Business leaders urge government to prioritise food supply in fuel plan

BusinessNZ has made its case to ministers as to why the food and grocery sector should be put in the highest priority level of any fuel rationing framework.

Top chief executives - from the organisation's Major Companies Group - took part in an hour-long call on Thursday morning, featuring Prime Minister Christopher Luxon, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones.

BusinessNZ chief executive Katherine Rich told RNZ that attendees sought "greater clarity" from the government on how fuel rationing would be implemented if it activated the more extreme phases of its National Fuel Plan.

She said Willis encouraged business leaders to take part in the current consultation process and to keep sending through their on-the-ground insights.

Rich, who previously led the Food and Grocery Council for more than a decade, said she lobbied for the food industry to be given highest priority alongside other "life-supporting services" in Band A, like hospitals, courts and lifeline utilities.

"Feeding people is about supporting life and maintaining calm," she said.

Under the draft framework published in March, food supply and distribution were categorised as "economically important services" and placed in the second highest priority level, Band B.

Rich said ministers did not signal where decisions might land, but business leaders felt their views were valued: "We do feel heard."

The session brought together representatives from some of the country's largest employers, spanning sectors including banking, infrastructure, tourism and logistics.

As well as the ministers, it included senior officials from Treasury, the Ministry of Business, Innovation and Employment, and the Ministry of Foreign Affairs and Trade.

Officials also invited ongoing input from industry, Rich said, particularly around red-tape or practical challenges businesses might face if fuel supplies tightened.

She said that level of engagement marked an improvement on the Covid-19 response, with businesses now being given more opportunity to contribute to decision-making.

"We're facing a very fast-moving situation, and the information flow is very important," Rich said.

"There's a lot here that business can do on its own to try and work around some of the international disruption, but we need to make sure we keep the government informed."

Rich said attendees found it "valuable" to ask questions and share their views, and they left the meeting with confidence that ministers and officials were doing everything they could to ensure New Zealand was in a strong position to deal with any disruption.

Speaking from Nelson on Thursday, Luxon told reporters the government was "working really closely" with industry players, including daily contact with the fuel companies.

"We have worked well in partnership, incredibly well. And we've also put New Zealand's Commerce Commission on watch from day one to make sure that fuel companies are not gouging New Zealanders, and we haven't seen evidence of that."

Asked about the latest developments in the Middle East, Luxon said the potential for a ceasefire was promising but very fragile.

"We've got a long way to go. There's a lot of trust that needs to be built back between the US and Iran, and we... encourage everybody to put best efforts forward to get to that long, lasting peace that we desperately need."

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