Bill to reform Commerce Commission by splitting governance and regulation

Planned oversight board will mostly comprise external directors

Bill to reform Commerce Commission by splitting governance and regulation

The Commerce (Commerce Commission Reform) Amendment Bill (Bill No. 250-1) – which seeks to enable a new structure for the Commerce Commission that will separate its governance and regulation functions as of 1 July 2027 – has passed its first reading. 

According to a news release from the government, the proposed structure will: 

  • Introduce an oversight board mostly composed of external directors to provide an “outside-in” perspective on strategic matters 
  • Add a panel of commissioners with pertinent proficiency and experience 
  • Delegate regulatory decisions from the board to committees comprising panel members and other external experts, where necessary 
  • Phase out named commissioners for groceries and telecommunications 

“This is the model we would adopt if we were starting the Commission from scratch,” said Scott Simpson, commerce and consumer affairs minister, in the news release. 

The government noted that: 

  • Dr John Small, the Commerce Commission chair, will remain chief commissioner and board chair until the end of his term in 2030 
  • Anne Callinan will be deputy chief commissioner and a board member 
  • The current commissioners will become panel members, with the telecommunications and grocery commissioners keeping their titles until their respective terms have wrapped up 

“This is a significant change for the Commission, and Dr Small’s confirmation as board chair will create stability and continuity,” Simpson said in the news release. “He will continue to provide both regulatory and strategic leadership during the transition period.” 

According to the general policy statement in the bill’s current text, the proposed legislation will amend the Commerce Act 1986, the Telecommunications Act 2001, and the Grocery Industry Competition Act 2023. 

The legislature has referred the government bill, introduced on 1 March 2026, to the Finance and Expenditure Committee. 

Objectives

Per the general policy statement, the new structure aims to help the Commerce Commission enhance its governance, decision-making, and mandate, as well as perform its functions and reach its goals more efficiently and effectively. 

“Having an effective regulator is essential to fair, thriving and competitive markets,” Simpson said in the government’s news release. “These changes will make the Commerce Commission an even stronger agency.” 

He added that the new structure seeks to free up commissioners’ time so that they can focus on decision-making that keeps markets competitive, offers businesses more certainty, and delivers positive customer outcomes. 

Independent review

In 2025, Dame Paula Rebstock led an independent review. According to the general policy statement, the review found: 

  • the commissioners’ primary involvement in decision-making in connection with the Commerce Commission’s statutorily independent functions 
  • siloed divisions, at the expense of the broader organisational governance and strategy 
  • the absence of a strong “outside-in” perspective at the board 
  • low staff delegation levels 
  • no flexible means for external experts to take part in decision-making 

Per the general policy statement, the review’s recommended structural changes seek to fortify the board’s role and promote organisational change. 

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