I welcome the Rudd Government’s direction to the Australian Competition and Consumer Commission (ACCC) to commence a formal inquiry into grocery prices.
Last year I conducted a local Grocery Price Watch over two months finding that prices of a basic basket of goods, including milk, bread, meat and fruit, at local supermarkets fluctuated regularly.
The same basket of goods ranged from $18.34 up to $25.03 across the different supermarkets over the two month period. “I know that many local Canberra families are finding it difficult to make ends meet.
This is made even harder with the high costs of housing and child care and fluctuating petrol and grocery prices.
The inquiry announced today is designed to make sure that local families are getting a fair deal at the supermarket”, Senator Lundy said. “The ACCC will be able to take a broad approach to its inquiry and ensure all aspects of the chain are included – from the farm gate to the check out counter.”
The inquiry will consider the current structure of the grocery industry at the supply, wholesale and retail levels including mergers and acquisitions by the national retailers; the nature of competition and the pricing practices in the grocery industry; and factors influencing efficient pricing of inputs along the supply chain.
Labor promised an inquiry into grocery prices before last year’s election.
This decision fulfils that commitment and demonstrates Labor’s commitment to fight inflation on behalf of working families.
The ACCC is required to report to the Minister by 31 July 2008.
Contact: Rachel Allen – 6230 0411 or 0418 488 295
