After months of investigation the Commerce Commission has said it doesn’t have the right legislative teeth to bite into the issues surrounding the domestic milk market.

It says the current multi-government department investigation, also looking into the milk industry, is best placed to examine the sector. 

The Commerce Commission announced this morning, that there was no basis for it to hold a price control inquiry under Part Four of the Commerce Act.

Part Four of the Commerce Act only allows the Commerce Commission to launch a price control inquiry on two fronts.

One: if there is little or no competition in a sector, such as with  electricity and gas;  

Or two: if its intervention might lead to substantially more competition in the sector.

Because of the multiple-players in the domestic dairy industry, at wholesale and retail levels and high price of entry, it doesn’t meet these requirements, and the Commerce Commission is sidelined.

The Commerce Commission has passed the ball back to the government.

The Commission says, in its eyes, the current review of the dairy regulations by the Ministry of Economic Development, MAF and Treasury, could result in more effective regulation.