltd and its director, Mr John Cosic, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974.
  Click here for more

• ACCC approves coal scheme at Port of Newcastle
  The ACCC has issued its final decision granting authorisation to Port Waratah Coal Services (PWCS) and Newcastle Coal Infrastructure Group (NCIG) for a transitional capacity balancing system until 30 June 2009.
  Click here for more

• ACCC sees benefit in collective bargaining by newsagents
  The ACCC proposes to grant authorisation to the Australian Newsagents' Federation to engage in collective negotiations on behalf of its members with certain publishers and distributors of newspapers and magazines.
  Click here for more

• Horticulture produce trader gives undertakings to ACCC over agency transactions
  The ACCC has accepted court enforceable undertakings from LaManna Bananas Pty Ltd, on behalf of the LaManna Group companies, over horticulture produce transactions within the group. The undertakings secure a special notification and dispute resolution process for growers potentially affected by certain transactions involving the LaManna Group companies.
  Click here for more

• Mortgage and finance body able to discipline members engaging in misconduct
  The Mortgage and Finance Association of Australia has been granted conditional authorisation to enable it to continue to give effect to its Disciplinary Rules, ACCC Chairman, Mr Graeme Samuel has said.
  Click here for more

• ACCC allows collective bargaining by WA newsagents
  The ACCC has allowed a group of Western Australian newsagents to seek to collectively negotiate the terms and conditions of their contracts with West Australian Newspapers, publisher of the West Australian.
  Click here for more

• ACCC sees benefit in ATM sub-network fee free agreement
  The ACCC has authorised an agreement between members of an automatic teller machine sub-network not to charge each others cardholders a fee for transactions at ATMs owned by members.
  Click here for more

Telecommunications

• ACCC final decision to again reject Telstra's unreasonable ULLS undertaking
  The ACCC has issued a final decision to reject Telstra's Undertaking application for a $30 monthly charge for the Unconditioned Local Loop Service in metropolitan areas. The charge relates to the rental price Telstra charges competitors for access to the copper wire from the telephone exchange to a house or office.
  Click here for more

• NBN announcement 'momentous' says ACCC
  "The most momentous policy initiative in the Australian telecommunications sector since the introduction of full competition over a decade ago," was how ACCC Chairman, Mr Graeme Samuel, described the National Broadband Network announcement to the ATUG 2009 Regional Conference in Canberra. "The NBN, based on a mix of fibre-to-the-premises, wireless and satellite technology, will spark a new wave of infrastructure investment, technological change and product innovation in the [telecommunications] sector," he said.
  Click here for more

• Competition Tribunal requires Telstra to provide network access to Optus
  Telstra has an ongoing obligation to provide Optus with regulated access to its copper network in all areas of Australia, following a decision by the Australian Competition Tribunal.
  Click here for more

• ACCC issues MTAS declaration final report
  The Australian Competition and Consumer Commission has released the final report on its public inquiry into the declaration of the domestic mobile terminating access service (MTAS).
  Click here for more

• ACCC proposes a five year extension for key telecommunications declarations
  The ACCC has announced that it intends to extend the declarations that enable Telstra's competitors to provide fixed voice and broadband services over Telstra's copper network for a further five years.
  Click here for more

Access

• ACCC issues draft advice for water planning, management charge rules
  The ACCC has issued its draft water planning and management charge rules and draft advice to the Minister for Climate Change and Water, for public consultation.
  Click here for more

• ACCC invites comment on Australian Rail Track Corporation Hunter Valley rail network access undertaking
  The ACCC has invited submissions on the Australian Rail Track Corporation's voluntary access undertaking for the Hunter Valley rail network.
  Click here for more

Consumer issues

• ACCC medical indemnity report issued
  The Australian Government has issued the ACCC report monitoring medical indemnity insurance premiums, Medical indemnity insurance—sixth monitoring report—April 2009. The ACCC found that the premiums written in 2008–09 were both actuarially and commercially justified for all five national medical indemnity providers.
  Click here for more

• Refunds for some consumers who bought from Designer Brand Outlet
  The operators of the Designer Brand Outlet website have reached a compensation settlement with the ACCC for the benefit of consumers. On 11 December 2008, the Federal Court found that Mr Kloosterman and Ms Shi had made false, misleading and deceptive representations on the website.
  Click here for more

• ACCC institutes proceedings against résumé writing business Burnan Pty Ltd and Mr Keith Rolston
  The ACCC has instituted legal proceedings in the Federal Court, Perth against Burnan Pty Ltd, and one of its directors, Mr Keith Rolston. The ACCC alleges that Burnan made certain representations about the income which could be earned by operating the résumé writing business but did not have reasonable grounds for those representations.
  Click here for more

• Tobacconist stopped from masking anti-smoking messages
  ACCC action has stopped Darwin tobacconist Mr Colin Thompson from covering health warnings, images and Quitline information on cigarette packets with stickers.
  Click here for more

• High Court explains limit of the 'Publisher's Defence'
  The High Court has upheld the ACCC's appeal and held that through stories broadcast on Today Tonight, Channel Seven broadcasters engaged in misleading and deceptive conduct in contravention of section 52 of the Trade Practices Act 1974. The High Court case turned on whether Channel Seven was able to rely on the so called publisher's defence (Section 65A).
  Click here for more

• New pricing requirements clarified
  Information to help business and consumers to understand the 'Clarity in pricing' amendments to the Trade Practices Act 1974 has been issued by the ACCC. The amendments, which take effect on 25 May, require if businesses choose to advertise a part of the price of a particular product or service, they must also provide a single figure that reflects the total price to be paid.
  Click here for more

• Misleading 'free' offers leads Dodo to pay refunds
  Customers of national mobile phone service provider Dodo Australia Pty Ltd who signed up to its 'FREE $29.90 Mobility Cap Plan', 'FREE Fuel' and 'Cash Offer' 24 month mobile cap plan offers will get refunds and have the monthly cost of their plans reduced after intervention by the ACCC.
  Click here for more

• GAF's gaffe over small appliances warranty cards
  The ACCC raised concerns that the warranty card GAF Control (Sales) Pty Ltd supplied with its small electrical appliances breached the Trade Practices Act 1974 as it contained misleading and false information about consumers' warranty and refund rights.
  Click here for more

• Court undertakings over LED autolamps claims
  LED Technologies Pty Ltd and its director, Mr Anthony Ottobre, have given undertakings to the Federal Court, Melbourne over claims about a range of its LED Autolamps. The ACCC had instituted proceedings against the company and Mr Ottobre alleging misleading and deceptive conduct.
  Click here for more

• ACCC institutes against IT business Zanok Technologies, directors alleging misleading job advertisements
  The ACCC has instituted legal proceedings in the Federal Court, Sydney, alleging that Zanok placed employment advertisements on various websites offering various jobs in the IT industry, when in fact Zanok was not offering job opportunities but rather "IT training" for which applicants were required to pay up to $4,700.
  Click here for more

• Debt collection in ACCC sights
  The ACCC has called on the debt collection and debt buying industry to help crackdown on unscrupulous practices.
  Click here for more

• ACCC acts against Harvey Fresh (1994) Pty Ltd alleging misrepresentations about cheese origin
  The ACCC has instituted proceedings in the Perth Federal Court against Harvey Fresh (1994) Pty Ltd alleging misrepresentations about the origin of some cheese products.
  Click here for more

• ACCC institutes proceedings against Advanced Allergy Elimination Pty Ltd and its director, Paul Keir
  The ACCC has instituted proceedings in the Fast Track list in the Federal Court, Melbourne against Advanced Allergy Elimination Pty Ltd for alleged contraventions of the Trade Practices Act 1974.
  Click here for more

• ACCC obtains injunctions against Zanok Technologies and directors
  The ACCC has obtained Federal Court injunctions against IT business Zanok Technologies Pty Ltd and its directors in relation to the promotion of employment in the IT industry.
  Click here for more

• Scammers more active than ever: ACCC
  The ACCC has seen a continuation in the growth of consumer scam activity into 2009, ACCC Deputy Chair, said Mr Peter Kell. From January to March this year, Australians reported to the ACCC's Infocentre that they had lost almost $30 million to scams.
  Click here for more

• Federal Court declares Cardcall engaged in misleading and deceptive conduct
  The Federal Court declared that international phone card seller Cardcall had engaged in misleading or deceptive conduct in breach of the Trade Practices Act 1974.
  Click here for more

• ACCC accepts court enforceable undertaking from bunk bed supplier
  The ACCC has accepted court enforceable undertakings from Mr Sanjay Goel, trading as Pacific ImpExp Services, after finding that two of his bunk bed models did not comply with the mandatory product safety standard.
  Click here for more

• Ascot Four Pty Ltd (Formerly Zamel's Pty Ltd) appeal dismissed
  The Full Court of the Federal Court has dismissed an appeal made by Ascot Four Pty Ltd, the former owners of the Zamel's jewellery chain. The Federal Court had found that Ascot Four falsely represented that the purchase of 11 items advertised in the Zamel's catalogue would have resulted in a saving of the difference between the sale price and the strike through price.
  Click here for more

• ACCC identifies false 'Product of Australia' claims by Waverley Woollen Mills for its 'Work Wear' jumpers
  Waverley Woollen Mills Pty Ltd has admitted making false 'Product of Australia' claims for its Waverley Work Wear jumpers following an ACCC investigation. Fibre for the jumpers was spun in Australia, but the jumpers were woven in Vietnam and imported into Australia.
  Click here for more