Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to Senator Conroy in his capacity as Minister representing the Minister for Competition Policy and Consumer Affairs and relates to the GROCERYchoice website. At its launch in August this year, the GROCERYchoice site was attracting 3.3 million hits a month and now receives an average of 104,000 hits a month. The site has been roundly criticised in the media for failing to provide helpful information for consumers. These reports have included claims that the site does not provide a list of the cheapest supermarkets in any given area but, rather, simply tells which supermarket chain on average is cheaper than other chains in any given area. The reports have also made it clear that the site also lumps independent supermarkets in together, treating them as though they were one entity, even though they may have different owners and different prices. Given that the site is costing some $13 million over the next four years, could the minister update the Senate as to the status of negotiations between the government, the ACCC and the consumer organisation Choice regarding the possible takeover of the GROCERYchoice website by Choice?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

This government makes no apology for siding with consumers by putting more information about grocery prices in the public domain. The Rudd government made it clear when GROCERYchoice was launched in August that it would look at ways to give consumers more information. Since then, the government has been speaking to industry and consumer groups, including Choice, on how GROCERYchoice can be enhanced to provide further information to consumers. The ACCC, as the regulator, was always limited in its ability to provide additional information, such as weekly specials. That is why we are working hard to deliver to consumers a GROCERYchoice that is as useful and as helpful to consumers as possible. After all, we agree with consumers that they need more information, and we will continue to work at providing that to them.

What is interesting is that, after 13 years in government, the coalition maintains the view that keeping consumers in the dark is the best way forward. Well, we take a different approach, Senator Xenophon. Our approach is to say, ‘Let’s have transparency and empower consumers so they can find the best value at the supermarket or at the petrol station.’ Apart from the GROCERYchoice website, we are moving to a mandatory national unit pricing regime, which will allow consumers to easily compare the prices of different sized products. These are practical measures that the previous government gave no thought to. Choice has a well-developed degree of expertise to bring to the table. The consumer affairs minister has already— (Time expired)

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister assure the Senate that all relevant federal government procurement and competitive tendering guidelines have been or will be complied with?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The government’s decision to proceed with Choice was based on the view that Choice brought a unique expertise not available elsewhere. They have a vision for GROCERYchoice and providing the kind of information to consumers that was beyond the capacity of the regulator, the ACCC, to deliver. On 5 August the government announced the establishment of GROCERYchoice, and we make no apology whatsoever. We believe that Choice will absolutely be able to deliver on the government’s requirements.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Could the minister outline any changes Choice has so far proposed for the site that might ensure it could provide useful information for consumers?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

At this stage, my understanding is that the details are still being worked through with Choice and the government will have more to say on what changes consumers can expect to see with GROCERYchoice shortly. If I could just reassure the good senator as well as the chamber: there will be no additional cost to the taxpayer. Choice will manage the website based on the existing allocation of $13 million over four years.