SYDNEY, Aug 27 (Reuters) - New Zealand said on Wednesday

it would introduce laws in November to fast track the approval

process for new supermarkets in a bid to boost competition and

bring in lower prices.

Finance Minister Nicola Willis said her centre-right

government's proposed rules will speed up and simplify the

process to open or expand supermarkets in the country.

"We're creating an express lane for new supermarkets to

boost competition and deliver better deals for Kiwi shoppers,"

Willis said in a statement.

Tough regulations and a slow approval process for new

applications are blocking new competitors from gaining a

foothold in the country's grocery sector, dominated by

Foodstuffs NZ and Australia's Woolworths, Willis said.

Some respondents to a government-initiated feedback process

on the sector have argued for the break up of Foodstuffs and

Woolworths, Willis said.

But she said any decision "to restructure the supermarkets

is not a decision that would be taken lightly" though a

cost-benefit analysis will check the specific options for

restructuring the duopoly.

"It would be a significant intervention that would carry

costs and risks that would need to be rigorously weighted

against the potential benefits to shoppers," Willis said.

The government will instead streamline the entry of new

supermarkets by appointing a single authority to oversee the

entire process and also modify the foreign investment rules to

clarify investment pathways.

Companies could be prosecuted if they misuse their market

power to exclude or stamp out competitors, Willis said.

U.S. retailer Costco, which opened its only store

in the country in Auckland in 2022, has informed the government

that the initiatives to boost competition will help with the

company's future expansion plans in New Zealand, she added.

Five domestic companies have also expressed interest to

enter the grocery sector.