Coalition strikes deal to design new supermarket law

National leader David Littleproud has reached a deal with the Liberals for new Coalition legislation around breaking up the Woolworths and Coles supermarket duopoly.

National leader David Littleproud says he has struck a deal with the Liberals to design Coalition legislation around breaking up the supermarket duopoly.

As Coles and Woolworths continue to come under fire for their dealings with farmers and perceived price gouging, the push to force supermarkets to divest is gaining ground – but as yet has failed to attract the support of a major party.

The Nationals-led legislation would be the third proposed Bill on the subject, with the Greens tabling a divestiture Bill in the Senate and Kennedy MP Bob Katter also putting forward similar laws in the lower house.

Leader of the National Party David Littleproud. Picture: Martin Ollman

While Mr Littleproud said the Nats “agreed with the intent” of the Greens’ Bill, he said there were “deficiencies” in the legislation that “could have serious unintended consequences in not actually increasing competition”.

Mr Littleproud said he had struck a deal with the Liberals’ treasury spokesman Angus Taylor, to be taken to party room meetings on Tuesday, for legislation covering divestiture power as well as the grocery, dairy and horticulture codes of conduct.

“We’re looking solely at the supermarkets and honing in on the pressures and the evidence that we have seen around the egregious behaviour of these supermarkets,” he said.

The federal government has so far ruled out divestiture, with Prime Minister Anthony Albanese saying Australia was “not the Soviet Union”.

The Business Council of Australia also criticised the Greens’ Bill, arguing it would make the cost-of-living crisis worse and that the last three major competition reviews all rejected divestiture powers.