Politics 🗳️ NZ Politics

[John Nick]

I don’t know if they can remove Hipkins at present. The MP’s there could change in 3 weeks when the final vote is confirmed so I don’t know if the MPs actually have the moral authority to make significant changes just yet. Just like National can’t form a coalition until the numbers are official.

Like he said he’s the leader until he’s not.

I think he will be good in opposition and wouldn’t be against him leading them to the next election. I think without the Jacinda/ lockdown/ failed implementation baggage he will be good, but I also think a loss will lead to calls for a fresh start.

So Wiz you have clearly changed your mind from last week when you were adamant he was gone burger
Now you either don't know or have no opinion.

 

[wizard of Tauranga]

I expected that with all the work Labour did for Maori was going to deliver them a better Maori vote.

Labour used HUGE political capital on controversial Maori issues and then lose most of the Maori seats and get hammered in the likes of South Auckland.

Huge strategic mistake for absolutely no reward.

Looking forward, if the Maori party go hard left and really fringe radical, as they seem to be doing, they will win every Maori seat. Labour would be good to give up on competing and use them as a coalition partner as they will isolate themselves from National. Labour stay central and appeal to the masses and pick and chose which Maori party policies they implement on with the Maori party selling it and taking any flack.

The Maori party got 2.5% of votes when Maori make up 17% of the population so they only actually represent 15% of all Maori, showing they have fringe rather than widespread support.

 

[wizard of Tauranga]

So Wiz you have clearly changed your mind from last week when you were adamant he was gone burger
Now you either don't know or have no opinion.

Always liked Hipkins but he was given a hospital pass.

I’m 90% sure he won’t lead them in the next election. He’s tarred with a loser tag now which will be hard to overcome and others in the party will be sniffing blood.

Strategically they should do an Ardern and have someone take over 3-6 months before the next election and ride the honeymoon period without a chance for baggage to accumulate.

 

[juju]

The Maori party got 2.5% of votes when Maori make up 17% of the population so they only actually represent 15% of all Maori, showing they have fringe rather than widespread support.

National, only received 875k votes from a population of 5.1m showing they have fringe rather than widespread support.

Honestly, some of the things you post here are utterly ridiculous.

 

[wizard of Tauranga]

National, only received 875k votes from a population of 5.1m showing they have fringe rather than widespread support.

National is broad based and still got more support as a percentage of the population than the Maori party which is singularly focused with no Maori specific competition.

Maori party got 2.5% of votes, in the same sort of range as the loopy NZ loyal party. Fringe material.

 

[juju]

National is broad based and still got more support as a percentage of the population than the Maori party which is singularly focused with no Maori specific competition.

Maori party got 2.5% of votes, in the same sort of range as the loopy NZ loyal party. Fringe material.

The Maori party got 2.5% of votes when Maori make up 17% of the population so they only actually represent 15% of all Maori, showing they have fringe rather than widespread support.

They won 4 electorates.

Do you actually really think through what you post before unleashing such dribble...

The TPM actually only represent 15% of all Maori...???

but don't account for voter turnout?
or people under voting age
Or account for voters who may of been savvy enough to vote on the Maori roll and vote Maori Party for the electorate and party vote for others?

By you're insanely idotic reckoning - should a party that only received support from 3.8% of the population be in a position of power to form a government & force a referendum on the treaty?

Honestly - you post some truly boneheaded stuff everyday, but this really takes the cake.

 

[wizard of Tauranga]

They won 4 electorates.

Do you actually really think through what you post before unleashing such dribble...

The TPM actually only represent 15% of all Maori...???

but don't account for voter turnout?
or people under voting age
Or account for voters who may of been savvy enough to vote on the Maori roll and vote Maori Party for the electorate and party vote for others?

By you're insanely idotic reckoning - should a party that only received support from 3.8% of the population be in a position of power to form a government & force a referendum on the treaty?

Honestly - you post some truly boneheaded stuff everyday, but this really takes the cake.

Who’s got their knickers in a twist today.

Particularly toxic, even for you! Have you taken you meds today?

A party that publicly brings up stuff suppresses before the courts; believes Maori are genetically superior and doesn’t believe in our current democracy is fringe.

 

[Bay39er]

Who’s got their knickers in a twist today.

Particularly toxic, even for you! Have you taken you meds today?

A party that publicly brings up stuff suppresses before the courts; believes Maori are genetically superior and doesn’t believe in our current democracy is fringe.

I don’t know about genetically superior but they can make a case to have superior intelligence

Intelligence and the Pakeha | NZETC

 

[juju]

Who’s got their knickers in a twist today.

Particularly toxic, even for you! Have you taken you meds today?

A party that publicly brings up stuff suppresses before the courts; believes Maori are genetically superior and doesn’t believe in our current democracy is fringe.

I just don't really feel like letting your truly moronic, wrong and frankly vile political takes slide.

Honestly - Do you say this dribble in the company of others.

 

[juju]

Who’s got their knickers in a twist today.

Particularly toxic, even for you! Have you taken you meds today?

A party that publicly brings up stuff suppresses before the courts; believes Maori are genetically superior and doesn’t believe in our current democracy is fringe.

Who in their right mind would bring up the ex Party president name suppression issue ( ie an accused Pedo) in the name of slandering the party that fights for indigenous rights in the country you live in...

 

[wizard of Tauranga]

I just don't really feel like letting your truly moronic, wrong and frankly vile political takes slide.

Says the person who thinks he’s superior to academic research…

Do you actually think the Maori party is fringe or mainstream? Because in my view they are a fringe party and I think 90% of people would agree.

Define fringe for you? The Collins definition: ‘a group that is on the periphery of a larger organization because its views are more extreme than the majority’ would be the Maori party.

So whose wrong, moronic and vile

Juju blocked again

 

[juju]

Says the person who thinks he’s superior to academic research…

Do you actually think the Maori party is fringe or mainstream? Because in my view they are a fringe party and I think 90% of people would agree.

Define fringe for you? The Collins definition: ‘a group that is on the periphery of a larger organization because its views are more extreme than the majority’ would be the Maori party

I didnt bring up fringe...

It was your truly moronic take on the 2.8% vote meant they don't represent maori because 17% of the population are maori
Do you not understand NZ democracy? Somebody who contributes so often to a NZ politics thread should be able to grasp these sorts of concepts without posting such vile takes.

Normal intelligent real life conversation you would get absolutely laughed out of town.

 

[Worried2Death]

I think he will be good in opposition and wouldn’t be against him leading them to the next election. I think without the Jacinda/ lockdown/ failed implementation baggage he will be good, but I also think a loss will lead to calls for a fresh start

I think he'd still have all that baggage in 3 years time, but then again, voters have short memories. We might look back at Kiwibuild with nostalgia if the coalition of chaos turns out to be worse.

 

[miket12]

For those of you with younger children who maybe considering starting up an investment program for your children whether it's as a university fund, starting a business or for a first home, here's some advice from Francis Cook from the nzherald....

OPINION: Why KiwiSaver for your kids could be a mistake​

One of the questions that’s constantly sent my way is “how can I save for my kids? Should I open a savings account for them? Or is KiwiSaver better?”

It’s a question with beautiful intentions – to give their children a headstart on adult life, whether that’s by paying for a university course, a first home, or to start a business.

But I don’t think either a savings account or a KiwiSaver fits the bill. There’s a numbers reason and a money psychology reason for why.

A savings account feels the safest but in the long term is a risky choice for your money.

There are specific cases that a savings account is great for – emergency money, or money that you intend to use in the next one or two years.

But over a longer period of time, inflation bugs creep in and start nibbling holes in your nest egg.

A savings account right now earns around 3 per cent interest, possibly up to 5 per cent if you snag a good deal at a specialist bank.

Meanwhile, the latest inflation figures are at 5.6 per cent. This means that your money is becoming worth less over time and even a higher-interest savings account is going backwards.

For things such as your emergency savings, or money you’ll need to use soon, that savings account is fine.

Not making as much is a necessary sacrifice in order to make sure you have money safe on hand for dealing with life’s curveballs. It’s not going up but it’s not going down either.

But what about for money that you’re trying to build up over 18 years of childhood in order to give the sprogs the best start in life? That money could be working harder so you can give them an even bigger headstart.

Let’s look at the numbers to prove the point. A savings account over a period of years might give an average of 2 per cent interest.

So, say you can put aside $20 a week for your child’s future nest egg. Over 18 years, a compound interest calculator shows us you’ll have $20,555.82.

Now that’s entirely respectable but you put in $17,280 of it. You could be getting more reward for your money while making the exact same amount of effort.

So, what happens if you put that same $20 a week into the share market?

Over the past 20 years, the NZX50 has given an average of roughly 10 per cent growth per year.

But take a couple of percentage points off that to make it fair, accounting for fees, taxes, and inflation.

So you run it through a compound interest calculator at about 7 per cent per year.

In this scenario, you now have $32,639.07. An extra $12,000, for no extra hard work from you.

You only put in $17,280 of that. The rest is the share market doing the hard yards while you get to keep enjoying your weekends.

So if you want to start investing, how about a growth KiwiSaver account? After all, that’s invested into shares.

If you really need an easy option KiwiSaver can work but it has some serious drawbacks, which means it’s not my first choice.

Children don’t get the perks that working adults do, such as $521.43 per year from the government, or the 3 per cent employer contribution. Those only kick in once you turn 18.

The money is also locked away and unable to be withdrawn until retirement, or a first-home deposit.

What if your child wants to start a business? Or take part of it to fund a gap year? Experiencing the world might be something you’re perfectly happy to help fund, but KiwiSaver won’t allow you to do that.

Instead, I’m a fan of starting your own investing fund and working on it together. This addresses the money and the mindset parts of the equation.

Something like a global index fund means your money is spread across some of the most successful companies in the world.

Investing experts love to talk about diversification, which just means don’t put all your eggs in one basket. A global index fund means hundreds of companies, across hundreds of different industries, across different countries.

It’s not foolproof, but it’s pretty close.

Being able to involve them in this and invest with them as they get older is also a key part of the strategy.

Ever heard the horrible stats about how many lottery winners end up with less money than they started with? Well, the same problem applies to inheritances or any windfall money that comes out of the blue.

Money that we don’t feel as though we’ve earned ourselves does something funny to our brains and we almost always blow it.

But you can get around that by involving your children in the journey, so they feel ownership of the nest egg and also learn by doing.

By putting money into the share market together, seeing how it works and experiencing the normal ups and downs, they’re ready to continue managing their money and hopefully making smart decisions when they fly the nest.

So my No 1 advice to any parent wanting to help set their kids up financially is to start with themselves. Improve your own knowledge, so that you’re comfortable investing in the share market.

Then involve your kids in that journey, so they have the opportunity for a money head start and a knowledge head start.

That’s the biggest gift you can give.

• Frances Cook’s course Money Made Simple is open now for new students and covers goal setting, creating a spending plan that works, mastering debt, starting to invest, and understanding your KiwiSaver. You can learn more here francescook.co.nz. You can also use this link to gift the course to someone else.

• Frances Cook is qualified as a financial adviser and has published two best-selling books on personal finance. She is best known for hosting the Cooking the Books podcast and is a regular commentator and speaker on financial issues.

Frances Cook: Why KiwiSaver for your kids may be a mistake

OPINION: You could accidentally hamstring them instead of giving them a head start.

www.nzherald.co.nz

 

[Inruin]

For those of you with younger children who maybe considering starting up an investment program for your children whether it's as a university fund, starting a business or for a first home, here's some advice from Francis Cook from the nzherald....

OPINION: Why KiwiSaver for your kids could be a mistake​

One of the questions that’s constantly sent my way is “how can I save for my kids? Should I open a savings account for them? Or is KiwiSaver better?”

It’s a question with beautiful intentions – to give their children a headstart on adult life, whether that’s by paying for a university course, a first home, or to start a business.

But I don’t think either a savings account or a KiwiSaver fits the bill. There’s a numbers reason and a money psychology reason for why.

A savings account feels the safest but in the long term is a risky choice for your money.

There are specific cases that a savings account is great for – emergency money, or money that you intend to use in the next one or two years.

But over a longer period of time, inflation bugs creep in and start nibbling holes in your nest egg.

A savings account right now earns around 3 per cent interest, possibly up to 5 per cent if you snag a good deal at a specialist bank.

Meanwhile, the latest inflation figures are at 5.6 per cent. This means that your money is becoming worth less over time and even a higher-interest savings account is going backwards.

For things such as your emergency savings, or money you’ll need to use soon, that savings account is fine.

Not making as much is a necessary sacrifice in order to make sure you have money safe on hand for dealing with life’s curveballs. It’s not going up but it’s not going down either.

But what about for money that you’re trying to build up over 18 years of childhood in order to give the sprogs the best start in life? That money could be working harder so you can give them an even bigger headstart.

Let’s look at the numbers to prove the point. A savings account over a period of years might give an average of 2 per cent interest.

So, say you can put aside $20 a week for your child’s future nest egg. Over 18 years, a compound interest calculator shows us you’ll have $20,555.82.

Now that’s entirely respectable but you put in $17,280 of it. You could be getting more reward for your money while making the exact same amount of effort.

So, what happens if you put that same $20 a week into the share market?

Over the past 20 years, the NZX50 has given an average of roughly 10 per cent growth per year.

But take a couple of percentage points off that to make it fair, accounting for fees, taxes, and inflation.

So you run it through a compound interest calculator at about 7 per cent per year.

In this scenario, you now have $32,639.07. An extra $12,000, for no extra hard work from you.

You only put in $17,280 of that. The rest is the share market doing the hard yards while you get to keep enjoying your weekends.

So if you want to start investing, how about a growth KiwiSaver account? After all, that’s invested into shares.

If you really need an easy option KiwiSaver can work but it has some serious drawbacks, which means it’s not my first choice.

Children don’t get the perks that working adults do, such as $521.43 per year from the government, or the 3 per cent employer contribution. Those only kick in once you turn 18.

The money is also locked away and unable to be withdrawn until retirement, or a first-home deposit.

What if your child wants to start a business? Or take part of it to fund a gap year? Experiencing the world might be something you’re perfectly happy to help fund, but KiwiSaver won’t allow you to do that.

Instead, I’m a fan of starting your own investing fund and working on it together. This addresses the money and the mindset parts of the equation.

Something like a global index fund means your money is spread across some of the most successful companies in the world.

Investing experts love to talk about diversification, which just means don’t put all your eggs in one basket. A global index fund means hundreds of companies, across hundreds of different industries, across different countries.

It’s not foolproof, but it’s pretty close.

Being able to involve them in this and invest with them as they get older is also a key part of the strategy.

Ever heard the horrible stats about how many lottery winners end up with less money than they started with? Well, the same problem applies to inheritances or any windfall money that comes out of the blue.

Money that we don’t feel as though we’ve earned ourselves does something funny to our brains and we almost always blow it.

But you can get around that by involving your children in the journey, so they feel ownership of the nest egg and also learn by doing.

By putting money into the share market together, seeing how it works and experiencing the normal ups and downs, they’re ready to continue managing their money and hopefully making smart decisions when they fly the nest.

So my No 1 advice to any parent wanting to help set their kids up financially is to start with themselves. Improve your own knowledge, so that you’re comfortable investing in the share market.

Then involve your kids in that journey, so they have the opportunity for a money head start and a knowledge head start.

That’s the biggest gift you can give.

• Frances Cook’s course Money Made Simple is open now for new students and covers goal setting, creating a spending plan that works, mastering debt, starting to invest, and understanding your KiwiSaver. You can learn more here francescook.co.nz. You can also use this link to gift the course to someone else.

• Frances Cook is qualified as a financial adviser and has published two best-selling books on personal finance. She is best known for hosting the Cooking the Books podcast and is a regular commentator and speaker on financial issues.

Frances Cook: Why KiwiSaver for your kids may be a mistake

OPINION: You could accidentally hamstring them instead of giving them a head start.

www.nzherald.co.nz

My son has just turned 17 and has been working a part time job in the weekends while he is still at school. He has managed to save up enough money to buy himself his first car. He has an online savings account that he contributes to each week to cover fuel, maintenance, insurance etc. What is left stays in his everyday account to use as he wants. He has kiwi saver and he works fulltime for a number of weeks in school holidays and gets employee and employer contribution. He has just set himself up a Sharesies account and is investigating how shares work as an investment. Have to say I'm quite proud of him.

 

[defensivebomb]

For those of you with younger children who maybe considering starting up an investment program for your children whether it's as a university fund, starting a business or for a first home, here's some advice from Francis Cook from the nzherald....

OPINION: Why KiwiSaver for your kids could be a mistake​

I set my kids up with Simplicity international share fund accounts, and contribute a monthly amount (for every month of their life).

The idea being that once they start work, I will also match what they put in, until they are 18. So that way, they are engaged in the journey and understand the benefits of compounding.

Unlike Kiwisaver, it is withdrawable at any date, and like Kiwisaver, there is no government contribution, so I think it is the best option.

As indexed funds (and being Simplicity), the fees are very low.

My daughter is 8 and my son is 10, and overall, the funds they are in are up about 80%. But more importantly, as each month I contribute, any volatility is smoothed over the long term.

Hopefully by the time they are 18, they will have enough to decide where they want to go to university, or to put it towards a house.

 

[MrFrankWhite]

My son has just turned 17 and has been working a part time job in the weekends while he is still at school. He has managed to save up enough money to buy himself his first car. He has an online savings account that he contributes to each week to cover fuel, maintenance, insurance etc. What is left stays in his everyday account to use as he wants. He has kiwi saver and he works fulltime for a number of weeks in school holidays and gets employee and employer contribution. He has just set himself up a Sharesies account and is investigating how shares work as an investment. Have to say I'm quite proud of him.

Excellent on the shares part. Can I recommend some reading for him?

The Richest Man in Babylon.

Bogleheads Guide to Investing

 

[Inruin]

'Unaffordable': Kiwis reveal what favourite supermarket items they've been forced to cut back on

Kūmara, sausages and fizzy drinks were just some of the items listed.

www.newshub.co.nz

Cost of living: Kiwis reveal what favourite supermarket items they've been forced to cut back on​

Kiwis are outraged about not being able to afford specific grocery items anymore due to the ongoing cost of living crisis.
People across the country said they have stopped buying the items due to the "recent price gouging" and have noticed significant price growth at New World, Pak N Save and Woolworths supermarkets.
Some people have even described the price increases as "theft" claiming supermarkets are doing it "for absolutely no reason."

Several people took to Reddit to share their frustration, with 30 people agreeing that the price of kūmara was "unaffordable".
It comes after kūmara crops were disrupted due to flooding across parts of the country from Cyclone Gabrielle in February, causing growers to experience drastic losses in their produce.
"I've not bought kūmara for about a year now," one person said. "I know it's because of the floods and stuff but I can't afford $11/kg."
One woman said it was one of her favourite vegetables and she used to use it in every meal. "I miss kūmara so much," she said. "I get carrots instead but it's not the same."
Others shared outrage at the cost of sausages with some saying they could no longer afford them.

"What's with sausages these days, they used to be cheap meat?" one person asked.
"And they're not even that great, usually they taste downright awful," another added.
"Explain why Sizzlers have gone up 50 percent," a third exclaimed.
One person said the prices have gotten "so out of hand" they have to go to the butcher instead, to be able to afford their meat.
"I definitely don't touch the supermarket ones anymore, they are out of control."
Other Reddit users complained that the price of soft drinks had escalated significantly.
One person said the price of a 1.5-litre bottle of Schweppes soda water had "bumped up" and was selling for "double the price" then a bottle of Coke of the same size at one supermarket.
"Soda water should be cheaper than Coke," he said.

One man added that the price of Pepsi Max in 1.5-litre bottles had become a lot more expensive in just "a couple of years", when it wasn't on special.
"It's gone from $1.50 to $4 at the supermarket," he said. "When did water with a bit of syrup cost more than milk?"
One woman said she only shops for her groceries at The Warehouse or in the reduced-to-clear section of the supermarket due to the rise in costs.
"I've noticed even the reduced to clear items have increased in price," she said.
One person even said they now avoid the supermarket "where ever possible".
"Household supplies come from the warehouse, fruit and vegetables come from a fruit and vege store, meat comes from a butcher and fish comes from a fishmonger," they said.
However, they admitted it was more time-consuming than "just getting everything from the supermarket".
Others claimed supermarket companies had been lying to them "to claim more profit".

 

[Inruin]

'Unaffordable': Kiwis reveal what favourite supermarket items they've been forced to cut back on

Kūmara, sausages and fizzy drinks were just some of the items listed.

www.newshub.co.nz

Cost of living: Kiwis reveal what favourite supermarket items they've been forced to cut back on​

Kiwis are outraged about not being able to afford specific grocery items anymore due to the ongoing cost of living crisis.
People across the country said they have stopped buying the items due to the "recent price gouging" and have noticed significant price growth at New World, Pak N Save and Woolworths supermarkets.
Some people have even described the price increases as "theft" claiming supermarkets are doing it "for absolutely no reason."

Several people took to Reddit to share their frustration, with 30 people agreeing that the price of kūmara was "unaffordable".
It comes after kūmara crops were disrupted due to flooding across parts of the country from Cyclone Gabrielle in February, causing growers to experience drastic losses in their produce.
"I've not bought kūmara for about a year now," one person said. "I know it's because of the floods and stuff but I can't afford $11/kg."
One woman said it was one of her favourite vegetables and she used to use it in every meal. "I miss kūmara so much," she said. "I get carrots instead but it's not the same."
Others shared outrage at the cost of sausages with some saying they could no longer afford them.

"What's with sausages these days, they used to be cheap meat?" one person asked.
"And they're not even that great, usually they taste downright awful," another added.
"Explain why Sizzlers have gone up 50 percent," a third exclaimed.
One person said the prices have gotten "so out of hand" they have to go to the butcher instead, to be able to afford their meat.
"I definitely don't touch the supermarket ones anymore, they are out of control."
Other Reddit users complained that the price of soft drinks had escalated significantly.
One person said the price of a 1.5-litre bottle of Schweppes soda water had "bumped up" and was selling for "double the price" then a bottle of Coke of the same size at one supermarket.
"Soda water should be cheaper than Coke," he said.

One man added that the price of Pepsi Max in 1.5-litre bottles had become a lot more expensive in just "a couple of years", when it wasn't on special.
"It's gone from $1.50 to $4 at the supermarket," he said. "When did water with a bit of syrup cost more than milk?"
One woman said she only shops for her groceries at The Warehouse or in the reduced-to-clear section of the supermarket due to the rise in costs.
"I've noticed even the reduced to clear items have increased in price," she said.
One person even said they now avoid the supermarket "where ever possible".
"Household supplies come from the warehouse, fruit and vegetables come from a fruit and vege store, meat comes from a butcher and fish comes from a fishmonger," they said.
However, they admitted it was more time-consuming than "just getting everything from the supermarket".
Others claimed supermarket companies had been lying to them "to claim more profit".

A few thoughts or observations on this.

- if a product is affected by something that impacts supply then price generally will go up. So, if a product like Kumara is hit with flooding which wipes out a big chunk of the crop, unfortunately the price going up is the result. It eases demand for that product (and shifts some of that demand to other products) so that it is more often available on the shelf for consumers instead of continually being out of stock.

- meat has risen significantly in recent times and sausages are made of meat so not a surprise they have gone up in price also. Add in wage increases, fuel increases etc

- shopping at specialty stores is a good thing isn't it? Generally I find fresher, better quality fruit and veges at my local fruitworld at a similar or cheaper price. Competition is good. People complain about the duopoly of the supermarkets yet complain about there being other cheaper options too? You want cheap, quality and convenience? Are we too spoilt and in the habit of shopping at supermarkets now that we want it all? I actually think this could be the resurgence of smaller, specialty, community retailers which would be a good thing

- most price rises over the last 12 - 18 months have been warranted due to increased costs. However some have been affected by short term issues like the CO2 shortage earlier this year and not been bought back down again as far as they initially were

- if prices of goods have gone up then it's obvious that clearance prices will be higher too, in proportion with the rises

- I think the commerce commission review has caused the opposite affect of what it was intended for in regards to pricing. Supermarkets have in some instances lifted everyday shelf prices higher so that specials reflect a good percentage saving so as not to 'mislead' customers. This means they will be paying more when it's not on promotion but the same as they would normally have when it is on promotion. Also the rules around communicating specials in stores have changed, often actually making it more difficult to promote them. The extra work involved in securing a one off deal often doesn't make it worthwhile to do. Also, Foodstuffs switching to a more controlled, centralized model will limit some individual stores being able to offer their customers some promotions unique to them, costing consumers. The 'rules' being implemented, IMO, may be fine for ambient grocery lines like weetbix or biscuits, but aren't suitable for more commodity type categories like fruit & vege, and meat where costs can be variable from week to week.

- different retailers have different costs of doing business and different margin expectations. Countdown for example have polished floors, better lighting, more range etc. Their pricing generally aligns with New World, and Pak n Save is targeted to be 10% -15% cheaper. I know of a number of suppliers products where New World and Pak n Save have lifted their pricing and banking the extra margin despite having a cost and retail price that meets their margin expectations, because Countdown are selling at a slightly higher price. So, for example if New World had a product they were retailing at $5.00 and promoting at $4.00 (with Pak n Save under that by the 10% - 15% target) but Countdown was retailing at $5.50 and promoting to $4.50 then New World have lifted to match and Pak n Save also relative to it. Instead of having competition in the market forcing countdown to drop it's price. This is where a third and fourth player is required to keep the duopoly honest.

So in summary, a lot of the price rises you see are warranted but their are also others that aren't and f0r a number of factors. IMO we should still have cheaper grocery items in a number of instances than we have currently despite the real increases in costs.

 

[Juno]

A few thoughts or observations on this.

- if a product is affected by something that impacts supply then price generally will go up. So, if a product like Kumara is hit with flooding which wipes out a big chunk of the crop, unfortunately the price going up is the result. It eases demand for that product (and shifts some of that demand to other products) so that it is more often available on the shelf for consumers instead of continually being out of stock.

- meat has risen significantly in recent times and sausages are made of meat so not a surprise they have gone up in price also. Add in wage increases, fuel increases etc

- shopping at specialty stores is a good thing isn't it? Generally I find fresher, better quality fruit and veges at my local fruitworld at a similar or cheaper price. Competition is good. People complain about the duopoly of the supermarkets yet complain about there being other cheaper options too? You want cheap, quality and convenience? Are we too spoilt and in the habit of shopping at supermarkets now that we want it all? I actually think this could be the resurgence if smaller, specialty, community retailers which would be a good thing

- most price rises over the last 12 - 18 months have been warranted due to increased costs. However some have been affected by short term issues like the CO2 shortage earlier this year and not been bought back down again as far as they initially were

- if prices of goods have gone up then it's obvious that clearance prices will be higher too, in proportion with the rises

- I think the commerce commission review has caused the opposite affect of what it was intended for in regards to pricing. Supermarkets have in some instances lifted everyday shelf prices higher so that specials reflect a good percentage saving so as not to 'mislead' customers. This means they will be paying more when it's not on promotion but the same as they would normally have when it is on promotion. Also the rules around communicating specials in stores have changed, often actually making it more difficult to promote them. The extra work involved in securing a one off deal often doesn't make it worthwhile to do. Also, Foodstuffs switching to a more controlled, centralized model will limit some individual stores being able to offer their customers some promotions unique to them, costing consumers. The 'rules' being implemented, IMO, may be fine for ambient grocery lines like weetbix or biscuits, but aren't suitable for more commodity type categories like fruit & vege, and meat where costs can be variable from week to week.

- different retailers have different costs of doing business and different margin expectations. Countdown for example have polished floors, better lighting, more range etc. Their pricing generally aligns with New World, and Pak n Save is targeted tonve 10% -15% cheaper. I know of a number of suppliers products where New World and Pak n Save have lifted their pricing and banking the extra margin despite having a cost and retail price that meets their margin expectations, because Countdown are selling at a slightly higher price. So, for example if New World had a product they were retailing at $5.00 and promoting at $4.00 (with Pak n Save under that by the 10% - 15% target) but Countdown was retailing at $5.50 and promoting to $4.50 then New World have lifted to match and Pak n Save also relative to it. Instead of having competition in the market forcing countdown to drop it's price. This is where a third and fourth player is required to keep the duopoly honest.

So in summary, a lot of the price rises you see are warranted but their are also others that aren't and fir a number of factors. IMO we should still have cheaper grocery items in a number of instances than we have currently despite the real increases in costs.

Sausages are made of meat?