New Governance Model to Strengthen New Zealand's Commerce Commission by 2027

Competition drives economic growth, innovation, and productivity, but New Zealand’s competition laws have not always delivered the outcomes they should, Commerce and Consumer Affairs Minister Scott Simpson says.

The Commerce (Commerce Commission Reform) Amendment Bill passed its first reading today, making way for a new governance structure for the Commerce Commission.

Having an effective regulator is essential to fair, thriving and competitive markets. These changes will make the Commerce Commission an even stronger agency, Mr Simpson says.

An independent review last year, led by Dame Paula Rebstock, found the Commission had outgrown its current structure, with the board’s dual responsibility for governance and regulation no longer working as well as we would expect. The new structure separates these functions.

This is the model we would adopt if we were starting the Commission from scratch, Mr Simpson says.

The new board structure will ensure the Commission effectively carries out its growing powers and responsibilities, now and into the future. Commissioners will be freed up to prioritise decision-making that keeps markets competitive, gives businesses greater certainty and delivers good customer outcomes.

The new structure will take effect from 1 July 2027. It introduces: A new oversight board with a majority of external directors who bring an ‘outside-in’ perspective on strategic issues A new panel of commissioners with relevant expertise and experience Delegation of regulatory decisions from the board to committees made up of panel members and other external experts as needed Phasing out of named commissioners for groceries and telecommunications.

Commission chair Dr John Small will serve as chief commissioner and board chair until his term ends in 2030, while Anne Callinan will be deputy chief commissioner and a board member. Current commissioners will transition to panel member roles, with the Telecommunications and Grocery Commissioners retaining their titles until the end of their respective terms.

This is a significant change for the Commission, and Dr Small’s confirmation as board chair will create stability and continuity. He will continue to provide both regulatory and strategic leadership during the transition period, Mr Simpson says.

The Commerce (Commerce Commission Reform) Bill has been referred to the Finance and Expenditure Committee.