The lie of neoliberalism is that unregulated markets lead to competitive utopia.
They lead to an elite corporate oligarchy who ensure their dominance via duopoly or monopoly. A plutocratic cartel who amputate monopoly rentals from the economy and call it business.
The brutal strength of the State is required to step in and break up such cartels when they bubble to the top and that’s exactly what the Commerce Commission must demand in its reports on the Supermarket duopoly in NZ.
The Commerce Commission’s draft report into competition in the supermarket sector has found that competition is not working well for consumers and the main problem is the structure of the New Zealand grocery market, in which new players find it hard to compete.
It found “persistently high profits” and high grocery prices compared to other countries.
The report suggests lowering some of the hurdles for new competitors, or, if that failed, creating another major grocery retailer.
“If competition was more effective, retailers would face stronger pressures to deliver the right prices, quality and range to satisfy a diverse range of consumer preferences,” said commission chair Anna Rawlings.
This greedy duopoly between them take half a billion in profits every year!
This is the bullying tactics they use against critics…
Leaked emails show pressure was put on Food & Grocery Council chief executive Katherine Rich to tone down her criticism of supermarkets as they came under regulatory scrutiny, a consultant says.
An email from Foodstuffs North Island chief executive Chris Quin to then Food & Grocery Council board member and Dairyworks chief executive Tim Carter has been posted online, in which Quin states “So this is ‘CEO has been asked to stop’”.
The comment appears to be in response to a forwarded message from Foodstuffs spokeswoman Antoinette Laird commenting unfavourably on an article Rich published in November on “competition problems” in the sector.
Hexis Quadrant partner Nick Hogendijk said the emails, which were part a chain of correspondence, showed Quin was asking why Rich had not been silenced.
…and look how they treat suppliers…
The Food & Grocery Council has launched an extraordinary broadside on New World and Pak ‘n Save franchise owner Foodstuffs in the run-up to a Commerce Commission review of the groceries market.
Posting on LinkedIn the council’s chief executive, former National Party MP Katherine Rich, accused Foodstuffs North Island of threatening its members with “extreme demands”.
Rich also said an unnamed New World store owner had said its strategy was to “break people”.
“A member of one of the Foodstuffs North Island store committees has cheerily explained that their approach is to employ ‘the Walmart strategy …. push people until they break and then come back from there … and it’s working really well for us’,” she wrote.
…Covid taught us food security matters and a Supermarket chain that embeds a cheaper food security while supporting local supplies is a necessity to correct a broken market!
Government should enter into a deal with Iwi to stock a new chain of Government/Iwi Supermarkets that champion local produce at better prices for the consumer and
We need a kiwi subsidy on all local produce to recognize that producers have already used water and created local climate changing gases to create their product and as such consumers have already paid a price just to get the product to their table.
We should feed the 5million here first before boasting about feeding 40million world wide!
People are going hungry even though New Zealand produces enough food to feed 40 million – and it’s spurring calls for the country to “feed the five million first”.
Poverty researcher Dr Rebekah Graham said while working on her thesis on food insecurity, she interviewed a woman who walked for 90 minutes each day to get a free community meal.
A state owned 3rd supermarket chain would do more for providing a cheaper means of living to all kiwis who have food security issues. It would do more for welfare than any single PM since Savage.
History is calling Labour. To date you have had nothing to show beyond crisis responses. We still have 190000 kids in poverty, over 22000 on emergency housing lists, growing inequality and a climate crisis with no real solutions.
A state owned supermarket chain that radically forced competition on base level cost of living for a vast swathe of New Zealanders would be a legacy worthy of Labour.
We need to be kinder to individuals and crueler to corporations.
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