EMA Condemns National Party Proposal to Break Up Foodstuffs

The Employers and Manufacturers Association condemned a proposal by the National Party to forcefully break up the Foodstuffs grocery chain. The industry group described the move as a retrograde step that undermines business foundations and private property rights.

Alan McDonald, the EMA's Head of Advocacy, argued that the policy contradicts the government's open-for-business mantra and sends a negative signal to international investors. He characterized the proposal as a populist measure designed for a grumpy electorate rather than a sound economic policy. McDonald noted that previous efforts to introduce a third-party chain into the market failed because they lacked the necessary scale.

Instead of forced separation, the EMA recommended that the government empower a stronger regulator, similar to the Australian commission, to address issues within the grocery sector.