Green Party

Questionable supermarket policy needs investigation: Greens

Allegations that supermarket giant Progressive Enterprises is applying pressure to its suppliers adds further impetus to the Green Party's call for a Commerce Commission inquiry into industry practices, and a code of conduct for supermarkets, Safe Food Spokesperson Sue Kedgley says.

According to a news report, grocery suppliers will be penalised for having their products promoted in rival supermarkets at or around the same time as Progressive's own advertised promotions. If this occurs, suppliers would be charged for the differential on the price offered in the opposition supermarket.

"These are precisely the kind of tactics that penalise small independent growers and suppliers who are already struggling in a highly competitive environment," Ms Kedgley says. "Progressive allegedly wants details of suppliers' supermarket specials with trade competitors - in advance - and will not accept promotions for inclusion in its mailers where there is a clash with a competitor's promotion arranged by the supplier," Ms Kedgley says.

Ms Kedgley says she is alarmed at reports that, while suppliers are furious about these practices, they fear if they don't play ball, their products would be left off supermarket shelves.

"Why should a farmer who grows and supplies broccoli to Progressive and the local New World be punished by a retrospective cut on their payment from Progressive because New World decides to have a special on broccoli in the same week?

"Most farmers and manufacturers have nowhere else to sell their produce than the two supermarket chains that control 96 percent of New Zealand's grocery market. An investigation would clarify whether there is any truth to the allegations that Progressive may be misusing its position to force small farmers and business people to take cuts in their margins.

"It would also determine whether this practice breaches the restrictive trade practices under the Commerce Act.

"New Zealanders spent $16 billion in supermarkets last year. They are a huge business, and it is essential that there are clear rules governing the trade, which prevent unfair trading practices occurring in the sector. That's why we need a Commerce Commission Inquiry into the sector and a code of conduct for supermarkets, such as exists in the United Kingdom," Ms Kedgley says

The axing of over 80 clothing workers' jobs in Christchurch and Porirua is a direct consequence of successive Governments' free trade policies, the Green Party said today.  The Pacific Brands clothing group has announced that it will close down both the former Lane Walker Rudkin Jockey Factory in Christchurch and the Sara Lee Apparel factory in Porirua, and shift hosiery production to Melbourne.

"It makes me angry when staff who are long-serving, dedicated and highly productive lose their jobs because of Government tariff reduction policies," said Green Party co-leader Rod Donald.

"Successive Governments have slashed tariffs on clothing imports in the full knowledge that their actions were destroying the clothing manufacturing sector in New Zealand.  Despite the Labour-led government freezing tariffs on clothing imports last year, it continues to undermine what is left of the industry by signing up to a free trade agreement with Singapore and is now proposing a similar but much more dangerous agreement with Hong Kong.

"We are meant to have a close economic relationship with Australia, but they froze their tariffs at 25% on clothing compared to 19% in New Zealand.  With both countries facing a massive increase in sweatshop imports from Asia it was inevitable that higher tariff levels in Australia would keep Australian based manufacturing plants viable for longer than those in New Zealand."

Mr Donald said he took the closure of the Jockey plant quite personally, not only as an avid wearer of Jockey Y fronts, but also because both his mother and father worked for Lane Walker Rudkin Industries before he was born.  "I know how important Mum's second income was for getting my parents on their feet, enabling them to put down a deposit on a section and build their first home. The deliberate destruction of New Zealand's clothing industry is denying today's school leavers the same opportunities my parents had.

"I'd like to offer my encouragement to the redundant clothing workers and urge them to consider setting up their own manufacturing business. They have the skills and experience to make a go of it and I am sure the public would respond to a call to buy New Zealand made.  I for one would buy their products," he said.
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