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Supermarkets exploit loopholes while families struggle amid Labor's food code delays and ineffective enforcement measure

One year after Labor's Food Code review began, supermarkets still exploit suppliers, with price gouging burdening families and farmers. The Coalition advocates stronger ACCC powers and a Supermarket Commissioner for accountability.

By news@gippsland - 9th January 2025 - Back to News

Exactly one year since Labor appointed Dr Craig Emerson as the Independent Reviewer of the Food and Grocery Code of Conduct, supermarkets continue to price gouge and get away with unfair behaviour. Leader of The Nationals David Littleproud said it is clear Labor still isn't doing enough during a cost-of-living crisis.

Labor delayed action by appointing Dr Emerson, ignored 2022 Coalition calls, and left farmers fearing retribution, Mr Littleproud said

Retail power imbalance

The Food and Grocery Code Independent Reviewer Annual Report is still nowhere to be seen, while the previous report from 2022-23 states suppliers continue to report that fear of damaging a commercial relationship and fear of retribution is the primary obstacle to alert buying teams of any issues.

Mr Littleproud said fear of retribution remains an enormous problem and issues between suppliers and supermarkets are still being felt by families at the checkout in 2025. "Labor has failed to implement real change, after previously wasting 100 days appointing Dr Emerson and ignoring the Coalition's calls for action as far back as 2022."

"Farmers and suppliers still fear repercussions from complaints and the lack of an annual report for 2023-24 shows Labor isn't taking the issue seriously. Under Labor and the current system in place, supermarkets continue to get away with what they want, when they want. Labor's Food and Grocery Code of Conduct won't even come into effect until April this year, despite the cost-of-living crisis being now, not in April, but even then it still won't go far enough," Mr Littleproud said.

Supermarket commissioner needed

Mr Littleproud also said, "Families and farmers desperately need the Coalition's policy in 2025 because in contrast, the Coalition's plan will give the Australian Competition and Consumer Commission (ACCC) powers to audit a supermarket at any time to ensure they are dealing with farmers fairly."

"The Coalition's plan will create a Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers to also address the fear of retribution. This will be a game-changer for farmers and suppliers because it will change culture and protect those who need it most. We desperately need the Supermarket Commissioner in place now," he said.

Stronger penalties planned

The Prime Minister promised last year "if the ACCC asks for more powers, then my government will give it to them" but Labor then ruled out divestiture powers. In contrast, the Coalition will introduce sector-specific divestiture powers - in the hands of the ACCC and the courts, not politicians - as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.

"We will have infringement penalty notices, or on the spot fines, of $2 million, compared with Labor's measly amount of $198,000, which could be pulled out of a till at any city supermarket and does nothing to change culture," he said.

Supermarket reform urged

National Farmers' Federation Horticulture Council member Jeremy Griffith spoke at the Senate inquiry into supermarket price gouging. He said while it is positive that the public has been made aware about the need to protect both consumers as well as farmers, it is still an open question whether fruit and vegetable growers would see meaningful change in their daily trading relationships.

"We have identified a number of shortcomings with the updated Code and we are yet to see the ACCC empowered and receive the resources needed to hold supermarkets to account. Our view is that the government should have divestiture powers on the table, as an additional tool for influencing behaviour and deterring the worst practices of supermarkets, that ultimately undermine the sustainability of our national fruit and vegetable industries," Mr Griffith said.

Pictures from David Littleproud MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com