The creation of a new regulatory targeting anticompetitive practices and beefing up laws to protect consumers at the checkout are among the key recommendations made by a Greens-led Senate inquiry into supermarket prices.
The Senate inquiry – chaired by Greens senator Nick McKim, who last month warned Woolworths boss Brad Banducci of the risk of jail time during hearing proceedings – on Tuesday released its final report and 14 recommendations including powers to break up big supermarkets, a strengthened food and grocery code of conduct, and the closer examination of land banking practices.
The Senate select committee on supermarket prices has released its final report.Credit: Dion Georgopoulos
The committee said it was a “matter of priority” that the Albanese government created a commission that would look at how various industries set prices along the supply chain, investigate mark-ups and profits, and conduct market studies to review what other restrictions are muffling competition and leading to higher prices.
“Such a commission would work in collaboration with the ACCC [Australian Competition and Consumer Commission]where high-level breaches of regulation would be referred to the ACCC for investigation and prosecution,” the inquiry report said.
“However, a commission could work more holistically on competition issues and have a more detailed pricing oversight function than would be appropriate for the ACCC, including requiring data transparency from supermarkets and publishing regular reports on pricing trends.”
This new body, the report recommended, should also be granted powers to force supermarkets to publish pricing data and provide access to profit data and price-setting policies. It said supermarkets should also publish reports at least annually.
Greens senator Nick McKim (left) and Woolworths chief executive Brad Banducci were at loggerheads in a hearing last month.Credit: Dion Georgopolous
While the Senate committee has jointly called for divestiture powers specific to the supermarket sector, the committee is split about the Greens-led divestiture bill that is currently tabled before the Senate.
“The committee was unable to agree whether the Senate should pass the Australian Greens’ Competition and Consumer Amendment (Divestiture Powers) Bill 2024, which would introduce economy-wide divestiture powers into Australia’s competition law,” McKim said in the chair’s notes.
