Commerce Commission rates poorly

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 chair Roger Partridge said 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’’.

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.

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

NZI said, based on its survey, regulators that had the governance model of the commission tended to be regarded as performing poorer 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.