Queensland floats ‘state interest’ for supermarket sector competition

The news

Queensland’s Labor government will use its final day before the election caretaker period to launch public consultations on boosting supermarket sector competition through planning laws.

Ideas being put forward by the government include making grocery competition a “state interest” to help “accelerate new supermarkets”, particularly independent retailers, and reduce prices.

Premier Steven Miles said there was more to be done by the state to lift competition in the grocery sector and “drive down prices at the checkout”.Credit: Getty

A consultation paper to be released by the government on Monday will also propose new definitions to distinguish alternatives such as markets, corner stores and neighbourhood supermarkets.

The paper proposes a competition test for the development assessment process, “use it or lose it” approvals, and limiting “vexatious appeals” by competitors in the state’s planning court.

It also floats the statewide streamlining of what can be wildly inconsistent thresholds around how the proposed size of a new store means it is assessed by councils, and the costs of such applications.

Why it matters

An interim report from the consumer and competition watchdog published on Friday described the market, dominated by a 67 per cent share held by Woolworths and Coles, as an oligopoly.

Australian Competition and Consumer Commission deputy chair Mick Keogh said the ongoing inquiry would also look at the issue of “land banking” by the pair potentially restricting competitors.

Premier Steven Miles made tough-talk on the grocery giants on early part of his pitch to voters and Labor colleagues after he took over the leadership, but acknowledged the state’s limited powers.

But he had flagged, and a recent state parliamentary committee did hear evidence of before recommending, the potential use of planning laws for the state to exert some influence.

What they said

In a statement announcing the paper, opening for feedback from Monday until beyond the October 26 election amid souring Labor support and voter focus on cost-of-living, Miles said more could be done to lift competition and “drive down prices at the checkout”.

“We’ll seek feedback from industry and from Queenslanders on how we can best leverage our powers to do what matters,” he said.

“We’re not leaving any stone unturned, and this paper will look at what planning measures could be changed to encourage more independent retailers”.

Planning Minister Meaghan Scanlon

Perspectives

Representatives from Aldi and IGA operator Metcash raised many of the issues and proposals during the state inquiry in May, including Coles’ “acquisition” of Milton’s IGA.

Senior figures from both Woolworths and Coles stood by their property strategies, with Coles’ public affairs head Adam Fitzgibbons describing the Milton case as the “ordinary course” of business.

Fitzgibbons said a Col analysis over 10 years found 13 instances of a competitor taking over a Coles lease, and just five where Coles took over a competitor’s.

In a statement of reservation published with the inquiry’s report, LNP committee members hit out at the lack of focus on state-controlled costs to producing products such as energy, labour and taxes.

While noting their belief the grocery giants “must absolutely be held to account”, the statement only mentioned planning to note evidence heard about lacking approval compliance.

In July, the state’s two Greens MPs announced a pitch to cap prices of some essential items and set up a “Fair Prices Authority”.