'Just because it hasn't worked yet doesn't mean it's not a good idea': Government launches fresh attempt to lure supermarkets to NZ

New guidelines are being released in a fresh attempt to lure supermarket competition to New Zealand, with Associate Finance Minister David Seymour saying it aims to make it as "easy as possible for credible investors to establish or expand grocery retail operations in New Zealand".

"The guidelines specify to investors which provisions of the [Overseas Investment] Act apply to them, what tests their investment needs to meet, and how LINZ will apply those tests to their application," he said on Monday.

"This will give investors more certainty when making their applications."

Seymour said in the last year, Land Information New Zealand (LINZ) had granted 230 transaction consents, which equated to about $23.8 billion in gross investment value.

"We've also changed the law so that with the new 15-day fast track, we can see consents done as rapidly as five days."

He added that under the Active Investor Plus Visa, for those buying $5 million houses, consents were being processed over a three day average period.

On supermarket competition, Seymour said they would issue a standing consent so businesses could buy as many sections of land as they may need to, so to be able to establish a network of supermarkets.

"With all the talk about breaking up and punching down on our supermarket operators, what we ultimately need to do to get justice and affordable prices at the checkout is to remove the rules that keep the duopoly in place, because people no longer believe and no longer accept that we should have two companies allowed to charge their family whatever they would like."

The guidance would make it "crystal clear" that New Zealand was open for business, particularly supermarket business, he said.

Asked about receiving zero supermarket applications over the last year following a number of changes, Seymour said: "Just because it hasn't worked yet doesn't mean it's not a good idea."

"We remain resolute that if we remove all of the barriers to more competition, then we will find that there are people out there, perhaps Aldi, perhaps somebody else, who sees New Zealand as being an attractive place to do business.

"So we know that if we try, we may fail. But we're certain that if we don't try, we'll definitely fail," Seymour said.

Aldi has been saying for a number of years it is not interested in coming to New Zealand.

"Sometimes businesses change management. Sometimes economic circumstances change. Sometimes they may just be waiting for political stability. Perhaps they're watching closely the New Zealand election."