My last post ‘One reason for low productivity‘ suggested that New Zealand’s scores of decision-making committees with no skin in the game are expensive and inefficient.
A prime example is the Commerce Commission.
They do make some important decisions, but there are only a handful of decisions each week they have to get through. In the 2014/15 year they had 15 mergers to look at and another 14 market conduct cases. They set two telecommunications prices, set line charges for 15 electricity lines companies and 10 gas distributors, and wrote reports on 3 airports! There were fair trading-type actions taken too but they are not all cleared individually by Commissioners.
There is an awful lot of work that has to be done by staff to get theses decisions researched and written up, but commissioners shouldn’t be spending huge amounts of expensive hours going through these things in immense detail. Yet, you can see by their remuneration, they do just that. Read more »