Major food service distributor calls for ‘common sense’ as power prices skyrocket

Members of Australia’s largest food distributor have slammed the Albanese government for “putting their eggs in one basket”.

The Albanese government has been slammed for not doing enough to reduce energy prices, which the Independent Food Distributors Australia says are “out of control” and contributing to the rising food prices by focusing too much on renewables.

The IDFA is the country’s largest industry body representing food distributers across the country.

Chief executive Richard Forbes said the government was putting “all its eggs in one basket” by focusing on reaching its renewable energy goal of 82 per cent by 2030, rather than having a “balance” of coal and gas.

The IDFA said the cost of power bills was driving up the cost of food. Picture: NewsWire Monique Harmer

Mr Forbes told NewsWire the soaring energy prices were contributing to the increase in food prices, labelling it a “national energy emergency”.

“We have a national energy emergency in this country, and everyone is suffering – the business sector and the community,” Mr Forbes said.

“The fixation on renewables is already having a massive impact, and common sense must prevail.

“We need to get the balance right by continuing to use baseload power, which includes coal and gas, until renewables have been proven to cover at least the minimum amount required.

“At present, the balance is skewed.”

Climate Change and Energy Minister Chris Bowen said energy prices would be worse under the Coalition. Picture: NewsWire / Jeremy Piper

A spokesperson for Climate Change and Energy Minister Chris Bowen told NewsWire the reason for the skyrocketing energy prices was a “decade of neglect under the Liberals”.

“After a decade of neglect under the Liberals, energy prices for small businesses are too high and exposed to international shocks,” the spokesperson said.

“We’ve prioritised getting energy prices down in the short and long term. We’ve delivered $650 in energy bill relief to small businesses, bill relief Peter Dutton fought against.”

The Coalition has long pushed the use of nuclear power, which Opposition Leader Peter Dutton said would cut power bills by 44 per cent, though this claim has been criticised by energy and climate experts who say it could drive up prices for those who already rely on renewables, such as rooftop solar panels.

“Just last week independent experts found unreliable coal generators are driving price spikes,” Mr Bowen’s spokesperson said.

“Extending them further would be a recipe for disaster.

“Australians will be worse off under Dutton’s nuclear plan, with households paying $1200 extra on their energy bills and businesses paying even more.”

The government needs a ‘balance’ of energy sources, it’s been claimed. Picture: Newswire/ Gaye Gerard

Mr Forbes told NewsWire the federal government needed to have a “mix of resources” to keep energy prices down, instead of relying on a single method to produce power, be it renewables or nuclear.

”We need to have a mix of recourses, so we don’t have short-term damage to food businesses, business in general, and the community, the consumers of food.

“We need to get the balance right.”

He added the push for renewables was not out of the question, but “common sense” was needed to create a balance for business owners.

“We are all for having renewable energy targets, but they must be practical and they must be targets that make common sense, so our members who have large warehouses with massive freezers and chillers don’t continue to get energy bills of up to $30,000 a month,” Mr Forbes told NewsWire.

The IDFA claimed Australia is in the midst of an energy crisis. Picture: NewsWire / Jeremy Piper

Godden Food Group manager Jeff Godden said his electricity prices had increased by as much as 230 per cent.

“The price of food will continue to remain high because the food industry, farmers, suppliers, distributors, retailers are all being impacted by energy costs and there is nothing to suggest it will get better anytime soon,” Mr Godden said.

“It is crazy, in a country as rich in resources as Australia, that we are in this position. We need a balanced approach to the energy mix at least in the short term.”

Originally published as Major food service distributor calls for ‘common sense’ as power prices skyrocket