Source: Radio New Zealand
In a draft determination announced on Thursday, the regulator proposed to authorise the application. Armourguard / supplied
The Commerce Commission has performed a U-turn on banks’ bid to collectively negotiate cash-in-transit services with Armourguard.
The Commission initially declined an interim bid by the Banking Association to negotiate on behalf of banks and some retailers, saying it was not satisfied the benefits would outweigh the negatives.
But in a draft determination announced on Thursday, the regulator proposed to authorise the application.
“We consider small benefits would likely arise from the proposed collective bargaining, such as operational efficiencies and more efficient contract terms,” Commission chair Dr John Small said.
He said the Commission’s view has “developed” since declining the bid for interim authorisation.
“While we do not currently consider these to be substantial benefits, we believe they are positive on balance.”
Small said at the time there were concerns around an approval leading to uncertainty and Armourguard pushing back investment plans.
“However, with further assessment and evidence we now consider these detriments to be unlikely.”
The Commission is seeking submissions from interested parties by 10 April.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
