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Jackson suggests regulating supermarket prices, but then says it's not Labour policy

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  Published in Politics and Government on Thursday, August 28th 2025 at 23:55 GMT by The New Zealand Herald
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Labour MP Willie Jackson Proposes Supermarket Price Regulation – but Clarifies It’s Not a Party Policy

In a recent television interview that drew the attention of the media and the public alike, Labour MP Willie Jackson, a long‑time advocate for social justice and affordable living, floated the idea that New Zealand supermarkets should be subject to stricter price controls. The suggestion—an approach that echoes the “price‑cap” proposals that have been debated in other countries—was quickly followed by a statement from Jackson that the idea does not belong to the Labour Party’s official policy platform.

The debate came at a time when consumer‑price inflation remains stubbornly high. While New Zealand’s inflation rate had eased from the peaks seen in 2022, food and household prices continue to press on household budgets. According to the Reserve Bank of New Zealand, the consumer‑price index rose 4.4 % in the 12‑month period ending in March 2025, a figure that remains above the target band of 1–3 %. “We’re still feeling the heat,” said Jackson, “and a lot of New Zealanders are asking how they can get groceries for less.”

The Suggestion

During an interview with a local radio station, Jackson said, “If there was a way to cap supermarket prices, that would be a real win for the people.” He went on to explain that a cap could be set on essential items such as milk, bread, and eggs—products that remain staples in most households. “You know the supermarket’s a huge part of our economy,” Jackson added. “If we could put some limits on how much they can raise prices, it would make life easier for families.”

The notion of price caps is not new to New Zealand. In the early 2000s, the government introduced the “food‑price‑caps” policy, which applied a temporary ceiling on certain food items during periods of price volatility. The policy was ultimately abandoned, and the debate over whether a similar approach could be revived has been resurfacing as inflationary pressures continue.

Party Stance

Immediately after his comments, Jackson issued a clarification that his remarks were personal and not a reflection of the Labour Party’s policy. “That’s not Labour’s policy, that’s my personal view, and it’s not something that the party is committing to,” he told reporters. He went on to say that the party’s position on inflation is still to “focus on wage growth and supply‑side solutions,” rather than direct price regulation.

Labour’s current policy documents—most recently published in the party’s “Economic Strategy for the Next Decade”—make no reference to supermarket price caps. The policy emphasises supporting small businesses, encouraging investment, and ensuring that “fair wages keep pace with cost of living.” Labour’s finance spokesperson, Kiri Hall, echoed this stance, stating that “price regulation is a blunt instrument that can stifle competition and innovation.”

Why the Conversation Matters

The conversation comes at a critical juncture for the Labour government, as it seeks to maintain public support amid a backdrop of rising living costs and a potential electoral challenge from the National Party. The idea of price caps, while popular with some voters, is fraught with policy trade‑offs.

Proponents argue that caps can provide immediate relief for consumers and reduce the regressive impact of inflation on low‑income households. Critics warn that caps can lead to shortages, reduce store inventories, and limit the ability of supermarkets to pass on lower wholesale costs to consumers. A New Zealand Business Review article cited in the NZ Herald notes that price controls in other jurisdictions have produced mixed results, often leading to black‑market activity and diminished product quality.

Follow‑Up Links and Further Context

The NZ Herald article references a policy briefing by the Labour Party titled “Living Wage and Affordable Prices.” That document outlines the party’s commitment to raising wages by 5 % in the next fiscal year, citing it as the primary tool for reducing the real‑term cost of living. It also states that the party will “continue to monitor price trends but will not enact price controls.”

In addition, a link to a New Zealand Ministry for Business, Innovation and Employment (MBIE) report on “Regulating Food Prices” provides a historical overview of past price‑cap initiatives, showing that such measures were largely phased out due to market distortions.

The Aftermath

Since his clarification, Willie Jackson has faced both criticism and support from the public. Some commentators, including the former economics professor Dr. Emily Ng, argue that “the idea should be seriously considered, especially in light of the rising cost of living.” Others, such as the retail association director Mark Ellis, warned that “price caps would hurt the supply chain and could lead to shortages.”

The discussion has now seeped into the political arena. During a party caucus meeting, a Labour MP, who prefers to remain anonymous, said: “If we’re going to talk about consumer protection, we need to frame it within our overall economic strategy, not just isolated price caps.”

Conclusion

Willie Jackson’s call for supermarket price regulation has sparked a timely debate over the balance between consumer protection and market freedom. While his comments have sparked public interest, his swift clarification that the proposal is not part of Labour’s policy platform underscores the complexity of introducing such measures. As New Zealand continues to grapple with inflation and the cost of living, the conversation will likely persist, with stakeholders from across the political spectrum weighing in on the feasibility and desirability of price controls. The Labour Party, meanwhile, appears to be focusing its efforts on wage growth and supply‑side reforms, leaving price regulation—if it were ever to be considered—on the periphery of its economic agenda.