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Grocery Supply Code Will Drive Food Prices Even Higher

Commenting on the Grocery Supply Code of Conduct coming into force, Taxpayers’ Union Policy Adviser, James Ross, said:

“The grocery supply code of conduct has completely missed the root causes of New Zealand’s sky-high grocery prices. Lack of competition in the sector is absolutely the main driving factor behind this, but rather than bringing prices down this code will only make things worse.

“The Government props up food prices by refusing to allow competition to spring up, through both its overly restrictive planning regulation and making it nigh-on impossible to attract competition from overseas. A law which requires any competitors which spring up to supply their competition with produce at wholesale prices is of course going to send foreign investors running.

“Rather than answering every problem with soundbite policies promising more bureaucracy, if the Government really wants to help Kiwis struggling under the cost-of-living crisis then it needs to cut the red tape and allow proper competition to the grocery duopoly.”

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