Swimming New Zealand Monopoly

Swimming New Zealand is operating illegally. Like a pair of mob bosses, Cotterill and Johns show scant regard for the law. Their personal power and position comes first, last and always. But the time has come for them to be called to account. The Swimming New Zealand (SNZ) mafia has had it too good for far too long. I imagine the reaction of some readers will be to wonder, what have I been smoking? Surely a fine national sporting body like SNZ would not operate outside the law. But it does and here is how it works.

Section Three of the SNZ Constitution deals with the status of the organization. Paragraph 3.1(d) says:

SNZ is bound by, and must observe the rules and decisions of FINA;

That seems pretty clear. The world governing body of swimming, FINA, has a set of rules. They insist regional associations like SNZ accept and comply with those rules. In its constitution SNZ has agreed to be bound by and observe FINA’s rules. But here is where all that comes unstuck. You see included in FINA’s rules are the following restrictions:.

“GR 4.1 No affiliated Member shall have any kind of relationship with a non-affiliated or suspended body.

GR 4.2 The exchange of competitors, administrators, directors, judges, officials, trainers, coaches, etc., with non-affiliated or suspended bodies is not permissible.

GR 4.3 The holding of demonstrations and/or exhibitions, clinics, training, competitions, etc., with non-affiliated or suspended bodies is not permissible.

GR 4.5 Any individual or group violating this Rule shall be suspended by the affiliated Member for a minimum period of one year, up to a maximum period of two years. FINA retains the right to review the suspension made by the affiliated Member and to increase it up to the maximum of two years in accordance with the circumstances involved. The affiliated Member shall abide by any such increase made on review. In the event that such individual or group has resigned its membership with the affiliated Member or is not a Member, it shall not be allowed to affiliate with that Member for a minimum period of three months up to a maximum period of two years. FINA retains the right to review any such sanction imposed by the affiliated Member and to increase it up to the maximum of two years in accordance with the circumstances involved. The affiliated Member shall abide by any such increase made on review.

GR 4.6 Each Member that conducts a competition shall strictly enforce the FINA

Rules governing eligibility.”

Therein lies the problem. SNZ is bound by and accepts these six FINA rules. In fact I’m prepared to bet a dollar that Johns and Cotterill believe that the conditions imposed by the FINA GR4 rules are exactly what SNZ needs to secure its paramount position in the swimming market place. I can’t see either of these mafia dons having the slightest problem with SNZ’s absolute authority over New Zealand competitions, affiliations, contacts and punishments. The arrogance of power precludes them from accepting anyone wanting to offer an alternative product – even when the alternative is clearly superior.

The problem is that Johns and Cotterill’s position and the SNZ rules are against New Zealand law. What Johns and Cotterill support is a monopoly. Clear restrictions are in place designed to lessen competition in the swimming market place. And that’s illegal. Here is how what Johns and Cotterill do is described in the New Zealand Commerce Act 1986.

Part 2 Restrictive trade practices

Practices substantially lessening competition

27 Contracts, arrangements, or understandings substantially lessening competition prohibited

No person shall enter into a contract or arrangement, or arrive at an understanding, containing a provision that has the purpose, or has or is likely to have the effect, of substantially lessening competition in a market.

28 Covenants substantially lessening competition prohibited

No person, either on his own or on behalf of an associated person, shall carry out or enforce the terms of a covenant that has the purpose, or has or is likely to have the effect, of substantially lessening competition in a market.

So there you have it. The FINA rule, accepted and endorsed by SNZ, Is in clear breach of Section 27 and 28 of the NZ Commerce Act 1986. Monopolies are not allowed. Not only that, the insistence by SNZ that all members wanting to join SNZ must sign a form agreeing to be bound by SNZ’s illegal laws is also an illegal act. The coercion used by Cotterill and Johns that requires us all to sign membership forms that contain these illegal provisions makes every membership null and void. Cotterill and Johns cannot force us to act illegally. By requiring each of us to sign a form accepting their antitrust rules we have all been forced to act illegally.

It will certainly be worth challenging all this in Court. Once the current misbehaviour of SNZ relating to the report on my coaching is sorted out by the Privacy Commissioner, challenging the monopoly position of SNZ in Court is the next item of business. It will be an important case. Around the world swimmers are working to secure the freedom to pursue their sport wherever they want. New Zealand swimmers should not be denied the same freedom – no matter what FINA and SNZ write in their rules. The right of good swimmers to earn a living from their occupation cannot be restricted by two Antares Place bureaucrats.

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