Political divisions over grocery market reform in New Zealand have deepened after the ACT Party revealed that at least five National MPs have approached them expressing exasperation with their own party’s policy to break up the supermarket duopoly, according to ACT leader David Seymour.
ACT Leader Alleges National Caucus Friction Over Market Intervention
According to ACT leader David Seymour, an “unprecedented wave of National MPs” has approached his party with private concerns about National’s recently announced retail split. Last week, National proposed splitting Pak’nSave from New World and Four Square, pending an independent Commerce Commission assessment. Seymour argued on RNZ’s Morning Report that such interventions create a “terribly chilling” effect on business investment and innovation.
“Once you start with one industry, the first question is who’s next?” Seymour said, comparing the move to past government actions targeting petrol stations, farmers, landlords, and banks. He noted that the Woolworths and Foodstuffs duopoly maintains an 82 percent market share, but cautioned that radical structural overhauls threaten New Zealand’s reputation as a stable place to own and operate a business.
National Leader Christopher Luxon Defends Pro-Competition Stance
National leader Christopher Luxon pushed back against the criticism, maintaining that his party’s policy is rooted in fostering competition rather than attacking enterprise. Luxon noted that he was unaware of National MPs approaching ACT and affirmed that his caucus backs the plan.
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“We are very pro-business and we’re also pro-competition,” Luxon told RNZ, drawing on his 18 years of experience working in the sector. He emphasized that the proposed breakup will not happen haphazardly. “We’re now handing it over for six months to the Commerce Commission, with all of their economists, with all their deep competition experts… if it is [the right way forward], we move forward with it.” Luxon suggested the policy could ultimately create a “massive opportunity” for small businesses and owner-operators to expand and innovate.
Alternative Overhauls Proposed by Labour and the Greens
The National-ACT friction unfolds alongside competing plans from other political parties. Labour is promising to outlaw price-gouging on essentials and separate the retail and wholesale operations of Woolworths and Foodstuffs.
Meanwhile, the Green Party has gone a step further, vowing to force Woolworths and Foodstuffs to sell select stores and wholesale operations directly to the government.
Did you know? US bulk discounter Costco secured a five-year exemption from rules requiring supermarkets to supply other retailers at wholesale prices when entering the New Zealand market, a regulatory carve-out cited by ACT as evidence of the risks posed by policy uncertainty.
Frequently Asked Questions
What is the current market share of the supermarket duopoly in New Zealand?
According to market data cited across political discussions, Woolworths and Foodstuffs control an 82 percent market share of the grocery sector.
What does National’s proposed supermarket policy entail?
National has proposed splitting Pak’nSave from New World and Four Square, subject to an independent assessment by the Commerce Commission over a six-month period.
How is Labour proposing to lower grocery prices?
Labour plans to outlaw price-gouging on essential items and force the separation of the retail and wholesale divisions of the major supermarket operators.
What are your thoughts on these proposed grocery market overhauls? Share your perspective in the comments below, or subscribe to our newsletter for ongoing updates on New Zealand politics and economic policy.
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