‘Protecting the big boys’: Clash on supermarkets

Social Services Minister Amanda Rishworth and senior Coalition senator Bridget McKenzie have traded blows on how to crack down on supermarkets, with the opposition frontbencher accusing Ms Rishworth of “protecting the big boys”.

Australia’s consumer rights watchdog is investigating the sector amid concerns over price setting practices and market concentration.

The Albanese government has introduced a range of measures aimed at fighting foul play in Australia’s duopolous supermarket sector.

But the opposition has called for divestiture, or forcibly breaking up Coles and Woolworths.

Commenting on the Australian Competition and Consumer Commission (ACCC) probe, Ms Rishworth said on Tuesday the “inquiry is very important.”

“The ACCC is doing its job of making sure that there’s scrutiny on our supermarkets and … we are wanting to take action on the supermarkets,” the federal minister told Nine’s Today, appearing opposite Senator McKenzie.

“We have taken action by making the voluntary code mandatory, by looking at our merger laws, at increasing competitiveness with the states and territories, and importantly, addressing things like shrinkflation … which is also about looking at higher penalties when supermarkets try and sell us less for the same price.”

A separate senate inquiry earlier this year found that both Woolworths and Coles were buying up sites without developing them.

Woolworths has repeatedly denied it was land banking, including to the ACCC on Monday, arguing they were strategic purchases for longer-term planning.

Senator McKenzie said Woolworths and Coles were “blocking out competitors from actually setting up shop in the suburbs or the regional cities”.

“Look, the reality is shoppers are struggling with food going up in excess of 12 per cent since Labor came to power,” she said.

“We do need our competition for both farmers and consumers, both ends of the supply chain.

“We’ve got a bill in parliament right now to deal with this with really tough penalties, a supermarket commissioner, and to deal with … land banking specifically to actually split the supermarkets up and to actually make sure divestiture powers are part of our competition framework when it comes to supermarkets.”

She called on Ms Rishworth to “get the Labor Party to support our bill so we can actually do something tangible to assist competition.”

But Ms Risworth hit back, saying “the trouble with your proposal, Bridget, is that it is just a thought bubble.”

“It’s chaotic,” she said.

“Reputable people have said that your proposal would lead to less competition, less actual rights.

“And I’ve got an army of experts that say otherwise and less for farmers,” Senator McKenzie interrupted.

“Amanda, stop protecting the big boys,” she said.

But Ms Rishworth pressed on.

“Bridget, that is just not true. I think we are looking at unintended consequences here,” she said.

“You can’t just have a thought bubble and hope it’s legislation.”