Open up the market!

2014-11-03


Dear Australian Greens,

My name is Dejan Stefanovic. I am a mining engineer, born in Serbia and migrated to Australia in 2006 under a Skilled Independent Migration Visa. Since then I've been working in the Australian mining industry contributing to the Australian economy. I live in Perth, WA and work FIFO on 1 week on, 1 week off roster in a mining site which is an hour flight far from Perth.

I am a supporter of Australian Green Party as I recognised it as the only emerging political force in Australia that can change the Australian mainstream politics, and make everyday life better and easier for common Australians.

There are a number of issues that we need to address, but I'll  mention just a few this time.

Firstly, this is about spiraling rising living costs. In everyday talk to many Australians, I find out that it is getting harder to cope with everyday costs of living  for many ordinary Australians: young and old, workers, pensioners, students, pupils and the others. The costs of living grow so high and so quickly, that I start thinking that the inflation rate is much higher than the official one?

Another thing closely related to the above one is a lack of free market competition in the retail sector. Nationwide, Coles and Woolworths cover over 80 % of the retail market, which creates  one of the strongest duopoly markets in the world. Suppliers and consumers haven't got many choices but to stick with the big two (Coles and Woolworths). As a result, we have probably one of the most expensive groceries market in the world, and we pay premium prices for not the premium quality products. The best Australian grown food (beef, pork, chicken, fish, fruit and vegetables) are exported overseas, but ordinary Australians pay high prices for lower quality products, in many cases imports from countries like China, Vietnam and Thailand. The question is why we shouldn't have the premium quality domestic grown food here for local customers first, and then what's remaining to export overseas? Why we shouldn't be able to buy locally grown food directly from the farmers e.g. through the farmers market and fresh food market and bypass the big two supermarkets?

These are just a few things that we need to address. There are many other issues, like “the budget of broken promises”  but I like to start with this one: let's address and break the Coles and Woolworths duopoly, so that  ordinary, hardworking Australians can have  a real free and competitive retail market and enjoy the premium quality and top class, healthy food.

Regards,

Dejan Stefanovic

The Greens agree that the grocery duopoly of Coles and Woolworths is of concern. Competition is lacking in the grocery sector and this has meant Coles and Woolworths have become more and more powerful. There is also growing evidence about the detrimental way they treat suppliers and processors in the food industry.  The Greens took a range of policies to the last election which we continue to promote and work towards. These include placing a temporary ban on Coles and Woolworths building any more stores until the Australian Competition and Consumer Commission can carry out an appropriate assessment of the grocery market and banning Coles and Woolworths from purchasing agricultural land.

The role of the supermarket duopoly and competition in the sector is an ongoing issue. The Liberals and the Nationals have very differing views on this issue. It will be interesting if the Government implements the recommendations of both the Harper Competition Review and the Agriculture white paper when they are released next year.  Based on their track record I would be surprised if the Government makes any constructive changes. However I will certainly be making sure increased competition in the grocery sector are at the top of the Greens competition policy priority list.  

Senator Peter Whish-Wilson,
Australian Greens spokesperson on Competition Policy, Small Business and Consumer Affairs,
Senator for Tasmania


READ MORE