Labour will crack down on companies that charge New Zealanders excessive prices for essential goods and services.
Labour Leader Chris Hipkins said that New Zealanders are working hard, but they’re still going backwards.
"Christopher Luxon promised he’d fix the cost of living, but he’s just made it worse, all while a handful of big companies price gouge households - charging whatever they like for the things families can't do without," said Hipkins.
"Right now, a company big enough to dodge competition can charge excessive prices for the basics, like food and fuel, and there's no law against it. Labour will change that, by making it illegal for big powerful companies to rip off New Zealanders on the essentials."
Labour will:
- Make it illegal for big companies with substantial market power to charge excessive prices for essential goods and services, or to pay unfairly low prices to suppliers.
- Set a clear legal test for the first time: prices well above what they would otherwise be in a competitive market, sustained over time.
- Give the Commerce Commission the power to investigate price gouging and back groups representing consumers and suppliers to do the same
- Require companies that gouge to pay penalties and hand back every dollar of excess profit.
According to Labour Commerce and Consumer Affairs spokesperson Arena Williams, nearly one in three New Zealand households couldn't afford enough food last year. Since National took office, the price of butter has gone up 58 percent, bread is up 45 percent, and mince is up 30 percent. Meanwhile, the growers who put food on shelves get squeezed by the big players just as hard as the families buying it.
"Labour’s policy will ensure that companies with significant market power are charging a fair price for the things that your family can't do without. This is aimed at a small number of very large companies; it won't touch the 97 percent of New Zealand businesses that are small, like your local dairy or cafe," said Williams.
“It also only applies in markets for essentials, like food, power, fuel, transport, telecommunications, banking, and insurance. Rules like these already operate in the United Kingdom, Europe, Canada, and Australia. It's time New Zealanders had the same protection."
Williams added that Luxon is too out of touch to realise that families can’t even afford the basics under his policies. Households are working harder just to keep up, while the biggest companies post record profits off excessive prices.
“A Labour Government will work to make your life easier and more affordable. This election is about the cost of living and New Zealanders can't afford another three years of National."
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