Media Release

SMALL businesses and farmers around Cairns are among the victims in communities across Australia of a retail grocery market share concentration unseen anywhere in the world, said KAP Federal Member for Kennedy Bob Katter today from Gordonvale, a historic sugar community awaiting a “face changing” court decision on a proposed supermarket giant development.

“These people are battling,” said Mr Katter from the proposed Woolworths site on the Bruce Highway, where he was joined by the local Edmonton Traders Association.

“Some of their employees probably earn more than they do. So how are they going to take on giant monstrous corporations?

“Whilst it’s very difficult to prove someone is actually trying to get rid of competitors, there’s cases where the supermarket giants are going up a few hundred metres from existing supermarkets.”

Mr Katter’s comments follow a week in which:

• Tableland potato growers warned they were at risk from the supermarket giants’ sourcing policies despite public ‘buy local’ campaigns;
• communities from Bendigo to Coffs Harbour to Airlie Beach each faced various battles to keep the supermarket giants out; and 
• a 45c/L discount petrol price war by the supermarket giants preceded price hikes not seen in five years – with the difference from 2008 record prices being a greater profit margin this time round.

But the “unconscionable margins” did not stop at fuel, warned Mr Katter in citing the 500 per cent mark-up between the retail price for potatoes compared to the declining prices that farmers are paid.

Mr Katter said government needed to empower people against the corporate might of the supermarket oligopoly by legislating proposed laws the KAP has put to Parliament that make it illegal to hold more than 20 per cent market share.

“But don’t expect any mainstream MPs from the corporate-controlled major parties to be interested in concentration of market power where small businesses are being wiped out and the consumer pays five times as much,” said Mr Katter.

Mr Katter dismissed recent criticism of the KAP’s Reducing Supermarket Dominance Bill by the head of Coles, and said stores would not close but rather “simply be owned by someone else – which is great for competition, communities and shareholders”.

“The government must be forced to intervene, just like they have in the United States,” said Mr Katter.

“Or when they’ve wiped out all the competition, they’ll be able to charge us whatever they want – for food, petrol, hardware, liquor… the list goes on and on.”