Our 2011 election manifesto - Labour Party

Credit Unions
Labour in government made considerable inroads in relation to an appropriate regulatory
framework for Credit Unions. Given the nature of the relationship between credit unions and
their members, we will review the work programme and establish a priority for updating the
framework and passing the necessary amendments into law. Concerns were raised about
the impact of the No Asset Procedure on credit unions prior to the 2008 election. The
present government has not addressed those concerns and we will review the rules with
specific reference to credit unions.
Labour will prioritise the Credit Union legislative timetable.
Labour will review the application of the No Asset Procedure rules as they relate to
loans made by credit unions within a certain period prior to the NAP being applied
for.
Tackling excessive prices
As a result of New Zealand‟s small size and small population, some consumer markets lack
competition. Some industries (e.g. supermarkets, telecommunications) are dominated by a
small number of firms. Higher prices are an inevitable result of insufficient competition.
Sometimes the circulation of information about prices (allowing comparisons) can push
prices down and Labour‟s consumer protection policy will encourage this. But more needs
to be done.
Labour will investigate the development of a Code of Practice in the supermarket
industry to increase transparency and better protect consumers.
When the Commerce Commission is constantly rebuffed by the courts when it is trying to
promote and protect the interests of consumers, we need to investigate the cause and be
prepared to respond.
Ten years on from the changes we made to Part 2 of the Commerce Act, which deals with
restrictive trade practices (significantly section 36), it is time to review the section that
requires:
A substantial degree of market power
Taking advantage of that market power, and
Motivated by a prohibited purpose.
This section, known as the „counterfactual test‟, has been found to be inadequate, most
notably in the Court of Appeal case relating to Telecom‟s introduction of a 0867 dial-code for
free calls to internet service providers in 1999 to encourage residential customers to move to
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