Supermarkets fight it out

One of the country's largest supermarket chains is defending its move to stop a rival from opening a new store, saying all it wants is for its competitor to follow the law of the land.

Foodstuffs began an advertising campaign two weeks ago after failing with its latest bid to open a new branch of Pak'nSave on Auckland's North Shore.

The Kiwi-owned company was granted resource consent last October and began building the supermarket on a site on Wairau Rd.

However, Australian rival Progressive Enterprises - owner of the Foodtown, Woolworths and Count-down chains - brought court action which stopped the project.

A High Court judge overturned the resource consent for the new Pak'n Save, saying the North Shore City Council was wrong not to notify the application to build the supermarket and its decision to grant permission for the building was invalid.

Bright-yellow newspaper advertisements from Pak'nSave tell North Shore shoppers: "We'd love to lower your grocery bill but Progressive's court action won't let us".

Murray Jordan, Foodstuffs' general manager of property strategy, said the company went public because it had received a lot of calls from people upset that building had been delayed.

"We wanted to tell the full story."

Foodstuffs, along with the North Shore City Council, have appealed the High Court ruling.

Progressive Enterprises' managing director Richard Umbers said the company was simply trying to ensure that due public process was followed.

"There is a law of the land that drives resource and planning consents which we all have to abide by. All we ask is that there's a level playing field."