ALAN JONES:
Last week I spoke to the Minister for Small Business Bruce Billson about Woolworths and Coles shopper dockets. They’re now in the Federal Court. I said to Bruce Billson, well they reckon they won’t be offering petrol discounts above 4 cents a litre unless the cost of that is taken from the petrol retail arm. I said how do you monitor that? Well now they are in court over the fact that I said to Bruce Billson at the time ‘they’re advertising petrol at 14 cents a litre discount.’ And the arrogance of them, they made the point to the court, yes they can. They’ve got a promotion which enables consumers to get 10 cents a litre on fuel on top of the 4 cents a litre shopper docket if they spend $20 or more on groceries. If I put 90, just think of this, 90 litres in my car and swallow this crap from Coles and Woolworths, even at 4 centres a litre my discount is $3.60. $3.60 and we’ve got the dearest supermarket prices in the world. Now there is one simple answer. Rod Sims said yesterday, quote: following an extensive investigation, the ACCC had been concerned the fuel saving offers could have longer term effects on the structure of the retail fuel market and also short term effects of increasing general pump prices.
Well 1,000 little independent petrol sellers have gone out of business. The answer is, get rid of shopper dockets. Here he is again – Bruce Billson Minister…
MINISTER BILLSON:
Good morning to you Alan and to your listeners.
ALAN JONES:
This is the answer – get rid of them Bruce.
MINISTER BILLSON:
A longer road home, we’ve got to take action now that’s quick and decisive – that’s what the voluntary undertaking was about and the allegation is Coles and Woolworths haven’t stuck to their undertaking to limit those discounts to 4 cents. The allegation is they’ve gone beyond that and these enforceable undertakings need to be upheld otherwise they’re dragged back before the courts and that’s exactly what’s going on. While the longer term task of changing the law and examining whether shopper dockets and coupons and vouchers are in the consumer interest is pursued through the root and branch review of the competition law.
ALAN JONES:
The highest court in the country you’re a member of - the Parliament of Australia. You can abolish shopper dockets tomorrow. Is someone in the Abbott Government frightened of Woolworths and Coles?
MINISTER BILLSON:
No no, there’s no fear there because we’re in this for the long term interest of the consumers and our economy and where there’s behaviour that drives efficient competitors out of the economy and risks damaging consumers in the longer term, that’s when action is taken. As you and I have spoken before Alan, we know the toolkit as the law currently stands has its limitations and that’s why we need to examine what’s needed to add to it and that’s the process of the root and branch review. In the meantime we are using the laws that we have, to make sure we are looking after the interests of smaller businesses, of efficient businesses, of our consumers and our long term national interest and that’s the work we’re cracking on with.
ALAN JONES:
Bruce, when they made me coach of Australia and Australia was losing rugby matches hand over fist, I didn’t have a review. I had to immediately do what I was charged to do – turn it around and if need be make dramatic change. I made the dramatic change. Are we getting into the business of review after review after review? The answer here is simple - no one, no one should have this commercial retail advantage that this mob have got with shopper dockets and they have the gall to say ‘well we are now offering 10 cents a litre on top of the 4 cents if they spend $20 or more on groceries.’ I told that – I saw the ads.
MINISTER BILLSON:
And you were spot on Alan and that’s why they’re being dragged back to the courts to say: this is not in keeping with your undertakings. These are court enforceable undertakings, you’re going beyond a discount that consumers may value and appreciate that’s funded from within your business. So there are occasions where those…
ALAN JONES:
But you’re head of a big department. Your part of now the whole Treasury structure and small business has been elevated. You could call your department in today and say ‘listen by 5pm I want you to amend the Trade Practices Act to abolish the exemption that Coles and Woolworths have to section 47 and be here at 5pm and show me cause I want to present it to the party room tomorrow.
MINISTER BILLSON:
Yeah and you and I know I am no fan of those exemptions Alan but unlike the previous government we’ll go through the proper process of making sure these changes are done with the long term interests of consumers and the economy in mind. That exemption that you and I have talked about before – you are spot on Alan. It allows businesses that are large and have multiple streams to their enterprise to trade off discounts and move customers between them – we know that’s got problems. We know there are some issues there that have been over used to change the shape of competition in markets like supermarkets and fuel. We know that, but we need to have an economy wide review that makes sure that any action we take isn’t solely about the supermarkets, but that the rules work for all businesses and all consumers in the economy – like those little dockets that give you a discount on your pizza if you buy certain things. They are attractive to some consumers, that’s why we need to tread with care and thoughtfulness and not make the kind of mistakes and knee jerk reactions we saw from the previous government that’s got our country into such trouble.
ALAN JONES:
Alright Bruce, I just have one final point.
MINISTER BILLSON:
Yes Alan.
ALAN JONES:
You see it’s my show so I can have the final point.
MINISTER BILLSON:
You can, you can and the first point and many in between as I recall.
ALAN JONES:
See the flattering observation that I was spot on about shopper dockets. If I’m spot on then you’d have the exemption on the statute book wiped out today, if I’m spot on. You’d say Alan – you are spot on about those exemptions. Well that’s one thing you could do and the court case is all over. Bruce is gone, he’s gone but anyway I think the bloke is the hope of the side.