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As part of our drive to keep our comment section the best in New Zealand we showcase each week an example of a top-notch comment that adds value to The BFD.
Today’s comment was written by George Thank you George for taking the time to craft such an interesting comment.
Those damn supermarkets, New World, Pak N Save and Countdown, they are tanking the NZ economy. The country is plunging into recession and it’s all their fault. Inflation is at a thirty-year high all because these mongrels are making $430 million a year in excess profit generated from a turnover of $15.6 billion through their collective 237 outlets.
What is “excess profit” I hear you ask? Apparently, the Government states anything above 5% return on your capital is. Their collective net profit was approximately one Billion dollars during 2020 trading. $430 million too much according to the Government. Commerce and Consumer Affairs Minister David Clark claims “inflation is exacerbated here by the lack of competition at the checkout. And that is something we can act on.” Can you believe the idiocy of that comment?
Duopoly is the buzz word. Yet during the pandemic, this “duopoly” was appointed by the Government as an essential business and they excluded small sole trading bakeries, butchers, florists and fruit and veggie merchants from operating.
Apparently, this “duopoly” was to continue to provide necessities for everyone in New Zealand.
Another exemption was petrol stations. These too were “fleecing” their customers. But they are not a “duopoly”.
New Zealand currently has up to a dozen large and small operators on the fuel retail market, so consumers definitely have a choice according to Trading Standards. They must be a “grossopoly” They too were considered an “essential” business.
It appears that extending customer choice from a “duopoly” to a “grossopoly” makes no difference regarding competition. Z Energy reported that they earned 3.6 cents after tax profit per litre for the 2020 financial year.
The Government earned $1.15 per litre, so we know who is doing the “fleecing”.
The Commerce Commission has an annual budget of approximately $60 mil. Under this Government’s watch, it was advised to investigate two major players within the NZ retail sector. Service stations and supermarkets. Both were found to be ripping off the customers according to the Government.
It had to come to this conclusion, any other presumption would have been an embarrassment for them. However, having come to this determination they were now required to act on it. The first thing they did regarding fuel prices “that woman” announced that the Government would cut fuel excise taxes by 25c a litre for three months. That will teach the fuel companies a lesson!
To overcome the high food prices implemented by that “duopoly” “that woman” announced an increase in benefits and pensions. That will teach the “duopoly” a lesson!
This is not fiction but fact. That is how this Government manages its inflationary interventions. It hasn’t a clue about commerce. Making a small profit is acceptable but heaven forbid you become prosperous.
