The Star: January 04, 2024

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Thursday January 4 2024 The Star • By Alex Spence A NEW consumer action group is taking aim at the two supermarket giants and promising to lobby aggressively for lower grocery prices. The group, which does not yet have a name, is being fronted by Sue Chetwin, a former newspaper editor-turned-consumer advocate who says it is time for a “consumer-led response” to the consolidation that has led to Foodstuffs and Woolworths dominating New Zealand’s $22 billion supermarket industry. Said Chetwin: “There’s a social emergency here that needs more decisive action than has been shown so far. The issue needs to be on the new Government’s ‘to-do’ list. We need solutions now.” Chetwin declined to name the other members of the group, Latest Canterbury news at starnews.co.nz New lobby group to hold grocery commissioner’s ‘feet to the fire’ Sue Chetwin saying only that it involves other prominent figures who “understand the impact that our failed grocery distribution market has had on low and middle-income New Zealanders”. She said the organisation is not affiliated with any political party or financially backed by a potential competitor to the supermarket companies. More details about the group will be made public later this month. Chetwin said the group will use contacts in the media and politics to lobby the new National-led coalition Government to open up the market and hold new grocery commissioner Pierre van Heerden’s “feet to the fire”. “He has to start using the powers he has to fine the duopolists when they breach the new mandatory code of conduct,” Chetwin said, referring to rules promoting competition and transparency in supply agreements that came into force in September. It will also push the Government to expand the legal powers available to the grocery commissioner and Commerce Commission to regulate supermarkets; “furiously monitor” new pricing rules; and expose “opaque” or “misleading” pricing practices. Chetwin said she envisages the group working closely with other activist organisations, including Consumer NZ and Monopoly Watch. It will also work with supermarket suppliers to “encourage them to speak out about dubious and unfair practices which are bad for them and consumers”. In 2022, a market study by the Commerce Commission found that competition “is not working well for consumers” in the retail grocery market, with little prospect that new competitors could emerge to challenge the duopoly of Woolworths and Foodstuffs. In response, the Labour government introduced a new regulator, a code of conduct, pricing regulations and other measures to promote competition. Chetwin said these moves PHOTO: GETTY were encouraging but did not go far enough. “Prices have continued their inexorable rise,” she said. Potential competitors have been unable to make a dent in the market, she said. Woolworths said in a statement: “Without knowing the remit and membership of the new group, we can only make general comments on their requests to the Government.” “We played a constructive role throughout the market study process and are already well under way with implementing the Commerce Commission’s recommendations, including taking steps to remove land covenants and creating a wholesale business.” A Foodstuffs spokesperson said “We understand the financial pressure that persistently NEWS 5 high inflation and measures to tame it are putting on New Zealanders. We’ve been working hard to keep a lid on food inflation, despite record cost pressures from here and overseas.” Foodstuffs added that regulation should be “fit for purpose” and reduce the cost of business and prices for consumers. “Any further regulatory action should be preceded by a robust cost-benefit analysis and assessment of existing regulation. New Zealand’s grocery industry is highly scrutinised and regulated, with an active and engaged community of advocates for suppliers and consumers.” Foodstuffs said it would “work constructively with the new grocery commissioner as the extensive regulatory regime takes effect”. – NZ Herald FIND US AT The Colombo Mall, Cnr. Colombo St & Elgin St Christchurch 8023 BIG BRAND appliances, furniture, beds, TVs, tech and audio. Box damaged, new & factory seconds, end of line stock - means you Plus you’ll earn Airpoints Dollars SAVE BIG. While scoring yourself a bargain.
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The Star: January 04, 2024

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