Economic integration 'step closer'

Full integration of transtasman competition and consumer protection regimes is not yet warranted, a report for the New Zealand and Australian Governments recommends.

The report, by Australian think-tank the Productivity Commission, was commissioned to examine the potential for co-operation.

It says requiring identical laws and procedures would be costly and would have only moderate benefits.

"Partial integration, involving retaining the two national regimes, but establishing a single system to handle certain matters having Australasian dimensions also would be unlikely to achieve net benefits," the report said. However, it said the long-term objective of a single market would be assisted by a package of measures that sought to bring the two countries together gradually.

The proposals include:

* Harmonising consumer protection and competition regulations.

* Formalising dialogue between governments over competition regulation and allowing certain approvals to be considered on a single track, but with separate decisions.

* Providing regulators with powers that allow them to assist their transtasman counterparts.

* Improving information sharing.

The commission said implementation of recommendations would provide a framework in which competition and consumer protection regimes could evolve.

Commerce Minister Pete Hodgson said the report brought the goal of a single transtasman economic market a step closer.

"This report provides a valuable picture of the state of harmonisation and suggests where future improvements could be made. The task now is to consider how the report could be used to inform future policy development."