Progressive Enquiry Smoke Shows Plenty of Signals

New Zealand First is keen to talk to the Hon Clayton Cosgrove about a mandatory code of conduct for supermarkets to protect suppliers from anti-competitive behaviour.

“Our reading of the Commerce Commission report shows plenty of smoke and you would have hoped the Commission could have taken a more proactive line,” says Fletcher Tabuteau, New Zealand First’s Commerce Spokesperson.

“When you have dozens of complaints from Food & Grocery Council members and dozens more made direct to the Commission that tells us something is amiss. That’s a heck of lot of smoke but someone’s missed the signals.

“You’ve got to wonder how the Commerce Commission found nothing when the Australia Competition and Consumer Commission is prosecuting Coles while as the Hon Clayton Cosgrove notes, the UK has an independent adjudicator with a mandatory code of practice.

As the Commission noted: “suppliers expressed concerns about their ongoing relationship with Progressive if they provided information”. This report won’t give them much encouragement.

“We’re not anti-supermarket, but hard working Kiwis shouldn’t be paying over the odds at the till while equally hard working Kiwi farmers and suppliers are ground into the dirt for low prices.

“Take milk, which Lincoln’s Professor Woodford analysed several months ago.

“At the time he noted Kiwi farmers would have earned 55c a litre for milk but the latest payout makes it more like 44c. Professor Woodford used a Pams price of $2.08 per litre and found GST was 27c leaving $1.26 per litre for the processor and retailer to share. That’s three times what the farmer gets.

“While New Zealand First wants GST off staples like milk, processors are in a very strong position. Pity them who grow vegetables for a living.

“We are keen to talk to Mr Cosgrove more about that but in the meantime invite suppliers with information to contact New Zealand First,” Mr Tabuteau concluded.

ENDS

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