Government Overregulation Sees Latest Attempt to Lower Food Prices Crash and Burn

Commenting on the collapse of grocery delivery start-up Supie, Taxpayers’ Union Policy Adviser, James Ross, said:

“In a surprise to absolutely no-one, a company attempting to break the grocery duopoly’s iron grip over New Zealand has collapsed. As it stands, there is just no way for competitors to succeed, and the result is food prices which are spiralling beyond control.

“Monopoly Watch estimate that it would take $1.1 billion to successfully take on the big two, which is simply not a realistic figure to expect firms to pump into the New Zealand market given its limited size. The outgoing Government passed legislation that will raise the costs of doing business even further, making affordable food a distant pipe dream for far too many Kiwi families struggling under this cost-of-living crisis.

“Rather than making it more difficult for Kiwis to fill their carts every passing week, the incoming Government needs to reduce the cost of entry for would-be competitors such as Aldi. Overly restrictive planning regulation and bans on foreign investment makes investment nigh-on impossible, and even where companies might be interested a new ruling which would require them to supply produce to competitors at wholesale prices in a few years is of course sending investors packing.

“Worse than just ignoring the problem, the Government has actively caused food price inflation and has doubled down at every opportunity.”