Matt Burnell (Spence, Australian Labor Party) Share this | Hansard source

I move:

That this House:

(1) acknowledges that cost of living pressures, including the cost of groceries, are putting Australians under the pump;

(2) notes that to ensure that Australian consumers and suppliers are getting a fair deal, the Government has:

(a) directed the Australian Competition and Consumer Commission to conduct a pricing inquiry into the competitiveness of retail prices and allegations of price gouging in the supermarket sector;

(b) commenced an independent review of the Food and Grocery Code led by Dr Craig Emerson, which will examine whether the code is effective in ensuring Australian suppliers and farmers are getting a fair go; and

(c) partnered with consumer advocacy group CHOICE to regularly provide shoppers with better information on the comparative costs of grocery goods at different retailers; and

(3) recognises these measures are further examples of the Government ensuring everyone is doing their bit when it comes to easing the cost of living crisis.

The rising cost of living is something that the Albanese Labor government takes extremely seriously. There are many aspects to the rising cost of living involving the bare necessities—the cost of keeping a roof over your head, the cost of keeping the lights on, the cost of feeding yourself or your family. Buying groceries recently has been an experience in which all but the wealthiest among us would have noticed the cost of our weekly shops going up and the quantities in our trolleys going down.

This is a crisis that affects everyone, no matter where you are in the country, but it is certainly something that regional communities and those already doing it tough are feeling the hardest. My home state of South Australia, in particular, is hardest experiencing these rising costs at the check-out. In fact, between 2021 and 2023, Adelaide grocery prices experienced a cumulative increase of 16.4 per cent, a steep increase compared to the 14.8 per cent increase in Sydney.

In the 2022-23 financial year, only 18 per cent of the food and grocery sector market share went outside the four biggest players in that market, with 10 per cent going to Aldi and seven per cent going to Metcash, who owns stores such as IGA and Foodland. This means that a whopping 28 per cent of the market share went to Coles and 37 per cent went to Woolworths. With 65 per cent of the market concentrated between two players, you would be forgiven for using the term 'duopoly' to accurately describe the state of play in the food and grocery sector. This is contrasted against the UK, where the big two, Sainsbury's and Tesco, account for 42 per cent of the food and grocery sector.

These findings go hand in hand with those of the UBS Evidence Lab, who tracked online prices of around 60,000 grocery items at Coles and Woolies over the last financial year. Across those 60,000 items, it was noted that prices increased by 9.6 per cent during that time—a time when CPI figures for food and non-alcoholic beverages increased by 7.9 per cent.

This is just one of the symptoms of a highly concentrated grocery market, with many more negative impacts being felt all the way down the line from farm gate to dinner plate—impacts like families relying on charity for their household groceries and food banks noticing an increase in families using their services on a more regular basis from households with one or two incomes. This has meant that families have been resorting to buying and making do with less after many have already sacrificed fresh protein, fruit and vegetables due to the prohibitive costs compared to just a few years ago. This is in stark contrast to what is experienced by many in the agricultural sector who are not seeing the price increases experienced by consumers correlate to anywhere near the price they are taking from their biggest customers. 'The price they are taking' is an apt phrase indeed, as many farmers, some more quietly than others, are relegated to being price takers in a market that is as concentrated as it currently is.

As a member of the House Standing Committee on Agriculture, I was proud to have been part of the inquiry on food security. The committee's reported entitled Australian food story: feeding the nation and beyond touches on food security through a number of lenses, from health all the way through our national security. It also emphasises the impacts of food insecurity. It speaks to the impacts of losing Australia's agricultural industry, which supports thousands of jobs nationwide beyond the 1,700 direct jobs the industry supports in my electorate of Spence. I would also direct members to read the Inquiry into price gouging and unfair pricing practices final report, launched by Professor Allan Fels AO, for further commentary on the impacts of our food and grocery market. That forms a part of his report. Also, I would direct members to the ongoing inquiry being undertaken by the Senate Select Committee on Supermarket Prices.

Some of the issues relating to supermarket pricing, the structure of the market and the impact on the cost of living are systemic and structural. This is why the Albanese Labor government appointed Dr Craig Emerson to lead the government's 2023-24 Review of the Food and Grocery Code of Conduct. This is coupled with an additional $1.1 million in funding to consumer group Choice to provide price transparency within the sector and provide much-needed pricing information for consumers so they can make better informed choices while this report and others are ongoing.

In closing, I would encourage as many stakeholders as possible to engage with the consultation process and to be part of a solution that positively impacts on producers and consumers alike.

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