The Government has bowed to public opinion and is backing a parliamentary inquiry into why milk prices are so high when New Zealand is a leading milk producer and many families are struggling to make ends meet.
Labour and the Greens have been calling for a select committee inquiry after the Commerce Commission last week said there was nothing it could do under the Commerce Act to further investigate soaring consumer prices for milk.
While Agriculture Minister David Carter was initially cool on the idea, Prime Minister John Key yesterday said his caucus had confirmed the Cabinet's earlier decision to back the inquiry.
The decision saves his Government the embarrassment of opposing the inquiry only to have it go ahead anyway - Act holds the balance of power on the select committee and has followed through on its earlier indications by backing the inquiry.
Labour MP Lianne Dalziel who chairs the commerce select committee which will conduct the inquiry said the Government often made decisions it was going to be forced into anyway.