Today’s announcement by Coles and Woolworths offering so called discounts on petrol purchases should be treated with scepticism given that the market power of Coles and Woolworths enables them to push up petrol and grocery prices to the detriment of consumers
There’s no such thing as a free lunch when it comes to the majors says Senator Joyce.
These so called discounts have to be paid for and unfortunately it’s the consumer that’s paying for them through higher petrol and grocery prices.
We should also be incredibly cautious about offers put out by major supermarkets which could be the final nail in the coffin for so many independents.
We need to remember that so called discounts only last as long as the independents do because once the independents are gone the majors will jack up their prices to line their own coffers.
The major supermarket chains are growing in power and size and that gives them considerable ability to push up prices but also to drive out the remaining independents from the market.
At the heart of the problem is the over centralisation of the market which has been allowed to happen by a weak Trade Practices Act.
Our Trade Practices Act lacks the teeth to deal with the over centralisation of the market.
We need a stronger Trade Practices Act and this requires effective laws against creeping acquisitions by the major supermarket chains.
Over the years both Coles and Woolworths have bought out more and more independents which has reduced competition.
The Trade Practices Act has failed to stop these creeping acquisitions and consumers are paying higher prices as a result.
Effective laws against creeping acquisitions will help ensure that independents remain a viable and competitive force in the market.
Independents are critical to keeping prices down for consumers and we should not allow them to be ambushed by the major supermarket chains through such predatory practices as geographic price discrimination.
Through this practice the major supermarket chains can push up petrol and grocery prices in those local markets where there are no independents.
That’s why Senator Xenophon and I are co-sponsoring the Blacktown amendment, a law designed to put an end to geographic price discrimination and give consumers guaranteed lowest prices in all suburbs.
In the meantime I call on the ACCC to enforce the Birdsville amendment against predatory pricing which despite nearing its two year anniversary the ACCC has yet to issue any guidelines for, let alone started any cases under the amendment.
Unless we get effective competition laws and strong enforcement of those laws consumers will end up paying more and more for their petrol and groceries putting Australian family , working farmers, and small businesses under even more financial pressure.
Media Inquiries
David Allender
07 4625 1500
0428 196 340