from Niccola Willis, Minister of Finance
Today, I am pleased to share the next steps in our Government’s mission to drive down the cost of groceries for Kiwi families. We know that the cost of living remains a major concern, and we are committed to making real changes that will benefit New Zealanders now and into the future.
The current situation
New Zealand’s grocery prices remain among the highest globally, with our market dominated by two major players – Foodstuffs and Woolworths – who hold substantial power. The simple reality is this: The last Government’s reforms have not improved grocery competition or delivered better prices for Kiwi supermarket shoppers.
Our response
To address this, Cabinet has agreed to initiate a Request for Information (RFI) process to explore what it would take for a new national-scale grocery retailer to enter the market or for existing competitors to expand. This will help identify the barriers that need to be removed.
We will engage with potential entrants such as Costco, The Warehouse, and international retailers like Coles and Aldi, alongside investment groups, iwi organizations, and the existing major players to gather insights and solutions.
Exploring Further Reforms
Encouraging a new competitor is important, but we may need to take stronger action. I have also sought expert advice on ways in which the existing supermarket duopoly could be restructured to improve competition. This includes advice on options for the ‘de-merger’ of existing brands, the potential impacts of structural separation on existing entities, and concepts for how this could be achieved.
What comes next
The RFI process will move swiftly over the next six weeks, gathering crucial information on how best to drive increased competition. In mid-2025, I will present further recommendations to Cabinet, and if legislative action is required, I intend to introduce and pass necessary reforms within this parliamentary term.
This is big task, but we need to get it right.
We are determined to see real competition in our grocery sector and deliver the fairer prices that Kiwis deserve, so you can keep more money in your back pocket.
Get rid of GST, thats the only way to drive down prices, that and stop printing money and giving it away, like labour did
All this is distraction by the pollies. This, “Get rid of GST, thats the only way to drive down prices,” that in my humble opinion, is only partly true. Getting rid of GST is not the only way to drive prices down and, with respect, I have to say that James is off track when he says “stop printing money and giving it away, like labour did” First of all, the government is not printing money. The government creates “securities” (that’s a laugh for a star!) It then gives the securities to the banksters who create debt out of thin air and lend the debt PLUS INTEREST to the government. Same principle applies in private and corporate debt. “The “money” to which he refers is the “cash” in circulation. Go and have a look at the RBNZ website, there is a lot of information there. Then do a search for the Fair Tax Act 2023 https://www.congress.gov/bill/118th-congress/house-bill/25/text which will be introduced and will replace ALL taxes and the IRS. A 1% Financial Transaction Tax would generate enough money here to replace ALL taxes, including rates, and enable the shutting down of the IRD. This https://hal.science/hal-00530144v3 is a great paper about a Flat Rate Financial Transaction Tax. Not one New Zealand political party is interested in it for obvious reasons (1)It would benefit “we the people” and (2) The politicians’ handlers, like banksters, speculators and big business would start to pay their share