A Supermarket Treasury Laws Amendment (Fairer for Families and Farmers and Other Measures) Bill introduced into Parliament this week is said to be too little, too late by western area consumers and Leader of The Nationals David Littleproud.

The bill is part of the ongoing push to put a stop to price gouging and poor treatment of farmers at the negotiation table.

The new grocery code was introduced to Federal parliament late on Wednesday afternoon, and under the new mandatory code, supermarkets will face fines up to $10 million.

Parliament will debate the bill today, and if passed, it will be come into force from 1 April 2025.

David Littleproud said the Coalition has been calling for action into supermarket gouging for two years. 

“The cost-of-living crisis is now, not next April,” Mr Littleproud said.

“Why wouldn't we do everything we can to bring in penalties now, not in six months’ time, and to put regulatory guide rails and a deterrent around the supermarkets?

“The Coalition called for the Code to be made mandatory with significant penalties in late 2022 and then for a price inquiry into the disparities between farmgate and retail pricing at Australia’s major supermarkets. If Labor had taken our advice when the Coalition began calling for changes, families could have seen action earlier.

Nationals leader David Littleproud

“Labor’s infringement notice penalties are just $187,700, compared with the Coalition’s, which is $2 million. Labor’s high penalty will only be for some breaches and other penalties will be just over $1 million," Mr Littleproud said.

“In contrast, the Coalition’s plan will give the Australian Competition and Consumer Commission (ACCC) powers to undertake audits of supermarkets to ensure the supermarkets are compliant with the Code and create a Supermarket Commissioner, to act as a confidential avenue for farmers and suppliers to address the fear of retribution.

“It will also establish sector-specific divestiture powers – in the hands of the ACCC and the courts, not politicians – as a last resort to address the behaviour of supermarkets and to put an end to instances of price-gouging.”

A western area supermarket owner said small rural family-run supermarkets are simply trying to keep their heads above water and do not have the benefit of the bargaining power or the tactics of the bigger chains.

“Our business is family owned and run with and for local people,” he said.

“We do our best to operate within the realms of the rules and know others in small towns around us do the same, our overheads with transport, purchasing products, paying employees, insurances and the like means we must pass it onto the consumer otherwise we would simply not make a profit.

“It will be great if this Bill is passed to make all the bigger supermarkets be accountable for dirty tactics and be more about customers and not just the bottom line for their shareholders."

One western plains shopper said it is hard when people in rural areas have little choice of where to shop.

“Prices in our town can sometimes be double those of a supermarket price in a major regional centre, but we can’t do anything about it, as for some people it can be two to three hours away to the closest bigger centre.

“As a family we have to budget pretty well and if we do get to, say Dubbo, then we do a big shop on non-perishable items to last us a bit longer.

“A lot of us are farmers and we don’t think they get a fair go with their products, even following the dairy industry, they don’t get what they should for their milk and the work they do.

“Bigger chains are greedy and there is not enough ‘thinking’ going into how farmers can be better represented so this will be a good start and as the saying goes ‘keep the bastards honest’."

The Hon Julie Collins MP Minister for Agriculture, Fisheries and Forestry, Minister for Small Business says “This is about getting a fair go for families and a fair go for farmers.

“Our farmers produce exceptional, high‑quality food and deserve to be on a level playing field with supermarkets,” she added.

Hon Julie Collins MP Minister for Agriculture, Fisheries and Forestry, Minister for Small Business