We don’t think it’s acceptable that people have been paying a premium for the basics, while supermarkets earn $1 million a day in excess profits.
That’s why we’re moving forward with our plan to increase competition and fix the supermarket sector.
I’ve called on supermarkets to open up wholesale access for their competitors, at a fair price — or the government will do it for them through law.
In fact, we’ve now finalised additional measures to unlock supermarkets’ stockroom doors for them, if we don’t see evidence of them brokering good-faith deals with competitors.
Right now, New Zealand has one of the most concentrated grocery retail sectors in the world and the high prices we’re facing are driven by the lack of competition in the sector.
Opening up wholesale access will make it easier for new competitors and independent dairies to enter the grocery market.
Our new toolkit of measures includes powers for government to step in and demand major grocery retailers provide wholesale supply at certain terms, including price and range.
It also sends a very strong message as to how serious our Government is about seeing more competition in the market, and making sure people across the country get a fair deal.
On top of this, we’re appointing a new grocery commissioner to be referee of the sector, as well as introducing a mandatory code of conduct, to keep supermarkets honest.
We’re progressing compulsory unit pricing on grocery products to make it easier for consumers to compare prices.
This follows the work we’ve already done to ban major supermarkets from blocking their competitors’ access to land to set up new stores.
Taking action on supermarkets is just one of the ways we’re supporting people with the cost of living, which has been driven up by global factors.
We’ve put in place a new cost of living package, extended the fuel tax cut and reduced road user charges, boosted superannuation and main benefits, and lots more.
As we move forward, our Government will continue to take action to support New Zealanders, and make sure we all get a fair deal.
