Govt waits for Australian food price inquiry before acting

The Government is holding fire on a possible inquiry into grocery pricing competition until the completion of a similar inquiry in Australia and a ruling in a court case.

The Australian Competition and Consumer Commission (ACCC) is looking into grocery price competition as households around the world groan at rising food prices.

Green MP Sue Kedgley asked Commerce Minister Lianne Dalziel whether she was considering similar action in light of the fact that two companies dominated 96 per cent of the market in New Zealand.

Ms Dalziel told MPs her Australian counterpart had ordered an inquiry into competition in grocery items and this was due to be completed by July 31.

"I will await the ACCC report before considering whether a similar inquiry would be useful in New Zealand," Ms Dalziel said.

Ms Dalziel said the Commerce Commission in New Zealand did not have general powers of inquiry like its Australian counterpart.

The commission has tried to block Woolworths and Foodstuffs from buying the Warehouse chain.

It argued the Warehouse was an important source of potential competition, but its ruling was overturned by the High Court.

The commission took the case to the Court of Appeal and judges are currently considering their decision.

- NZPA