Politics Live Blog: 28 August - 3 September
Government introduces new code for supermarkets
Big supermarket chains will face fines for not treating small suppliers fairly under the Labour Government’s new Grocery Code of Conduct.
Commerce and Consumer Affairs Minister Duncan Webb said the big supermarket chains had not been treating local suppliers fairly.
"They have been taking advantage of their dominance and imposing unreasonable terms and conditions. We are calling time on their poor behaviour.
“The new code requires large corporates to do things like pay on time, have plain-English supply contracts and deal with small companies in good faith.
“It’s entirely reasonable and hardly too much to ask. Local suppliers have been stretched for a long time, and that’s stifled innovation and the development of our food supply chain."
The code would initially apply to the two big supermarket chains, Woolworths New Zealand (including the Countdown Brand) and Foodstuffs North Island and South Island (including Pak‘nSave, New World and Four Square).
The maximum penalty for companies breaching the code was the greater of 3% of turnover, the value of any commercial gain from the breach, or $3 million. Individuals face fines up to $200,000.
The code comes into force on 28 September and will be monitored and enforced by new Grocery Commissioner Pierre van Heerden, whose position was established in July.
Commerce and Consumer Affairs Minister Duncan Webb said the big supermarket chains had not been treating local suppliers fairly.
"They have been taking advantage of their dominance and imposing unreasonable terms and conditions. We are calling time on their poor behaviour.
“The new code requires large corporates to do things like pay on time, have plain-English supply contracts and deal with small companies in good faith.
“It’s entirely reasonable and hardly too much to ask. Local suppliers have been stretched for a long time, and that’s stifled innovation and the development of our food supply chain."
The code would initially apply to the two big supermarket chains, Woolworths New Zealand (including the Countdown Brand) and Foodstuffs North Island and South Island (including Pak‘nSave, New World and Four Square).
The maximum penalty for companies breaching the code was the greater of 3% of turnover, the value of any commercial gain from the breach, or $3 million. Individuals face fines up to $200,000.
The code comes into force on 28 September and will be monitored and enforced by new Grocery Commissioner Pierre van Heerden, whose position was established in July.