Media Release

KAP Member for Kennedy, Bob Katter says the corporate culture of the Australia’s supermarket conglomerates needs a proper investigation and is close to breaching the criminal code.

Media reports that Woolworths is in court this week fighting allegations of unconscionable conduct over its Mind the Gap scheme of demanding extra payments to plug up to a $60 million profit hole.

Mr Katter said, “I’d like to know whether this behaviour amounts to an abuse of power contravening the Act.

“If this Woolworths case is correct and the 2014 case against Coles is correct (the ACCC found Coles also mistreated suppliers asking for payments to plug profit gaps) and they can tell suppliers – we want money off you, or else…. That is getting very close to breaching the ‘criminal’ code.”

Mr Katter has applauded the ACCC and its investigation which found the retailer took advantage of its market power to make 821 suppliers fork out payments of between $4,291 and $1.4 million each, with four days’ notice.

Mr Katter said , “The country owes a great debt of gratitude to Rod Simms (ACCC), who quite frankly has been the only public official elected, or non-elected that has had the moral and intellectual integrity and courage to do what he can against what he perceives to be clearly an appalling example of oligarchist power and alleged misbehaviour.

“Clearly we need anti-trust legislation like the Robinson-Patman Act in the United States to break up these huge conglomerates. A maximum percentage and that should also restrict foreign supermarkets down to a maximum of 5%.

“The continuing demise of agriculture in Australia must continue whilst there are only two buyers of food in Australia and only two sellers of food in Australia.

“Every statistical indicator would show that they have over 90% of the market. This makes farmers and supplier.”

In 2014 Mr Katter introduced a bill to Parliament to qualitatively reduce the stranglehold of the supermarket giants on Australia’s grocery retailing and food production; this would reduce the market share of all retailing giants to a maximum of 20 per cent each year within six years, with a Food Retailing Commissioner ensuring compliance.

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