Azaria Howell: Newstalk ZB reporter on the Government unveiling a solution to boost supermarket competition

The Government isn't ruling out a forced breakup of the country's largest supermarket players. 

In a bid to improve competition, it's fast tracking applications for grocery businesses to establish or expand in New Zealand - as long as they improve value for shoppers. 

Newstalk ZB reporter Azaria Howell joined the Afternoons team to explain further.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Big News Today. Moves have been announced on challenging the
supermarket duopoly. The government says it will remove barriers preventing
competitive supermarkets from launching or expanding in New Zealand. Senior
political reporter Azaria Howe has been at that media conference
and she joins us now afternoon, Azaria afternoon, good to
be with you. Yeah, thanks for joining us once again.

(00:37):
So break it all down for us.

Speaker 3 (00:39):
Yes, So, Nikola Willis already sort of before this announcement
admitted it wouldn't be a silver bullet, but she does
say the government's been looking at red tape and regulation
in this sort of space. So the big headline of
this really supermarkets will be up for being fast tracked
if they can improve either regional or national competition. This
comes back from the government's request for information basically found

(01:00):
advice from different supermarket players across the country and the
world that there's too much red tape, regulation, stops and
things preventing people from actually wanting to set up a supermarket.

Speaker 4 (01:11):
Here is that what's been stopping people.

Speaker 3 (01:16):
That's what they the people who have responded to that
request for information as saying. They say the government's saying
legislation is set to be introduced in November and past
this year.

Speaker 2 (01:28):
So those current barriers, I mean, did she mention specifically
what those barriers are? Clearly they're changing that legislation. But
is it just down to policy or are there other
barriers here? Competition? You know that talk about land banking.
Does that all come into it as well? As are
you Yeah?

Speaker 3 (01:43):
I think one of the main things was this issue
of consenting. Finance Minister Nikola Willis said it can take
years and also millions of dollars to set up a supermarket,
but she's now saying she wants it to be a
matter of months and the government's also looking to put
that consenting down to one single authority, So that seems
like the big one in terms of their responses back.

(02:04):
Nicola Willis was also asked well does the New Zealand
economy and the relative slowness of it come into effect?
She said, not really as much in terms of compared
to these regulatory issues that we're seeing.

Speaker 4 (02:18):
So is she talking about here a chain and is
anyone interested as an international chain or just set up
a supermarket. Yes, so just a major part a single
operator setting up a super market in competition, say you
know in a suburb.

Speaker 3 (02:33):
A major part of this. And as an Aucklander you
might be aware with the West Auckland Costco. The government
has been in talks with Costco for potentially more shops
in New Zealand. Now this comes after that West Aukland
Costco has had quite some success in terms of bringing
people from a cross Auckland. When I was in Auckland,
I actually visited it as well, so it is sort

(02:54):
of attracting new customers. Finance Minister Nikola willis really hoping
this one will bring downward pressure on prices, essentially to
ease the cost of living. But there's been a bit
of disappointment as well from the government. They thought Aldi
and Little would be interested in that request for information.
They did not partake in that. But there is sort

(03:14):
of a glimmer of hope with Costco.

Speaker 2 (03:16):
What does that say when the likes of Aldi and
you mentioned another outfit there they're not interested in that information?
I mean, does that say that they cannot see profitability
in this market even with those levers that have been pulled.

Speaker 3 (03:31):
Yeah, well Nikola Willis. Her response to that really was
we now have a welcome Matt. We're sort of saying
that we can potentially put supermarkets forward to fast track them.
And really her message to Aldi and Little and those
companies that didn't take place is everyone should give New
Zealand another look. So really hoping that they do actually

(03:52):
take a look at that. But I mean, in terms
of the costco option, it seems much more on the
table than any other company.

Speaker 4 (03:58):
Yeah right, okay, some red take being removed.

Speaker 3 (04:01):
Yeah.

Speaker 4 (04:01):
It's interesting though, because you'd think, with how much we've
been talking about it, you think that the amount of
profits was so huge from supermarkets that businesses would be
kicking down the doors to get in. But it doesn't
seem to be the case.

Speaker 2 (04:13):
No, exactly. Yeah, Azariah, thank you very much for that breakdown.
Really appreciate it. We'll chat again tomorrow.

Speaker 1 (04:19):
Cheers for more from News Talk st B. Listen live
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