Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Minister Gallagher. Minister, isn't it the case that implementing a mandatory code of conduct will help redress the power imbalance between supermarkets and their suppliers but will do nothing at all to bring down the cost of food and groceries for Australian shoppers? Do you agree with the chair of the ACCC that increasing competition in Australia's supermarket sector would mean cheaper food and groceries for Australian shoppers? If you do agree with the chair of the ACCC, why won't Labor support the Greens' divestiture bill to create powers to break up the supermarket duopoly and bring down food and grocery prices for Australia's shoppers?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator McKim for the question. We don't agree with the Greens political party's policy on divestment. We have approached the issue around supermarket prices with a focus on using a range of interventions to ensure that consumers, those people who go and do their shopping at the supermarket, have the information they need. If you saw the CHOICE report that was released last week—

It showed that, if you do shop around, you can find savings on your supermarket bills. I think also that Woolworths' and Coles' response to that was interesting because it showed that they were looking at that report and they were responding to that report.

So increased information, transparency and funding CHOICE in order to provide that information to consumers are an important part of our plan. But we also, as you indicated, announced today the mandatory food and grocery code and the response to the Emerson Food and grocery code of conduct review. Our changes will ensure that supermarkets are competitive and that both consumers and producers get a fair deal. Of course, it is, as I said, part of a broader competition reform agenda, which can't be seen in isolation. So we've got the ACCC conducting an inquiry into supermarket prices, we've got the CHOICE report, we're increasing penalties for anticompetitive conduct, we've banned unfair contract terms and we've got some work underway on mergers reform. This is all part of making sure that we are doing what we can to ease Australians' cost-of-living pressures and ensure that they are getting the best outcome for their dollar, including that farmers get a good and fairer deal— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim, first supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Minister, will the government work with the Greens to make corporate price gouging illegal, or are you content to keep pushing out reports that tell people what they already know: that they're being ripped off by big corporations and you're going to do nothing about it? Why won't Labor make corporate price gouging illegal in Australia?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator McKim for the supplementary. It is illegal for businesses to fix prices or collude with other businesses.

It is also illegal for businesses to mislead customers about pricing. The ACCC is already inquiring at our instigation—we are the first government to do so—into supermarket prices, and we will consider their recommendations. I would also note that, in terms of the Greens political party's policy on divestiture, which some over there have dabbled with and are dancing with as well, Dr Emerson looked at this in his review and he found that it could actually make things worse, not better. He wrote:

If forced divestiture resulted in a supermarket selling some of its stores to another large incumbent supermarket chain, the result could easily be greater market concentration.

It's a classic Greens response. Go for the headline; don't do the hard work that actually underpins and makes the change.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim, second supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Minister, will Labor commit to rejecting political donations from supermarket corporations who have made billions in crisis profits by price gouging Australian shoppers? Will you back in Australian shoppers who are being price gouged, or will you back in the interests of the price gouging supermarket corporations who donate to the Labor Party?

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim, as I'm sure you know, that is not a question that goes specifically to the minister's responsibilities. I will, however, call the minister, and it is really her call as to which part of your question she answers or doesn't answer.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I note this is a common second supplementary from the Greens political party, where they choose the corporations that they don't like as opposed to the ones that they do like. For the ones they don't like, they require a situation where no-one's allowed to accept their donations. You'll take donations from the gambling industry, but you won't take donations from others. My answer to this is the same as it always is. The insinuation that you make with that question is beneath you, and if you have a genuine—

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Minister, please resume your seat. Minister Wong?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

On a point of order, I have let this go over three questions now, but there's a constant interjection from Senators McKim and Shoebridge when Senator Gallagher is on her feet, and I'd ask them to desist.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Wong. I have called the Senate to order, and I would respectfully remind senators once again—I'll call you to order—that you are asked to listen in respectful silence. Minister Gallagher?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

There are Commonwealth laws around donations and providing donations through the electoral system. Our position is that all donations need to adhere to that legislation.