Commerce Minister Andrew Bayly. Photo: RNZ / REECE BAKER
Commerce Minister Andrew Bayly is downplaying the rift between National and ACT over whether to ramp-up regulation of the supermarket sector as the coalition partners dig in on their opposing positions.
The grocery commissioner last week signalled a desire to bolster regulation after finding "little meaningful improvement" in competition. Bayly was quick to endorse that approach, but ACT leader and Regulation Minister David Seymour told RNZ it was "outlandish".
Speaking at Parliament on Tuesday, Bayly said he had not spoken directly to Seymour about the topic but was aware of his concerns.
Bayly said he believed a "broadbrush" approach was required to rein in the duopoly, cutting red tape in some areas, like the Resource Management Act, but increasing regulation in others, like wholesale arrangements.
"The answer is a mixture of all these things," he said. "You should pull every lever to get there."
The grocery commissioner last week said he was considering asking Bayly for the power to force the major supermarkets to sell wholesale products to their smaller rivals at the same rate as to their own stores.
Bayly said if that request arrived he would "obviously" take it to Cabinet, but he did not anticipate heated discussions.
"I don't think so at all ... I might have to make some regulation changes, and that's a pretty simple process to go through."
Bayly said Seymour had responsibility for reducing red tape through the Overseas Investment Act to make it easier for competitors to arrive from abroad.
Photo: RNZ / Angus Dreaver
The regulation rift - Seymour and Luxon exchange pointed remarks
Speaking later in the day, Seymour told reporters he simply could not support wholesale price regulations, as suggested by the commissioner, as they "never work".
"It's impossible for a small number of people to know what the right price is for something as diverse as fast moving consumer goods," Seymour said.
"What's the batch size? Is it something that's refrigerated? How soon do you want it? Trying to work out what the right price is is very challenging to do."
Seymour declined to say whether he thought supermarkets were ripping off New Zealanders, saying his focus was on getting the right policies in place.
"That's the actual problem solving approach. Simply beating up on a sector of people, saying that it's all bad, that doesn't make groceries cheaper."
Speaking on Monday, Prime Minister Christopher Luxon said he personally had "a lot of support" for further regulation of the grocery sector.
Asked about Seymour's opposition, Luxon gave a dismissive retort: "Andrew Bayly was the minister of commerce when I last checked, so I'd talk to Andrew."
Responding a day later, Seymour laughed off the slight but made a pointed remark in return.
"What he's saying is true. But here's something else that's true: we've got a coalition founded on principled decision making, including problem-definition, cost-benefit analysis, and sound public policy, and that's the real test that all ideas have to go through."
Seymour also proffered some free advice on how he would tackle the problem if he was the minister of commerce.
"I was saying before the election, if it was my job, the first thing I'd do is ask some global supermarket chains, hey, why haven't you invested in New Zealand yet? Get the list of reasons and start ticking them off."