8. CAROL BEAUMONT (Labour) Link to this
to the Minister of Consumer Affairs
Does she agree with Consumer New Zealand Chief Executive Sue Chetwin that all consumers can do about rising food prices is “shop around”?
Hon HEATHER ROY (Minister of Consumer Affairs) Link to this
That was certainly sound advice. I would always advise consumers to shop around to find the best prices and to take advantage of specials and sales when buying food or other consumer goods; many people already do. There are a large number of television and newspaper advertisements, flyers in mailboxes, and email alerts competing for shoppers’ attention, and that makes it easier for consumers to determine where they are most likely to get the best value for money.
Has the Minister taken any action to correct the misinformation she promoted last week that the steeply rising food prices in New Zealand were due to increases in the price of fruit and vegetables—comments labelled as extremely unhelpful and ill-advised by Horticulture New Zealand?
The comment I made last week was in fact that part of the increase in food prices was due to increases in the price of fresh fruit and vegetables. I gave a number of other reasons, and I stand by that statement.
Is she aware that only 1 percent to 1.5 percent of food sold in supermarkets is organic; if so, does she still think that buying organics has led to the 42.5 percent increase in food prices since 2000?
The member has just reiterated the point I made in my last answer—only one of the reasons for the increase was fresh fruit and vegetables. Organics, as part of the bundle of foods, does, in fact, contribute to the prices when the food price index is investigated. Food prices fluctuate widely for a large number of reasons. One of those reasons is fuel. When fuel prices are higher it costs much more to get food to markets. That is one of the reasons. Another is seasonal variation. The member knows well that those two things contribute significantly.
Does she still intend to take no action in response to steeply rising food prices, or will she and her colleagues finally take steps to investigate the pricing policies of the two supermarket chains that control the overwhelming share of the food retailing market?
The National - ACT Government has lit a bonfire under regulation and red tape, which will contribute. We are in the process of reducing employer compliance costs to create an environment that further fosters increased competition for the benefit of consumers. The member might like to note that the period of price increases she referred to covered the last decade and that 9 of those years were under a Labour-led Government.