Claims of 'bully-girl tactics' rejected by regulator's chief

Suggestions that the Commerce Commission has become more aggressive and ruthless in its dealings with business have been rejected by chairwoman Paula Rebstock.

At the Commerce Select Committee's financial review of the commission yesterday, National Party MP Katherine Rich questioned Rebstock about concerns raised by leading business people about its approach.

"Business is beginning to cry foul and complain about what they perceive to be overly aggressive behaviour and essentially bully-girl tactics," said Rich, the committee chairwoman.

Rebstock said that the commission consulted business often and was aware of the concerns but repeated recent comments that it had refocused its strategy to concentrate on areas of behaviour that were causing the greatest detriment to consumers and the economy.

As a result, "the commission has become much more effective".

However, it had not increased the number of investigations it was undertaking nor had it increased prosecutions or the use of its powers.

"It is almost inevitable that companies that find themselves on the receiving end of certain prosecutions are not going to like it," she said.

Rebstock said the commission had also received feedback from a large number of businesses recognising that its work was of benefit to the business community as well as consumers.

National MP Pansy Wong referred to the "chilling impact" of the commission's searches of business premises which reportedly extended to an insurance executive's beer fridge.

But Rebstock told the committee "you'd be surprised" where crucial documents were stored.

Labour MP Shane Jones asked Rebstock if the commission had intentionally tried to demonstrate it was capable of being "ruthless" in order to discourage breaches of competition law and save on costs associated with litigation later on.

"We don't have a strategy to be ruthless," said Rebstock.

"We have a strategy to be firm and fair."