Stupid policy ad nauseum

What MPs do you think could actually run a supermarket as the general manager? I don't mean run into the ground either.

There was an age in New Zealand when there was not something called Supermarket Policy, because, by and large, mature capitalist liberal democracies don't need a command and control approach to a sector that typically does attract a wide range of entrants.

Not anymore.  Elections are a silly season, and silly it is.

I don't expect much from the Greens around sane economics, because it is a party antithetical to capitalism, which is suspicious of all of the elements of markets. Whether it be prices (how these are reached is a mystery), profits (too high, of course), salaries (too low, of course), choices of goods (lots are disapproved of, some are supported but mysteriously something stops them being sold) or customers (who generally don't know what's good for them or "the planet"), the Greens find the idea that millions of people buy and sell goods and services without public servants and politicians "regulating" them, to be terrifying. So, of course, they want their Kiwimart.  If it were December 1989 and the Greens had been dropped into the recently liberated German Democratic Republic, they probably wouldn't have privatised a thing. 

I expect better from the National Party, after all, you'd think it would have learned from its past.  Well you'd think that if you thought that being a member of the National Party was about being committed to principles such as "Promoting a competitive market economy and providing rewards for achievement and hard work". However, in reality, most of the party's history since the late 1950s has been about winning and holding onto power, which is largely has done. The results have been fairly woeful.  

It held power for twelve years from 1960 to 1972 doing virtually nothing to prepare the country for the inevitable exit of the UK from its role as the primary buyer of all of the average unprocessed primary produce that could be exported. Nothing.  The Muldoon years were an exercise in vote bribes with National Superannuation, a gamble of billions on energy self-sufficiency and then performing like an ostrich, with bureaucratic control of prices, wages and interest rates. The Richardson years were an exception (and the RMA was an exception then too), and even the Birch years until 1999 saw some glacial reform, at least in the right direction. However, little was achieved in the Key/English years.

Now, after nearly three years. Christopher Luxon, possibly the least popular National Party Prime Minister in history, is desperate as is his brainfarting Finance Minister and Deputy, Nicola Willis, in dreaming up the supermarket policy. It is not a policy to achieve anything other than re-election. It is, no doubt, carefully been tested among "swing voters" who have been groomed to think, in no small part by Nicola Willis, that New Zealand has a particularly egregiously predatory supermarket sector which is reaping enormous profits off of "hard-working New Zealanders" (though quite how it doesn't target lazy bludging New Zealanders is a mystery, but the Greens and Opportunity tout for their votes). 

Let's be very clear here, as Damien Grant says in Stuff, there isn't much of a problem in regards to supermarket profits, certainly not enough to justify trying to split the largest chain, of largely franchise holders, into two groups. 

"We know from published accounts these profits do not exist other than in the bureaucratic imagination. Woolworths, an Australian company with close to a third of the NZ market, wrote down the value of its Kiwi holdings by $1.6 billion in 2024 on the back of rising cost of sales and weak profitability, just $108 million before taxes and interest on a whopping $8 billion in revenue."

Super-profitable businesses don't write down the value of their businesses, and such sectors do seem to attract new entrants. Note that Nicola Willis's bizarre attempt to generate international interest in entering a market that was - already open - through a Request for Information from prospective entrants, was an abject failure. There are steps that could be taken to enable more competition to emerge, largely from scrapping the ability of local government to use the RMA to control competition , but replacement of the RMA has been slowed for reasons that are far from clear. My suspicion is that both local government and the bureaucracy aren't keen on it so much, but it falls to Luxon and Willis that they haven't advanced what ought to have been the most significant reform of their government. 

It's worth noting that not a single developed country has ever forced the split of a supermarket chain. None. That includes countries smaller than New Zealand's population, geography and economy. What that tells you is that it is an intervention that probably is worth being cautious about, at best, but it also tells you that a party that is ostensibly about business, encouraging investment (especially from overseas) and free markets, that touts this nonsense is simply pandering to a narrative that it is too incompetent to confront - that is that too many NZers think supermarkets are ripping them off.

It is rare for Labour to follow the National Party on policy, it is usually the other way around, but it is a worthy footnote to see Christopher Hipkins propose an even more stupid policy on supermarkets - separating retail and wholesale arms. This actually makes Chloe Swarbrick's state supermarket chain idea seem reasonable.

No other developed country has forced such a change, and it makes little sense from the point of economies of scale, ensuring reliability of supply chains or placing competitive pressure on wholesale prices.  It's as if Labour looked at the electricity reforms of the 1990s (under National) which separated generating/retail, distribution and national grid functions by force (mostly of state/local quango monopoly entities) and of telecommunications (separating Telecom into Spark and Chorus) and think it is exactly the same. Supermarkets are not vertically integrated natural monopoly network industries, but Labour is jumping on the gravy train of making them scapegoats for the quasi-Marxist hate of grocery prices.

I expect a little better from Labour, I hoped for a lot better from National, but both are absolutely braindead. 

If you think ANY of these three policies will save you money, I should sell you a bridge, and you should think again. Yes there are problems, and these are mostly the result of local government making it difficult, expensive or impossible to get approval to build new supermarkets or open them in existing premises.  However, the Marxists in the Greens, Labour and National think their clunking fists can take other people's property and re-organise a sector absolutely none of them could manage effectively (though you think Luxon ought to know better!), and save you money.

The Greens of course know no better. Labour thinks it might know something, but what's particularly gruesome is that it is obvious many National MPs know this is nonsense and they can't stand up because they are stuck with Mr. Unprincipled, Unconvincing and Unpopular as leader, who is peddling snakeoil to trick you into thinking he is looking out for you.

Don't give any of that lot a chance (of course, you might grant your Electorate Vote to an MP or candidate who candidly tells you that he or she thinks all of this is nonsense, if you can find them).