It could be too little too late when it comes to encouraging a third supermarket to New Zealand

The Government's repeated the call that we need more competition - to pressure prices.

It's laying out plans to challenge the incumbents, Foodstuffs and Woolworths - and remove regulations discouraging competition.

Former Food and Grocery Council chief executive Ernie Newman says the time has passed and the focus should be on breaking up the existing sector.

He says it can be done, there's international precedent when competition comes unstuck.