New Zealand First to campaign on breaking up supermarket duopoly

New Zealand First says it will break up New Zealand’s supermarket duopoly as part of its election policy.

The move is part of a three-point plan NZ First says will bring food prices down for Kiwis.

The party said today it would introduce legislation to reform the system and break up Foodstuffs into two nationwide co-operatives based on brands – one for New World and Four Square, the other for Pak’nSave.

This would put both brands in direct competition with Woolworths.

“Real competition means real pressure to lower prices, improve value and treat suppliers fairly,” NZ First said in a statement.

“For too long, New Zealanders have faced rising grocery bills while Woolworths and Foodstuffs control more than 80% of the grocery market.

“The Commerce Commission has previously found those supermarket giants earning around $1 million a day in excess profits.

“Meanwhile, Kiwi families are choosing between heating and eating.”

NZ First said it will also give stronger powers for the Commerce Commission and Grocery Commissioner, including tougher penalties and faster investigations.

“Penalties for serious breaches will be lifted to match Australia, including fines of up to $10 million, three times the gain or 10% of turnover.”

Thirdly, NZ First said it would address the supermarket duopoly’s “stranglehold” on who gets access to the shelf and who doesn’t.

“A new framework for industry rules will be introduced under the Commerce Act 1986, allowing targeted action to fix competition problems more quickly without waiting for lengthy legislative change – it will ensure Kiwi producers are no longer pushed out or squeezed off the shelf by a system that favours the biggest players,” it said.