Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

The cost-of-living pressures which affect working families are housing mortgages, the cost of petrol and the cost of groceries. On the cost of groceries, over the last 10 years food prices have risen an average annual rate of 3.8 per cent—well above the 2.9 per cent average for the CPI. A large part of the rise in the price of food can be attributed to the drought and high world prices for commodities such as grains. The government is keen to ensure that consumers have access to a competitive market for basic food items.

On 22 January 2008, the government directed the Australian Competition and Consumer Commission to undertake an inquiry into the competitiveness of retail prices for groceries under the Trade Practices Act 1974. Under the TPA the ACCC can monitor prices, costs and profits in any industry or business, as directed, and report the results. The ACCC has been instructed to take a broad approach to its inquiry and ensure all aspects of the grocery supply chain are included, from the farm gate to the checkout point, with the ACCC report due to the government by 31 July 2008. This is action which the previous government never undertook.

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