Inquiry recommends strict controls on supermarkets

Senate inquiry seeks to keep supermarket pricing down (AAP)

Senate inquiry seeks to keep supermarket pricing down Source: AAP / JOEL CARRETT

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Price gouging could soon become illegal in Australia following the recommendation of a major supermarket inquiry. The landmark report seeks to tackle elevated food prices and contain supermarket profit margins as well as supporting competition.


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With the cost of living prices hitting Australian wallets harder every day, an increasing number of consumers are looking at alternatives to their grocery shopping.

Sydney supplier Box Divvy sources producers directly from farmers and sells to consumers through hubs, by-passing the big supermarkets.

Selina from Box Divvy says this gives them the opportunity to keep prices comparatively low.

“It's also the fresh produce that's really really attracting them as well as the lower cost now. As we all know, prices of most things are going up up up. And we are the only ones that are either keeping it or lowering it down according to how seasonal our produce is.”

Customers say it gives them greater confidence in their grocery shopping.

“We know it is giving the farmers a fair go, secondly we know what we are getting is fresh. hasn't been sprayed. Hasn't been in cold storage for a long time. And thirdly because of the community that it's creating.”

The move away from shopping in the aisles comes as the Greens-established Senate supermarket inquiry has released its findings.

One of its main recommendations is for the practice of price gouging to be made illegal to avoid the exploitation of the market domination by major supermarkets.

The inquiry's findings were handed down after six days of public hearings featuring some fiery exchanges between senators and supermarket bosses.

Woolworths C-E-O Brad Banducci last month was threatened with contempt of the Senate.

BANDUCCI: "With due respect we look at return on investment as the key measure..."

MCKIM: "Mr Banducci are you struggling with the ordinary English language?”

The committee has also called for the setting up of a Prices and Competition Commission and for the voluntary food and grocery code of conduct to be made mandatory.

Greens Senator Nick McKim says competition between supermarkets will help drive down prices for consumers.

“If we had more competition in the supermarket sector, we would have cheaper food and grocery prices in Australia. Now divestiture powers are a big stick that would allow for more competition to be required in the supermarket sector, for orders to be made, for Coles and Woolworths to divest assets, which would allow more competition in the supermarket sector and again, that would put downward pressure on food and grocery prices.”

Prime Minister Anthony Albanese says the government will consider the recommendations made by the committee.

“We know that there are two objectives here. One is to make sure that farmers get a fair deal for their work. The second is to make sure that consumers get a fair deal at the checkout. And we're determined to deliver on both.”

 


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