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Supermarkets that undercut their customers and suppliers could be stripped of their investments and properties under the proposed laws.
The Greens will promote divestiture powers in the Senate this week, allowing the government to step in and break up food retail giants.
Nationals and some independents are also calling for such “big stick” laws.
Prime Minister Anthony Albanese has ruled out the possibility, comparing divestment powers to those of the former Soviet Union.
“We have a private sector economy in Australia and not a command and control economy,” he told ABC Radio Brisbane in February.
“We are not the old Soviet Union.
“What we have the power to do is encourage competition and encourage new entrants.”
Albanese said a forced break would result in many workers losing their jobs.
Supermarket giants have had it too easy for too long, Greens senator Nick McKim said, as households struggled to balance strained budgets with high food prices.
Supermarket giants have had it too easy for too long, Greens senator Nick McKim said:
“We must stop supermarket companies from ruthlessly using their market power to gouge prices while raking in billions of dollars in profits,” he said.
“The market dominance of Coles and Woolworths gives them the power to crush farmers, squeeze out competition and deceive their customers.”
Divestiture powers targeting the supermarket duopoly were not new, Senator McKim said.
The United Kingdom, United States, Ireland, Italy and the Netherlands have similar laws.
These powers would also cover big banks and energy giants to ensure competition between different sectors, Senator McKim said.
Coles and Woolworths have been accused of brutalizing suppliers, tricking farmers and misleading customers.
Retailers defended their prices and relationships, saying they were trying to balance fair prices for producers and low prices for customers.
Supermarkets are under pressure on several fronts, with a parliamentary inquiry and at least two external inquiries underway.
Supermarkets are under pressure on several fronts, with a parliamentary inquiry and at least two external inquiries underway
One of them concerns the Food and Grocery Code of Conduct, which governs the relationship between supermarkets and producers.
“Many farmers have certainly expressed to me their difficulties in dealing with supermarket chains and the lack of transparency that exists in these negotiations,” said Agriculture Minister Murray Watt.
“This review of the code marks an important step towards understanding how our supermarket sector works to provide fair prices to ordinary Australians and our hard-working farmers.”