Gai Brodtmann (Canberra, Australian Labor Party) Share this | Hansard source

I will continue where I left off. While this comment from Justice French was not binding, and he did not express a view at the time as to his opinion on the outcome, it certainly highlights the possibility that, at some point in the future, the ACCC or a court could take this definition. In doing so, it would be very difficult to show that any one merger or acquisition had limited sustainability competition. This could potentially have a number of grave consequences, particularly in relation to creeping acquisitions.

Creeping acquisitions are those acquisitions which in and of themselves do not lessen competition but, taken as a collective, may have a greater effect over time. One area in particular that has been noted is grocery prices. Indeed, this bill is a direct result of the ACCC's inquiry into grocery prices and the government's subsequent public consultation on the matter. In the ACCC's report it stated that it considered that:

… the supermarket industry, because of the particular structural features of the market, is one where creeping acquisitions are a potential area of concern.

Further, I imagine that most Australians buy their groceries from local supermarkets, in most cases only a few kilometres from their home. Given that, the issues raised by Justice French in his comments over the definition of the market are problematic to say the least. It is important to note that, while these issues have not impacted on grocery prices, this is not an excuse for inaction.

We have identified two areas where action is needed and the imperative now is to take adequate action to address these concerns. In doing so, the government is responding with specific remedies to specific problems, rather than with general remedies that could well have unforeseen and detrimental consequences on competition and on the economy as a whole. The government action today is one of the measures I highlighted earlier. It is a measured and appropriate response to the long-term interests of competition, economic growth and the country. In this light, I commend the bill to the House.

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