The Government has sought to bolster supermarket competition to deliver a better deal for shoppers.
Economic Growth Minister Nicola Willis said that studies have shown that New Zealand shoppers pay more for kitchen staples than their counterparts in the United Kingdom, Ireland and Australia.
The market has lacked competition with three large entities, two of whom don’t compete on the same island, effectively controlling 82 percent of the market.
“We need more competition to put downward pressure on prices and deliver a better deal for shoppers. The weekly supermarket shop makes up a significant proportion of most people’s weekly budget and contributes massively to their cost of living. Therefore, I am determined to remove unnecessary regulatory hurdles that discourage new entrants from entering the market,” said Willis.
Additional steps could include cracking down on predatory pricing, ensuring all competitors have fair access to products, assisting new entrants in accessing suitable land and properties for development, and assisting them in attracting international capital.
Willis announced the intention to strengthen competition in the supermarket sector at the release of a progress report on the work being done to shift New Zealand to a higher growth track.
The Going For Growth snapshot detailed more than 80 actions that have either been completed since the Government took office or are underway.
“Economic growth is key to raising living standards, creating higher-paying jobs, and delivering the vital public services New Zealanders want and deserve. New Zealanders have been through a tough time with high inflation pushing up interest rates and driving the economy into recession,” added Willis.
“lnflation is now under control, but to deliver the opportunities and high-quality public services people expect, we need to build a stronger, wealthier and more resilient economy that benefits all New Zealanders.”
Going For Growth has set out the five pillars driving the government’s push for economic growth: developing talent, developing competitive business settings, promoting global trade and investment, and promoting innovation, technology, science, and infrastructure for growth.
“Under each pillar are actions already underway to support growth, with more to come. To grasp the opportunities in front of us, we must lean in and boldly pursue the things that will make this country the wealthier country we want it to be. We must adopt a ‘yes’ mentality when sometimes it is easier to say ‘no’.”
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