Greens Senator Nick McKim pitches $30m plan to bring Aldi to Tasmania

The Greens have unveiled a $30m election pitch to lure discount retailers such as Aldi to Australia’s smallest state.

The Greens want to spend $30m to bring in an Aldi supermarket to Tasmania.

The cost-of-living pitch, announced by Tasmanian Greens Senator Nick McKim on Thursday, is designed to boost supermarket competition in the small state, which is currently dominated by retail giants Coles and Woolworths.

Mr McKim said the Greens planned to take on the supermarket giants and “lure” Aldi to Tasmania.

“Coles and Woolworths have had it too good for too long and Tasmanians are paying the price,” Mr McKim said.

“A lack of competition means shoppers here are paying at least $15 more on a basket of essential groceries compared to Aldi, which adds up to hundreds of dollars a year.”

The plan involves allocating $30m to the state government to help discount retailers establish a presence in Tasmania.

Some $2m would go to a supermarket competition review to identify the barriers stopping discount supermarkets from entering the state, the Greens said, and up to $28m would support new entrants to the sector.

Support measures include help for distribution centres, improving supply chains and making government land available on a competitive basis to supermarket retailers.

Australian Greens Senator Nick McKim has proposed a $30m spend to bring an Aldi to Tasmania. Picture: NewsWire / Martin Ollman

The money would come from taxing “billionaires” and “big corporations”.

“Labor is letting the supermarket duopoly run rampant, while the Liberals are missing in action. The Greens are the only party willing to take these big corporations on,” Mr McKim said.

“The Greens will force real competition into the Tasmanian market and make groceries affordable again.”

Aldi has been contacted for comment on Mr McKim’s proposal.

The German-owned retailer operates in every state and territory except for Tasmania and the Northern Territory.

The latest quarterly CHOICE survey, which tracks the price of 14 common grocery items across major supermarket chains, found the cost of baskets at Aldi were cheaper than baskets at Coles and Woolworths.

“In March, Aldi’s basket was $51.51, compared to $51.36 in December,” CHOICE chief executive Ashley de Silva said.

“The Coles basket with specials cost on average $68.52 in March, compared to $66.84 in December, a 2.5 per cent decrease.

“The Woolworths basket with specials increased by 3.7 per cent, with the price going from $64.93 in the first quarter to $67.34 in the latest quarter.”

Aldi is a German-owned discount supermarket. Picture: NewsWire / Andrew Henshaw

IGA shoppers are forking out the most for their groceries, the survey found, paying $74.90 for a basket in December.

The large retailers have come under close scrutiny in recent months around concerns Australia’s comparatively concentrated supermarket landscape could be inflating prices for consumers.

Both Coles and Woolworths delivered record revenues and profits in the past few years, even as consumer spending power declined amid rising inflation and interest rate pressures.

Woolworths controls about 38 per cent of market share, the Australian Competition and Consumer Commission (ACCC) has found, while Coles controls about 29 per cent.

Aldi followed with about 9 per cent of the market, then Metcash with 7 per cent, and other retailers - such as IGA and Drakes Supermarkets - accounted for about 17 per cent.

Last month, the ACCC’s 441-page report into the sector did not find evidence of price gouging, but pushed for greater pricing transparency in the sector.