Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

The comparable figure in the United States is 25.1 per cent. The figure in the United Kingdom is 11.6 per cent, while the relevant Canadian figure is 22.1 per cent. So food inflation in Australia has been much higher than in countries that we normally compare ourselves with. Of course, the response of the previous government was to shrug their shoulders and say, ‘Well, Australian working families have never been better off; therefore there is nothing we could or should do,’ but this government has a different approach.

Whilst recognising that there are a range of factors which lead into increases in grocery and food prices, it is appropriate that we ensure that the grocery market in Australia is as competitive as it can be. There are a range of factors leading to these increases, as we have always said. Whether it is the drought or the growth in demand for food from Asia, there are a range of factors. But the fact that Australia has had the highest food inflation amongst the major OECD countries is cause for concern and presents a good reason for further examination to get all the issues on the public record and all the policy proposals on the public record.

We believe that competition is the best way to put downward pressure on grocery prices in Australia. That is why, on 22 January, the government instructed the ACCC to commence a formal inquiry into grocery prices under part VIIA of the Trade Practices Act, implementing another election commitment of this government. This has been supported by a diverse range of groups, from Choice, on the one hand, to the National Farmers Federation, just today. I endorse the comments of the National Farmers Federation, which in its release earlier today said:

CONSUMERS – increasingly attuned to rising food bills – are justified in wanting to know what is driving higher food prices. Likewise, Australian farmers are just as eager for the Australian Competition and Consumer Commission (ACCC) to get to the bottom of where the money is going, the National Farmers’ Federation (NFF) said today.

I also endorse the comments of the vice-president, Charles Burke, who said:

… The truth is farmers only ever receive a small portion of the price paid at the check-out … There appears to be an increasing gap between farm-gate and retail prices, therefore, this is a good opportunity to find out exactly what is happening in the supply chain.

I also note that the Leader of the Opposition has called for the terms of reference for this inquiry to be expanded. I am not sure whether he supports it or opposes it or neither supports nor opposes it, but he has clearly called for the terms of reference to be expanded, so presumably he supports it.

The closing date for submissions to the inquiry has now passed, and there will be a range of hearings across the country in every state and territory, covering both rural and metropolitan areas. The inquiry has wide-ranging terms of reference and will examine competition and cost pressures at every point in the supply chain, from the farm gate to the checkout counter.

In addition, one practical measure the government can take to assist families in dealing with cost-of-living pressures is to give them more information about supermarkets in their area and which is generally cheapest. This will assist in a modest way to correct the imbalance between retailers and consumers and to bring more transparency—

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