Treasurer comes up with answer on competition

Peter Costello wants a "transtasman hearing body" to hear applications for transtasman takeovers or mergers.

The Australian Productivity Commission ruled out having a transtasman competition regulator in a report examining how to better harmonise regulations and get greater cooperation on competition regulation in NZ and Australia.

But the Australian Treasurer said it should be relatively simple to convene a body to consider issues such as the Qantas/Air New Zealand merger.

This was rejected by the New Zealand High Court, but approved by Australia's Competition Authority.

Costello suggested that if a transtasman issue arose, the Commerce Commission and the Australian Competition and Consumer Authority could convene a body.

But he has not figured how appeals would be handled.

"I guess there's a couple of alternatives. One is that you might say there is no appellate rights.

"The other is that you might convene an appellate body, such as a High Court judge from New Zealand and a member of the Australian Competition Authority."