Business warns against Greens, Nationals push to break Coles, Woolworths stronghold
Big business has warned of the ‘negative’ effects of a fresh push to break up the supermarket giants.


News.com.au
March 19, 2024

Business groups say the Greens’ plan to break up major supermarket chains found to be abusing their market power would have a “chilling effect” on the economy.

Under a new Bill to be introduced by the Greens on Wednesday, Australia’s consumer watchdog would have the power to ask the courts to split up supermarket giants and crack down on duopolies.

The divestiture legislation would allow the Australian Consumer and Competition Commission to break up powerful corporations and if passed, the likes of Coles and Woolworths could be forced to divest assets that are “misusing their market power to inflate prices, exploit their supply chains, or keep out competition”.

But the Business Council of Australia said the Bill could potentially have serious unintended consequences that could result in consumers “paying more, rather than less”.

Business Council chief executive Bran Black said. the Greens’ Bill could have a ‘chilling effect’ on the economy. Picture: NCA NewsWire / Martin Ollman

BCA chief executive Bran Black pointed to the last three major competition reviews, conducted between 1993 and 2015, all considered divestiture.

But they stopped short of recommending it, warning of the “negative flow on effects”.

“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.

“This Bill puts the cart before the horse given the nine supermarket inquiries underway. “We should let those inquiries run their course and then discuss any policy changes and consult on them properly so consumers benefit and jobs are protected.”


Professor Allan Fels has long been calling for Australia to acquire divestiture powers.

Former ACCC chair Allan Fels, referring to the success of similar laws in the US, said divestiture powers had “always” been missing from Australia’s competition law.

“It’s been missing not for reasons of economic logic – the economic logic is extremely strong,” professor Fels said.

“It’s been missing because there hasn’t been a political willpower of governance to do it, in the face of big business opposition.”

He said the time was right “now” to change the rules.

“There’s been a step up in the degree of concentration in the Australian economy … Concentration is increasing and the amount of competition is declining,” he said.

Nationals Leader David Littleproud has flagged he could support the Greens’ Bill.   

The Nationals have flagged they could support the Greens’ Bill, with leader David Littleproud saying the laws would act as a powerful deterrent to force supermarket chains to do the right thing.

“I think we’ve gotten to a juncture now where protections need to be given to farmers and to consumers,” he told reporters.

“We want to work to make sure we get the architecture right and if we don’t get it right we miss out on the opportunity to get that protection.”

While supporting most of the Greens proposal, Mr Littleproud said he wanted to see a grocery code of conduct made mandatory for grocery retailers and tighter regulations focusing on supermarket power.

“There are some real, granular issues that need to be addressed with supermarket power and market dominance,” he said.

Greens senator Nick McKim will introduce a Bill that, if passed, would allow the ACCC to break up duopolies.

Under the Greens bill, the ACCC could apply to the courts for a divestiture order that could either force the sale of a suite of specific stores held by Coles or Woolworths, which would then have to be sold to a competitor or an international operator wanting to enter Australia; or increase competition within their supply chain.

Economists say the mere existence of the powers would serve as a deterrent against bad behaviour, and would protect consumers.

Greens’ economic justice spokesman Nick McKim said Australians were sick of being ripped off by Coles and Woolworths.   

What Does a Victim Mentality Mean?
"It’s not my fault." Someone who acts from a place of victimhood claims things that happen to them are the fault of someone or something other than themselves. It might be the fault of their partner, family, co-worker, friend, or "the way the world is." They frequently complain about the bad things that happen in their lives. They are reluctant to take personal responsibility, asserting that the circumstances aren’t in their control.

they develop a negative view of life, where they feel that they don't have any control over what happens to them. Because they don’t think anything is their fault, they have little or no sense of responsibility for their lives. It just happens to them.

If someone tries to help or offer solutions, they’re often prepared with a list of reasons why that will not work. People who try to help are often left frustrated and confused.

Brussels sprouts were $16 per kilo at Coles on Wednesday.

I wonder what they were paying the farmers for them?

aquascoot wrote on Mar 22^nd, 2024 at 6:26am:



I love them.
I've grown them before - they are easy to grow but
where do they get them from at this time of the year?
It's been too hot in Victoria.
Maybe Tassie?

Bobby. wrote on Mar 22^nd, 2024 at 6:29am:

Ah... there's the rub.

Eat SEASONAL veggies. Wanting stuff out of season, all year round - bad for your wallet and your well-being.

Quote:


Would you prefer if the farmers went broke and the "slaves" were out of a job?

How about some corn?

$7.90 for 3 little pieces.

And if the problem is really caused by Woolworths and Coles, why are their prices similar to those charged by IGA, ALDI and traditional fruit and vegetable shops?