Source: New Zealand Government

The Government has today introduced the Fast-track Approvals Amendment Bill, creating a consenting express lane for new supermarkets.

Economic Growth Minister Nicola Willis says the Bill creates a new fast-track consent option for new supermarkets that would improve grocery competition.

“Our goal is a more competitive grocery market that delivers better prices and more choice for Kiwi shoppers. 

“Potential supermarket competitors have told us that standard resource consent processes can hold them back; with restrictive local zoning and lengthy approval processes adding cost, complexity and delay before new projects can get off the ground.

“The Fast-track Bill will allow new supermarket developments to bypass the standard lengthy resource consent process and instead be referred by the Minister for Infrastructure to a fast-track expert panel for a quicker decision. 

“This will simplify what can be a years-long process into one that could be wrapped up in a few short months.”

“To qualify for this express treatment, projects will have to demonstrate how they align with the Government Policy Statement on grocery competition, which accompanies the Bill being introduced today. 

“The policy statement makes clear that this express lane option is targeted at supporting the entry and expansion of firms that can challenge the dominance of existing major grocery retailers and offer genuine choice to consumers.  

“This could include formats currently under-represented in New Zealand including supercentres, limited assortment stores, and multi-site developments.

“The competition statement states that projects from the dominant incumbent grocery players – Foodstuffs North Island and Foodstuffs South Island and Woolworths – would only be considered for fast-track referral in very limited circumstances where they can demonstrate a specific project would not reinforce their existing market dominance but would, for example, bring consumer choice to an underserved region.

“This Bill is an important step forward in the Government’s work to roll out the welcome mat for new supermarket competitors, boost competition and deliver better deals for Kiwi shoppers.”

Minister for RMA Reform Chris Bishop says the Fast-track Amendment Bill clarifies and further streamlines the Fast-track Approvals Act for even greater efficiency.

The Fast Track Approvals Act is generally working well, with four projects already consented (Port of Auckland’s Bledisloe North Wharf and Ferguson North Berth Extension, Maitahi Village development in Nelson, the Milldale development in the Auckland suburb of Wainui and the Tekapo Power Scheme reconsenting). There are 24 substantive applications currently in train at various stages with five more decisions due by Christmas 2025.

“The Bill introduced today makes a series of technical changes to improve the efficiency of the Act and to cut project application processing times.

“The Bill includes a small but important correction to Schedule 2 to ensure the Stella Passage at the Port of Tauranga, that was agreed by Parliament, is accurately described to align with that project’s scope.

“Over the last few months, the expert panels and panel conveners, applicants, government officials, and councils have identified areas where improvements could be made to the Fast-track regime, many of which are reflected in the Bill introduced today.

“Officials estimate the amendments introduced in this Bill could reduce the combined processing and consideration times by six weeks or more.

Regional Development Minister Shane Jones says the simplification of the consenting process for potential new entrants in the supermarket sector is great news for regional New Zealand.

“Kiwis who live in the country’s smaller centres are often the most impacted by a lack of grocery retail competition. These changes will make it easier for supermarkets to set up shop, bringing down prices for people working hard to put food on the table for their families.”

“The changes being made to the fast-track are a sensible response to the teething problems that have arisen from time to time in this early stage of the Act. The Government will take particular note of submissions through select committee, to ensure that all sensible efficiencies in the process are being made.

“I’m confident that as the legislation beds in, and both officials and the public become more comfortable with the pace at which decisions are being made while staying within guard rails, the fast-track will really show its value for Kiwis through jobs, regional prosperity and economic growth.”

The Government’s intention is for the Bill to be referred to the Environment Select Committee for scrutiny after its first reading in Parliament on Thursday 6 November and for the Bill to be passed before the end of the year.

Note to editor:

The Government has released the draft Government Policy Statement to help the sector identify which projects are likely to be eligible for the fast-track process. The draft Government Policy Statement will be formally issued subject to the passage of the Fast-track Approvals Amendment Bill. It is not yet in effect and does not carry any legal weight in respect of decisions being made on current applications.

More information on the Government’s grocery work programme is available here.

Attached: Draft Government Policy Statement – Grocery Competition

MIL OSI