Huge move to bring down cost of groceries
Federal Treasurer Jim Chalmers has announced a series of new measures to help bring down grocery prices ahead of the release of a wide-ranging review into the Grocery Code of Conduct.
According to the treasurer, increasing competition among supermarket giants is key to placing “downward pressure on prices”, while also enforcing multibillion-dollar fines on retailers that fail to comply with the mandatory code of conduct.
This code is set to dictate how supermarkets like Woolworths, Coles, Aldi and IGA’s parent company Metcash deals with producers and farmers, which will in turn see a reduction of prices for everyday shoppers.
While Dr Chalmers stopped short of saying how far prices could drop, he told Sunrise’s Natalie Barr that a more competitive system would create “better outcomes for consumers,” and reduce grocery prices over time.
“If it is more competitive, more transparent and people are getting a fair go, better outcomes will be seen at the supermarket checkout,” he said.
The Treasurer said this would deliver a “fair go” for families, consumers and producers.
“We recognise that the supply chains need to be better for farmers, growers and producers,” he said.
“By doing that and making sure the supermarket sector is more competitive we can get better outcome for consumers.”
Although the Albanese government has affirmed its support for the review, conducted by former Labor minister Craig Emerson, the final report rejected calls to expand the reforms to non-supermarkets like Bunnings, Chemist Warehouse, and Dan Murphy’s.
“The review considers that the code should not be extended beyond supermarkets to cover other retailers,” the inquiry’s final report said.
“This is not to say that these markets are functioning well for all players in those markets.”
Image credits: MICK TSIKAS/EPA-EFE/Shutterstock Editorial/Shutterstock