March 08, 2022
Time to get tough on supermarkets says Jones
Former MP Shane Jones says the Government needs to take on the monopolistic power of supermarkets or New Zealand consumers will continue to be gouged.
The Commerce Commission today came out with a report that pulled back on previous threats to recommend a break-up of the existing duopoly, including separation of wholesale and retail activities.
Instead, it proposes making more land available for new grocery stores, improving access to wholesale groceries by competitors, and monitoring strategic conduct by the major grocery retailers, such as the use of ‘best price’ clauses and exclusive supply agreements.
Mr Jones, who was a Labour MP took aim at grocery prices, says the Government needs to turn the clock back on decisions made in the early 2000s allowing supermarkets to consolidate into two chains with their own distribution networks.
“They’ve earned more surplus profit than they’ve deserved largely because of poor competition and a bunch of laws that have allowed them to gouge. I spent many weeks taking them on. Sadly I couldn’t get the support of the Labour Party when we were in Opposition to really hammer it,” he says.
Mr Jones says whatever the Commerce Commission’s recommendations, the Government has the ultimate power to make the changes needed.