Kiwi blogger lays complaint against NZ Government with Commerce Commission for manipulating the future stock price of Mighty River Power...

Dollars & Sense, The Body Politic > Blogger lays complaint with Commerce Commission

Blogger lays complaint with Commerce Commission 

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As of today,  1 April 2013, this blogger has laid a complaint with the Commerce Commission regarding National minister’s questionable dealings with Rio Tinto and proposed subsidies for electricity prices,

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contact@comcom.govt.nz	2:20 PM
to me

Your details

• First Name: Frank
• Last Name: Macskasy
• Email: fmacskasy@gmail.com

Your address

Your complaint

• Business you are complaining about: New Zealand Government
• Street: Molesworth St
• Suburb: Thorndon
• City/Region: Wellington
• Post code: 6160
• Business Contact Number/ Mobile number: (4) 817 9999

Description of complaint

What happened?
Tony Ryall has recently announced that the NZ Government is intervening directly in negotiations between Meridian Energy and Rio Tinto (which is 80% owner of Tiwai Aluminium Smelter).

Mr Ryall has said,

“With this in mind, the Government has been in contact with Pacific Aluminium’s international parent company Rio Tinto this week to discuss helping to bridge the gap in their positions over the short to medium term, if this could be of assistance in concluding an agreement.

“In the meantime, we understand Meridian’s existing contract with Pacific Aluminium remains in place at least until 1 January 2016 with significant financial and other obligations beyond that.”

Ryall added that “all relevant information – including about the smelter electricity contract – will be reflected in the Mighty River Power offer document which is currently being finalised”.

Source: NZ Herald, Govt steps in to sort out stalled Tiwai power deal (http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10874174)

I therefore submit the following;

(1) This appears to be a prima facie case of the NZ Government manipulating the future stock price of Mighty River Power (and other state owned powercos), by offering a subsidy to Rio Tinto.

(2) This subsidy is not available to any other company nor individual.

(3) As such, I submit that the NZ Government’s intention to subsidise electricity that is provided to Rio Tinto is done with a view to reduce competition in the market.

Specifically, I draw the Commission’s attention to the Commerce Act 1986; sections 27, 30, and related clauses.

(4) Furthermore, I submit that if any other corporation, company, institution, or individual attempted such an act, that they would be deemed to be guilty of price fixing and manipulation of the market.

I await your response and thank you for your consideration of my complaint.

-Frank Macskasy

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I will keep readers posted as to what, if anything results from this complaint.