Viewpoint – Resisting global pressures

As part of our work to support households with the cost of living, we’re taking further action on supermarkets to make sure Kiwis are paying a fair price at the supermarket till. The Government doesn’t think it’s acceptable that people have been paying a premium for the basics, while supermarkets earn $1 million a day in excess profits. That’s why we’re moving forward with our plan to increase competition and fix the supermarket sector. We called on supermarkets to open up wholesale access for their competitors, at a fair price – or the Government will do it for them through law. Right now, NZ has one of the most concentrated grocery retail sectors in the world and the high prices we’re facing are driven by the lack of competition in the sector. Opening up wholesale access will make it easier for new competitors and independent dairies to enter the grocery market. It also sends a very strong message as to how serious the Government is about seeing more competition in the market. 

As well, with our borders reopening to the world and with Kiwi exports in high demand, we’re continuing to position NZ as a place to visit, trade with, study and invest in. So, it was a real privilege last month, after more than two years of Zooms and online events, to lead a delegation of cross-party MPs to visit four parliaments (Netherlands, Latvia, Lithuania, and Czech Republic), one Federal (Bavaria) and the European Parliament in Strasbourg. 

Our exchanges covered a wide range of topics, from trade agreements to protection of the environment, climate change and the importance of collaboration and sharing of best practices. Especially in light of the Russian invasion of Ukraine and global pressures that are leading to rising inflation rates and other tensions. New Zealand’s contribution to supporting Ukraine was acknowledged and appreciated in all the Parliaments we visited.

The visit coincided with the Prime Minister signing-off on the free trade agreement with the European Union, which aims to boost our economy, enable NZ businesses to grow, and unlock one of the world’s biggest markets of 450 million people. 

Our visit also showed that New Zealanders are not alone in facing challenges from global pressures. Inflation is pushing up prices around the world. The annual inflation of the European Union is 9.6 percent (up from 2.2 percent last year); Lithuania, 20.5 percent; Latvia, 19.2 percent; Czechia, 16.6 percent; Netherlands,10 percent and Germany, 8.2 percent. Times are tough for many Kiwis, but it was good to see that our median weekly earnings from wages and salaries jumped by 8.8 percent – the largest annual increase in nearly 25 years and well ahead of inflation at 7.3 percent.

I welcome the decision of the Minister not to grant the North Shore Aero Club airport authority status. Having raised the concerns of the community, including those of Dairy Flat School, I found the Minister to be receptive and willing to listen. 

The next Minister to visit Whangaparāoa will be Jan Tinetti, Minister for Women, Internal Affairs and Associate Minister of Education. It is the second time she has come to visit primary schools in the area. It will also be a chance for her to meet the Principals of Nukumea and Milldale Schools and see the progress on both these new schools.