Luke Hartsuyker (Cowper, National Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to his election promise to keep grocery prices low by establishing the GroceryWatch website, which was subsequently scrapped at a cost to taxpayers of over $8 million. Hasn’t the Prime Minister failed to deliver on his election promise?

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

On the question of competition within the food retail industry and therefore its impact on grocery prices, the government, through various ministers, has taken a range of measures. First of all, when it comes to foreign investors, for example, into the proper rollout of supermarkets across the country, we have deliberately changed the rules so that those who are seeking to invest are not required to have the construction of a new supermarket on the land they have purchased for the construction of that supermarket to be done within the normally constrained period of time which existed under the previous foreign investment rule.

Opposition Members:

Opposition members interjecting—

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

Those opposite interject that foreign competition from other major grocery retailers is somehow irrelevant to the grocery price. Can I suggest to those opposite it is not—it is highly relevant. Therefore, if you go to a range of other measures which concern also the way in which leases et cetera are operated—

Luke Hartsuyker (Cowper, National Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, a point of order on relevance: the GroceryWatch debacle has put no downward pressure on grocery prices—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Cowper will resume his seat. He cannot debate his point of order.

Simon Crean (Hotham, Australian Labor Party, Minister for Trade) Share this | Link to this | Hansard source

Mr Crean interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Minister for Trade, whilst not encouraging interjections, should refer to members by their parliamentary titles.

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

The honourable member asked me a question about competition and prices in the grocery sector and I was responding to his question. Firstly, the government has taken measures to enable foreign owned supermarkets like Aldi and Costco to more easily expand their operations in Australia. After the government made the change I referred to before, Aldi announced its plans to expand and open up a further 500 stores across Australia. If those opposite are suggesting that has no impact on competition within the grocery sector, I do not think they are analysing these facts and figures fairly. That is one measure.

Furthermore, can I also refer the honourable gentleman to what the government has done in relation to unit pricing. It becomes mandatory for major supermarkets from December of this year, and this will empower consumers to make informed choices about supermarket items that constitute the best value for money. On the question of unit pricing, which is a debate that has been going on for years and years and years, they had 12 years to act on this and we have been able to act on that within our first two years in office, and it comes into effect as of December this year. Furthermore, in September the ACCC ended restrictive agreements in leases between shopping centres and Coles and Woolworths which restricted rivals from setting up in shopping centres.

The honourable member asked a question about what in practical terms the government has done about grocery prices and the competition forces which underpin grocery prices out there in the community. There are three practical measures we have undertaken and implemented in our first two years in office contrasted with the 12 years of inaction on this by those opposite when they had ample opportunity to act—ample opportunity to go in there and make a difference—and they did precisely nothing.