It appears the National Party has made a significant error by threatening to break up Foodstuffs, a company that operates Pak'nSave, New World, Four Square, and Liquorland. This policy is uncharacteristic of a party that typically champions private enterprise and sounds more like something the Green Party would propose, evidenced by their playful 'comrade' salutation to Christopher Luxon in Parliament. It's as surprising as the Labour Party advocating for a cut in the minimum wage, representing a complete departure from National's stated values of ambition, success, and rewarding hard work.
Foodstuffs is not composed of slick corporations in opulent offshore skyscrapers. Instead, it comprises New Zealanders with often remarkable stories of striving for success. Jason Witehira, for example, left school at 16 and worked for 13 years stacking supermarket shelves before purchasing his first store at 29. He has since acquired the Albany Pak'nSave for a reported $50 million. Not long ago, he would have been precisely the kind of individual the National Party typically celebrates. However, Nicola Willis now seems intent on portraying him and others like him as villains to secure electoral victory.
One can understand National's motivation for this policy; they are reportedly desperate to boost their polling numbers back into the 30s. The cost of living is a persistent concern for voters, and National likely hopes this policy will win back support from Labour. Internal polling suggests that 60% of New Zealanders favour breaking up a supermarket chain, a sentiment that might remain popular as long as voters don't realize the potential savings are minimal (around $3.80 per week) and would take nine years to materialize.
However, has National considered the votes it might lose? Some voters may be so disillusioned by this policy that they lose faith in the National Party altogether. Furthermore, a significant number of well-informed voters might shift their support to ACT in an effort to prevent this policy from being enacted. This concern extends beyond Foodstuffs' owner-operators; the entire corporate sector in New Zealand is now reassessing its engagement with National ministers. There's a fear that discussing industry-specific issues could provide ministers with new ideas to exploit against them. This concern is not unfounded, as Willis previously targeted Fonterra and butter prices to deflect from the cost-of-living crisis.
National has attempted to argue that this policy will not deter investors because it is specific to supermarkets. However, New Zealand First has a policy to break up the gentailers (energy companies). It would be difficult for National to justify breaking up supermarkets while arguing against breaking up gentailers, especially when power prices are causing factories to close. What about banks, petrol companies, the construction industry, and insurance companies? The current government has raised pricing concerns in all these sectors. Willis is already aware that this policy has unsettled National's base and the business community, which may explain her rapid shift in strategy within 24 hours.
Initially, Willis attempted to persuade Foodstuffs owner-operators that they wouldn't lose much, retaining ownership of their individual stores even if the distribution network was dismantled. However, just a day after announcing the policy, she adopted a more aggressive stance, accusing the owners of "vitriol" towards National electorate MPs. The objective appears to be transforming individuals like Jason Witehira into villains that voters would want to see punished. It's a bold move for a senior National MP to attack Kiwi families who own supermarkets during an election campaign. The risk is that voters will perceive the naked self-interest and cynicism behind this strategy, which is unlikely to benefit National.
