Chief Executive of the New Zealand Food and Grocery Council (NZFGC), Raewyn Bleakley, said funding for the new grocery regulatory regime was heartening and highly appropriate for the job the Government asked the Commerce Commission to do.
The Budget announced $28.8 million over four years to further the reforms from the Commission's market study and the Government's response.
The number of grocery regulators is reportedly at 13, with the team intended to reach 25 full-time positions by the time legislation comes into action, making this team the Commission's largest by number.
Headed up by the Grocery Commissioner, the team's in-depth knowledge of market regulation holds potential promise for the Government's aim to better competition and lower grocery prices to be fulfilled and achieved.
However, Bleakley welcomed the funding and continued that it was too soon to know how effective the changes would be.
An early version of the code was consulted on. However, an exact copy had yet to be released for consultation.
A final text would require Cabinet approval, which is unlikely to be received this side of the October election, meaning the code will come into effect very late this year at the earliest.
However, NZFGC remains concerned that the new wholesale regime could have unintended adverse consequences for its supplier members.
"The wholesale regime will be unique to New Zealand, yes, I think that comes with some heightened risk, but we also have to recognise that the grocery market in New Zealand is unique in its market concentration," said Bleakley.
There are times and circumstances when New Zealand must innovate due to different conditions. However, Bleakley continued that the NZFGC would watch for any perverse effects on suppliers, which the enterprise has also directly addressed in its submissions to the Commission.
"I hope officials will act swiftly with a remedy if any eventuate."
