Finance Minister Nicola Willis’s speech today on getting a third major supermarket competitor is very welcome and long overdue, and we will be watching closely to see when and how the minister’s words become action, says Sue Chetwin, chair of the Grocery Action Group (GAG).

“Nevertheless this is the first plain indication the government is prepared to act over the lack of competition in the supermarket sector, “ Sue Chetwin said.

“But just tackling red tape may not be enough.

“We need a clear indication that the government is prepared to create new regulations should today’s message show inadequate results.

“For instance, land banking by the supermarket duopoly has long held up competition, and the least that should be required is that the supermarket duopoly divest themselves of land and buildings they own and don’t use.

“Preferably, and in a similar way to how our telecommunications market was freed up in the 2000’s, the supermarkets should be required to divest themselves of part of their operations so that early competition is achieved. For example, the Four Square stores under separate ownership could form the basis of a competing chain.

“The backdrop to this is of course that several studies have confirmed Kiwis pay nearly the highest prices in the world for food and groceries.

“Besides, the lack of competition is stifling innovation on which our food and grocery businesses depend for their long term growth ,” Chetwin said.

GAG background

The Grocery Action Group was formed to bring down the prices of groceries for all Kiwis. Our vision is to influence government, the regulators and other parties to deliver a competitive and consumer-focused grocery sector in New Zealand. Our board is made up of consumer, industry, supplier and Māori interest experts.

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