Australia is 18 months away from the last possible date for the next federal election, so brace yourself for more blame-shifting, but hopefully nothing as ridiculous as this particular claim. The government and its allies in the Green/Left establishment have been complaining for over a year about supermarket “price gouging,” despite the fact that Coles and Woolworths make a mere 2.5 cents for every dollar of stock they sell. Even if this claim were true, the solution would involve inducing supermarkets to reduce margins and cut costs, such as introducing more retail competition, encouraging productivity improvements, negotiating cheaper rents with landlords, and negotiating lower costs with suppliers.
However, the proposed interim report doesn’t suggest any of these rational solutions. Instead, it implies that retailers should pay their suppliers more without any other changes, which is unlikely to lead to lower prices. The review’s significant recommendations include making the Food and Grocery Code of Conduct mandatory for retailers with turnover of $5 billion or more, imposing heavy penalties for breaches, establishing a complaints process for suppliers, and setting minimum standards.
The report seems to be designed to create a divide between the Liberals and the Nationals, with the government emphasizing the code’s benefits for “farmers and suppliers” to appeal to the Nationals, who represent some of the poorest Australians. Opposition Leader Peter Dutton has proposed “divestiture powers” to address competition issues, but the government has dismissed this as “populist.” While Dutton’s proposal may have merit, with Coles and Woolworths only holding 65 percent of the market, it may not be necessary at this time. If Dutton aims to score points, he should expand the discussion to focus on competition and flexibility.
Ever since Prime Minister Albanese took office, the CFMEU has been given more freedom, resulting in a significant increase in building costs. The ACTU has been advocating for higher wages without corresponding productivity gains. The “Closing the Loopholes” Act has imposed heavy penalties on small businesses and contractors. Additionally, energy price caps have led to high gas prices and a potential shortage.
Furthermore, both federal and state governments are attempting to reduce CO2 emissions through centralized economic planning, a strategy that has historically led to declining living standards.
Labor seems to be relying on announcements to carry them through the upcoming election, with more emphasis on posture than substance in their approach.
Please note that the opinions expressed in this article are those of the author and may not necessarily align with The Epoch Times’ views.
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