Colin Ambler/cvnznews.com
Green MP Chlöe Swarbrick says politicians won’t be deciding the price of eggs — or anything else — if the party’s proposed government‑owned supermarket chain goes ahead. The policy, unveiled over the weekend, would see the creation of KiwiMart, a state-backed competitor to break the long‑criticised Foodstuffs–Woolworths duopoly.
Under the plan, the government would buy 120 existing stores and two distribution centres for $2.8 billion, instantly creating a third player with around 15 percent market share. Swarbrick told RNZ Morning Report that successive governments had failed to attract an international competitor, leaving New Zealanders stuck with escalating grocery prices and limited choice.
The Commerce Commission has repeatedly warned the duopoly is extracting excess profits — an estimated $1 million a day in 2022 — and last month took Foodstuffs South Island to court over alleged anti‑competitive behaviour. In some regions, the two chains control more than 90 percent of the market.
But while Swarbrick argues KiwiMart would inject long‑needed competition, she won’t say how much cheaper groceries might become. Instead, the Greens want to boost the Commerce Commission’s powers with more than $100 million in funding and a mandatory pricing accuracy code that compensates shoppers automatically when overcharged.
Independent economist Cameron Bagrie says the idea sounds good “in theory” but believes the costings are far too low. He points to Kiwibank as evidence the government struggles to run commercial assets effectively, and suggests structural separation of retail and wholesale markets would be a better fix.
Swarbrick maintains KiwiMart would be self‑sustaining after the initial outlay and insists pricing decisions should sit with independent experts, not politicians. Whether voters buy the idea — or the price tag — remains to be seen.
