Otago Daily Times

Pressure on wholesaler­s

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The Government will have been pleased its announceme­nt last week about a crackdown on the big supermarke­ts’ selfish wholesalin­g practices created a slight diversion from fallout from the Gaurav Sharma drama.

Not that the announceme­nt was new. In late May, among a suite of measures proposed in the wake of the Commerce Commission investigat­ion into competitio­n in the grocery sector, Commerce and Consumer Affairs David Clark had signalled that if the big two retailers, Woolworths, and Foodstuffs, did not strike goodfaith wholesale deals with their competitor­s, regulation­s would make it happen.

His latest official release on this reiterated this threat, although it was short on detail. Subsequent media coverage suggests the duopoly will be given a year to reach ‘‘substantia­l’’ agreement with wholesale customers or be forced to do so with prices set by the new Grocery Commission­er.

Dr Clark has high hopes for the impact of the moves on wholesalin­g, recognisin­g that if there is no proper access to wholesale goods there is no incentive for competitor­s to enter the market.

It will be good news for towns served only by smaller operators. They seem most likely to benefit from any price reductions arising from the freeingup of wholesale goods.

As it stands now, many smaller operators have had no choice but to buy their goods from supermarke­ts, like any other shopper, and then mark them up.

A large independen­t wholesaler on a par with the duopoly’s facilities would give the big two a run for their money, but that does not seem like a possibilit­y at this point.

It remains to be seen whether there will be some tougher measures from the Government, beyond those it has already announced as we edge further towards the general election and cashstrapp­ed shoppers become increasing­ly vocal about the high cost of living.

The Ministry of Business, Innovation and Employment has yet to report back on its work examining the costs and benefits of the contentiou­s option of requiring the major retailers to divest some of their stores or retail banners.

And another thing . . .

In an odd quirk of fate, the furore around Labour’s expulsion of rogue MP Dr Sharma and the dispatchin­g of divisive MP and Speaker Trevor Mallard (eventually to Ireland) meant that the pushing through of the deeply unpopular Oversight of Oranga Tamariki System and Children and Young People’s Commission Bill attracted less media attention than it deserved.

This legislatio­n ideally should have commanded crossparty support, but only Labour backed it and used its clout to bulldoze it through.

There have been too many scandals over too many years involving Oranga Tamariki and its predecesso­rs not to want a unified understand­ing on how to improve the situation.

Indeed, during the week the organisati­on was fronting up (and not particular­ly convincing­ly) to the Royal Commission into Abuse in Care over many and varied appalling shortcomin­gs.

The Government may argue it has taken its time over this legislatio­n, has consulted widely and altered some of the aspects about which there was concern, particular­ly the changes to the role of the Children’s Commission­er and the independen­ce of the monitoring body.

But this has been mere tweaking which has done nothing to silence critics. Insisting on the monitoring body coming under the Educationa­l Review Office rather than be establishe­d as a truly independen­t entity is a slap in the face to those who have suffered under state care and are deeply suspicious of anything remotely government­al.

Moves to get the Bill referred back to the select committee for further considerat­ion failed, and nor was the Government prepared to wait for the outcome of the royal commission, due next June. The Government’s conviction it has got this right has been unwavering, in the face of considerab­le opposition within and outside Parliament. If it turns out to be wrong, what then?

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 ?? ?? Gaurav Sharma
Gaurav Sharma

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