Price controls mooted for AIA

By Phil Boeyen, ShareChat Business News Editor

Tuesday 3rd July 2001

The Commerce Commission is recommending price controls on airfield activities at Auckland International Airport (NZSE: AIA).

The Commission has issued a 400-page draft report on airport price controls, taking a look at Auckland, Wellington and Christchurch.

Price controls have not been recommended for either Wellington or Christchurch.

Commission chairman, John Belgrave, says the preliminary view has been reached on the basis of information received to date.

"The Commission's preliminary view may be changed in its final report once it has received submissions from interested parties and their experts," he says.

The Commission aims to reports to the Minister of Commerce with final recommendations by the beginning of November.

Under section 53 of the Commerce Act the Governor-General can impose price controls on specified goods or services in a market if three criteria are met.

The criteria are that the Minister of Commerce must be satisfied that price controls should be imposed, it must be a market in which competition is limited, and price controls must be necessary or desirable in the interests of users of the services.

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