Commerce Commission reputation 'slides' in business poll

Tuesday, 24 May 2022

The Commerce Commission insists supermarket reforms it is recommending will make a difference.

The country’s competition watchdog is poorly regarded, according to an NZI poll
The Commerce Commission’s own polling suggests it has few critics
The National Māori Authority is hopeful of getting new commissioners appointed

Big businesses have joined disappointed supermarket shoppers in voicing concerns over the performance of the country’s competition watchdog, according to the New Zealand Initiative.

An “in-depth survey” of 200 large businesses by the think tank found only 30% believed that the Commerce Commission was meeting its goals, while 39% disagreed, NZI said.

A Commerce Commission spokesperson noted only 36 of the 200 businesses surveyed responded to questions about the commission, with some questions having potentially fewer responses.

Commission chairperson Anna Rawlings said governance and the operation of the commission had been “an area of significant focus and evolution in recent years” and that would “continue to be the case as our operating context continues to evolve”.

NZI chairperson Roger Partridge said the results marked a deterioration from a disappointing poll in 2018 and were “a damning indictment of one of New Zealand’s most important regulatory agencies”.

Only 16% of businesses polled by the New Zealand Initiative thought the Commerce Commission’s decisions were predictable, NZI chairperson Roger Partridge said.

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In contrast, NZI’s survey showed businesses’ opinion of the Reserve Bank’s performance and governance had improved dramatically, NZI said.

Partridge said its survey was conducted before the commission conducted its final report into the supermarket industry, and businesses’ main concern appeared to be that decisions made by the commission were not predictable.

A Stuff reader poll conducted after the commission completed its market study into supermarket competition in March also indicated dissatisfaction with the regulator’s performance, with about 84% of readers agreeing it was not doing a good job and was too timid.

The competition watchdog commissions its own public polling to assess its public standing, participating in a poll of public sector agencies conducted by Kantar, formerly Colmar Brunton.

That 2021 survey reported only 5% of respondents were critical of the commission, while 30% were “advocates” and 50% were neutral about the job it was doing.

Quotes from the public about the commission that were highlighted by Kantar in its report included: “They really look after consumers’ interest,” and, “They have the backs of the public.”

The Commerce Commission is governed by 10 commissioners and associate commissioners who are appointed by the Government.

Rawlings has announced she will step down later this year.

The National Māori Authority has been lobbying Commerce Minister David Clark to appoint Māori commissioners to the regulator after voicing disappointment with the supermarket study and the quality of the commission’s consultations with Māori.

National Māori Authority chairperson Matthew Tukaki met with Clark in April and suggested four Māori candidates who could be appointed as associate commissioners, including one who he said could be a potential chairperson of the watchdog.

Tukaki said the suggestions had been well received by Clark.

“I understand those names have been forwarded to be included in the Ministry of Business, Innovation and Employment process that is running around appointments,” he said.

“They are a high-calibre group of people with an immense amount of experience in the regulatory environment, and many of those names will be familiar to people.”

NZI said that, based on its survey, regulators that had the governance model of the commission tended to be regarded as performing more poorly than those where board and executive functions were separated.

“I think the commissioners are competent, but they are left in the position of having to evaluate their own work and that is not ideal,” Partridge said.

NZI’s survey showed a lack of confidence in the transparency and robustness of appointment processes for regulatory agencies generally, he said.

“We are recommending that an independent body be tasked with that role.”