Next boss begins new era at watchdog

ANALYSIS: The search has started for a new chairman of the Commerce Commission now that Mark Berry will be standing down in May after 10 years at the helm.

A commission spokesman confirmed Berry had not applied for what would have been a third fiveyear term.

The new competition champion will be able to use a fresh new super power granted to the commission last month to complete ‘‘market studies’’ into problem sectors.

It is difficult to find a yardstick to measure the performance of the watchdog and its commissioners.

The commission prosecutes breaches of the Fair Trading Act and the Commerce Act, pinging the likes of mobile traders and errant telcos – fish in a barrel mostly.

It also regulates many utilities, undertaking important but dull tasks such as deciding the fair rate of return that the likes of electricity lines companies and airports should be able to earn.

The commission also has the job of clearing or authorising major takeovers, which is where most controversies arise.

Berry may be best remembered at the commission for declining to clear the takeover of Sky TV by Vodafone, or to authorise the merger of NZME and Stuff Ltd.

Both decisions are looking somewhat suspect with the benefit of hindsight and it would be interesting to see what would happen now if either application was re-submitted.

A more thorny topic is whether the public would feel the overall competitive landscape has improved since Berry took charge in 2009. The commission appeared obsessed with telecommunications regulation, but continuing grizzles over areas including petrol prices and bank profits suggest that there hasn’t been a strong feeling of forward momentum in competition more generally.

But given the commission’s new powers, it has got to be hoped that when the next chairman’s first term expires, in 2024, Kiwis will feel they work and spend in economy that is perceptibly fairer and more competitive than it is today.