The New Zealand Food and Grocery Council (NZFGC) has welcomed the passing of the Grocery Industry Competition Bill in Parliament.
The bill will address a wide range of much-needed changes in the sector, says Chief Executive Raewyn Bleakley.
“This is a giant step toward a better and fairer grocery sector, and that will benefit both consumers and suppliers,” said Bleakley.
“We are delighted the bill's key elements concerning the formation of a Grocery Commissioner inside the Commerce Commission and the Grocery Supply Code have passed unchanged. Together, these will make a meaningful difference to competition and behaviour across the sector.”
She continued that both supermarket chains have already opened their wholesale operations to independent retailers after the Government made it clear this needed to happen ahead of the legislation.
Bleakley explained that it was premature for anyone to complain that the market study and resulting Government reforms haven’t had an effect yet when the legislation has just passed.
“It’s a bit like saying the All Blacks have lost before arriving in France.”
Bleakley said NZFGC was particularly pleased the key recommendations around the grocery supply code have been retained, including having the Minister consult the industry before recommending a code.
The Commerce Commission must administer the code long-term, but the Minister should develop the first version. Hence, it is ‘introduced expeditiously’, ensuring the code captures all the related parties of a regulated grocery retailer.
The Commission will also review and report on the code at least every five years after the initial review.
“Enabling the Minister to move fast on getting the code in place is vital, and the industry is ready to help make that happen as soon as possible.”
Bleakley stated that it was great to see the select committee’s recommendations around a dispute resolution scheme have been retained, particularly that it covers a diverse range of suppliers, no matter their size, and that disputes must be resolved within 25 working days.
These and other moves in the bill will put a lot of suppliers' minds at rest and give them the confidence to go about their daily work knowing they are operating in a competitive yet fair environment.
“We are now eagerly awaiting the announcement of the Grocery Commissioner, and we’ll be working very hard to make all these new measures as effective as possible so our members, the suppliers and manufacturers, have confidence and can work well with the retailers to deliver consumers together optimum choice and price.”
