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Rudd Government Moves to Increase Competition in the Grocery Sector |
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Written by Brendan O'Connor
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Thursday, 07 August 2008 |
Federal Member for Gorton Brendan O’Connor has welcomed the government’s decision to introduce a mandatory national unit pricing regime for supermarket chains as part of its plan to increase competition and transparency in the Australian grocery sector.
The response comes following the release of the ACCC report into the grocery sector – a Federal Labor election commitment. “The best thing the government can do to help people at the supermarket counter is to make sure we have a competitive grocery sector,” Mr O’Connor said. “The ACCC report shows the positive impact that greater competition from supermarket chains like ALDI has on grocery prices. It’s clear from the report that where we have greater competition for the consumer dollar, we all benefit.” The Rudd Government’s plan for the grocery sector includes:
- Introduction of a nationally consistent unit pricing regime for major supermarkets.
- Using the Council of Australian Governments (COAG) to help make sure state and local planning laws are used to boost competition between supermarkets.
- Introduce a creeping acquisitions law to stop large companies steadily increasing their market share by taking over a number of smaller stores, which will keep up competition in local areas.
- Set up www.grocerychoice.gov.au to give consumers a quick and easy way to see which supermarkets in their area sell a basket of goods at the cheapest price.
Mr O’Connor said that the combination of unit pricing and the ACCC’s GROCERYChoice website – www.grocerychoice.gov.au – will help consumers find the best deals at their local supermarkets. Unit pricing is the practice of displaying the price by ‘unit’ – such as per litre or kilogram – along with the actual sale price for each item. “Unit pricing will allow consumers to compare the price of different-sized products more easily and get the best value for their money,” Mr O’Connor said. “Local consumers will also be able to log-on to www.grocerychoice.gov.au to check out the performance of the supermarket chains and independent stores in our local area.” The Rudd Government’s plan comes on the back of other important reforms, such as:
- Strengthening the Trade Practices Act to target the abuse of market power by larger companies.
- Relaxing the restrictions on foreign supermarkets to develop on new sites.
- Introducing jail terms for serious cartel behaviour.
“The government’s action plan on the grocery sector is an important step in driving and promoting competition for the benefit of consumers,” Mr O’Connor said.
7 August 2008
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