Summarised by Centrist
The government has launched another attempt to attract an overseas supermarket operator after receiving no applications from potential entrants over the past year.
New guidance will explain how the Overseas Investment Act applies to grocery retailers and what tests proposed investments must meet.
Associate Finance Minister David Seymour said the aim was to make it “as easy as possible for credible investors to establish or expand grocery retail operations in New Zealand”.
The government also plans to issue a standing consent allowing a supermarket operator to buy as many parcels of land as it needs to establish a national network of stores.
Seymour said faster overseas investment processing and clearer rules would show that New Zealand was “open for business, particularly supermarket business”.
However, no supermarket operators have applied to enter the New Zealand market since the government began removing regulatory barriers.
Asked about the lack of interest, Seymour said: “Just because it hasn’t worked yet doesn’t mean it’s not a good idea.”
He suggested Aldi or another international company could eventually decide New Zealand was an attractive market, despite Aldi having said for several years that it is not interested in expanding here.
“Sometimes businesses change management. Sometimes economic circumstances change. Sometimes they may just be waiting for political stability,” Seymour said.
He acknowledged the latest effort might not succeed.
“We know that if we try, we may fail. But we’re certain that if we don’t try, we’ll definitely fail.”
Seymour said greater competition, rather than further regulation of existing supermarkets, was the best way to reduce grocery prices and break the dominance of the current duopoly.
