Business think tank maps pathway to improved grocery competition

supermarket shopping cart
The New Zealand Initiative has proposed a pathway aimed at improving grocery competition. (Source: Bigstock)

The New Zealand Initiative has proposed a pathway aimed at improving competition within the country’s grocery industry.

The business think tank released on Thursday a draft Fast-track Supermarket Entry and Expansion Omnibus Bill, which it said would approve retail grocery developments at scale and remove complex barriers that are preventing new supermarket chains from entering New Zealand.

According to the organisation, the proposed pathway would open the market to more competition by streamlining the rezoning, consenting and investment clearance processes, as well as overriding obstructive planning regulations.

In addition, the proposal would prevent existing major supermarket chains from using this fast-track process for at least five years, reserving the pathway for new entrants and smaller competitors.

“New Zealand has a lot of fast-track regimes, but none of them can give a single, timely decision for complex projects across multiple councils. Our process achieves this and has been crafted for policy officials and legislative drafters to pick up and run with,” said proposal author Benno Blaschke.

“Fixing the rules of the game allows the competitive process to unfold. If there are super-profits in grocery retail, opening the market lets new entrants compete for them while providing better service to consumers,” he explained.

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