National to split Pak'nSave from New World to cut grocery prices

National says it will split Pak'nSave from New World to bring down grocery prices. The plan depends on a six-month review by the Commerce Commission, the independent watchdog for competition, according to RNZ.

National announced the plan on the morning of Wednesday, 16 September, with little warning. The split is a key part of its election pitch, according to Farmers Weekly.

The detail so far centres on Foodstuffs, the co-operative behind Pak'nSave, New World and Four Square. NZ First has a parallel policy to separate Foodstuffs structurally — to split ownership so the chains run apart — according to 1News.

NZ First leader Winston Peters criticised the announcement. Speaking to reporters, he played part of the 1955 song "The Great Pretender" on his phone to mock National.

Peters accused National of having "cut and pasted" NZ First's plan to break up the supermarket duopoly, where two large groups control most stores. He said NZ First announced its plan in April. He said National's move came "far too late" to make a difference this term.

ACT also criticised the proposal. The party called it "desperate and visionless" campaigning. Leader David Seymour said the "heavy-handed intervention" would chill investment and discourage new supermarkets from starting up.

Labour also moved on the same day. The party promised to ban large companies from charging excessive prices, according to Farmers Weekly.

Looking at what this means for the campaign, the immediate issue is coalition management. National has put ownership separation on the table while its two support partners reject the idea and the timing. For staff, the question is process. A six-month review pushes any decision past the election and into post-election talks.

In my view, the politics matter as much as the mechanism. Peters is claiming the break-up idea and calling National late. Seymour is arguing intervention will deter new entrants. Labour is offering a rule on conduct rather than a break-up. Voters will hear three different theories of how prices fall.