NZ Labour Party will clamp down on retailers that charge Kiwi households excessive prices for essential goods and services.
“A Labour Government will work to make your life easier and more affordable,” Labour Commerce and Consumer Affairs spokesperson Arena Williams stated, indicating that nearly one in three Kiwis couldn’t afford enough food last year.
“Since National took office, the price of butter has gone up 58 per cent, bread is up 45 per cent, and mince is up 30 per cent.”
Labour Leader Chris Hipkins found the situation is getting worse when companies big enough to dodge competition keep charging whatever they like for household basics – such as food and fuel – and there’s no law against it.
“Labour will change that, by making it illegal for big powerful companies to rip off New Zealanders on the essentials,” said Hipkins.
In particular, Labour will:
- Make it illegal for large retailers with significant market power to price gouge essential goods and services, or to pay unfairly low prices to suppliers.
- Set a clear legal test: Prices well above those in a competitive market, sustained over time.
- Give the Commerce Commission the power to investigate price gouging, and allow consumer and supplier groups to do the same.
- Impose penalties on companies that gouge and require them to return excess profits.
Williams said the policy would just apply to a small number of very large companies, leaving the 97 per cent of New Zealand businesses that are small unaffected.
“Households are working harder just to keep up, while the biggest companies post record profits off excessive prices,” he said, adding that growers who put food on shelves are getting squeezed just as hard. “The policy will ensure that companies with substantial market power will charge a fair price for the things your family can’t do without.”
This would also aim at markets for essentials only, including food, power, fuel, transport, telecommunications, banking, and insurance.
“Rules like these already operate in the UK, Europe, Canada and Australia. It’s time New Zealanders had the same protection.
“This election is about the cost of living and New Zealanders can’t afford another three years of National,” Williams concluded.
