WELLINGTON: The Green Party has unveiled a plan to establish a publicly owned supermarket chain, KiwiMart, as part of its wider Affordable Kai policy aimed at increasing competition and making food more affordable for New Zealanders.

The Greens say the proposal would challenge the dominance of Foodstuffs and Woolworths, which currently control most of New Zealand’s supermarket market. The party argues that New Zealand does not need more supermarkets as much as it needs greater competition.

Green Party co-leader Chlöe Swarbrick said successive governments had failed to attract a new major supermarket chain to New Zealand and that a publicly owned competitor was needed to break up the existing duopoly.

Under the proposal, KiwiMart would be publicly owned and required to prioritise affordability. The Greens plan to require Foodstuffs and Woolworths to sell 120 existing stores and two distribution centres into public ownership, a move that would require new legislation.

The party estimates the KiwiMart proposal would cost about $2.8 billion. Parliamentary Library modelling cited by the Greens estimates around $1.3 billion would be required to purchase the stores and distribution centres, while a further $1.5 billion would be needed to establish KiwiMart.

The Greens say the new supermarket chain would initially hold around 15 percent of the market, providing a third major competitor in the sector.

Swarbrick said a publicly owned supermarket was not a new concept and had been supported by experts, economists and consumer advocates as a way to increase competition in a small market such as New Zealand.

Green co-leader Marama Davidson said it was unacceptable for people to go without adequate food because of its cost, particularly when New Zealand produces enough food to feed millions of people.

She argued that governments had left too much responsibility for food affordability to the market and said the Greens' policy would seek to rebuild parts of the country's food system.

More than $6 billion Affordable Kai policy

The KiwiMart proposal forms part of the Greens' wider Affordable Kai policy, which the party says would cost more than $6 billion over four years.

The policy includes permanently funding and expanding the Ka Ora, Ka Ako school lunch programme to reach an additional 150,000 children, at an estimated cost of $2.2 billion.

It would also increase food bank funding from $8 million to $25 million, double the cap on Work and Income food grants, and establish a $150 million-a-year Fair Food Fund to support community-led food security initiatives.

The Greens also propose strengthening the Commerce Commission by increasing its funding, penalties and powers. A mandatory pricing accuracy code would require supermarkets to automatically compensate customers who are overcharged.

The policy would also introduce a ban on supermarket price gouging and extend similar protections to other sectors considered uncompetitive, including energy and fuel.

In addition, the Greens propose a National Food Strategy, including legislation recognising the right to adequate and nutritious food.

The party says the wider policy would be funded through its proposed tax changes, which it estimates would increase net government revenue by $5.35 billion in 2027/28, rising to $5.94 billion by 2030/31.

The KiwiMart announcement comes as political parties intensify their economic and cost-of-living campaigns ahead of the New Zealand general election.