Seymour defends government efforts to lure new supermarket chain to NZ

Acting Prime Minister David Seymour has defended the government's efforts to lure a new supermarket chain to New Zealand, saying just because it has not worked yet, does not mean it never will.

Seymour made the comments at a Beehive media conference on Monday which he called to highlight fresh guidance being issued to international investors.

"It will now be clear for all to see that we are rolling out the red carpet," he said. "This country is open for business, supermarket competition especially."

It is the latest attempt by the government this term to bring down food prices by increasing competition in the current grocery duopoly, but previous efforts have yet to bear fruit.

The coalition last year rushed in a new fast-track approval process for supermarkets. But some seven months on, no applications have been lodged.

Seymour said there had been some "expressions of interest", but they had not proceed further for "various reasons" - including complicated labelling conditions.

But he said that was no reason to give up, noting the government was doing everything it could, "short of putting a big sign at Cape Reinga".

Seymour said he remained resolute that overseas investors would eventually see New Zealand as an attractive place to do business if the government continued to remove barriers.

"Just because it hasn't worked yet doesn't mean it's not a good idea," he said. "It may be that we've managed to lead a horse to water, but not made them drink just yet.

"We know if we try, we may fail. But we're certain that if we don't try, we'll definitely fail."

Despite the government's request for feedback from international grocery chains last year, big players such as Tesco, Lidl and Aldi declined to participate.

Seymour said, regardless, he remained hopeful.

"Sometimes businesses change management. Sometimes economic circumstances change. Sometimes they may just be waiting for political stability. Perhaps they're watching closely the New Zealand election.

"It's going to take determination. It's going to take on-going grit."

Responding to Seymour's media conference, Labour leader Chris Hipkins said the coalition had talked a tough game on supermarket competition, but had failed to deliver on its "unrealistic" promise to reduce grocery prices.

"What they're doing isn't working," he said. "They have no new ideas."

Hipkins said Labour would set out its policy on supermarket competition in the next few months, but indicated a focus on wholesale supply chains.