Simon Power’s recommendation that Dr Mark Berry take over from Paula Rebstock as chairman of the Commerce Commission shows the government is ready to consider radical change to the competition landscape.

The commerce minister recommended Dr Berry for the role yesterday after Ms Rebstock announced she was stepping down, ending 11 years at the commission, nearly five and a half as chairwoman.

Dr Berry – a barrister and a specialist in competition law and economic regulation – was deputy chairman of the Commerce Commission between 1999 and 2001.

More significantly, however, Dr Berry has more recently been a consultant at Chapman Tripp, the law firm that has been a leading lobbyist for radical reform of the Commerce Commission.

A couple of weeks ago Mr Power hinted at changes to the commission's mandate, saying he was "casting a fresh eye" on the commission.

This came on the back of a report by competition lawyer Grant David of Chapman Tripp, calling for change (NBR print, Feb 5, 2009).

Chapman Tripp claims, among other things, that current competition law is a luxury that New Zealand can no longer afford, and that the commission's "overly interventionist approach" has increased costs of private enterprise at a time when they can least afford it.

Todd Energy's Richard Tweedie also questioned the role of the Commerce Commission, calling for the new government to closely review the regulator's priorities (NBR print, Feb 13).

The National government, it seems, is open to ideas.

Prime Minister John Key is understood to have said openly to market participants that the corporate landscape, in terms of competition, needs adjusting.

Mr Power says the commission was fortunate to have someone as experienced as Dr Berry immediately available for the position as the commission undertakes new regulatory responsibilities following the passing of the Commerce Amendment Act late last year.

"Given that Ms Rebstock's warrant expires at the end of this month, we had to move quickly to ensure a new chair is appointed to ensure the Commission has the stability it needs, and we are fortunate Mr Berry was available at such short notice."

Mr Berry is a specialist in the area of competition law and economic regulation, and has acted in several leading merger and restrictive trade practice cases since the enactment of the Commerce Act.

"He brings valuable experience to the commission’s future work, both in relation to trade practices and in the area of regulation of natural monopolies," Mr Power says. 

Update: This story has been updated to clarify Todd Energy managing director Richard Tweedie's statements, which did not question the need for the Commerce Commission, but rather it's priorities.