Fast-tracking grocery developments to boost competition

Following a Request for Information (RFI) process, the Government is making changes to the consent system to make it easier for competitors to build supermarkets in New Zealand.

The Government is launching a suite of reforms:

Fast-track supermarket builds

Resource consent for new supermarkets can take an average of 18 months. Under the new fast-track regime, eligible projects can expect to save six months. The fast-track process is being amended to clarify supermarket developers can apply for fast-track approvals instead of the standard resource consent process. These changes include:

• Amending the Fast-track Approvals Act to clarify that the overall effects on grocery competition are a factor for consideration by fast-track decision makers.
• Setting a Government Policy Statement on grocery competition to support decision-making as part of the fast-track process.

One-stop shop for building consents

A single streamlined building consenting process will be established for supermarket competitors, instead of the current system of 68 separate authorities that has created uncertainty and inconsistencies for nationwide developments. MBIE is in discussion with potential building consent authorities (BCAs) to determine a provider that could carry out this role, and anticipates having a service in place by the end of the year.

MultiProof design approvals

Supermarket chains and other developments will be able to replicate approved designs across the country with a streamlined process that cuts building consent timeframes in half – from 20 to 10 working days. The Government is removing the following MultiProof eligibility requirements for all developments, including supermarkets:

• Requirement for applicants to build a design at least 10 times over two years, provided the designs are still intended to be replicated.
• Requirement for applicants to intend to build themselves.

Timeframe and additional information

The fast-track and building consent changes are expected to be in place by the end of year.

These reforms are part of a comprehensive programme of work to address supermarket competition that includes exploring any gaps in the government’s tools to address anti-competitive behaviour and investigating the potential for structural changes to the market. A cost-benefit analysis of restructuring the major grocery players is underway.

Read more about the wider supermarket work programme:

Supermarket competition

Updates for this work will be released in coming months.

Read the Government’s press release:

Express lane for new supermarkets(external link) — Beehive.govt.nz