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OECD Tables Possible NZ Supermarket Breakup

The latest OECD report on New Zealand's economy, released yesterday, is specifically pointing to the supermarket sector as lacking in competition and possibly in need of a breakup. Regulation, it says, will not suffice. That comes hard on the heels of a similarly critical report from the International Monetary Fund.

As reported in The Post by Tom Pullar-Strecker, the Report notes tha "big businesses including the country's supermarket duopoly may need to be broken up to improve competition and boost the country's lagging productivity."

Its unusual for the OECD to be so granular in singling out a particular sector. It shows the damage that our broken grocery market is doing not only in social terms, but as a contributor to our low productivity rankings. As I've observed before, our poor productivity is less about people not working hard enough and more about broken markets in sectors like banking and groceries, which make excess profits. And,in many cases they export the proceeds to the detriment of our productivity figures and the enhancement of Australia's.

Encouragingly, Finance Minister Nicola Willis told RNZ this afternoon that she is "keeping a close eye on the role of the Grocery Commissioner." That's major from a senior National politician.

Our Grocery Action Group - GAG - is now fully operational and ready to become a force on behalf of consumers. At present we are minimally funded, with a hard working Board of five people donating our time and resource. If you're wanting to give us some encouragement, a donation would be hugely appreciated - please contribute here on Givealittle. If you're anonymous then thanks in advance.


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