Rigours of RMA block business development

New Zealand's largest retailer, the $6 billion Foodstuffs group, wants the Resource Management Act rewritten to stop it being used to block development.

Managing director Tony Carter said it was one of the many frustrations he faced in business.

"The RMA needs rewriting," said Carter. "It is one of those acts that has got good intentions but it has been proved that it does not work and gives pretty good opportunities for interest groups to stop our developments.

"As the law stands they can object and although the court has the facility to award costs against them, it can't award damages."

Carter said compliance costs were also a major challenge to retail - "So much of business is more complex than it was 20 years ago."

He said food regulations and changes to employment law were also challenges facing the food industry.

The [former] Employment Contracts Act was easy to work with.

Carter said he favoured employees getting an extra week's holiday, contrary to the view of many employers.

"I know it's a cost to business but it is in line with international trends. The people who oppose it most vociferously are those who enjoy four weeks [holiday] or more."

He said he would have been happier if workers had the right to negotiate on whether they wanted to take an extra week's holiday.

Carter expects the economy will slow.