David Farrar: Sensible Supermarket strategy

Nicola Willis has announced some significant changes to encourage a third supermarket chain. They are:

• Legislate so that new supermarkets which would improve grocery competition qualify as fast-track referrable projects under the Fast-Track Approvals Act.

• Streamline building consenting processes for new supermarkets by selecting a single building consent authority to standardise and streamline building consent processes for grocery developments that would enable competition.

• Amend Building Act regulations to facilitate pre-approved “MultiProof” building plans for multiple grocery developments.

• Improve the Overseas Investment Act regime through grocery-specific provisions in the Ministerial Directive Letter.

• Amend the Commerce Act to better combat “predatory pricing” with the introduction of an objective economic test for the prosecution of firms misusing their market power to exclude or stamp-out competitors.

These all look useful and laudable steps. They seek to enable better competition, but not remove property rights from existing companies.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders