Cut the red tape and the supermarkets come

“ACT welcomes reports that Costco is proposing a new store in Christchurch using Fast-Track. ACT says Government getting out of the way means more competition, and lower prices, and we’re being proven correct in real time” says ACT Leader David Seymour.

“For the last decade, other parties have taken an approach to business that could be summed up as ‘the beatings will continue until morale improves.’ The Costco story shows why consumers actually need businesses to grow and succeed. Politicians need to be an enabler of, not a threat to, investment and innovation.

“The goal should be to cut more red tape so other players can enter the market, giving Kiwis more choice and putting downward pressure on grocery prices.

“Earlier this year, as Associate Finance Minister, I issued new guidelines rolling out the red carpet for credible investors looking to open supermarkets in New Zealand. My goal is to make it as easy as possible for new competitors to establish or expand grocery retail operations here.

“The Government needs to go further on deregulation for Supermarket competition, which is why ACT has proposed a one-stop consenting shop and changes to labelling laws to make New Zealand a more enticing place to do business.

“The one thing we can't do is undermine this progress by scaring businesses off with heavy-handed separation and business-bashing. We can't invite investors to New Zealand with one hand and threaten to break up their businesses with the other.

“New Zealand is competing with the rest of the world for investment. We won't attract the likes of Aldi, Coles, or Walmart if they believe they'll be punished for succeeding.

“There are still enormous barriers to entry. Potential competitors have to deal with dozens of regulators and councils, spend millions of dollars, and wait years for consents before they can sell a single grocery item.

“It's no wonder Costco is seeking to use the fast-track process to open another store. The Government also had to give Costco an exemption from wholesale supply obligations to encourage its entry into the market.

“ACT would create a one-stop consenting shop for new market entrants. A business looking to open one store, or multiple stores across the country, could get its resource consents, liquor licences, and other approvals through a single coordinated process in months, not years.

“We'll also change product labelling laws. Right now, anyone importing food not labelled specifically for New Zealand faces two options. They can pay for an expensive run of products packaged specifically for our regulations, or unload pallets, open every box, and stick new nutrition labels on individual products. That's why the Dr Pepper you buy at the dairy has a little white sticker over the nutrition panel.

“ACT will recognise food labels from trusted regulatory systems like the UK, EU, and US by default. That will remove another expensive barrier for international supermarkets, which will no longer need to commission special packaging runs for our tiny market just to open stores here.

“We’ve seen the impact of heavy-handed intervention with the oil and gas exploration ban. When the Government signals that successful businesses can simply be broken apart, potential new entrants are less likely to invest here.

“This news shows that New Zealand is a place that can have competition, we just need to keep our heads and welcome businesses who want to succeed. ACT’s policy will make it easier for new businesses to come here, compete, and expand.”