ACCC says regional areas paying too much for groceries

Senator Tammy Tyrrell, Independent Senator for Tasmania, says the ACCC Supermarket Inquiry interim report echoes evidence in previous supermarket inquiries.

“How many times do you have to bang your head against the brick wall before something sinks in?

“The ACCC Supermarket Inquiry highlights what we already knew: regional areas without competition are paying too much for groceries. Tasmanians are feeling the pinch at the checkout because we don’t have the option to shop around. There’s no ALDI or Costco.

“Competitors like ALDI say logistics make it difficult to set up in Tassie. That’s why I’m chairing a Senate Inquiry into freight costs across Bass Strait.

"Businesses are paying huge costs to get produce to and from the mainland. They can’t absorb that. It gets passed on to shoppers when they pay at the checkout. And it’s not just a Tassie issue. 80% of what’s sent across the Bass Strait is fresh food for sale in other states, so it impacts on prices for mainlanders too.

"The current government scheme to subsidise freight costs for businesses isn’t working. Fixing it to be fairer for businesses will help with grocery prices, help producers and make it more attractive for supermarket competitors to come to Tassie."

The ACCC interim report also commented on allegations of land banking and how it creates a barrier to entry or expansion for supermarket competitors.

“Burnie in North-West Tasmania is a town of 20,000 people. It has one Woolies and one Coles. There’s now a brand-new second Woolies being built five minutes from the other one.

"I’m not saying that’s land banking or anything dodgy. But I am saying Burnie didn’t really need a second Woolies.”

**I've launched a petition to bring ALDI to Tassie. Sign it here.