"If New Zealanders want to know why they pay so much at the checkout, they should look at the red tape strangling new supermarkets," says ACT MP Todd Stephenson.

"Flaxmere is finally getting a new supermarket, but just six weeks from opening, it faces objections to its alcohol licence from Police and public health officials. One proposed condition would require moving the alcohol area to a quieter part of the store, a late-stage demand Woolworths says will cost $5 million.

"People might assume a massive chain can easily absorb that hit. But those costs don't just disappear. They get baked into the operating budget, and shoppers ultimately pay for them through higher prices.

"The broader issue is the chilling effect this has on competition. We all want an international disruptor like Aldi to set up shop here and drive down prices. But imagine being a global brand looking at the New Zealand market. Why would you risk capital here when local bureaucracy can ambush a multi-million-dollar project right before the doors open?

"Unpredictable rules are toxic to investment. We've seen how the previous government's oil and gas ban damaged our reputation with energy companies. If we treat grocery competitors the same way, we will be stuck with a duopoly forever.

"Medical Officers of Health have a statutory job to do under the Sale and Supply of Alcohol Act, but demanding a $5 million structural change at the eleventh hour is a sign of a broken system.

"We can't keep blaming supermarkets for a lack of competition while the system actively punishes anyone trying to open a new store. Fixing this kind of overreach is exactly why ACT established the Ministry for Regulation, and Minister David Seymour has confirmed the Ministry is now looking into this specific case."

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