Supermarket showdown - the battle of the election policy

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What is the cost‑of‑living crisis and why are supermarkets now a political battleground?

Amanda Gillies 0:07
Hi, I'm Amanda Gillies and today on The Detail.
Unknown 0:10
This is nothing short of an anti-business policy from the dark ages. For the love of all that's holy, this is an idea that goes against National's entire DNA. They're having the biggest identity crisis since Bruce Jenner became Caitlyn Jenner. This is hugely alarming, particularly coming from one of the major political parties. We're starting to look a bit like Venezuela. You asked me if I was happy
Mike Hosking 0:32
about this. No, I'm furious. Both parties' ideas, let the record state, are fanciful.
Amanda Gillies 0:37
What on earth has got the country so riled up? Well, turns out, seven weeks out from the election, supermarkets have become an unexpected but fierce political battleground.
Unknown 0:49
National has revealed a dramatic plan to break up our supermarket duopoly in a bid to deliver better prices at the checkout for Kiwis. If re-elected and given the OK by the Commerce Commission, it's proposing to split foodstuffs, which has three major brands. New World and Foursquare would become one nationwide chain, separate from Pack and Save. That means, along with Woolworths, New Zealand would have three major grocery giants competing against each other. We owe it to every
Amanda Gillies 1:18
Kiwi
Unknown 1:19
household
Amanda Gillies 1:19
to do our very best. But their very best, it seems, isn't good enough for their coalition partners, opposition parties, Business New Zealand and, well, Talkback.
Mike Hosking 1:31
No one has jawbone groceries like Nicola Willis, so her hot air outpaces action.
Unknown 1:36
Well, they've been talking about it for three years, they haven't done it. Now they're proposing another review. New Zealanders won't get a better deal from another review. They can't eat the review.
David Seymour 1:45
There's only five million of us. We need to stop attacking industries, thinking that somehow if we beat the golden goose, we'll be able to afford more. What happens is you kill the golden goose and we're all poorer.
Unknown 1:55
We think it sends actually a pretty chilling signal in terms of business being able to have confidence to invest in New Zealand. I tell you what, using legislation to fundamentally change the structure of a business, that is not the solution. It is certainly not a centre-right policy. I'll tell you what it is though, it's an anti-business policy.
Amanda Gillies 2:15
And just as National unveiled their supermarket policy, Labour was across town announcing theirs, a crackdown on price gouging.
Unknown 2:24
If you are a big firm and you are using your market power to rip off New Zealanders, we are going to take action against that. The size of the prize means that the type of litigation that we'll see in New Zealand will be large. It just sounds like more clipboards and bureaucrats to
Mike Hosking 2:38
me. Labour are once again in the realm of theory and whiteboarding with clickbait one line as no real world workings of how many of this actually works or doesn't.
Amanda Gillies 2:46
And of course, earlier this month, the Greens unveiled their supermarket proposal.
Unknown 2:52
Kiwi Mart will be a supermarket owned by New Zealanders for New Zealanders.
Amanda Gillies 2:58
But now a trademark dispute has emerged over the name Kiwi Mart. So there's a lot to digest. We've got parties promising very different ways to take on grocery giants, brutal responses, potential litigation and an election fast approaching. So to break it all down, today I sit down with RNZ's Deputy Political Editor, Craig McCulloch, who has covered the issue extensively. I start by asking him, why have supermarkets become such a major political battleground, and will they be a defining issue this election?
Craig McCulloch 3:37
We are already in a cost of living campaign, I think. We have been all year, really. In fact, you could argue that we've been here all term. It has been the number one issue for New Zealanders when you look at the polling since going back to early 2022. So it was always going to be a big talking point to this election, the cost of living. Now, the supermarket shop... It's probably the purest cost of living issue that you can find because everyone knows how much it hurts when you go to the checkout, or most people anyway. There's not a lot of love out there for the supermarket chains making their big profits.

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