The Nationals Senator for Queensland, Senator Barnaby Joyce, has warned against any part of Coles been purchased by Woolworths.

“It is apparent Woolworths are well and truly in the hunt to purchase a part of Coles. The current retail market is already overcentralised. Any purchase of Coles made by Woolworths is set to exacerbate the problem.” Senator Joyce said.

“These problems include predatory pricing, putting small independents out of business and the lack of a diversified market for the supply of goods. This means that if Woollies aren’t buying your product then you may have a lot of trouble selling it. They will have inordinate market power and will force down prices for the purchase of rural commodities. There is already a lack of diversification in the choice of supermarkets for the Australian consumer.

“If a continuation of the commercial relationship between the major commercial shopping centres and Woolworths continues, we will see more independents having to pay excessive market rental. This is displayed by Woolworths having an overwhelming market power in demanding a premium in negotiation for shopping centre space, which is then covered by the rental paid by other small retailers in the same shopping complex.

“Ultimately there is a lack of capacity for new entrants into the market. The current retail market climate restricts the right of all Australians to become small business people. Every Australian has the right to become a small business person, buying product and selling it to make a profit. We can’t let Woolworths continue to squeeze small business operators out of the market by restricting access to affordable products, or alternatively Woolworths dropping their prices lower, and for long enough to see a small business owner go out of business.

“If the one major retailer decides to buy products overseas, this will have a devastating effect on certain rural produces. For instances, if Woollies, after they purchase Coles, were to buy apples from another country, this would be decimating for Australian local Apple production.

“Australia is unique in the overcentralisation it is currently experiencing. Surely we cannot be contemplating on making it worse.” Senator Joyce said.