Nationals Leader Proposes Dismantling Coles and Woolworths, Urges Government Action
In a bold move that has sent shockwaves through the Australian supermarket industry, Nationals Leader David Littleproud has called for the dismantling of major supermarket chains Coles and Woolworths. Littleproud argues that the duopoly’s market dominance and unfair business practices are detrimental to consumers and farmers alike.
Littleproud’s call for action comes after an investigative documentary by the Australian Broadcasting Corporation (ABC) shed light on the questionable practices of Coles and Woolworths. The documentary featured stories from farmers who claimed they were forced to sell their produce at low prices by the supermarket giants. There were also allegations that the companies had used inflation as a cover to unreasonably raise prices.
Speaking in an interview with 7 News, Littleproud emphasized that the documentary confirmed what the public had suspected about the supermarket duo. He stated, “We’ve got the evidence. We have seen that with meat prices and fresh produce. When you have too much market dominance and power, you can treat people in a way that actually destroys and tears away our food security.”
To address these concerns, Littleproud called on politicians to work together to bring forward investigations into price gouging by supermarkets and grant more power to the consumer watchdog to crack down on unlawful business practices. He even suggested breaking up the main players in the market and selling off some of their stores to increase competition.
While the Labor government has already directed the Australian Competition and Consumer Commission (ACCC) to conduct a 12-month investigation into price gouging, Littleproud criticized them for being slow to act. He accused them of being distracted by other issues while the cost-of-living crisis escalated.
The impact of Coles and Woolworths’ practices is not limited to consumers; farmers are also suffering. The ABC documentary revealed that 34 percent of vegetable growers expressed a desire to exit the sector within the next year due to profit pressure. Littleproud warned that such a significant loss of farmers would jeopardize Australia’s food security.
Littleproud’s concerns about the duopoly’s dominance are shared by Agriculture Minister Murray Watt and Prime Minister Anthony Albanese. They both acknowledged the need for stronger laws and regulations to prevent supermarkets from pushing farmers into difficult situations.
However, not everyone is convinced that supermarkets are solely to blame for rising prices. Graham Young, the executive director of the Australian Institute for Progress, pointed out in an opinion piece for The Epoch Times that government policies, such as excessive spending and immigration, have contributed to inflation. He argued that blaming supermarkets for the cost-of-living crisis overlooks these factors.
Young also highlighted that Coles and Woolworths’ profit margins are relatively modest at 2.5 percent after tax. He argued that if “price gouging” were the driving force behind inflation, food and groceries’ prices would have increased more than the general rate of inflation. Yet, data shows that the Consumer Price Index (CPI) for food and non-alcoholic beverages increased by only 4.8 percent compared to the overall CPI increase of 5.4 percent.
As the debate surrounding the role of supermarkets in rising prices continues, it is clear that action needs to be taken to address the concerns raised by Littleproud and others. Whether dismantling Coles and Woolworths is the solution or if there are other factors at play, it is evident that stronger regulations are necessary to ensure fairness and protect both consumers and farmers.
