Victorian Greens propose profit caps on ‘essential grocery items’

A new proposal, to be tabled in Victorian parliament today, would mean huge changes to the way Aussies get their groceries.

The Victorian Greens have proposed profit caps on household staples in a bid to crack down on supermarket price hikes.

Under the draft laws, to be released on Tuesday, the state government would be given the power to declare products like fruit, vegetables, bread and milk as an “essential grocery item”, according to the Herald Sun.

The Essential Services Commission (the regulatory body) would then be able to determine how much profit supermarkets could make on the items under proposed new legislation.

While it would ultimately be up to the government to decide the products it deems essential, the minor party have flagged that, due to “skyrocketing prices”, bread and dairy items should be regulated in the first instance.

The Herald Sun reports the Greens also want rice, pasta, and some cooking and cleaning products to fall under the price controls – the first legislation of its kind in Victoria in more than three decades.

The Victorian Greens have proposed profit caps on household staples in a bid to crack down on supermarket price hikes. Picture: NCA NewsWire/Nikki Short

While the Victorian Government has repeatedly said competition and consumer law is within the federal government’s remit – pointing to toward the federal inquiry into supermarket prices – deputy Greens leader and Treasury spokesman Sam Hibbins told the paper it has the power to stop price gouging, but is refusing to do so.

“In a cost of living crisis, people are struggling to afford food because profiteering supermarkets are jacking up their prices,” Mr Hibbins said.

“Every time someone goes into a supermarket they are faced with unfair price hikes on basics like bread and dairy. It is next to impossible to do a cheap shop anymore. This is all happening while supermarkets are posting massive profits and increasing their profit margins.

“Labor is refusing to take on the supermarket duopoly and continues to wash its hands of responsibility, but this bill shows how it can be done.”

‘Labor is refusing to take on the supermarket duopoly and continues to wash its hands of responsibility.’ Picture: NCA NewsWire/David Mariuz

The Greens said they will seek feedback from experts and the wider community before formally introducing the proposed Bill, which is currently only in draft form, into parliament at a later date.

A Victorian Government spokesperson said the Greens “knows that competition policy is a matter for the Federal Government and the ACCC as the relevant Commonwealth body for economic regulation”.

“While the Greens waste time with cheap political stunts, we’re getting on with delivering real policies to help Victorians with the cost of living,” the spokesperson added.

Some of the 400 products in line for a winter price drop from May 29 to August 27. Picture: Supplied

The proposal comes after Woolworths announced it will cut costs on a range of staple goods in a dramatic months-long “winter price drop” from Wednesday.

From diced beef and boneless roast pork shoulder to Uncle Toby’s Oats and Twinings English Breakfast tea packs, the grocery giant will reduce prices by an average 20 per cent on the more than 450 products, with the drop running from May 29 until August 27.

Woolworths chief commercial officer Paul Harker said the items had been selected to help customers retain “grocery essentials” over the winter months.

“We understand the pressures our customers are under and the need to budget for hearty, warming meats and grocery essentials for their families,” he said.

“Our Prices Dropped for Winter program is designed to give our customers certainty on the key products they’ll be buying this season to help their budgets go further.”

News.com.au has contacted Coles to see if it plans to introduce a similar initiative.

Originally published as Victorian Greens propose profit caps on ‘essential grocery items’