The commission yesterday released its final report into international freight services and said that although the sector was performing well, there was scope for improvement which would help lift New Zealand's living standards.
Chairman Murray Sherwin said New Zealand's economy was sensitive to international freight costs.
"Our standard of living is affected by these costs because they are built into the prices we pay for everyday imported goods, and have an impact on the prices our exporters receive for the goods they sell."
In total, New Zealanders paid about $5 billion a year in freight costs. In 2010, that was about 2.7% of GDP (gross domestic product), he said.
The commission controversially released its last report in the middle of the heated industrial dispute between Ports of Auckland and the Maritime Union. In that report, much was made of port productivity.
This time, the commission said ports could enhance their abilities to meet the future freight needs of the country if improvements were made to the governance framework for council-controlled port companies.
That included:
• Clarifying the purpose of those companies by bringing them into line with the statutory objective for state-owned enterprises.
• Precluding councillors and council staff from being directors of port and airport companies.
• Establishing a monitoring function to create independent comparative performance information for port owners to consider.
Evidence presented to the commission was that the Port of Tauranga approach worked well for its ownership and customers, Mr Sherwin said.
Reasons offered for that were the company's mixed ownership structure. It was 45% listed on the NZX and its majority owner, the Bay of Plenty Regional Council, treated it as a financial asset to be managed according to commercial principles and the port's contestable business model for containerised freight handling.
"Stock market listing brings with it a number of important disciplines. Chief among these is that market perceptions of the company's stewardship and decision-making gets reflected in the share price."
Others were the regular reporting and continuous disclosure requirements which came with NZX membership. Those benefits could be achieved while maintaining a majority stake in public hands, he said.
Addressing productivity, the commission said work practices at some ports were leaving "money on the table" that, if captured, could be shared among port workers, port owners and port users.
The commission did not think a specific legislative response was required but that progress could be expected from improving the governance of the unions and port companies.
For unions, that could be achieved by reforms in the Incorporated Societies Act - which applied to all unions - to ensure modern governance structures and practices.
Well-governed unions with high-quality leaders could play an important role in overcoming the barriers to achieving high-productivity workplaces while also advancing the wages and conditions of their members, Mr Sherwin said.
"Implementing this hybrid model of unionism is a major challenge for union leaders and port managers. It can be met with resistance from more 'traditional' union members who may see this as a weakening of the union's ability to represent its members."
Exemptions for shipping companies from the Commerce Act should be removed so that normal competition laws applied.
Finance Minister Bill English acknowledged receipt of the final report and said the Government would provide a response after careful consideration.
