Nationals Leader David Littleproud says the final report of the ACCC supermarket inquiry shows it was designed for a government about to go to an election.
Mr Littleproud said the Albanese Labor Government had a business-as-usual approach to protect families and farmers against the major supermarkets’ profiteering and anti-competitive behaviour.
“The inquiry asks for more transparency and reporting but fails to understand if there’s not a consequence for doing the wrong thing, then it’s just business-as-usual for the big supermarkets,” Mr Littleproud said.
“Prime Minister Anthony Albanese pledged on January 16, 2024, ‘if the ACCC asks for more powers, then my government will give it to them’, after ACCC chief Gina Cass-Gottlieb said she would welcome new powers to break up big business including supermarkets and that those powers would be ‘useful to have in the toolkit’
“However, just a month later, after the big supermarkets had obviously got to him, he declared he would rule out divestiture because ‘we are not a Soviet country.’
“Mr Albanese has never been genuine about real change and has played politics while families go without meals tonight.
“Under Labor, supermarkets can continue to price-gouge on families and ditch suppliers with one simple tarnished product, because Anthony Albanese’s ’s measly fine of $198,000 could be pulled out of a till at any city that does nothing to change culture,” Mr Littleproud said.
The report found some types of groceries have skyrocketed more than others in price since 2019, such as oils and fats (49%), eggs (47%), milk (34%), cheese (33%), and bread (32%), stating grocery prices have ‘increased significantly in Australia and impacted affordability for consumers.”
Mr Littleproud said The Nationals had a strong plan to crack down on major supermarkets and deliver fair prices, that included:
• Higher penalties from $2 million on the spot fines, scaling up to $10 million.
• Increased powers for the ACCC to be conduct random audits of major supermarkets.
• A Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers, to address the fear of retribution.
• Sector-specific divestiture powers, in the hands of the ACCC and the courts, as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.
“All families and farmers are asking for is a fair price but Labor has let them down,” Mr Littleproud said. “Our changes will protect families at the checkout and farmers at the farm gate.”
The ACCC has made 20 recommendations, but concedes “There is no ‘silver bullet’ that will address all the issues we have identified in the supermarket sector.’”
1. Governments should consider support for community-owned stores in limited choice areas (particularly remote areas) with appropriate governance measures
2. Supermarkets should be required to publish pricing information
3. Governments should adopt measures to address planning and zoning issues
4. Supermarkets should be subject to minimum information requirements for discount price promotions, supported by record keeping obligations
5. We support the Australian Government’s proposal to consult in relation to proposed changes to the Unit Pricing Code
6. Supermarkets should be required to publish notifications when package size changes occur in a manner adverse to consumers
7. Coles and Woolworths should be required to provide members with periodic loyalty program information disclosure summaries
8. Coles and Woolworths’ loyalty program practices should be reviewed in 3 years
9. We recommend measures to strengthen complaints handling mechanisms in remote locations
10. Supermarkets should not be able to negotiate out of key minimum protections in the Food and Grocery Code
11. Harmonisation of accreditation and auditing requirements
12. ALDI, Coles and Woolworths should be required to provide fresh produce suppliers with detailed information about their supply forecasts
13. ALDI, Coles and Woolworths should be required to provide fresh produce suppliers with greater transparency about the weekly tendering processes they use to negotiate price and volumes with suppliers
14. Greater transparency about supermarkets wholesale fresh produce prices
15. ALDI, Coles and Woolworths should not be able to unilaterally reduce wholesale fresh produce prices or volumes agreed with suppliers
16. Greater transparency for growers who sell fresh produce through intermediaries
17. Suppliers of supermarket branded fresh produce to supermarkets should have earlier certainty about orders placed with them
18. Suppliers should be allowed to apply their own branding to fresh produce
19. There should be greater transparency about the rebates suppliers pay to supermarkets
20. Coles and Woolworths should be more transparent about how supplier funding contributions to their inhouse retail media services are used.
