Smith Damien; Rurawhe AdrianDAMIEN SMITH (ACT): Thank you very much and to the Minister thank you too. This bill is meant to stop major supermarkets blocking competitors from accessing land for new stores and has been introduced to the House. It amends the Commerce Act 1986 banning restrictive covenants in land and exclusive covenants of leases. It also makes existing covenants unenforceable. The legislation stops supermarkets from engaging in anti-competitive behaviour what they've called land wars" where they buy up land or dictate the terms of the lease to block competitors from getting a foothold in the area. But Ponsonby is probably not the best example. I mean you go to Dargaville and it's been known that it's taken years and years and years to develop the complex that exists there. So regionally there are some differences to metro urban areas. Also the bill is supposed to promote an even playing field for new competitors to enter the market. So lifting supermarket covenants is a step forward towards creating an environment where new operators can take on the big players but it doesn't address the challenges for taking on new competitors and for new players in the sense of has this happened too late? And what's left out there for rivals to actually develop? I look forward to exploring that and getting clarity on that in the process that we will go through with the select committee. In some respects the bill is flawed. For instance there's nothing to stop anyone else including big box overseas grocery chains like Costco or ALDI from setting in place similar covenants. Unless the Commerce Commission recommends new retailers to be included in the ban and the Governor-General signs it off this new law only applies to two existing supermarket chains. Hon Dr David Clark: It's explicit that that's provided for. DAMIEN SMITH: Can I just finish my speech Mr Clark. To be clear: these land covenants and exclusivity provisions and leases are harsh not competitive as has been reported in articles on their anti-competitive use at Highland Park and Prebbleton as an example. The Commerce Commission and the supermarket chains have agreed this should put an end to the practice that's put competitors off and stopped small locally owned butchers and bakers and greengrocers that should be at the heart of our communities from opening anywhere near the big supermarkets. If you want to open up a mega butcher store with a fruit and vegetable side to that then rights are duplicable. So those are some of the aspects that the Minister will be glad to know that at first reading here we are supporting this bill with reservations. Hon Dr David Clark: Hear hear. Very good thank you.DAMIEN SMITH: Thank you. But we would like to iron out some of these details and make sure that there's a level playing field and it's not anti-competitive. We are absolutely sure that there are still places in this country for this to take effect. As JLL said we want to grow and assist new chains developing but we have to be certain that legally there are rivals out there who will want to develop. You know it's pretty simple. It's a commercial enterprise. They take risk on the market. They do the demographics. They look at the amount of people that are spending. They try and second-guess the supermarket chains and they also have no special rights with councils or developers to be there or not be there. So in conclusion the key question is: what is out there for rivals still to develop? And is this bill too late or will it make a difference in terms of supermarkets and helping that be competitive on prices? Because those are two separate issues. You can put a supermarket somewhere and you put it next to somewhere but if you've got two of them—it's like a cinema chain—it usually grows the market for usage but will that actually create pricing and purchasing power for the consumer? So on that note we would like to support the bill at the first reading with reservations and get all those questions answered through the committee.Motion agreed to.Bill read a first time. DEPUTY SPEAKER: The question is That the Commerce (Grocery Sector Covenants) Amendment Bill be considered by the Economic Development Science and Innovation Committee.Motion agreed to.Bill referred to the Economic Development Science and Innovation Committee."