Opportunity wants a Commerce Commission 'with teeth' to tackle high prices and monopolistic sectors, rejects NZ First's BNZ buyback proposal

If the Opportunity Party gets into Parliament this November, party leader Qiulae Wong says it wants to see the Commerce Commission’s powers strengthened so the competition regulator can function as an “independent watchdog with teeth.”

Wong said on Tuesday people agree action is “well overdue” when it comes to bringing prices down and tackling excessive market power in supermarkets and other uncompetitive sectors.

“But nobody trusts that politicians will actually do what it takes. We need an independent watchdog with teeth, with the power to investigate, intervene and make markets actually work better for the people who rely on them,” she said.

“That includes the power to force structural separation if [the Commerce Commission] deems it necessary.”

Commerce Commission equivalents around the world have far greater independence to take action, according to Wong, although she didn't give any examples. 

Asked by interest.co.nz if there was anything that overseas regulators were doing that Opportunity would like to see the Commerce Commission implement in NZ, Wong said: “every market is different and has its own challenges.”

She used supermarket wholesale pricing as an example where if the Commerce Commission “had more teeth to go after those that weren't abiding by those rules,” then NZ could potentially see an “immediate change in behaviour” which would then result in a reduction in prices at the supermarket checkout.

“Giving the Commerce Commission greater powers will send a clear signal to those acting in monopolistic ways that it will not be tolerated, leading to a change in behaviour that will see more competitive pricing,” she said.

Banking competition is another area that Opportunity has said it would like to tackle and interest.co.nz asked Wong what Opportunity made of NZ First’s proposal that the Government “buys back” BNZ from the National Australia Bank (NAB) and merges it with Kiwibank to create a “National Bank of New Zealand.” 

“We don't believe that buying back the BNZ is going to solve our banking challenges and we would much rather spend that money on doing things like restoring the health of our oceans or environment,” Wong said.

Opportunity has noted on its website that it is open to structural separation within the banking sector if necessary, although the party has also described structural separation as a “blunt instrument.”

'All options on the table'

Wong made these comments after Opportunity unveiled five “non-negotiable” bottom lines at a media briefing in Auckland, ranging from phasing out bottom trawling to regulating lobbying and capping political donations.

In order for Opportunity to enter a coalition or confidence and supply agreement with any parties that form the next government, these bottom lines will have to be present. That is, if Opportunity reaches the 5% threshold necessary to enter Parliament.

Monday's 1News Verian poll had Opportunity, who have been above the 5% threshold in most recent polls, at 6%.

With just over a month until people head to the ballot boxes to vote, Wong said people are looking for something more than what the major political parties are currently offering.

National Party leader Christopher Luxon has ruled out working with the Opportunity Party. Labour leader Chris Hipkins has not.

“We are leaving all options on the table, right from coalition partners to crossbenchers,” Wong said.

“It comes down to what else is on the table, how much can we really support the direction of that government, how much does it align with our values.”