Nicola Willis: Finance Minister on the new legislation set to fast-track new supermarkets for NZ

The Government expects new supermarkets to pop up in months, rather than years - with planned reforms.

It's introducing legislation to pass before the end of the year to allow supermarkets that boost competition to be up for fast-track approval.

Finance Minister Nicola Willis says supermarkets can also apply for streamlined building consents.

"Really, it's just a matter of how quickly they can build." 

Costco's confirmed its looking at opening new stores in New Zealand, after success in West Auckland.

Meanwhile, the Government's looking at the costs and benefits of breaking up the supermarket duopoly.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:01):
The only drive show you can try the truck to
ask the questions which we get the answers, find the
fact saying and give the analysis. Here the duplicl and
drive with one New Zealand and the power of satellite
mobile news. Doorgs be.

Speaker 2 (00:17):
Afternoon. The government's made its long awaited supermarket announcement. It's
cutting red tape for any potential new supermarket entrants who
want to set up here. Consent processes will be made
easier and supermarkets will qualify to be fast tracked through
the approvals process. Finance Minister Nichola Willis is with us. Nichola, Hello,
hi Eather. So is it the case that they will
apply for one consent for all of their shops? Is

(00:38):
that how it works?

Speaker 3 (00:39):
Well? They could apply for one at a time or
they could apply for many at a time. Over to them.
Of course, the more the better, is what I say.

Speaker 2 (00:45):
But is it one consent that will apply for all
of the stores rather than one consent persal.

Speaker 3 (00:52):
For the resource consent they would apply for each project
for the building consent process. What we're creating as a
new multi proof line which will mean that they can
get one pre approved consent for all of the buildings
they might want to do across the country and then
go to one building consent authority that can consent them

(01:12):
no matter where they are in the country, instead of
having to go to the one of the sixty eight
different territorial authorities who currently run bespoke and Byzantine consenting processes.
They can have one fast track.

Speaker 2 (01:24):
So at the moment it takes about four years to
set up a store, how long how much shorter do
you anticipate this will be?

Speaker 3 (01:31):
Well, for four years is at the outer length of
what we've heard about. Were advise that this will reduce
the process to a matter of months rather than years.
And actually it's about as fast as these people want
to go. So if they're investment ready they can apply
for fast track, that process will run very quickly, and
they can also at the same time apply for these

(01:52):
streamlined building consents, which means that really it's just a
matter of how quickly they can build.

Speaker 2 (01:58):
Is this basically aimed at cost.

Speaker 3 (02:01):
Well, it's aimed at anyone who was looking at New
Zealand saying yeah, we think there's a market opportunity there,
but gosh, it all looks a bit complicated, looks a
bit hard, don't know what the processes might take forever,
will be really expensive. And yes, we've tested it with
Costco because we thought it was pretty important to talk
to someone who's already been through the process and can

(02:22):
tell us would this shift the dial, and they have
confirmed for us that yes, this would shift the dial.
They've also confirmed for us that they are considering opening
news stores in New Zealand over the next four years
and that changes like that support it.

Speaker 2 (02:36):
How are you going to crack down on predatory pricing?

Speaker 3 (02:39):
So predatory pricing is something that's not allowed on the
Commerce Act currently, but there have only been two successful
prosecutions in New Zealand since the nineties, and that's because
our Commerce Act is basically out of date with what
countries around the world now have. They have a specific
economic impact test in law, so that everyone's there about

(03:00):
where the line is. So we're essentially going to borrow
with pride and do what other countries around the world
have already done in their Commerce Act and put those
new provisions in so it's crystal clear. It makes prosecutions
easier and makes everyone aware of where the boundaries are.
Because what we don't want to see is a great
new entrant coming into the market and getting stamped on

(03:21):
by the incumbents who are trying to squeeze them out.
We need to stop that from happening.

Speaker 2 (03:25):
Are you still considering breaking up the duopoly?

Speaker 3 (03:29):
Well, I'm still going through a thorough process to assess
the risks of that, the costs of that, and how
that measures up against the benefits consumers would get on
the other side. Because there are arguments on both sides here.
I hear all of those who say, oh gosh, you
know that there would be problems with that. Equally, there
could be significant advantages from that. So I'm taking a

(03:50):
very thorough process. This would be a really significant intervention,
So it's not something that the government takes lightly, and
I'm continuing analysis of those options.

Speaker 2 (03:59):
Likely. Have you caught a on the latest with Port
of Todng.

Speaker 3 (04:02):
No, I have not.

Speaker 2 (04:04):
Okay, Port of Todung is urging the government to act
quickly and rectify the wording in the fast track legislation
to resolve the situation because they have had excuse me,
their fast track application put on hold after a judicial review.

Speaker 3 (04:17):
Yes, I am aware of that matter. I won't speak
about matters before the courts. But what I can confirm
is that when the government introduces this fast track measure
for supermarkets, we will at the same time take the
opportunity to take a few remedial measures on the underlying
fast track legislation to make sure it's working as well

(04:37):
as possible.

Speaker 2 (04:37):
Okay, good stuff, Hey, thanks very much, Nicola Willi's Finance
min Stop.

Speaker 1 (04:40):
For more from Heather Duplessy Allen Drive. Listen live to
news talks. It'd be from four pm weekdays, or follow
the podcast on iHeartRadio.