Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

I thank Senator Crossin for the question. I know this is a matter that should concern all senators. On the basis of claims that have been put to me by reputable firms, there is serious cause for concern about the abuse of market power. Today I informed the Australian Food and Grocery Council that I have taken steps to put before the ACCC for a proper and independent investigation information on a number of widespread allegations made by Australian food producers and food manufacturers. There is a series of widespread allegations concerning the misuse of market power by the major retail chains in this country, who are now able to control some 80 per cent of the retail food sales in this country.

Very few people are prepared to speak out on these matters given the nature of market relationships. However, Heinz has done so. In practical terms, if you do not deal with Coles or Woolworths you are out of business. There are a number of complaints, including the auctioning off of shelf space with a view to excluding competitors; extracting concessions in contract negotiations by denying access to shelf space; arbitrary deduction of costs for stock-handling services, even when those services are not required; the rescinding of contracts mid term; and the use of home brands to destroy the intellectual property of suppliers. For example, I am told that suppliers are forced to divulge their product plans 12 months in advance to major supermarket chains and that, having disclosed these plans, they find copycat products being developed as home brand products. (Time expired)