A review by economist Craig Emerson has found that the idea of forced divestiture of supermarkets, supported by the Coalition and advocated by the Greens, lacks credibility and could lead to store closures and job losses. Instead, the review proposes a mandatory code of conduct for supermarkets and suppliers, with stiff penalties for non-compliance.
, finding the “populist” idea, backed by the Coalition and advocated by the Greens, lacked “credibility” and could trigger store closures and job losses .
Prime Minister Anthony Albanese dismissed calls to break up the supermarket giants, amid a heated political debate about the cost of living, saying in February, “we’re not the old Soviet Union”.But Opposition Leader Peter Dutton has backed Nationals leader David Littleproud’s proposal for Coles and Woolworths to be forced to sell stores, suggesting the Coalition is working onwhich would give the Federal Court new divestment powers.
Under draft recommendations, supermarkets could be asked to sign on to mediation that would allow suppliers to seek awards of up to $5 million. They could also be blocked from negotiating out-of-code contracts. The voluntary Food and Grocery Code of Conduct already applies to Coles, Woolworths, Aldi and Metcash, and sets out minimum obligations and behavioural standards for their conduct with suppliers.Dr Chalmers will on Wednesday unveil the largest shake-up of merger reforms in a generation when he delivers the tenth annual Bannerman lecture in Sydney, hosted by The Australian Competition and Consumer Commission and Law Council of Australia.
On the grocery code, the ACCC would be able to issue public warnings, seek injunctions, initiate court proceedings, and accept court-enforceable undertakings, under Dr Emerson’s mandatory code. He is also seeking feedback about raising infringement notices for minor breaches.
Review Forced Divestiture Supermarkets Credibility Store Closures Job Losses Code Of Conduct Penalties
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