Senate debates

Tuesday, 14 May 2024

Statements by Senators

Grocery Prices

1:36 pm

Photo of Ross CadellRoss Cadell (NSW, National Party) Share this | Hansard source

During the break in sitting down here, we produced a number of committee reports. It was great to work on the Senate Select Committee on Supermarket Prices with so many across the chamber, chaired by Senator McKim of the Greens. With all the high-ranking recommendations, something that didn't grab a lot of attention was the treatment of big-box stores—retailers such as Bunnings, Chemist Warehouse, Ikea and businesses like that—and their influence on the market. We were looking at supermarkets primarily, so this was slightly out of scope, but the last recommendation was that we have a closer look at these big-box stores.

Some of the evidence we got was quite scary. While we were looking at supermarkets, where the big two have up to two-thirds, 66 per cent, of the retail market, evidence before us showed that Bunnings had 70 per cent of horticulture—trees, plants and these sorts of things—in the retail market. Their treatment of growers and suppliers is quite bad. They had no minimum orders and encouraged overplanting so that the prices remain low. It was quite concerning. People were scared to come and give actual evidence, but we heard things about how these big tool suppliers can actually get you to produce the same tool or product but put it in a different box, meaning you've got a different product number so that when you go to price match it—because 'lowest prices are just the beginning'—it's a different product. It's exactly the same thing you use; it's just a different product number. That's the sort of thing we're hearing about.

In the tool industry especially, we're already seeing charges that have been successful against people for retail price maintenance. We'll be working—the Greens are working with us, and we're working across the aisle—to bring an inquiry to have a look at this. You can't just say that some evidence is right without examination. These places need to be able to put their own views forward. Bunnings had a chance to come forward, and they put two spin doctors up—not a CEO or anyone with real knowledge—and that's not good enough. I look forward to working with the Senate in trying to get to the bottom of this and help Australians get a better deal.

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