Coker backs strong action on supermarket chains

FEDERAL Corangamite MP Libby Coker has thrown her support behind tough action on supermarket retailers who engage in bad behaviour.

It follows the release last month of an interim report into the Food and Grocery Code of Conduct, a voluntary and industry-run set of obligations introduced in 2015 to improve the behaviour of businesses operating within the food and grocery industry.

The code predominantly details how the relationship between suppliers and retailers should work, such as the requirement that retailers deal with suppliers in good faith – a term the code neglects to define.

The ongoing review into the code, initiated by the government and undertaken by economist and former Labor MP Craig Emerson, has so far provided 11 recommendations.

Of these, eight are firm and will not change between now and the delivery of Emerson’s final report on June 30.

These recommendations include making the code mandatory with the Australian Competition and Consumer Commission (ACCC) empowered to seek penalties from the courts of $10 million or more.

“The voluntary Code of Conduct has no penalties, leaving the competition watchdog chained by on the back porch,” Dr Emerson said.

“I firmly recommend the code be made mandatory and apply to all supermarkets with annual revenues exceeding $5 billion, which at present are Coles, Woolworths and ALDI, and wholesaler Metcash [which owns IGA].”

Emerson has also made recommendations to improve the complaints process to protect suppliers against retribution.

Ms Coker said concerns about the price of groceries are widespread.

“People across my electorate are coming up to me at the footy, in the supermarket and at local markets to tell me they aren’t paying a fair price for their groceries,” she said.

Ms Coker said the government was now considering implementing Emerson’s interim recommendations, including establishing a mandatory code of conduct and significant fines for unfair practices.

“The power of the big supermarkets, with just a voluntary code of conduct, has contributed to a growing lack of confidence in the system,” she said.

“The Emerson Review and this interim report is all about making sure our supermarkets are as competitive as they can be, so that Australians get the best deal possible whether they be farmers, producers, or consumers at the checkout.”