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Commerce Minister Simon Power has hinted at changes to the competition watchdog Commerce Commission amid calls from big business for a crackdown.
Some firms are pressing the Government to change its powers or unseat chairwoman Paula Rebstock, whose term ends soon, according to a well-placed legal source.
Power referred yesterday to a report by prominent competition lawyer Grant David, of Telecom's law firm Chapman Tripp, calling for radical reform.
The minister said he was "casting a fresh eye" on the commission, which decides issues like competition and which has prevented sale of The Warehouse Group and also clashed last year with big firms Telecom and Air New Zealand.
Lines company Vector is believed to have raised concerns in the past, but chairman Michael Stiassny said yesterday that a small country like New Zealand needed a regulator like the commission.
Grant David, who said he wrote the article in a private capacity and without talking to Telecom, called for a "full review and disbanding the commission".
Telecom chief executive Paul Reynolds, who has complained strongly about the commission, denied Telecom was lobbying for change.
The Chapman Tripp lawyer said competition law might be a luxury New Zealand could not afford and it might be a time for drastic change.
Three other competition lawyers approached by the Herald acknowledged tension between the commission and business, and said there was a case for changes.
"We have to be extremely concerned that vested interests are seizing the political advantage and that personalities are playing a part in that," said one lawyer, who would not be named.
A weak commission would provide an advantage to dominant players in markets.
The lawyer said corporate criticism of the commission fell into two groups. Some were calling for changes to the institution, while others were more focused on having Ms Rebstock replaced.
