New research exposes supermarket break-up gamble

“New research from NZIER confirms what ACT has been saying all along, beating up and dividing a sector of the economy is no guarantee of lower grocery prices, but it would guarantee New Zealand is a less attractive place to do business. If politicians are serious about improving competition, they should start by cutting the red tape that stops new supermarkets opening,” says ACT Leader David Seymour.

“NZIER warns that forcing supermarkets to break apart could undermine the economies of scale that help keep costs down, without necessarily delivering cheaper groceries for New Zealand families.

“This week I've been meeting Four Square owner-operators up and down the country, and they're worried. These are hardworking New Zealanders who have invested their savings and dedicated their lives to building businesses that serve their local communities.

“They're worried politicians in Wellington are going to pull apart the co-operative model that gives them access to buying power, logistics, and distribution networks they couldn't afford on their own. Even parties who previously supported property rights have gotten on board the business-bashing bandwagon.

“Rest assured, ACT's number one job is locking Labour out of Government, but our other job is locking Labour's ideas out of National. We’ve been successful at doing this over the past three years, preventing three new taxes from being progressed.

“The real barriers to competition are the rules and regulations that make it so difficult to open a new supermarket. Look at the new Woolworths in Halswell, which took eleven years to open, including four years and more than $3 million just to secure consent.

“ACT’s policy is to create a one-stop consenting shop so new supermarkets can get their consents, liquor licences and approvals in months, not years. We'll also recognise food labels from trusted overseas markets, making it easier for international competitors to enter New Zealand.”