Katter’s supermarket submission would overhaul grocer’s conduct
KATTER’S Australian Party MP Bob Katter has made four key recommendations which would completely overhaul the conduct of major grocers in his submission towards the Senate’s inquiry into supermarket prices.
After watching Australia’s farming numbers dwindle while the market share of major supermarkets Coles and Woolworths rapidly increased over the last two decades, Mr Katter laid blame on governments allowing the creation of a powerful duopoly.
“The power they have over Australian consumers and producers is unparalleled. Reform will put in jeopardy the $1 billion in profits each supermarket posted in August last year and the incredible influence they have over Australian families absorbing almost 80c in every household dollar spent,” Mr Katter said.
“They will use their power and money to fight against any reform and ridicule those that speak out. However, reform is not only justified, it is necessary to provide cost of living relief and allow Australian farmers to survive.
“Little has been done by successive governments to reign in this power. Almost all attempts by farming organisations to level the playing field have been met with contempt. Farmers are forced to compete against each other with the most compliant to the whims of the supermarket giants being the victor. Anyone would dare to speak out or use the avenues of complaint regarding unfair practices is severely penalised by being banned from future purchasing agreements.”
Mr Katter’s four recommendations include:
ANTI-PRICE GOUGING
This would include measures that compel supermarket directors and executives to provide robust and frank information to oversight bodies and mechanisms that allow consumers to express concerns about pricing without having to demonstrate a technical breach of the law.
DIVESTITURE POWERS
This would restrict market share to 23 per cent for corporations in the grocery sector and give powers to the Australian Government to force businesses that hold a near-monopoly or duopoly control over a market to sell down assets, as a means of ensuring concentrated markets remain competitive.
TARIFFS ON IMPORTS
By recognising the economic, social and environmental impacts of imported products, provide a blanket customs tariff of 5 per cent on all imports.
MAXIMUM 100 PER CENT MARKUP
This would define and cap the charges that a supermarket can put on producers or suppliers and a introduce a maximum markup of 100 per cent that supermarkets can charge on all produce.
“For example, if the farmer is receiving $1.50 for a kilo for produce, he actually takes home less than 2c once costs are covered. The supermarket on the other hand retails the same product at $4-5/kg.
“You don’t have to be great at maths to work out where the $1billon in annual profit for the supermarkets is coming from. If government is serious about tackling the cost of living, supporting Australian farmers and consumers and ensuring access to fresh fruit and vegetable it should immediately introduce 100 per cent mark up.”
