About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Saturday, April 19th, 1:42PM
rss
Latest Headlines

Public Trust's free will-making service threatened

The Public Trust's free-willing making service is threatened by changes to competition law.

Thursday, November 22nd 2001, 10:57PM

by Rob Hosking

The Public Trust could be one of the first firms caught by the government’s changes to competition law.

MPs on Parliament’s finance and expenditure committee have warned ministers that the Public Trust’s "free wills" service could be anti-competitive under changes to the Commerce Act which came into force in May.

The committee, which is considering changes to the legislation governing the Public Trust, heard submissions from numerous groups, including the New Zealand Law Society.

The Public Trust office was earlier this year taken to the Commerce Commission on the issue, but the commission ruled in favour of the government-owned agency. However that was under the old competition law.

The new rule replaces the term "dominance" with that of "substantial market power". Although this change is aimed primarily at companies such as Telecom, the government’s own agency could be caught by it.

"The bill beefs up the Commerce Act giving the Commerce Commission more teeth and bringing New Zealand in line with its key trading partner Australia," Minister of Commerce Paul Swain said in May

However it is those Australian precedents that have the committee worried. Several court cases across the Tasman have set down the rule that firms which do not necessarily have a large market share, but which do hold a strong advantage in the market place granted to them by statute or regulation, possess "substantial market power" and can be held to be anti-competitive.

The New Zealand courts are likely to use Australian competition cases as precedent as the new wording follows the Australian law so closely. Although the Public Trust holds only about 20% of the market for will making, the fact that most of its competitors are small law firms is also likely to weigh against it, the Law Society told the committee.

While the lawyers can be seen to be arguing its own case in this instance, the committee was impressed enough by the society’s arguments to warn the government in its report on the bill. This is despite the fact that the issue is really outside the ambit of the legislation, but is more concerned with how the Public Trust will operate after the bill is passed.

The politics of the issue are also trickier than under the old rules. Previously the Public Trust was forbidden, by regulation, to charge citizens for wills.

That rule is being repealed. Instead, now, the Minister in Charge of the Public Trust, Jim Anderton, has to purchase such services from the government agency each year. The free will service will be subsidised from general taxation, rather than paid for out of the Public Trust’s operating revenues, as has happened in the past.

Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.

« Public Trust's free will-making service threatenedThe evolving world of personal trusts »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Spicers' restraint of trade draconian
    “Yes, a self employed contractor may be dealt with differently than a franchisee in regard to your point made where there...”
    2 days ago by Michael Donovan
  • Pricing chaos in home loan market
    “Why has New Zealand consistently have the highest interest rates in the western world? Why does areas outside of Auckland...”
    2 days ago by Richard
  • Financial literacy tools reach teachers
    “While there are fools and entrepreneurs, there will always be financial inequity. Everyone knows that hire purchase is expensive,...”
    2 days ago by Andy
  • Call for advisers to audit each other
    “Maybe a senior adviser would have good back ground knowledge of the audit requirements and not be a newbie in the audit game,...”
    2 days ago by Gerald Gates
  • Call for advisers to audit each other
    “Thank you Nigel for going into Bat once again for us. I am an AFA specializing in the Family Market, therefore mostly Presenting/Promoting...”
    2 days ago by Lyall Daines
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 6.49 5.69 6.29 6.40
AMP Home Loans $200k+ 6.39 5.59 5.99 6.30
AMP Home Loans LVR <80% - - 5.99 -
ANZ 5.99 5.85 6.49 6.85
ANZ LVR > 80 5.99 6.35 6.99 7.35
ANZ Special - - 5.95 -
ASB Bank 6.00 5.85 6.49 6.85
ASB Bank Special - - - -
BankDirect 6.00 5.85 6.49 6.85
BankDirect Special - - - -
BNZ - Classic - - 5.95 -
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.19 5.85 6.29 6.29
BNZ - Mortgage One 6.60 - - -
BNZ - Rapid Repay 6.19 - - -
BNZ - Std, FlyBuys 6.19 5.85 6.29 6.29
BNZ - TotalMoney 5.99 - - -
Credit Union Auckland 6.20 - - -
Credit Union Baywide 5.85 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Fidelity Life 5.70 5.40 6.00 -
Lender Flt 1yr 2yr 3yr
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 5.90 ▲5.60 ▲5.99 ▲6.35
HBS LVR > 80% - - - -
Heartland 5.95 6.25 6.50 7.10
Heretaunga Building Society 5.75 5.50 6.30 -
Housing NZ Corp 5.75 5.50 6.30 6.40
HSBC Premier 6.24 5.59 6.29 6.55
HSBC Premier LVR > 80% - - - -
HSBC Special - - 5.79 -
Lender Flt 1yr 2yr 3yr
Kiwibank 5.90 5.69 5.99 6.40
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 5.60 - - -
Kiwibank LVR > 80% - - 6.29 6.40
Liberty 5.64 - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.45 5.95 6.60 -
NZ Home Loans 6.10 5.69 6.29 6.60
Perpetual Trust 7.70 - - -
RESIMAC - lo doc 7.34 7.14 7.49 8.05
RESIMAC LVR < 80% 5.84 5.64 5.99 6.55
Lender Flt 1yr 2yr 3yr
RESIMAC LVR < 85% 6.84 6.64 6.99 7.55
RESIMAC LVR < 90% 7.84 7.64 7.99 8.55
SBS Bank 5.90 ▲5.60 ▲5.99 ▲6.35
SBS LVR < 80% - - - -
Silver Fern 5.95 6.10 6.55 7.05
Southern Cross 5.95 6.25 6.50 7.10
Sovereign 6.10 5.85 6.49 6.85
Sovereign Special - - - -
The Co-operative Bank 5.95 5.65 5.99 6.35
TSB Bank 6.04 5.40 5.99 6.40
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 5.74 5.85 5.95 6.85
Westpac - Capped rates - 6.19 6.69 -
Westpac - Offset 5.74 - - -
Median 6.00 5.85 6.29 6.85

Last updated: 15 April 2014 9:01am

News Quiz

Who delivered FMA's quarterly briefing in Auckland last week?

new chief executive Rob Everett

Head of Enforcement Belinda Moffat

Head of Compliance Monitoring Elaine Campbell,

Chairman Simon Allen

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com