Federal Member for Flynn, Colin Boyce said families and farmers are paying the price, after three years of the Albanese Labor Government doing nothing to protect them against the major supermarket's profiteering and anti-competitive behaviour.
Mr Boyce said the Australian Competition and Consumer Commission (ACCC) Supermarkets Inquiry Final Report found what The Nationals have long been warning about, that 'Coles and Woolworths have limited incentive to compete vigorously with each other on price'.
"Coles and Woolworths don't have competition with the market because they are the market," Mr Boyce said.
"Labor's Mandatory Food and Grocery Code won't take effect until April 1, despite the cost-of-living crisis Flynn being now, not April 1, and the Coalition calling for action since 2022.
"The report also found, unsurprisingly, that our supermarkets make some of the highest profit margins in the world.
"Under Labor supermarkets can continue to price-gouge on families in Flynn and ditch suppliers with one simple tarnished product, because Anthony Albanese's 's measly fine of $198,000 could be pulled out of a till at any city that does nothing to change culture.
"This is while Flynn families and farmers suffer under Albanese's cost-of-living crisis - we know some families will go without a meal tonight.
"Anthony Albanese has also been too weak to stand up to the major supermarkets and has had the wrong priorities, making excuse after excuse for three years."
The report found over recent years, families in Flynn have been faced with increasing prices across almost all goods and services, with grocery prices (as represented by CPI food and non-alcoholic beverages) rising by more than other goods and services; about 24% compared to 22%.
However, Australians' wages have not kept pace with grocery inflation, and "by the end of 2022 and in early 2023 grocery prices were increasing at more than twice the rate of wage growth."
"The report further states, that "… compared to the pre-2022 period, prices remain substantially elevated relative to wages."
The report found some types of groceries have skyrocketed more than others in price since 2019, such as oils and fats (49%), eggs (47%), milk (34%), cheese (33%), and bread (32%), stating grocery prices have "increased significantly in Australia and impacted affordability for consumers".
The report also found regional communities are impacted most, as "market concentration is high, particularly in regional and remote areas".
Mr Boyce said the Coalition had a strong plan to crack down on major supermarkets and deliver fair prices, that included:
- Tough new penalties with $2 million on-the-spot fines - ten times higher than under Labor.
- Increased powers for the ACCC to conduct random audits of major supermarkets.
- A Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers, to address the fear of retribution.
- Sector-specific divestiture powers, in the hands of the ACCC and the courts, as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.
"All families and farmers in Flynn are asking for is a fair price but Labor has let them down. The Coalition will have the back of families and farmers.
"Our changes will protect families at the checkout and farmers at the farm gate."
