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

My question is to the Assistant Treasurer representing the Minister for Competition Policy and Consumer Affairs, Mr Emerson. Last week retail giants Coles and Woolworths both announced moves to end geographic discrepancies in the pricing of thousands of grocery items to bring them more into line with competitor, Aldi. These moves would achieve the same outcomes as the Blacktown amendment bill that I cosponsored with Senator Joyce, which is designed to outlaw geographic price discrimination. Minister Emerson claimed in a speech in August last year that the Blacktown amendment was, in effect, ‘a conspiracy against the poor’, which he claimed would not increase competition but instead drive up prices. Can the Assistant Treasurer confirm that the government now believes Coles and Woolworths are involved in a conspiracy against the poor with its new uniform pricing policy?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I can confirm to Senator Xenophon that Coles announced on 27 January that it would introduce uniform national grocery pricing in its stores right across Australia. Up until that date—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Sherry, ignore those interjections and simply answer the question that has been asked by Senator Xenophon.

Honourable Senators:

Honourable senators interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Uniform cigarette prices came too late for me! I do note that up until that date, Aldi was the only supermarket chain applying the policy. In response, on 28 January Woolworths announced that it would reduce the shelf prices of thousands of supermarket products. Obviously, there are some positive national competition impacts here with Aldi adopting a national pricing policy. Coles decided for competitive reasons that it would need to do the same and then Woolworths—one day later, I noticed; I am sure it was not coincidental—responded with a reduction in prices. Senator, you referred to what is known as the Blacktown amendment, which was cosponsored by you and Senator Joyce, I noticed. On reading the brief that I have in front of me and from my recollection of the Blacktown amendment, it was not going to apply to national pricing. It was to apply to a particular product at any two retail locations that fall within 35 kilometres of each other. I point out that there is a significant difference between your amendment, known commonly as the Blacktown amendment, which sought to apply the same pricing for products within 35 kilometres, and the announcement by Coles to have uniform national pricing. I think they are similar but certainly not the same. Therefore, I think Mr Emerson’s— (Time expired)

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

Mr President, I ask a supplementary question. Does the minister concede that having a uniform pricing policy across the nation compared to just a 35-kilometre radius is in fact a stronger version of the Blacktown amendment? And does he repudiate Minister Emerson’s comments that, in effect, having uniform pricing is a conspiracy against the poor?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I was just about to point out, when referring to Minister Emerson, that his critique of the Blacktown amendment was, I believe, correct. I have pointed out that there is a distinct difference between pricing that government tries to impose, as you and Senator Joyce were attempting to do through the Blacktown amendment, across a 35-kilometre radius and national uniform pricing.

How would you enforce compliance, given your particular approach? You would have to actually draw maps and have circles with 35-kilometre radiuses and attempt to then enforce it. I think there would be a significant practical enforcement issue there. When you have got a company such as Coles that applies uniform national pricing, I would argue that that is pretty easy to enforce. (Time expired)

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

Mr President, I ask a further supplementary question. Does the government therefore support moves to have uniform pricing at a national level involving retail chains?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

We do not support the government passing a law to impose it. What we have seen, as I think I have illustrated very well, with the announcement by Coles on 27 January following Aldi and then the announcement on 28 January by Woolworths, is competition working much more effectively under Minister Emerson and the Rudd Labor government than it worked under the former government.