Rural and remote communities could end up paying more for groceries if Foodstuffs is broken up.

That’s the concern of Catherine Beard, director of advocacy at BusinessNZ, who says the current co-operative model cross-subsidises remote stores.

“You could go into Four Square on Stewart Island, and you’ll be paying the same price for your groceries as you would in Invercargill, Dunedin, or Christchurch,” she says.

She says the National Party policy is unexpected from a party that normally champions property rights.

“It does send a chilling signal,” she says.

She says the case for a supermarket competition problem has not been proven, and price comparisons with other countries may ignore New Zealand’s 15% GST on food.

CountryWide CONNECT with Andy Thompson & Sarah Perriam-Lampp is our daily rural show livestreamed from 11am-1pm. Visit country-wide.co.nz on how to watch/listen or download the CountryWide CONNECT mobile app, available on Apple iOS and Android.

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