Queensland Nationals Senator Barnaby Joyce has revealed how consumers are paying grossly inflated prices because of the market domination of big business in the retail sector.

“Basic grocery items like milk, brown onions, meat and Coca Cola are being sold at overblown prices in supermarkets because of the domination of Coles and Woolworths.

“Brand name clothing and footwear imported from China are being sold in Australia at prices much higher than in the US – despite cheaper sea freight to Australia and despite years of tariff reductions.” Senator Joyce said.

Senator Joyce detailed, in Parliament, research conducted by the Southern Sydney Retailers Association.

“The research showed how butchers in major shopping centre complexes paid up to ten times more for their floor space than Coles and Woolworths stores within the same complex.

“The research also showed that since 1990, food prices in Australia's Big Two-dominated supermarket sector have risen more than 70 per cent.

“However, in the United Kingdom, where there are more players in the retail grocery sector, prices at the supermarket rose just over 30 per cent in the same period.

"The true scandal of this situation is that in the last 10-15 years in all other developed countries, food price inflation at the supermarket has been less than general inflation.

"Australians are being exploited by the big players in the retail sector.

"The proposed sale of Coles and its likely purchase, in part, by Woolworths would exacerbate the excessive market power Woolworths has – and this should not be allowed to occur.

"No wonder private equity firms think Coles will be a good buy. They must think they have stumbled across a real gem – we need laws strong enough to encourage competition against the large players and protect small business.

"I am renewing the calls I, and others in the National Party, have been constantly making for a strengthening of Section 46 and Section 51 (a) (c) to put an end to the sort of misuse of market power and unconscionable conduct we are seeing.

"Small businesses and consumers in the UK and US are reaping the benefits of more players in the market and fairer competition laws. Australian small business and consumers deserve no less." Senator Joyce said.

Senator Joyce's full speech is available from Senate Hansard