Reacting to news of the Commerce Commission filing charges against Foodstuffs North Island, ACT Leader David Seymour is encouraging a fast-track approval process to encourage more competition in New Zealand’s supermarket sector.

“The single biggest impact we can have on lowering prices at the checkout is encouraging competition. If Kiwis want cheaper prices, we need to convince the likes of Walmart to set up shop here in New Zealand,” says ACT Leader David Seymour.

“I can’t comment on the substance of the Commerce Commission’s claims because the matter is before the courts. What I can say is that until we address the competition problem we won’t see lower prices, no matter how many different commissioners there are watching over the sector.

“For more of the right stuff to show up in the right quantity in the right place at the right time, then we need more stores, state-of-the-art supply chains, and new distribution centres to be built. That requires investment, from people inside New Zealand and outside.

“ACT would introduce a fast-track approval process for grocery development. This one-stop shop would streamline rezoning, consenting, and investment approvals, making it easier and faster to build new supermarkets at scale.

“A new entrant or smaller grocer could get approval for a full rollout of stores and warehouses within months, not years. For comparison, it took Costco three years and $100 million just to open one store in New Zealand.

“The fast-track would allow any applicant building at least 10 stores (or equivalent floor area) to use the fast-track. For five years, it would be limited to new entrants or smaller players, giving them a head start before the major incumbents become eligible.

“Projects should not be blocked, scaled back, or burdened with conditions just because they’re outside existing retail centres or might compete with dominant supermarket chains.

“Every approved development could also be mixed-use. That means a supermarket could have apartments or other commercial activities above it, making projects more attractive to investors who want to diversify and aren’t sure the New Zealand groceries market is big enough to open a supermarket on its own.

“If we want the Walmarts, Aldis and Tescos of the world to come here, we need to give them a reason to set up shop. This fast-track process sends a message to them that New Zealand welcomes competition and that they won’t be tied up in red tape by coming here.

“These are practical steps that can be taken to save New Zealanders money. If you’re looking for finger pointing, don’t look here. We are interested in problem solving.

“We want lower prices, so we need more competition, that means removing the barriers that stop new players from entering the market.”

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