Regulation Minister David Seymour. Photo: RNZ / Samuel Rillstone
Regulation Minister and ACT leader David Seymour has rubbished calls for tougher regulation of the grocery sector, putting him at odds with both the commerce minister and the supermarket tsar.
Grocery Commissioner Pierre van Heerden on Wednesday published a scathing assessment of an industry he said had made "little meaningful improvement" in competition.
He said he would launch a further targeted inquiry into the major retailers' wholesale offerings, with the intent of unlocking new powers to rein in the duopoly.
Commerce Minister Andrew Bayly was quick to gave his backing, telling RNZ: "we want to make sure that that happens, and I support [the commissioner] in his approach."
But in an interview with RNZ published on Saturday, Seymour suggested such talk was premature.
"Ultimately, it's the Cabinet and the Parliament that make the policy in New Zealand."
Seymour - who voted against the creation of a grocery commissioner - said he remained unimpressed following the first report card and feared those to come would contain even "more outlandish measures that have less effect".
"It sounds to me like... [someone] who's got a job and thought, 'oh bugger, I'm not doing much, I need to justify it'," Seymour said.
"If it's really true that all we need is a bit more regulation to make groceries affordable, we should already have the cheapest groceries on the planet."
Van Heerden on Wednesday said he was considering asking his minister for the power to require the major supermarkets to sell wholesale products to their smaller rivals at the same rate as to their own stores.
But Seymour said it did not make sense to ramp up an approach which the commissioner had acknowledged was not working now.
"I don't think that 'the beatings will continue until morale improves' is ever a particularly good approach in politics or in life," he said.
"It's pretty clear what ACT's position is: we need less regulation and more competition."
Asked if he would be impressing that position on his coalition partners, Seymour replied: "Believe me, I always do."
He said a key purpose of his ministry was to advise against meaningless red tape: "Will this rule make the boat go faster, or is it actually just another barnacle on the ship?"
The way to increase competition was through cutting back the "thickets of regulation" dissuading new entrants, whether in overseas investment, resource management or labour laws, he said.
"New Zealand needs more competition, more market, more entrepreneurship, more business, more celebration of success, not beating up on anybody that looks big or successful."
Seymour's comments struck a markedly different tone from Bayly's earlier in the week.
Speaking to RNZ on Wednesday, Bayly said he was keen to back the commissioner to strengthen wholesale and supplier arrangements.
"We need to make sure the supermarkets are operating in an ethical and appropriate matter, and that competition can come in and operate against them.
"That's where the commissioner has identified a whole lot of initiatives that he wishes to pursue to bring about that change.
"We want to make sure that that happens and we support him in that approach."
Bayly said it was important that rival companies could get access to the wholesale arrangements, "so they can buy goods at the same prices that the supermarkets are enjoying".
