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Updated at 8:14 pm on 4 May 2012
Commerce Commission chairman Mark Berry says its proposed role as an overseer of Fonterra's milk price-setting process, included in new dairy industry legislation, is confusing.
As the bill's currently written, Fonterra would continue to have the muscle in setting the price of milk, the competition watchdog says in its submission on the Dairy Industry Restructuring Act, to Parliament's Primary Production Select Committee on Thursday.
Mr Berry says the commission's proposed role within the legislation, to monitor the price Fonterra pays its farmers for their milk, is unclear.
He says the commission is seeking several clarifications, because as the legislation stands, the Commerce Commission's role in monitoring Fonterra's milk price-setting, would be light-handed.
Copyright © 2012, Radio New Zealand
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