Grocery Sector Disappointed by Tax Ambush

Grocery Sector Disappointed by Tax Ambush

The lack of forewarning and limited time to implement the latest tax increase for New Zealanders showed not only a lack of respect for the grocery sector, but a lack of understanding of how much work is required to make such a significant change, says NZ Food and Grocery Chief Executive, Katherine Rich.

“It’s not just a matter of tapping in another number at the till. New Zealand grocery supply chains are complex and changing prices, plus informing thousands of customers and staff takes more than a few hours.”

“The Maori Party will be pleased with this win, which has raised the taxes for 900,000 New Zealanders. The way they have continued to dominate the political agenda and extracted yet another multi-million dollar concession from the Government is remarkable.”

“There must be something spectacular in the Budget to warrant this major concession, which has overturned National’s previous opposition to significant rises in tobacco taxes. National has previously said such tobacco tax hikes only, “reduce the incomes of the poorest people in New Zealand”, because most will keep smoking.”

Our concern is that the next multi-million dollar concession will be retail display bans, potentially overturning a further long held National position. We hope that the Government will take into account some important industry concerns before making further concessions, says Mrs Rich.

“Banning retail displays for tobacco products will create practical headaches for the grocery sector, and in some cases make it less safe for retail staff.”

“No one championing display bans ever thinks through how these products will be dispensed. The reality is retailers do not have a series of custom-built secret cupboards, where they can miraculously whip out secret products to waiting queues.”

Mrs Rich says many shops have only one staff member. That staff member’s safety will be compromised when their attention is diverted as they fossick through secret cupboards to find products hidden away. Asking for a pack of cigarettes will become an excellent diversionary tactic for shoplifters and armed robbers.

“The idea might seem simple when negotiating further concessions with the Maori Party, but the price tag for the grocery sector will run into the millions.” said Mrs Rich.

ENDS

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