22 January 2008

ACCC Inquiry into the Weekly Supermarket Shop  

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

21 January 2008

Quality and Affordable Child Care to Help Fight Inflation

Ensuring access to quality and affordable child care will be a key pillar in fighting inflation under the Labor Government.

In an address to a Lord Mayor’s Breakfast in Perth today Prime Minister Kevin Rudd outlined Labor’s plan to implement practical measures to help people re-enter the workforce, such as providing more accessible child care

“Unfortunately many parents, especially women, feel locked out of the workforce because they are unable to find adequate care for their children. This is a frustrating dilemma for families with parents who want to work”, Senator Lundy said.

“With the ACT being ranked amongst the most expensive places in Australia for child care, this is especially critical. The average cost for full-time long day care in Canberra is $233 per week, that is $32 more expensive than the national average.”

“Further, like other states and territories, the ACT is facing a skills crisis and can not afford to have skilled people out of the workforce. That is why the Labor Government is acting to remove the barriers parents face when returning to work.”

From 1 July 2008 the Government will increase the Child Care Tax Rebate from 30 per cent to 50 per cent of out of pocket child care costs, covering up to $7,500 per child per annum. This is in addition to providing support to families through the Child Care Benefit.

The Child Care Tax Rebate will also be paid quarterly rather than annually so that families can receive this assistance closer to the time they pay their child care fees.

The Labor Government will also improve access to child care through the establishment of up to 260 new long day care centres on school, TAFE, university and community sites.

The Government’s child care policies will help thousands get straight back into work, helping to lift the productive output of the economy.

Contact:  Rachel Allen -  6230 0411 or 0418 488 295