The Blues have named a fresh line-up for their crucial Round 12 clash against the Western Force at Eden Park tonight, as they aim to make a statement in front of their home fans.Dalton Papali’i returns to the starting XV at openside flanker after recovering from an ankle injury, bringing much-needed experience to the loose trio alongside Anton Segner and Hoskins Sotutu.Meanwhile, Laghlan McWhannell steps into the second row, partnering with captain Patrick Tuipulotu, and Marcel Renata returns at tighthead prop following a calf strain.Ricky Riccitelli gets the nod at hooker after impressing from the bench in Round 11, with Kurt Eklund moving to the reserves.Taufa Funaki slots in at halfback, and Beauden Barrett is back at first five.In a notable move, 20-year-old Xavi Taele will start at second five, fresh off re-signing with the Blues for another season.AJ Lam shifts to the left wing in place of the suspended Mark Tele’a, with Cole Forbes remaining on the right wing.Stephen Perofeta completes the backline at fullback.It’s a special night for flanker Adrian Choat, who will earn his 50th Blues cap off the bench.Head coach Vern Cotter is excited about the challenge ahead.“We know the Force are a very good team, so we need to lift our intensity to compete well on Friday night,” Cotter said.“Consistency is key in these next four games, and I’m confident the team is ready to step up.”The Blues are gearing up for a tough battle, but they’ll be looking to make a statement with their refreshed lineup, especially with fans back at Eden Park.Seen something local we should cover?Let us know at [email protected]

Looking for plans? Explore events happening soon on the Hibiscus Coast and start planning your next activity!The Taylor Swift Story - The Venue ShoeFri 2 MayMore detailsFREE Theatre WorkshopSat 3 MayMore detailsOrewa Repair CafeMon 5 MayMore detailsWant to see more events?Explore everything happening in our community on the Hibiscus Coast App.Have an event to share?Promote it for FREE - click here

Electric vehicles (EVs) are slowly making their way onto New Zealand’s roads, but the country’s EV market is far from thrilling.Despite growing environmental awareness, the shift to electric is slowing in 2025, as high prices, limited model variety, and recent policy changes dampen consumer enthusiasm.As of early 2025, electric vehicles, including both Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), make up just 7.3% of new vehicle sales.This is a dramatic drop from nearly 25% in 2023.BEVs alone account for only 5.5% of new registrations, reflecting the market’s stagnation.The reasons? High upfront costs, a lack of exciting models, and shifting government policies.One major reason for the lack of excitement in the local market is the limited selection of EVs.For instance, the Toyota BZ4X has been described as “boring,” with critics saying it feels like a first-generation EV—missing the advanced features that modern drivers expect.New Zealand buyers are drawn to cost-effective options, with entry-level EVs starting around $50,000 and the median price of a new EV sitting at about $80,000.New Zealand's EV infrastructure is also lagging behind, with far fewer public charging stations than petrol stations.EV Charging stations on the Hibiscus CoastThis underdeveloped infrastructure further encourages buyers to stick with practical, range-focused models.As a result, the sleek, cutting-edge EVs seen in other parts of the world are not yet available here.This stands in stark contrast to what was showcased at the 2025 Shanghai Auto Show.Chinese manufacturers unveiled some of the most stylish, tech-loaded EVs on the market, many of which are surprisingly affordable.During a recent visit to China, it was clear that EVs from local Chinese brands are dominating the streets.Meanwhile, the likes of Kia and Nissan are barely visible.This begs the question—why isn’t New Zealand offering similar options?Compounding the issue, recent government policy changes, such as the removal of EV subsidies and the introduction of road user charges, have made electric vehicles more expensive.These shifts are driving many buyers to hybrid or petrol-powered vehicles, especially in the premium or performance segments.The contrast with Australia’s more mature EV market also puts New Zealand’s situation into perspective.As of March 2025, Australia's EV market share is 14.5%, almost double New Zealand’s.Australia’s influence means that many models available there eventually make their way to New Zealand, but often with higher price tags due to stricter regulations and increasing competition.Though New Zealand’s EV market is still in its early stages, there’s hope that as the infrastructure improves and policies evolve, a wider range of vehicles will become available, keeping the country in step with global trends.As for this Coastie?I’d love to own an EV, but I’m holding out to see if better-looking, and maybe even better-value options—like the Zeekr 001, Xiaomi SU7, or the plug-in hybrid Li Auto L7—finally make their way to New Zealand, and the Hibiscus Coast.Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.

This just in. NZTA has announced urgent maintenance work on State Highway 1 (SH1) from the Silverdale interchange to Oteha Valley Road, starting tomorrow, 2 May. The work will take place during the day from 11am to 7pm, with further works scheduled from Sunday 4 May to Thursday 8 May, both during the day and overnight.The work, which is expected to finish by June 2025, involves slip remediation and will result in southbound lane restrictions. Motorists are advised to slow down and follow traffic management instructions, as there will be increased noise levels during the process.Additionally, there will be closures in the area as part of other ongoing projects. The Penlink project will close both directions between Oteha Valley Road and Silverdale interchange from 6 to 8 May between 9pm and 5am. There will also be a full closure of the SH1 southbound to SH18 westbound link from Sunday 4 May to Thursday 8 May, between 9pm and 5am.Please note, the work is weather-dependent, and dates may change. NZTA say this maintenance may cause temporary disruptions, but the work is essential for improving safety and the road network. Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.

Your weekend weather at a glance.Coasties, here’s what the next four days have in store:Friday, 2/5Thunderstorms. Light West to Sou'West winds.High: 17Low: 11Saturday, 3/5Mostly sunny. Fairly breezy South to Sou'West winds.High: 17Low: 11Sunday, 4/5 Mainly sunny. Breezy East to Sou'East winds.High: 19Low: 11Monday, 5/5Mainly sunny. Breezy East to Sou'East winds.High: 18Low: 11Looking for more weather details?Check out our full Weather & Travel section in the Hibiscus Coast App for:🌊 Tide information🌬️ Wind conditions🌊 Wave updates🌞 UV levels🏖️ Safe swimming areasand much more.Everything you need is inside the Hibiscus Coast App – anytime, anywhere!

Alan McDonald, Head of Advocacy and Strategy at the EMA, shares insights from recent surveys showing growing optimism for economic recovery in the latter half of 2025. While large manufacturers in New Zealand are optimistic, McDonald highlights that smaller manufacturers, including those on the Hibiscus Coast, continue to face significant hurdles. These businesses are still grappling with the effects of the recession, with some forced to downsize to stay afloat.Many local manufacturers have echoed these concerns in conversations with the EMA. Rising energy prices have placed considerable pressure on manufacturers, especially those without long-term energy contracts. As electricity prices continue to soar, smaller manufacturers are finding it harder to remain competitive, leading to reduced production and profitability. In some cases, this has resulted in restructuring and layoffs.The EMA AdviceLine team, which offers support to local businesses, has seen a record number of calls this year from manufacturers seeking advice on redundancies and restructuring. As these processes unfold, McDonald predicts a slight rise in unemployment over the coming months, affecting businesses across wider region.Despite these challenges, McDonald points to the resilience of manufacturers, many of whom are taking proactive steps to invest in their staff’s skills. The EMA’s partnership with ASB to launch a nationwide series of workshops on Industry 4.0 technologies is one example of how businesses are adapting to future trends. Local manufacturers are increasingly recognising the need to stay ahead by adopting new technologies and improving their workforce capabilities.The EMA’s training programs, including leadership, digital skills, and safety courses, have seen a growing number of enrolments, particularly among manufacturers looking to improve productivity and safety. However, McDonald acknowledges that a shortage of leadership capacity remains a challenge within the sector.McDonald also advocates for a stronger depreciation regime to support investment in new technology and machinery, following successful examples in Australia. He believes such changes could have a positive impact on local businesses, including those on the Hibiscus Coast, by enabling them to modernise their operations and boost productivity.As local manufacturers continue to navigate these difficult times, McDonald stresses that investing in technology, upskilling workers, and creating better conditions for investment will be crucial for ensuring the long-term competitiveness of the Auckland manufacturing sector.

Coasties, NZTA is stepping up road safety on the Hibiscus Coast with the installation of speed safety cameras on Pine Valley Road. This move is part of NZTA’s broader strategy to take over safety camera operations from NZ Police and increase the number of safety cameras across the country. The cameras will not be enforcing speed limits immediately, but "average speed safety camera area" signs will be installed beforehand to remind drivers to check their speed and slow down if needed.Average speed cameras track a vehicle’s speed over a stretch of road by calculating the time it takes to travel between two or more cameras. Drivers are only ticketed if their average speed over the entire distance exceeds the limit. This means that drivers can’t be “pinged” by a single camera, providing a fairer system.Alongside this, NZTA will also take over the Red Light cameras on Hibiscus Coast Highway and Millwater Parkway, which were previously operated by NZ Police. The goal is to reduce harm and improve road safety, with the installation of these cameras contributing to a transport system that aims to protect everyone. Evidence from New Zealand and abroad shows that safety cameras reduce speed and the impact of crashes, significantly lowering the risk of fatalities and serious injuries.Seen something local we should cover?Let us know at [email protected]

Coasties, Harbour Hospice is calling on you this May!The Hibiscus Coast’s only palliative care provider is asking for your support during its Awareness Month, running from May 1 to 31.This vital service is there for our neighbours and loved ones in their toughest moments, and now, they need us to be there for them.Every year, Harbour Hospice cares for over 1300 locals, but with rising demand and limited funding, they must raise millions to keep their services going.As Amanda Fowler, Harbour Hospice’s Chief Executive, puts it, “Everyone deserves to live well until they die, and our team is dedicated to making that possible.”Local businesses are getting behind the campaign, offering ways to contribute—from adding a dollar to your grocery bill at supermarkets to donating online.And with a generous match for online donations up to $20,000, every dollar you give will have double the impact!For people like Gary and Margaret, Harbour Hospice is more than just a care provider.When Gary, diagnosed with COPD at age 69, was first referred to the hospice, he was hesitant—thinking it was only a place for the end.But from the moment they arrived, things changed for the better.Hospice offered respite care for Margaret, helping relieve the exhaustion of caregiving.They even helped with practical matters, like applying for a Disabled Parking Permit and addressing a wound that wasn’t healing.The support made life easier for both of them.Harbour Hospice isn’t just about end-of-life care—it’s about providing peace of mind and comfort when it’s needed most.Their 24/7 support and respite care offer families a sense of relief, knowing they don’t have to go through the toughest moments alone.So let’s do our part, Coasties.Every donation, no matter how small, helps keep Harbour Hospice’s doors open and their teams by the side of those who need them most.To find out how you can support Harbour Hospice Awareness Month (1-31 May), click here.Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.

In what would seem a practical move, and one long overdue, financial education will be embedded into the social sciences curriculum for Year 1-10 students across New Zealand.This change, announced by Education Minister Erica Stanford, is designed to equip young Kiwis with the knowledge and skills needed to make informed financial decisions in a world that is becoming increasingly complex.For younger students, the curriculum will focus on the basics: understanding the difference between needs and wants, managing a bank account, and learning how to earn, save, and spend wisely.As students progress, they will explore more advanced concepts such as budgeting, investments, interest, taxes, and insurance—skills that will prepare them for a financially responsible future.Minister Stanford noted, "Embedding essential skills into the curriculum will ensure our young people are better prepared to make informed financial decisions in a complex financial world. This will positively impact their lives and the broader economy."Supporting this initiative, the Ministry of Education has worked with financial institutions and trusts to develop a range of resources to help schools on the Hibiscus Coast and across New Zealand deliver this essential education.In addition, the Retirement Commission will map financial education offerings to ensure they align with the updated curriculum.Commerce and Consumer Affairs Minister Scott Simpson added, "Strengthening financial education is crucial to our Government’s focus on economic growth. We are all consumers, and financial literacy can set young Kiwis up to be savvy consumers – whether it’s knowing how to invest wisely, choose the best loan at a bank, or even identify a scam."This long-awaited update aims to equip students, with the tools they need to thrive in both their personal and financial lives.Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.

Auckland Airport's long-anticipated second runway won't arrive until at least the late 2030s, and a new regional terminal is on the cards for the same decade.The airport's draft master plan said the timeline for a second runway has been pushed out by 10 years from the previous 2028, although the airport had previously indicated the delay.It was the first revision to the airport's master plan in 11 years, as it outlined its growth intentions through to 2047.The airport said the master plan was not a detailed construction or capital plan, but it would guide investment decisions.Auckland Airport chief strategic planning officer Mary-Liz Tuck said a second runway would eventually be needed, but operational and airfield efficiency meant the date could be revised."First, we will fully explore all the ways we can ensure our current airfield operates as efficiently as possible," Tuck said. "If the existing runway cannot provide the capacity New Zealand requires, then we will commence consultation with airlines on the second runway."The airport said it would have the capacity for 38 million travellers by 2047 compared to 18 million passengers in 2024. It expected air cargo to grow by more than 40 percent to 223,000 tonnes.New regional terminalThe draft master plan also confirmed its existing strategy of integrating its domestic and international terminals.The airport has already commenced work on a new domestic terminal.It said the old domestic terminal would be reconfigured in the short-term for regional flights, but regional operations would eventually move to a new dedicated regional terminal after 2033.The new regional terminal was planned to have a public departure hall, check-in and automated bag-drop, baggage handling, access and boarding pass control, security screening, departure loungers and wait areas, and baggage reclaim."The operational model the new terminal will operate is still unclear, the main complexity is whether screening will be introduced for regional services by FY33," the plan stated.The airport said it would also continue to work with Auckland Transport and the NZ Transport Agency to secure mass transit to the airport from both the north and south-east.Auckland Airport planned to carry out consultations over the next few months and aimed to have a final master plan by the end of the year.

The Regional Infrastructure Fund has committed up to $2 million to explore upgrading Northland’s electricity transmission and distribution infrastructure, with the potential for benefits reaching beyond the region. For Coasties who frequently head north for holidays or own property in the area, this project could have a direct impact on the availability and cost of electricity.Regional Development Minister Shane Jones highlighted the importance of increasing New Zealand’s electricity generation capacity to meet the growing demand. Northland, rich in renewable energy resources like wind and solar, is seen as a key player in this effort. The project also aligns with the Government’s renewable energy goals for 2035.The Ministry of Business, Innovation and Employment (MBIE) will use the funding to assess the feasibility of turning Northland into an "energy bridge" connecting the region to Auckland. They’ll work alongside local stakeholders to explore the economic benefits of the project.“This initiative could unlock up to $1 billion in private investment, potentially transforming Northland into a major power generator. The flow-on effects could benefit Auckland and the wider country, including Coasties who rely on power stability for their northern properties,” Mr Jones said.The project is expected to improve energy resilience and self-sufficiency for Northland, reducing the cost of power for locals and holidaymakers alike. If successful, the upgrades could lower electricity prices for Auckland as well, contributing to more affordable power on the Hibiscus Coast and beyond.The feasibility study is just the beginning, and while full commissioning is expected by 2029, some new power generation could be online sooner as parts of the project come to fruition.This investment is in line with the Coalition Government’s broader goals to double renewable energy generation by 2035, aiming to reduce emissions and support sustainable economic growth for the entire country.Seen something local we should cover?Let us know at [email protected]

The development, located just off Dairy Flat Highway, is progressing quickly.Coasties are invited to visit the site this Saturday, May 3, from 9am to noon to learn more about the project’s progress.Project ambassador Sir John Kirwan will be on-site alongside the Aventuur team to answer any questions.Parking is available at the southern end of the site at 1350 Dairy Flat Highway.The park’s first stage is taking shape and will feature a surfing lagoon, high-performance sports and leisure facilities.The lagoon will be complemented by a 7ha solar farm and the Spark North Shore Data Centre.Additionally, the park will include a restaurant, wellness centre, retail options, eco-cabins, and walking and cycling trails throughout the site.Set to open in 2027, Auckland Surf Park will be New Zealand’s first world-class surfing lagoon.The solar farm will help power the site, with excess heat used to maintain the lagoon's temperature.This project will be a great boost to the Hibiscus Coast, providing new attractions and creating employment opportunities.Seen something local we should cover?Let us know at [email protected]

AI education is making its way into New Zealand’s classrooms, with a significant shift coming in 2027.As countries like China and the USA introduce AI education for students, New Zealand is following suit with an updated Technology Curriculum that will include AI literacy for both students and teachers.This update, set to take effect in 2027, will see all New Zealand schools integrate AI-related content.The Ministry of Education is rolling out resources to guide teachers and schools in using generative AI responsibly, with materials available in both English and te reo Māori.For Coasties, this development means our local schools will soon be preparing students with the skills needed to navigate and utilise AI technology.As AI continues to shape industries and everyday life, understanding its capabilities and ethical use is becoming a crucial part of the educational landscape.This update could open up new opportunities for local schools, teachers, and students, as they prepare to engage with one of the most transformative technologies of our time.Seen something local we should cover?Let us know at [email protected]

Today is International Jazz Day, a global celebration of jazz’s power to unite people, foster peace, and inspire creativity.Born in the late 19th and early 20th centuries within the African American communities of New Orleans, Louisiana, jazz has grown into a genre that connects cultures worldwide—and has found a home in New Zealand’s heart.Jazz emerged in New Orleans, where African, Caribbean, Creole, and European influences blended to create a distinctive sound. Early jazz pioneers like Buddy Bolden, Jelly Roll Morton, and King Oliver shaped the genre with their innovative improvisation, bringing jazz from the intimate “sporting houses” of New Orleans to the mainstream. By the 1920s, jazz had spread across America, evolving into a powerful form of musical expression.For New Zealanders, jazz is more than just music—it’s a cultural connection that continues to thrive. From early jazz music entering the country to the growth of a local jazz scene, New Zealand has embraced the genre’s spirit of improvisation and innovation. Auckland’s own Ockham Jazz Club is hosting a fantastic tribute to this global celebration tonight at The Nix, Grey Lynn. Sonia Wilson (ukulele and vocals), Nigel Gavin (guitar), Jeffrey Garus (percussion), and Ben Fernandez (piano) will take the stage from 7:30pm to 9:00pm, offering a night of live jazz that blends standards and original compositions. Whether you're tapping your feet to the rhythm of a local jazz gig or reflecting on the genre’s global impact, today is a chance to celebrate jazz’s enduring influence in New Zealand and beyond.Know something local worth sharing?Send it to [email protected] — we’ll help spread the word

The Auckland Blues, coming off a successful 2024 season as competition winners, are finding this year a much harder challenge. Currently sitting in 9th position on the ladder, they are far below expectations and grappling with a series of setbacks.Injury woes continue to plague the squad, with key players like Ofa Tu’ungafasi and Sam Darry ruled out for the season. Caleb Clarke is also carrying a thigh injury, and Dalton Papali’i has been sidelined with an ankle issue, further depleting the squad.Adding to the pressure, star player Rieko Ioane is having an off-year, with his performance not meeting his usual standards. He’s also announced he will take a sabbatical in 2026, returning in 2027.The situation has become even more difficult for head coach Vern Cotter following Mark Tele’a’s red card in last week’s loss to the Queensland Reds. With the Blues now facing a crucial home game against the Western Force this Friday, changes are needed to regain momentum.There’s growing anticipation that Beauden Barrett should be given the starting position at number 10. His leadership and experience are seen as vital for the team to get back on track. Additionally, Sam Nock’s stellar performance last week means he deserves the chance to start at half-back and inject energy into the squad.For the Blues to turn their season around, Coastie fans are hoping these changes will bring the boost the team needs—before it’s too late.Seen something local we should cover?Let us know at [email protected]

Fresh Coast Jobs for Fresh Starts! Check out this week’s top picks for local roles—and share with a mate who’s looking!Mitre 10 MEGAPosition: Detailer – Timber Frame & TrussLocation: SilverdaleCompetitive salary and career development opportunitiesWork in a high-tech facility with a skilled teamView the full listing & applyHarbour HospicePosition: Fundraising AdministratorLocation: Red BeachFull-time, flexible role with a focus on database and financeCollaborate on fundraising activities and community eventsView the full listing & applyCV Makeover TipHighlight transferable skills on your CV, especially if you're changing industries. Show how your previous experience can bring value to the new role, even if it’s in a different field.Help a friend discover their next career move—share these opportunities with your network today!Need to hire fast? Get noticed locally. Reach thousands on the Coast for $97 + GST. Post your job today.Explore more local job openings on our jobs page.

This summer, Surf Life Saving New Zealand (SLSNZ) focused on prevention to keep beachgoers safe. During the patrol season (Labour Weekend to 28 April), they conducted 577 rescues, a significant drop from the previous years—873 rescues in 2023/24 and 1,472 in 2022/23. This decrease is attributed to the substantial rise in preventative actions taken by surf lifeguards. They completed 47,487 preventive actions, impacting nearly 1 million people—almost double the number from last season.Preventative actions occur when lifeguards spot potential dangers early and intervene before they escalate into emergencies. This includes warning swimmers about rip currents or unsafe conditions, checking on swimmers who appear to be struggling, or moving people out of flagged areas.Andy Kent, General Manager of Lifesaving at SLSNZ, attributes this reduction in rescues to the ongoing work and education provided by surf lifeguards.“The last thing anyone wants is beachgoers, and surf lifeguards, getting into a life-threatening situation," says Andy. “It’s incredibly positive to see those rescue numbers start to trend down.”January 29 was the busiest day of the summer season, with 90 incidents and nearly 200,000 people on the beaches. February saw the highest number of rescues due to warmer weather.Throughout the summer, surf lifeguards worked over 240,000 hours, an increase from previous years. Andy highlights the dedication of the 4,000-plus volunteer lifeguards.“We can enjoy downtime on the beach because others are giving up their time to keep us safer,” he says.Even though the patrol season has ended, lifeguards will continue to train and upskill over the winter months. Volunteer Search and Rescue squads remain on standby, ready to respond to any emergencies.Andy reminds beachgoers to take extra care during the off-season. “If you’re unsure about your ability to handle the conditions, stay on the beach and get home safely. And if you see someone in trouble, call 111 and ask for Police.”Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.

The vehicle market in New Zealand for 2025 is shaping up to be a diverse one, with SUVs and compact cars leading the charge. The top-selling petrol models so far this year are the Toyota RAV4, Mitsubishi Outlander, and Kia Seltos, all of which show the continued popularity of petrol-powered vehicles.Leading the charge in the petrol market is the Toyota RAV4, with 2,444 units sold, closely followed by the Mitsubishi Outlander at 993 units. The Kia Seltos, Mitsubishi ASX, and Suzuki Swift round out the top five, with sales figures highlighting a strong demand for SUVs and compact cars. These models primarily run on petrol, with some offering hybrid variants, but the petrol versions continue to dominate.In the electric vehicle (EV) market, 2025 has brought a significant shift. Tesla still holds the top spot, but new contenders like Polestar and BYD are quickly gaining ground. The Polestar 2 leads the fully electric vehicles with 162 units sold, followed closely by the BYD Atto 3 at 155 units. The Tesla Model Y and Model 3 remain strong contenders in the EV space, but the rise of Polestar and BYD suggests that the electric car market is expanding rapidly.On the hybrid front, vehicles like the Toyota RAV4 Hybrid and Mitsubishi Outlander Hybrid continue to be top-sellers. With the removal of EV incentives, hybrid models now account for 34% of new vehicle sales in 2025, making them a popular choice for those looking for a balance between petrol and electric power.In the diesel segment, utes remain dominant, particularly in commercial sales. The Toyota Hilux and Ford Ranger are leading the charge, with the Mitsubishi Triton and Nissan Navara following closely behind.Coasties, these trends highlight how the car market in New Zealand is evolving, with petrol, EV, hybrid, and diesel vehicles all seeing robust sales. Seen something local we should cover?Let us know at [email protected]

With ongoing cost of living pressures, the Australian and New Zealand supermarket sectors are attracting renewed political attention on both sides of the Tasman.Allegations of price gouging have become a political issue in the Australian federal election. At the same time, the New Zealand government has announced that “all options” are on the table to address a lack of competition in the sector – including possible breakup of the existing players.But it is not clear breaking up the supermarkets or other government interventions will improve the sector for shoppers and suppliers.In 2022, I co-authored a government-commissioned analysis looking at whether New Zealand’s two main supermarket groups should be forced to sell some of their stores to create a third competing chain.We found it was possible under some scenarios that breakup could benefit consumers. But key uncertainties and implementation risks meant consumers could lose overall.A lot hinges on whether breakup causes supermarkets’ input costs to rise or product variety to fall. Even in more positive scenarios at least some consumers could be left worse off.Watchdog concernsCompetition authorities – the Australian Competition and Consumer Commission (ACCC) and New Zealand’s Commerce Commission – have conducted supermarket sector studies. They each expressed concern at significant barriers to entry and expansion in the sector and supermarkets’ resulting high levels of profitability.This year, the ACCC concluded margins earned by Australia’s main supermarkets are among the highest of supermarket businesses in comparable countries. Similarly, in 2022 the Commerce Commission found New Zealand’s supermarkets were earning excess profits of around NZ$430m a year.While high profits might mean that market power is being abused, it could also mean managers are doing a good job. Or have had a great run of luck. Alternative explanations for high profits would need to be ruled out before putting fingers on regulatory triggers.Barriers to entryThe starting point is to acknowledge that high profits and prices go hand in hand with barriers to entry and challenges in achieving economies of scale.In other words, some sectors are less competitive than others simply because a lack of demand or high costs make it unprofitable for additional competitors to either enter or remain in the market.Countries like Australia and New Zealand, with low population densities and large service areas, face high costs of nationwide supply. They also face significant shipping distances from other countries. This limits the ability of overseas entrants using their existing buying and supply infrastructures.That said, some barriers to entry might be artificial or caused by existing firms stifling new competitors.Existing supermarkets in both countries have gained controlling stakes in the land needed to set up new supermarkets – something regulatory settings can prevent.Another challenge for new chains is the process of getting planning and land use consents – something policymakers can address.This points to key elements of a test for whether supermarkets are charging too much. One is a recognition that there can be natural reasons for limited competition, and unless technologies or consumer preferences change that will remain the case.Another is a focus on the things that can be changed – whether at the firm or policy level – in a way that benefits consumers and suppliers. Finally, policymakers need to consider whether the benefits of implementing them outweigh the costs.Testing the marketBuilding on work developed by Nobel economist Oliver Williamson, a “three-limb test” was used in the 2017 government-commissioned assessment of fuel pricing in New Zealand that I co-authored. The same could be used to assess the supermarket sector.That three-limb test asksare there features of the existing industry structure and conduct giving cause for concerncan those causes for concern be remediedwould the benefits of remedying those concerns outweigh the costs of doing so?If the answer to all three limbs is yes, that suggests suppliers are charging too much (or delivering too little) since there are practical ways to improve on the status quo.A virtue of such a test is that is can be applied in any sector where there are high firm concentration, barriers to entry and high profit margins.Importantly, the test looks beyond just what firms are (or are not) doing and asks whether policy and regulatory settings are ripe for improvements too.The test is also pragmatic – it shouldn’t trigger changes unless they are clearly expected to do more good than harm. This is important if interventions are risky, costly or irreversible, especially in sectors that are important to all of us.Politicians on both sides of the Tasman are floating the possibility of supermarket breakup, among other possible interventions. The three-limb test helps to identify whether any proposed interventions are a good idea and whether supermarket prices are higher than they need to be.Originally published on The Conversation.Author: Richard Meade, Adjunct Associate Professor, Centre for Applied Energy Economics and Policy Research, Griffith University.Know something local worth sharing?Send it to [email protected] — we’ll help spread the word.