Andrew Leigh:
Well, good morning everyone and welcome to Canberra on the first day of Spring. My name is Andrew Leigh, the Assistant Minister for Competition.
When your chocolate bar loses 2 squares but keeps the same price, that’s not magic – that’s shrinkflation. And Australians are feeling the effect of shrinkflation in their regular shop. We’ve seen shrinkflation in chips, we’ve seen it in chocolate, we’ve even seen it in toilet paper and detergents. The Albanese government is cracking down on shrinkflation at the checkout with a review of the Unit Pricing Code that kicks off today.
As part of that review, we’re investigating a range of potential reforms that might include extending the number of retailers covered by the Unit Pricing Code of Conduct. It might include ensuring better display on the shelf. It could include ensuring that we have the same measures being compared across products – not one product per 100 grams and another product per kilogram. It might include putting penalties on the Unit Pricing Code of Conduct. The Albanese government wants shoppers to get a fair deal at the checkout.
We’re holding the supermarkets to account. We’ve already given an additional $30 million to the Australian Competition and Consumer Commission in order to allow them to do their important work in keeping the supermarkets to account. We’ve held the first major review of supermarket competition in more than 15 years, and we’ve increased the penalties for anti‑competitive conduct.
The Albanese government recognises that in Australia we have a very concentrated supermarket sector, with the 2 majors holding significant market share. And even despite the entry of Aldi into the market a couple of decades ago, we’ve still seen the market share of the majors holding the same. As they say in Spider‑Man, ‘with great power comes great responsibility’, and our big 2 supermarkets have great power. So, with that we’re cracking down on the Unit Pricing Code of Conduct, ensuring that Australians don’t suffer shrinkflation at the checkout and that the supermarkets can’t pull the wool over our eyes. Happy to take questions.
Journalist:
So, what makes this different to the review that we saw in March from the ACCC?
Leigh:
The ACCC recommended that we crack down on shrinkflation, and this is one of our one of the ways we’re implementing that review. This consultation, which kicks off today and wraps up in a couple of weeks, is about implementing the ACCC’s recommendation to crack down on shrinkflation and get shoppers a better deal at the checkout.
Journalist:
And in terms of, I mean, just the other week with the Productivity Commission there was all this talk of cutting red tape and regulation. This is obviously very different. But how do you justify suggestions of further regulation, perhaps of that sector?
Leigh:
The Unit Pricing Code of Conduct is already in place, and so supermarkets already need to comply with it. I think shoppers just want to get a fair deal, and in this case, the Albanese government’s strong competition agenda for a national competition policy, work with the states and territories and our merger reform last year, all of that reflects our strong focus on getting a better deal for consumers.
Journalist:
And just on the marching yesterday – the anti‑immigration protests, what was your reaction to seeing some of your federal colleagues at those protests?
Leigh:
The last thing we need in Australia is Neo‑Nazis taking the platforms to demonise immigrants. Apart from Indigenous Australians, all of us are migrants or the children of migrants. Migration has greatly strengthened Australia. Migrants aren’t just mouths to feed, they are muscles to build and minds to inspire. The story of migration is a proud story for Australia, as is the strong story of multiculturalism and the way in which we’ve managed to show the world how we can build a peaceful and tolerant democracy. I was really troubled by some of the scenes yesterday, including some of the attacks on police. There’s no place for that kind of hate mongering in Australia this and I’m troubled by the fact that some politicians seem to think that it’s okay to fuel fear for direct partisan gain.
Journalist:
Looking at the week ahead, can we expect to see a lot of movement on legislation, considering that it’s the last week for a rather long break again?
Leigh:
We’ve got a significant legislative agenda, working on a range of reforms in parliament and working on significant reforms which will benefit Australians. I’ve already heard from many people pleased about the Albanese government’s 5 per cent deposits for first home buyers. We’ve got the results of the age assurance trial out today showing that age assurance technology is feasible. We’ve got a big agenda for Australia and we’re getting on with the job.
Thanks everyone.