Federal health department backs calls for probe in ‘false claims’ of SA RAT raids
The federal government has backed calls for a probe into “false claims” it has been diverting rapid Covid tests earmarked for South Australians.
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The Federal Department of Health has backed calls for an ACCC inquiry into “false claims” it has redirecting RAT tests bound for South Australia.
In a written statement Thursday it denied for the first time being part of alleged requisitioning.
“Supplies of RAT kits are not being redirected to the Commonwealth and at no time has the Department sought to place itself ahead of other commercial and retail entities,’’ it states.
The move follows revelations by The Advertiser on Wednesday that a supplier had been caught by the Department lying to customers that it could no longer fill an order because government had requisitioned the tests.
The supplier was forced to retract the statement to customers and The Advertiser understands it had offered the tests to a higher bidder.
The Pharmacy Guild and a major SA supermarket outlet went public this week with claims an unidentified government had taken around 200,000 tests assigned to SA.
The claim was quickly denied by the NSW, Victorian and SA state governments, but the federal Department of Health would only stay it had not taken “all” tests within and bound for South Australia.
The ACCC inquiry asked for by the SA government was to focus on government procurement, but the Health Department wants suppliers scrutinised.
“The Department is liaising closely with the ACCC and is highlighting the pattern of conduct
and providing specific examples of such claims,” it states.
“Any such claims are false, and where notified to the Department will be referred to the ACCC.”
An angry Premier Steven Marshall called on the ACCC to investigate on Wednesday but the watchdog said a probe was already afoot.
Writing to ACCC chair Rod Sims, Mr Marshall’s letter stated: “I am deeply concerned by suggestions that there has been interference in the commercial market … preventing supply reaching South Australian customers.”
A spokesman for the ACCC said it would respond directly to Mr Marshall’s request, but revealed it was already investigating RAT supply chain interference.
“The ACCC is aware of a number of reports that business customers are being given various explanations by their suppliers about why orders for rapid antigen tests cannot be delivered as promised,” the spokesman said.
“The ACCC is investigating some of these claims.”
The Queensland government has also asked Canberra to explain why it was told the federal government had taken 20,000 tests bound for train drivers.
No government has yet admitted to using their emergency powers to requisition South Australian tests, and Mr Marshall said Victoria and NSW denied the claims.
Late Wednesday, a senior federal government spokeswoman said one national wholesaler had been caught lying to customers about their tests being requisitioned by government. This is not the supplier that raised the alarm about government interference in the SA market.
Prime Minister Scott Morrison on Wednesday would only deny “social media” commentary that tests were being seized, but did not address Queensland’s concerns nor claims in letters sent from suppliers to SA retail outlets.
SA’s most senior government figure, Finance Minister and leader of the government in the Senate, Simon Birmingham, backed the state’s call for an ACCC inquiry.
He also said the federal government was not responsible for the requisitioning, but “I back fully the call by the South Australian Premier for the ACCC to investigate this matter and make sure that there isn’t subversion in the marketplace that’s preventing any RATs that have been appropriately ordered from getting to suppliers in South Australia’’.
Drakes Supermarket spokesman Michael Connelly said they hoped to have more tests on Friday.
“It has been suggested to us in the market from suppliers (that governments were requisitioning), but also importers are selling to the highest bidder, and that often will be the government,’’ Mr Connelly said.
Meanwhile, with no RAT tests to hand over, chemist stores are bracing for an influx of thousands of people who the federal Health Department has told to collect free tests from Monday.
The pharmacy guild has warned it has no way of complying with the federal government Health Department’s demand they supply 10 free RATs over three months to seniors health card holders, service veterans, healthcare card holders and pensioners.
Opposition Leader Peter Malinauskas said SA had been one of the last states to acquire and distribute RAT tests, and the ACCC inquiry would not come quickly enough to ease demand.
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