Moves to improve supermarket competition are welcome, but the changes are window-dressing and will do nothing to solve the cost of living crisis, National’s Commerce and Consumer Affairs spokesperson Andrew Bayly says.

“Many of the moves announced by announced by the Government in response to the Commerce Commission’s market study into the grocery sector are welcome and National would support them, just as we supported legislation to remove restrictive covenants on land by the supermarket chains.

“But none of the changes announced by David Clark are likely to have a meaningful impact on the cost of living for households facing the highest inflation in 30 years.

“The Government is keen to look tough, claiming it has put supermarkets ‘on notice’, but its own policies have contributed to the current cost of living crisis.

“Even the grocery sector is unlikely to see meaningful change on the basis of the Government’s moves. A mandatory code of conduct and an industry regulator are a step in the right direction, but new entrants are not holding back from entering the New Zealand market because these are not in place.

“It is essential that the building blocks are put in place to ensure we achieve meaningful outcomes. This means the establishment of a regulator that has real teeth to make enquiries and oversee what is happening in the grocery trade.

“It also means a development of a meaningful code of conduct so that suppliers are adequately compensated for their products and are not subject to undesirable practices such as enforced promotional marketing and discounting by the supermarket chains.

“We also need genuine reform of planning laws, which appear to be on the go-slow, or changes to overseas investment rules, the changes announced by the Government will simply be window-dressing.

“The Government should stop trying to pass blame for rampant inflation onto others when the current problems caused by economic mismanagement.

“Unfortunately the changes announced by David Clark today are unlikely to have an immediate impact on the cost of living for households facing the highest inflation in 30 years.”