The conduct of Australia’s major supermarkets will be under further scrutiny in a move that has been welcomed by the NFF.
Treasurer Jim Chalmers announced a further $30m funding to the Australian Competition and Consumer Commission over three years to allow the consumer watchdog to conduct investigations and enforcement relating to the supermarket and retail sector.
NFF president David Jochinke praised the government’s decision in the wake of both Coles and Woolworths being subject to investigation and prosecution last month over discounting scams.
“The NFF has long called for increased resourcing to the ACCC to bolster its critical role in Australia’s competition landscape, in particular for the food and grocery sector,” Mr Jochinke said.
“The NFF also welcomes the government’s additional announcement to seek reform to planning and zoning regulations with states and territories to help boost competition in the supermarket sector by opening up more sites for new stores.”
Mr Jochinke also said resources were needed to review and investigate supply chain issues.
“Successive reviews have found that ... suppliers of perishable produce experience issues such as unfair contract terms, information asymmetries and lack of transparency,” he said.
“All of which dampen competition in the food and grocery supply chain.”
The NFF continues to advocate for a state-by-state review into planning and zoning laws that support new businesses and to ensure issues such as ‘land banking’ do not weaken competition in supply chains.
The NFF also supports the government’s wider competition reforms, including changes to the merger and acquisition framework and the Food and Grocery Code of Conduct.