Commerce Commission boss rejects accusation it lacks ambition

Wednesday, 19 July 2023

Commerce Commission chairperson John Small says consumers are not in a good place and he is not satisfied with the state of competition in a number of sectors in the economy.

But he is defending the competition watchdog against criticism it has been too timid, and denies its market studies into the fuel, supermarket and building materials industries were a letdown.

A Stuff poll last year, conducted in the wake of the commission’s market study into the supermarket industry, indicated 84% of readers viewed it as too timid.

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Competition advocate Tex Edwards said the commission was in “fantasy land” when it came to the measures that were required to bring about more competition in a range of industries.

On Wednesday, campaign group ActionStation held demonstrations outside supermarkets, including Countdown’s store on Lambton Quay in Wellington, to protest against their prices, displaying banners that read “People over profit” and “Greed don’t feed”.

Questioned about the commission’s performance, Small admitted it had struggled to get the engagement it wanted in its competition probes.

“Consumer representation is really underdone in New Zealand,” he said.

But he said all the commission’s staff were “highly motivated” to bring about changes, vehemently rejecting suggestions the watchdog lacked ambition or a sense of urgency.

Small even gave the Commerce Commission some credit for the fact the Government had looked into requiring Countdown and Foodstuffs to sell some of their stores to help make way for one or two more competing supermarket groups and had decided to keep that option in reserve.

The commission dismissed forced divestments as “complex and unprecedented” when it finalised its report into the groceries industry last year.

But Small said the fact the commission had looked into the option was “part of the reason it is on the table”.

The commission would not duck difficult questions in its forthcoming market study into the banking sector, he promised, including whether bank number portability could improve competition by allowing people to switch between banks with the same ease that mobile number portability now allows them to switch between telcos.