23 Jan 2014

Ice cream deal criticised

10:35 am on 23 January 2014

A small business group says Auckland Council's move to give a 10-year exclusive ice cream deal to Fonterra is anti-competitive.

The council and Fonterra are negotiating a contract allowing the dairy co-operative to be the sole ice-cream supplier at council venues and events.

The chief executive of Small Business Voice, a group of small- to medium-sized companies, says the potential exclusive contract with one of New Zealand's biggest businesses is not fair.

Max Whitehead says competition is healthy, but such deals stunt the growth of small companies.

The Auckland Chamber of Commerce says the deal is just business in action, and is no different from a company buying shelf space in a supermarket.