LIBERAL MP Sarah Henderson has bravely stuck her neck out to question the power of the supermarket duopoly controlled by Coles and Woolworths.
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The member for Corangamite is urging parliamentary colleagues to take a fresh look at rules relating to price discrimination as milk bars and other small businesses struggle to compete against the might of the big two.
Coles and Woolworths have enormous wholesale buying power because of their size and control a massive 70 per cent of the nation’s grocery sector, wielding extraordinary power over the supply chain through ownership of agricultural land.
That means farmers and other suppliers have their margins squeezed and receive lower prices for their produce.
The duoploy has gone from strength to strength since 1995 when the Keating government loosened price discrimination laws, but Ms Henderson reckons the time has come for a rethink.
There is a review of competition law under way at the moment that could make recommendations on the duopoly that could lead to a more level playing field for smaller operators.
It has become obvious over the past 20 years that companies the size of Woolworths and Coles are going close to abusing their market power but the ACCC does not have the power to intervene because its divestiture powers are not broad enough.
Ms Henderson’s views correlate largely and somewhat surprisingly with that of the Greens who have been advocating for increasing the power of the ACCC.
The Greens have long complained about the disappearance of consumers’ favourite brands from the shelves and have suggested that there is a lack of will among the two major political parties to tackle the power of big business.
All suppliers want is a fair price for their produce and all small business wants is a fairer marketplace.
Small businesses contribute to the nation’s economy by employing about five million people and they account for well over 90 per cent of business trading in Australia.
They are worth fighting for.