It aims to ensure that New Zealand’s markets for dairy goods and services remain efficient.
What is this bill about?
The bill seeks to amend the Dairy Industry Restructuring Act 2001 (DIRA). It follows a major review that looked at how well the DIRA’s regulatory system is working in light of changes in the dairy industry.
The DIRA was passed in 2001 to enable the formation of Fonterra. Since Fonterra would have a near-monopoly over the local dairy market, the Act set rules to regulate Fonterra’s dominant position and help new competition enter the market.
The review into DIRA concluded that continued regulation of Fonterra is needed to promote the efficient operation of New Zealand’s dairy markets, but some changes are also needed.
What does this bill mean?
The bill proposes to change the DIRA regime to:
