Vector today welcomed the Government’s draft decisions on the review of the Commerce Act saying it will provide New Zealand’s infrastructure businesses and consumers with greater certainty and confidence.

Vector CEO (acting) Simon Mackenzie said the draft decisions highlight the government’s clear intent to provide the right incentives and regulatory certainty for infrastructure companies to invest and innovate with confidence.

“Vector has been on record consistently advocating for a regulatory regime that is consistent, transparent and robust. The draft decision is a significant step towards achieving that outcome,” Mr Mackenzie said.

“The focus on forward looking incentives rather than backward looking means we can concentrate on building the future.”

He said that the decisions build on the Government’s policy statement in August last year which looked to create the right environment for infrastructure investment and sends the right signals to business.

Mr Mackenzie acknowledged the constructive and inclusive process the Government has run through the review.

“Vector participated in the expert panel alongside the Government, business and independent advisors with the process grounded in achieving an outcome which gets the balance right for both business and consumers. That is precisely what good regulatory frameworks should achieve.”

Mr Mackenzie said the proposal to introduce merits review is in line with international best practice and something Vector has long been a proponent of.

“Merits review provides an increased level of accountability and rigour which New Zealand should expect to see as part of its regulatory regime. In addition, the requirement for the Commerce Commission to spell out in advance the rules for key inputs and that these decisions are subject to merits review is of critical importance to us.”

Vector sees the greater level of flexibility allowed through the negotiate/arbitrate and customised proposal options as resulting in constructive agreements either with the Commerce Commission or directly with consumers.

He said Vector now looks forward to seeing the draft decision legislated and implemented so benefits can be realised by infrastructure businesses and consumers as soon as possible.