Need for change in the grocery sector attracts greater attention than govt’s modest spending on gender equality in horticulture
Good grief! Is this the work of National Party Minister of the Crown?
The press statement language has the whiff of the stuff produced by the social engineers in the previous government:
“The Government is empowering women in the horticulture industry by funding an initiative that will support networking and career progression,” Associate Minister of Agriculture, Nicola Grigg says.
The spending is modest – so modest, it might have been better to keep quiet about it.
But the language is deliciously extravagant:
“The Government has committed $300,000 over three years to the Women in Horticulture initiative to making New Zealand a world leader for gender equity in this space.”
In this space?
That’s Judith Collins’ patch!
This followed the good news for the farm sector from Agriculture Minister Todd McClay, Environment Minister Penny Simmonds and Associate Environment Minister Andrew Hoggard (which we recorded yesterday). Its that the Government will pause the rollout of freshwater farm plans until system improvements are finalised.
The follow-up came today from Todd McClay (without the help of the others).
As part of its reforms to the Resource Management Act, the Government is progressing a second RMA Amendment Bill alongside a comprehensive package of regulatory changes that will drive primary sector growth and productivity, he said.
In the primary sector, these changes relate to freshwater, indigenous biodiversity, commercial forestry, marine aquaculture, quarrying, and water storage.
“The cumulative effects of these changes will help to drive a more efficient and effective resource management system, and achieve our ambitious goal to double the value of all exports, including food and fibre products, within 10 years. “
But most media attention has focused on news that the Commerce Commission says it’s planning to ramp up regulation and enforcement in the grocery sector and recommending a regime of stiff penalties.
This follows the first annual report into competition in the sector since the appointment of Grocery Commissioner Pierre van Heerden in 2023.
Supermarket margins have increased, profits remained high and the two main operators, Foodstuffs and Woolworths, remained dominant, van Heerden said.
Commerce and Consumer Affairs Minister Andrew Bayly grabbed the opportunity to get into the headlines, declaring that the report underscores the need for reforms to cut red tape and promote competition.
The spending is modest – so modest, it might have been better to keep quiet about it.
But the language is deliciously extravagant:
“The Government has committed $300,000 over three years to the Women in Horticulture initiative to making New Zealand a world leader for gender equity in this space.”
In this space?
That’s Judith Collins’ patch!
This followed the good news for the farm sector from Agriculture Minister Todd McClay, Environment Minister Penny Simmonds and Associate Environment Minister Andrew Hoggard (which we recorded yesterday). Its that the Government will pause the rollout of freshwater farm plans until system improvements are finalised.
The follow-up came today from Todd McClay (without the help of the others).
As part of its reforms to the Resource Management Act, the Government is progressing a second RMA Amendment Bill alongside a comprehensive package of regulatory changes that will drive primary sector growth and productivity, he said.
In the primary sector, these changes relate to freshwater, indigenous biodiversity, commercial forestry, marine aquaculture, quarrying, and water storage.
“The cumulative effects of these changes will help to drive a more efficient and effective resource management system, and achieve our ambitious goal to double the value of all exports, including food and fibre products, within 10 years. “
But most media attention has focused on news that the Commerce Commission says it’s planning to ramp up regulation and enforcement in the grocery sector and recommending a regime of stiff penalties.
This follows the first annual report into competition in the sector since the appointment of Grocery Commissioner Pierre van Heerden in 2023.
Supermarket margins have increased, profits remained high and the two main operators, Foodstuffs and Woolworths, remained dominant, van Heerden said.
Commerce and Consumer Affairs Minister Andrew Bayly grabbed the opportunity to get into the headlines, declaring that the report underscores the need for reforms to cut red tape and promote competition.
Latest from the Beehive
4 September 2024
The Government is moving to review and update national level policy directives that impact the primary sector, as part of its work to get Wellington out of farming.
The first annual grocery report underscores the need for reforms to cut red tape and promote competition, Commerce and Consumer Affairs Minister Andrew Bayly says.
Associate Education Minister David Seymour says the Government has listened to the early childhood education sector’s calls to simplify paying ECE relief teachers.
Regulation Minister David Seymour says there has been a strong response to the Ministry for Regulation’s public consultation on the early childhood education regulatory review, affirming the need for action in reducing regulatory burden.
Speech
4 September 2024
“The Government is empowering women in the horticulture industry by funding an initiative that will support networking and career progression,” Associate Minister of Agriculture, Nicola Grigg says.
Andrew Bayly – on the matter of the grocery business – grabbed the opportunity both to get into the headlines and to take a cheap poke at the opposition:
“The report paints a concerning picture of the $25 billion grocery sector and reinforces the need for stronger regulatory action, coupled with an ambitious, economy-wide programme to promote competition,” Mr Bayly says.
“The report finds that the changes heralded in by the previous government have failed to deliver, with checkout prices rising more than wholesale costs, supermarket margins increasing, and profit levels remaining higher than expected in a genuinely competitive market.
“I welcome the Commission’s decision that, based on these findings, it will unlock new regulatory powers to improve uptake of the wholesale regime, redress the balance of power between suppliers and supermarkets and bring greater transparency to pricing.”
But he acknowledged that many of the issues identified by the report point to broader, structural problems with our trading, planning and regulatory systems.
So what is Bayly and his colleagues doing?
“We knew this coming into Government, and we have been upfront with Kiwis that to get better social outcomes, we need to reduce regulatory barriers. Already the Government has announced a review of the Overseas Investment Act and reforms to the planning system to unlock land for development.
“The report reinforces that our planning rules are a mess. The tangle of red tape has significantly reduced the availability of urban land for development, creating high barriers to entry and curtailing competition.
“That is why we are redesigning the Resource Management Act and have directed councils to enable a greater mix of residential and commercial activities in cities. In time, this should enable metro-style supermarkets to open alongside residential developments, as is common overseas.
“We are also reviewing our competition settings more broadly and will consider the report’s findings in relation to the Fair Trading Act and Commerce Act. As part of this work I am open to the Commission’s recommendation to increase penalties in the Fair Trading Act for inaccurate or misleading prices.”
Bayly said he had signed off on rules for the new Grocery Industry Dispute Resolution Scheme. This will give suppliers and wholesale customers a stronger voice against the supermarket giants and greater confidence when negotiating retail deals, which, in turn, should lead to better product range and prices for consumers.
Besides that, he is waiting for guidance:
“I am looking forward to receiving a more detailed analysis from the Commission about the more than 100 sites being ‘land banked’ by supermarkets and will seek advice about whether this complies with competition law and what levers are available.
“We know that if we want the benefits of greater competition then New Zealand must become a more attractive place to do business. While the findings of the report are disappointing, the Government and Commerce Commission are committed to supporting better competition across all sectors of our economy and taking a range of actions to support this.”
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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