Christchurch Becomes One-Stop Authority for Supermarket Consents

Christchurch has been designated as a one-stop consenting authority for large-scale supermarket developments. This initiative, announced by Finance Minister Nicola Willis on March 15, 2024, aims to streamline the process for new supermarkets entering the New Zealand market. The intent is to enhance competition, ultimately benefiting consumers through lower prices.

Willis stated, “More supermarkets equals more competition equals lower prices.” She emphasized that until now, developers looking to establish new supermarkets faced the challenge of navigating up to 66 different councils with varied processes and responses. This complexity discouraged many from setting up their operations in New Zealand.

Streamlined Process for Developers

The new one-stop authority means that developers wishing to build supermarkets across multiple locations will only need to interact with a single consenting body. This change is expected to foster competition in a sector largely dominated by Foodstuffs and Woolworths, which together control approximately 82% of the market.

According to Willis, the primary beneficiaries of this new service will be grocery businesses that are not part of these dominant chains. The initiative also encompasses any supermarket developments that are referred through the fast-track process designed to bolster competition in New Zealand.

The Christchurch City Council has been selected to implement this service due to its reputation as a leader in commercial construction and its established collaborative relationships with other councils. Willis remarked that these partnerships would ensure “smooth processes” for developers.

A Significant Shift for Christchurch

This move marks a significant turnaround for the Christchurch authority, which had its consenting powers revoked by the central government in 2013 after accumulating a backlog of building consents that reached over 500 applications. The accreditation of the council was restored about 18 months later, allowing it to regain its authority.

Willis concluded by asserting that “Kiwi shoppers deserve choice at the checkout.” With the establishment of a single consenting authority, the intention is to simplify and expedite the entry of new supermarkets into the market, facilitating large-scale construction.

This development is seen as a crucial step toward enhancing competition in New Zealand’s supermarket sector, which has long been criticized for its lack of diversity. As this initiative unfolds, it could reshape the landscape of grocery shopping in the country.

Further updates on this initiative are expected as Christchurch begins its role as the central hub for supermarket consents.