By Lucy Waldron
Nationals Leader and Maranoa MP David Littleproud has welcomed the interim report into the Food and Grocery Code but has criticised Labor for being out of touch and too slow amid the cost-of-living crisis.
The report, released on 8 April, highlighted a critical need for substantial changes to the existing Food and Grocery Code of Conduct.
Mr Littleproud said that, while recommendations including larger fines with enforcement and a mandatory code were offered by The Nationals over a year ago, the broader suggestions won’t address all the issues consumers and farmers are facing.
Mr Littleproud said the final report led by Dr Craig Emerson due on 30 June is also still too far away and just another delay during a cost-of-living crisis.
“The Nationals wrote to Labor more than 15 months ago offering bipartisan support, urging Labor to take action on supermarket price gouging, which impacts almost every single Australian,“ Mr Littleproud said.
Established in 2015 to address market imbalances between major retailers and their suppliers, the code has been found lacking in teeth, leaving suppliers vulnerable to unfair practices.
This revelation comes amid ongoing concerns about high prices and allegations of price gouging by supermarkets.
One of the main criticisms of the code is its voluntary nature for supermarkets, with no real consequences for breaches. While the code outlines obligations for supermarkets to act in good faith, it lacks clear definitions and enforcement mechanisms.
Additionally, suppliers have expressed concerns about the lack of independence of code arbiters and fear of retribution from supermarkets.
Mr Littleproud said the Nationals welcome the introduction of penalties for the behaviour of supermarkets and price gouging as well as looking into the arbitration process but it does not go to the heart of the issues like land banking.
“This government has been too slow to react, has not taken the bipartisan hand that was offered to them over 15 months ago to implement what Craig Emerson has offered and has left Australian families making those tough decisions,” Mr Littleproud said.
Emerson’s interim report proposes significant changes, including making the code mandatory for supermarkets with annual revenues exceeding $5 billion and introducing penalties of $10 million or more for breaches.
“This is about making sure there are big penalties and if the supermarkets aren’t doing anything wrong they should not fear anything,” Mr Littleproud said.
“If this government doesn’t want to do that then we will have a policy that we take to the next election, that will bring more competition in and will give those regulatory guidelines that consumers and farmers expect.”
The final report and recommendations are expected by 30 June, with the government’s response pending. Prime Minister Anthony Albanese has indicated a willingness to take action if necessary, signalling potential reforms on the horizon.
