Transcript of media conference with Nick McKim, Greens Senator for Tasmania, Parliament Lawns, Hobart, 8 April 2024.
Nick McKim
I’m just here to respond to Dr Emerson’s recommendations to the government and the government’s acceptance of his recommendations. Dr Emerson was asked to have a look at the code of conduct for supermarkets. He’s recommended that it be made mandatory with significant financial penalties for breaches. Well, of course it should.
He’s also recommended that the government not adopt divestiture powers. So Dr Emerson’s recommendations are applying a bandaid to a gaping wound and unless the concentration of market power of Coles and Woolworths is adequately addressed, nothing will change. This is Labor lining up with the giant supermarket corporations and putting their billions of dollars of annual profits ahead of the millions of Australians who can’t afford to put food on the table.
It is a disgrace that Mr Albanese is standing there next to Coles and Woolworths and abandoning the millions of Australians who can’t afford to feed themselves and their families. Why is Labor doing this? Because their donations from Coles and Woolworths are so massive. This is the power of political donations. And this is what Coles and Woolworths make those donations to deliver. They donate into the coffers of the Labor Party, and the Labor Party does what it is told by the giant supermarket corporations.
Mr Albanese has had a choice here. This this was a fork in the road moment for Mr Albanese, and he’s decided to hold hands with Coles and Woolworths rather than look after the millions of Australians who can’t afford to put food on the table. It is a disgrace, a terrible decision, and an abrogation of his responsibilities as Prime Minister.
The effect of not breaking up the duopoly means business as usual. It means millions of Australians continue to struggle to put food on the table. This was a fork in the road moment for Mr Albanese, and he’s walking hand in hand with Coles and Woolworths, rather than walking alongside the millions of Australians who can’t afford to feed themselves and their families.
Journalist – Adam Langenberg
If this is a bandaid over a bullet wound, what would have actually fixed the problem?
Nick McKim
Unless we address the market dominance of Coles and Woolworths, nothing will change. The inquiry that I’m chairing, that was established by the Greens, has heard repeated evidence from consumers and consumer groups and also from farmers and suppliers to supermarkets that it is the domination of market power that Coles and Woolworths have, that is the center of the problem here. Unless that is addressed, nothing significant is going to change. So again, Mr. Albanese had a choice. And he’s chosen to support the billion dollar profits of Coles and Woolworths over the millions of Australians who are struggling to make ends meet.
Journalist – Josh Duggan
Why is the divestiture powers the only way to address that?
Nick McKim
Well, there’s a couple of things there. Of course we need strong merger laws in Australia. We’ll be watching very closely the upcoming announcements from the government and I predict that they won’t go far enough. Having said that, merger laws will prevent a further consolidation of market power into the future. But Coles and Woolworths have too much market power now, and it is only divestiture laws that can address that problem.
Journalist – Josh Duggan
The increase in penalties, do you think that will have any kind of effect?
Nick McKim
Making the Code of Conduct mandatory, and increasing the penalties is a worthwhile thing to do. But of itself, it’s not going to address the core problem, which is the domination of the market enjoyed by Coles and Woolworths.
Media release – Andrew Wilkie, independent MHR for Clark, 8 April 2024
SUPERMARKET RECOMMENDATIONS TOO LITTLE, TOO LATE
“The recommendations handed down by former Labor Minister Dr Craig Emerson on how to ensure supermarkets are dealing with suppliers fairly, does not go far enough in dealing with the concentration of the supermarket sector. While imposing penalties for mistreating food suppliers is a good step to keep supermarkets in line, the failure to countenance divestiture reform means the two big supermarkets, Coles and Woolworths, can continue to get away with gouging consumers at the checkout. Divestiture powers, like the ones proposed by Member for Kennedy Bob Katter and myself, would reduce the market share of any supermarket to ensure the sector is competitive and fair.
“Moreover, this review fails to take into account price-setting practices, so it is presumptive to make recommendations until the Australian Competition and Consumer Commission provides its report.
“Finally, while Dr Emerson acknowledges it would be difficult to enforce penalties on supermarkets, there needs to be much stronger mechanisms in place, including an independent body that identifies and stamps out wrongdoing without the Government’s say-so.”
