Coalition unveils divestiture plans to keep 'supermarkets in check'
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The news: The Coalition has vowed to introduce stronger penalties for anti-competitive behaviour in the supermarket and hardware sectors, as well as sector-specific divestiture powers as a last resort to address supermarket price-gouging.
The context: In a joint media release on 'keeping supermarkets in check', opposition leader Peter Dutton, nationals leader David Littleproud and shadow treasurer Angus Taylor said that divestiture powers will address serious allegations of land banking, anti-competitive discounting, and unfairly passing costs onto suppliers.
They said there would also be appropriate safeguards in place, ensuring divestiture won’t lead to a loss of jobs and services, the statement said.
The Coalition said it would match Labor's plans to strengthen the Food and Grocery Code by making it mandatory for supermarket chains with annual turnover of more than $5 billion — Woolworths, Coles, Aldi and Metcash. Supermarkets will face infringement notices of up to $2 million for contraventions of the Code.
Tougher civil penalties for supermarkets would apply to contraventions of the mandatory industry code, starting from $10 million. The penalties would be backed by a supermarket commissioner, who would act as an impartial confidential avenue for farmers and suppliers. The new appointment would be created to address the fear of retribution for speaking out against supermarkets.
The source: Leader of the Opposition media release
