'Chilling': Business groups speak out against National's supermarket break-up plan

National's push to drive competition in the supermarket sector by breaking up one of the key players has drawn stinging criticism from the country's leading business groups.

And one Pak'nSave owner says it could even see prices rise.

National, if re-elected, says it would legislate to split up the Kiwi-owned Foodstuffs , although only after the Commerce Commission investigated to make sure it would benefit consumers.

Dean Waddell, owner of Pak'nSave Tauranga and chairperson of Foodstuffs North Island, told Morning Report National's proposal would drive prices up.

He said Foodstuff was "gutted and concerned" by the proposal.

" We've spent a lot of time educating political parties around our co-operative structure," he said.