12. Question No. 12—Commerce and Consumer AffairsJAMIE STRANGE (Labour—Hamilton East) to the Minister of Commerce and Consumer AffairsQuestion No. 12—Commerce and Consumer Affairs12. JAMIE STRANGE (Labour—Hamilton East) to the Minister of Commerce and Consumer Affairs: Talofa Mr Speaker. What recent announcements has he made regarding competition in the retail grocery sector?Hon Dr DAVID CLARK (Minister of Commerce and Consumer Affairs): Yesterday I announced the Government is taking action. Supermarkets are on notice with a clear message: change now to increase competition and be prepared for regulation. People and families are fed up with paying a premium for the basics and they're demanding a fairer price at the checkout. The Commerce Commission made 14 recommendations including introducing a mandatory code of conduct ensuring loyalty programmes are easy to understand and transparent and establishing an industry regulator. The Government has accepted 12 of the recommendations and is taking stronger action on the other two.Jamie Strange: What other actions is he taking?Hon Dr DAVID CLARK: Alongside the retail stores supermarkets have wholesale arms. We're calling on the duopoly to open these up to would-be competitors at a fair price. If supermarkets do not strike good-faith wholesale deals with their competitors our regulatory measures will make it happen for them. We're not afraid to unlock the stockroom door. The commission also recommended another review of competition in three years but we refuse to kick the can down the road; instead an industry watchdog will provide annual state of competition reviews to keep supermarkets honest.Jamie Strange: What reaction has he seen following the announcement?Hon Dr DAVID CLARK: The Food and Grocery Council has welcomed the Government's response and says [the particularly] strong emphasis on a mandatory code of conduct [has been a] goal since 2010." The National Maori Authority said "The changes were needed to break the backbone of the supermarket industry that has profited for a long time now to the detriment of suppliers producers and consumers." Isobel Ewing's piece on Newshub got to the heart of the issue by talking to Dinesh Patel who owns small grocers in Wellington he says "Under the current duopoly other small retailers are shutting up shop because they can't compete." It's clear competition in the sector is not working for consumers but change is on its way.Hon Stuart Nash: How much money in extraordinary profits did the Commerce Commission find the supermarkets were making from good hard-working Kiwis?Hon Dr DAVID CLARK: The Commerce Commission analysis indicated that every day these supermarkets are making super-profits: excess profits in the order of $1 million a day out of Kiwis' pockets—and that was actually their most conservative estimate. This is a problem that needs tackling and this Government is determined to get on with making the change that's needed.Chris Penk: Will improving competition in the supermarket sector make mountain bikes cheaper?Hon Dr DAVID CLARK: Look we have been very clear on our policy on this side of the House: we're very firmly focused on the serious issue of lowering grocery prices. On the other side of the House they're making light of the issue. I notice and I welcome Chris Luxon's comments that he was very supportive of the moves that were announced. But I also notice that Andrew Bayly almost immediately got out there and said that this was "window dressing"—he sought to undermine his leader's comments straight off the bat there. Now the other member's drawing attention to it. They've only got jokes on that side of the House; we actually take the ordinary matters that consumers are facing the hard yards that Kiwis are doing seriously. We're determined to make change that matters."