Supermarkets win, farmers/consumers lose: Crossbench MPs call for real competition over coalition’s soft reforms
KAP Federal Member for Kennedy Bob Katter, together with Independent Member for Calare, Andrew Gee, have condemned the Coalition’s supermarket legislation combo introduced into Parliament today as being a dud and nothing more than a “lawyers’ picnic”.
Mr Katter, who introduced the Reducing Supermarket Dominance Bill 2024 in February this year said the Competition and Consumer Amendment (Tougher Penalties for Supermarket and Hardware Businesses) Bill 2024 and the Food and Grocery (Mandatory) Code of Conduct Bill 2024 fail to provide direct, immediate relief to both farmers and consumers and was akin to a “slap on the wrist with a wet lettuce” for the giants.
"These Bills do absolutely nothing to address the real issue: Coles and Woolworths paying our farmers a pittance while charging consumers through the nose," Mr Katter said.
"In any other country, this wouldn’t be tolerated. But in Australia, as long as people keep voting for the major parties, they’re going to keep paying 30 to 40 per cent more for their groceries than they should be. They talk about affordability, yet here we are — no action on food, no action on fuel."
Mr Katter stressed that the dominance of the supermarket giants has left Australian consumers and farmers with one of the most unequal playing fields in the world.
“Coles and Woolies are more powerful than the Government, money-wise. Even if someone were bold enough to challenge them, they could drag you through the courts for 30 to 40 years without breaking a sweat. Our farmers are among the most poorly paid in the world, while Australian grocery prices sit in the middle range globally, meaning everyone’s losing except for the big chains and their CEOs, who pocket obscene sums every year. These profits don’t drive competition — they kill it.”
Mr Gee echoed Mr Katter’s stance on the proposed legislation, saying that it would amount to nothing but empty promises.
“After all the ballyhoo and hype that the Coalition has put out about their divestiture policy, the legislation put forward by them today amounts to a disappointing fizzer,” said Mr Gee.
“As drafted, the divestiture powers are highly unlikely to be ever used, and if they are, will just amount to a lawyers’ picnic that will last for years and which will do nothing to stop the rampant price gouging in a cost of living crisis that’s occurring right now.”
Mr Gee said that the Food and Grocery Code of Conduct doesn’t just need amending as the Coalition is suggesting, it should be torn up and thrown out altogether.
“The Coalition is spruiking that the Code will now be mandatory but that’s hardly a win. The major supermarkets signed up to it a long time ago and it hasn’t stopped farmers and consumers being stung by them for years.
“When the Independents put our Reducing Supermarket Dominance Bill into the Parliament, all MPs were given the chance to vote on a law that would take real action to immediately wind back the power of the supermarket giants, but disappointingly none of the major parties supported it,” Mr Gee said.
“I don’t believe that the Coalition’s legislation will lead to any relief for farmers who are being price gouged at the farm gate or consumers who are being ripped off at the checkout. It’s all just smoke, mirrors and hype before an election that will deliver nothing more than false hope and a press release.”
Mr Katter went on to say that these proposed laws, which claim to curb monopolistic behaviour, fall far short of what's actually needed:
forced and mandatory divestiture;
maximum 100% mark-up on produce;
powerful and proven law enforcement body; and
scrapping of the Code of Conduct and "agent" vendor numbers used by supermarkets to regulate and control farmers.
“They’re talking about ‘testing the waters’ and saying they might divest if things don’t improve — but it’s been 30 years, and all we’ve seen is talk,” he said.
“The ACCC suing the supermarkets? That’s barely a line item on the supermarkets’ balance sheets. It’s a charade, a waste of taxpayer dollars, and frankly, an insult to farmers and consumers.”
In closing, Mr Katter called on Australians to demand real action and stop propping up major parties who prioritise the interests of corporate giants over working families and farmers.
ENDS
