The New Zealand Food and Grocery Council has welcomed the Grocery Industry Competition Bill, as reported to Parliament.
The bill will address a wide range of much-needed changes in the grocery sector, stated Chief Executive Raewyn Bleakley.
“It’s positive to see the impact of submissions from the Food and Grocery Council and those from groups representing consumers and smaller retailers,” shared Bleakley.
Bleakley elaborated that changes to the original bill would improve competition and behaviour within the grocery market.
“We are pleased with its recommendations around the grocery supply code.”
The alterations stipulated that the Minister would consult before recommending a code, after which the Commerce Commission would administer the code long-term. This administration would strictly follow the Minister's development of the code’s initial version, ensuring it is introduced expeditiously.
The code would also capture all related parties of a regulated grocery retailer, with the Commission conducting a review and report of the code at least once every five years following the first review.
“All these points are vital, and it’s great the committee has cleared the way for the Minister to move fast on getting the code in place. The Food and Grocery Council is available to help make that happen as soon as possible.”
Other recommendations that grocery suppliers would welcome included having disputes under the dispute resolution scheme covering a diverse range, all of which would be resolved within 25 working days.
Secondly, suppliers would have reasonable control over where their products are sold in all regulatory contexts.
Lastly was the recommendation that the Commerce Commission’s annual report on the grocery industry would have a broader scope of material it addressed, inclusive of assessing changes to the level of competition within the industry.
“These moves by the Government are a huge step towards improving market competitiveness, and the level of confidence suppliers have in the business environment they operate in.”
