Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

I want to thank the member for Spence for moving this motion and for highlighting the importance of ensuring a competitive and robust marketplace for both consumers and suppliers. There is no better example of the impact that anticompetitive practices can have on people in my community than at the supermarket checkout. We saw this last week when the ACTU released the report from its inquiry into price gouging and unfair pricing practices led by Professor Alan Fels, which documented many examples of uncompetitive behaviour experienced by Australians at our supermarkets. For example, one consumer, John, submitted to the Fels inquiry the following: 'Up until August 2022, Coles and Woolies sold 200 grams of Robert Timms coffee for eight bucks, or $4 when on special. In early August, Coles increased the shelf price to $12.70 per jar. However, a couple of weeks later, the price was reduced to $10.70 per jar, with a shelf tag saying the price was now down, down.' Practices like this, where retailers advertise 30 per cent price increases as discounts, are unfairly and deceptively punishing consumers at a time when cost-of-living pressures are already putting Australians under the pump. That is why the Albanese Labor government has committed to an ACCC review of supermarket pricing to examine the competitiveness of retail prices that Australians are paying for everyday groceries. This comprehensive inquiry will consider the structure of the supermarket industry right up and down the supply chain to ensure that all factors influencing prices are considered and that Australians do get a fair deal.

The Albanese Labor government is also partnering with the respected consumer group Choice to provide price transparency and comparison reports on supermarkets to better equip Australians to make informed decisions about where they shop. It is a basic economic principle that giving buyers more information about pricing will boost the efficiency of markets and ultimately give consumers a better deal. The Choice reports will do exactly that by providing better information on the comparative costs of grocery goods at different retailers, highlighting those charging the most as well as those charging the least.

The Albanese Labor government is also committed to ensuring that supermarket suppliers get a fair deal—that the Aussie farmers and producers stocking our shelves right around the country are getting a reasonable price for their produce. That's why we have commenced an independent review of the Food and Grocery Code of Conduct, led by Dr Craig Emerson, to look at whether the code is effective in improving the conduct of supermarkets towards their suppliers. We know that there is an enormous imbalance of bargaining power between farmers and our major supermarkets, which can result in harmful practices and poor business behaviour at the supermarket end. For example, the Fels inquiry found that power imbalances in the grocery sector often result in farmers being forced to accept prices that don't cover their costs or reflect the fair value of their labour and investment. Given that our supermarkets are enjoying record profit margins while consumers and suppliers alike battle with rising costs, these reviews are essential to ensure that the sector gives all Australians a fair deal.

This is just another example of how the Albanese Labor government's focus on the cost of living, wages, jobs and competition is ensuring that everyone does their bit to provide much-needed relief to taxpayers and consumers. That's why we've introduced tax cuts for every single Australian taxpayer from 1 July. It's why we're delivering $23 billion in targeted cost-of-living relief. We're making medicines cheaper, delivering cheaper child care, providing electricity bill relief, expanding paid parental leave, providing more fee-free TAFE places and seeing wages rise at the fastest rate in a decade. We've done this while delivering the first budget surplus in 15 years—the first surplus since Labor was last in government. After nearly a decade of Liberal economic mismanagement that left us with flatlining wages, the worst productivity figures for 50 years and $1 trillion of Liberal debt, the Albanese Labor government is getting on with building a stronger and more competitive economy that works for Australians.

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