Supermarkets given reality check

Senator Tammy Tyrrell, Independent Senator for Tasmania, says that the major supermarkets have been given a realitycheck, following the release of the Senate Select Committee into Supermarket Prices report today.

“The major supermarkets have been left unchecked for too long. We heard from people in Hobart who are struggling to feed their families. Farmers who are shutting down family farms. Woolworths and Coles said they can do better to look after their customers. That’s the understatement of the year - the fear of the major supermarkets from consumers and producers is very real.

“The committee has come up with a range of good recommendations from how supermarkets advertise discounts, the establishment of a Commission on Prices and Competition and making the Food and Grocery Code of Conduct mandatory. 

“I’m especially pleased that we’ve recommended giving the ACCC real teeth to rein in the supermarkets. It’s long overdue for the ACCC - they’ve seen bad behaviour happening, and haven’t been able to do anything about it.

“Now it’s on Labor to act swiftly to implement these ideas. Australians are feeling the pain at the checkout and these recommendations shouldn’t be left to collect dust.” 

Senator Tyrrell has recommended the Australian Government investigate ways to remove barriers to entry for grocery retailer competitors, particularly in Tasmania and regional areas.

“Evidence at the inquiry was clear. When an ALDI comes to a community, people see prices at their local Woolies and Coles go down. More competition leads to better prices, and Tasmanians and regional Australia are missing out because they’re dominated by the two major supermarkets.”

Senator Tyrrell also recommended an independent review of the Food and Grocery Code of Conduct take place 24 months after becoming mandatory.

“Producers sat in front of the inquiry shaking and crying because of how they’re treated by the supermarkets. Making the Food and Grocery Code mandatory should fix the issue of verbal supplier agreements and impose fines if the supermarkets don’t play ball. 

“But we shouldn’t just assume things are fine and forget about it for another ten years. The review will check how these changes are working, and if they’re not, address them quickly. There’s a real concern about Australia’s food security if producers continue to shut down.” 

Senator Tyrrell’s additional comments also highlighted the importance of a price register for farmers to assist with pricing transparency, including greenlife products in the Food and Grocery Code of Conduct and independent arbiters to enforce the Code.

She also reaffirmed her support for the Australian Greens’ Divestiture bill, which is currently before the Senate.

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