Business slams bill to ‘break up’ supermarket duopoly
Business leaders warn a push from the Greens and Nationals to break up the supermarket giants’ duopoly could hurt investment and jobs.
The Business Council of Australia has warned a push from the Greens and the Nationals to break up the supermarket giants’ duopoly in a bid to combat rising grocery prices could have a “chilling effect” on investment and jobs.
The Nationals have backed a Greens proposal to introduce divestiture powers allowing the Australian Competition and Consumer Commission to seek a court order to force supermarket chains to sell assets if they use their market power to unfairly inflate prices.
Greens economic justice spokesman Nick McKim will introduce a private senator’s bill on Wednesday to impose divestiture powers to “smash the supermarket duopoly” held by Coles and Woolworths and prevent the grocery giants from price gouging.
BCA chief executive Bran Black said the bill had “economy-wide reach” and could have negative effects on consumers by increasing prices and scuppering business investment.
“Given this bill’s economy-wide reach, it could have a chilling effect on business investment and jobs across Australia, at a time when we need to focus on growth and productivity,” he said.
“Policies should not be rushed, particularly if they could negatively impact consumers and the unintended consequences risk business investment and growth.”
The Greens announced plans to introduce the bill following a Senate inquiry into supermarket prices that is due to report in May, with Senator McKim arguing competition regulators had similar powers in the US, Britain, Ireland, Italy and The Netherlands.
“We need to stop supermarket corporations ruthlessly using their market power to gouge prices while raking in billions of dollars in profits,” he said.
“Giving our courts and competition regulators the power to smash the supermarket duopoly will help rein them in.”
“This isn’t a controversial or radical proposition.”
Nationals leader David Littleproud threw his support behind the proposal on Tuesday, revealing he had been “working constructively” with the left-wing party, marking what could be the start of an unlikely political alliance. “This is an important reform that Australians expect their legislators to lead, and to lead when there is clear evidence that there has been price gouging,” he said. “And for farmers, there has been fear and intimidation used on them in supplying fresh produce to our supermarkets. In this country, when the big three supermarkets own 74 per cent of the market, they are the market.”
Anthony Albanese during question time jokingly urged the Nationals to “break away” from the Liberals on the issue of grocery prices, quipping that he was surprised to see one half of the Coalition alliance siding with the Greens. “(Mr Littleproud) has said that the Nationals wanted to move (at) a lot quicker pace in terms of a compulsory grocery code, and I say to the leader of the Nationals, break away, break away,” he said.
“There are opportunities to break from the shackles of the Liberal Party that have been holding you back for all of this time. I encourage you to break away, but I am surprised that the Nats in breaking away have indicated their support for the Greens … He’s now saying that the tail, instead of being at the back of the Liberal Party dog, will be there wagging away in conjunction with the Greens.”
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