11. Question No. 11—Commerce and Consumer AffairsRAWIRI WAITITI (Co-Leader—Te Paati Māori) (remote) to the Minister of Commerce and Consumer AffairsQuestion No. 11—Commerce and Consumer Affairs11. RAWIRI WAITITI (Co-Leader—Te Paati Māori) (remote) to the Minister of Commerce and Consumer Affairs: Kia ora e te Pīka. Otirā kia ora tātou e te Whare. Tuatahi kei te tangi atu ki tērā kuia Kahurangi June Jackson e takoto mai rā ki runga i tōna marae – haere atu rā e kui.[Thank you Mr Speaker and thank you to the House. First I would like to acknowledge the elder Dame June Jackson who is lying in State on her marae—I bid you farewell my lady.]My question is to the Minister of Commerce and Consumer Affairs. Does he stand by his statement that competition in the retail grocery market is not working"; if so what steps will he take if any to break up the supermarket duopoly?Hon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs): I do want to acknowledge the member's question and the respects to Dame June and agree with those sentiments. In answer to the question yes I stand by my statement that the report is clear: competition in the retail grocery sector is not working and consumers will get better prices range and quality when action is taken to address this. It's clear that we need to improve competition and that there is a desire to see quick action. That is what we are doing. My officials are currently working through the recommendations of the 607-page report but I have been clear that we will not rule out exploring further measures if the recommendations in the report don't achieve the level of competition we need. We're looking at establishing a new regulator and dispute resolution scheme developing a mandatory code of conduct and how we can ban land covenants to free up space for new supermarkets. These actions can have a real impact on improving competition in New Zealand. This issue is simply too important not to get a response right on on behalf of New Zealand consumers.Rawiri Waititi: What is his response to the Commerce Commission's recommendations that Government should free up land and supply chains for independent grocers considering that the current market locks out the potential for tangata whenua - owned supermarkets that operate with Māori values?Hon Dr DAVID CLARK: The commission has recommended in terms of supply chains that there's a code of conduct that changes the relationship between the supermarkets or the retail grocery sector and their suppliers. Indeed I do want to acknowledge in particular the role of Māori in our grocery sector as store owners suppliers and consumers because in particular Māori have a strong role as growers and primary producers including owning 50 percent of the fishing quota; 30 percent of lamb sheep and beef production; and 10 percent of dairy production and kiwifruit. The commission made recommendations to address the imbalance of power between the major retailers and their suppliers including the code of conduct and a regulator overseeing it. In respect of land covenants they are something I'm also seeking to ban.Rawiri Waititi: Will Government regulate the sector to stop price gauging at our supermarkets and prevent low-income people being lumped with regular cost increases—like in my electorate of Waiariki where cabbages seem to cost up to $12 and cauliflower costs more than $10—just to feed their whānau; if not why not?Hon Dr DAVID CLARK: The Commerce Commission found that competition was not working as it could be and should be in the sector. Improving the conditions for competition should lead to better range prices quality and service across the sector. That is what the study is about. We agree with its findings and we look forward to responding to the recommendations.Ricardo Menéndez March: Does he accept that the duopoly's estimated $430 million in excess yearly profit shows people are being ripped off; if so will he ensure that the option of a publicly owned competitor is on the table to address this?Hon Dr DAVID CLARK: I have said we have accepted the findings from the Commerce Commission. Even on their most conservative estimate which is more conservative than the one the member draws on they find that the supermarkets are making excess profits of $1 million a day across New Zealand. That is a substantial finding and warrants a substantial response. In respect of a Government owned or backed intervention that is not something the commission recommends. They believe creating the right conditions for competition is what is essential. They don't see Government as having specialist expertise in selling groceries in particular. They also warn against setting up a Government-owned or backed wholesaler simply on the basis of their analysis around how competition has improved around the world. That said we are absolutely committed to the findings in the report and are working on the response to the recommendations so that we can see better competition in the sector and see consumers get sharper prices and get a fair deal at the checkout."