Peter Stefanovic:
A year‑long ACCC investigation into the power of Coles and Woolies has revealed that they are some of the most profitable retailers in the world, but no findings regarding price gouging.
Joining us live now is the Treasurer, Jim Chalmers. Treasurer, thanks for your time this morning. So let’s start off with the government response to this.
Jim Chalmers:
Good morning, Pete. This is an important piece of work from the ACCC. We commissioned this work, and we’re pleased to see it released, and what it shows is what we need when it comes to supermarkets is more scrutiny, more information and more competition, and we are already acting on each of those fronts.
We are cracking down on the supermarkets because we don’t want to see the supermarkets treat Australians like mugs. We know that a big part of the pressure that people feel is at the checkout, so we are keeping the supermarkets in check, checkout, and this ACCC report will help us as we continue to do that.
Stefanovic:
How exactly are you keeping them in check, because as they say, it’s an oligopoly?
Chalmers:
This report covers a 5‑year period, it says that these price rises beginning in 2021, so covering the life of 2 governments, it says that these price rises started to slow in 2024, which is consistent with what we’re seeing with the inflation figures. Food inflation’s come down from 5.9 per cent when we came to office to 3 per cent now, so slower.
But people are still under pressure, and so whether it’s our Budget next week, our government more broadly, the big focus is on the cost of living, and cracking down on the supermarkets is part of that.
We’ve made the Food and Grocery Code mandatory, we have empowered and funded the ACCC to apply more scrutiny, we’re working with the states on planning and zoning to make it easier for new competitors to enter the market. We’re funding CHOICE, we’re doing a whole bunch of things, we’re reforming the unit pricing code, which is about shrinkflation which drives people absolutely nuts.
We’re doing about half a dozen really important things, consistent with the recommendations of the report today. We are cracking down on the supermarkets. We do want to make sure we get a fair go for farmers and families, and that’s what all of our efforts on supermarkets and cost of living more broadly are all about.
Stefanovic:
Right. That $3 million education campaign though, what’s that actually going to do to help consumers and businesses?
Chalmers:
First of all, that’s not all we’re doing. We funded the ACCC an extra $30 million. The $2.9 million we’re announcing today is all about educating and helping suppliers, so effectively farmers and their peak organisations to train up their people to get a better deal when they’re negotiating with the supermarkets.
Stefanovic:
But the supermarkets –
Chalmers:
And the Food and Grocery Code –
Stefanovic:
– will just disregard that, won’t they, because they’re just too powerful.
Chalmers:
They’re engaged in a negotiation, and we want to tool up and beef up the skills and abilities of the people doing the negotiating. But that’s not all we’re doing on this front. Making the Food and Grocery Code mandatory was all about a fair go for farmers and families as well.
There are a range of things that we are doing. The recommendations released by the ACCC, we welcome them, we accept all of them in principle, we’re acting on a range of them already, because we do acknowledge that we need to apply more competitive pressure in the supermarket sector. We’re doing that, but the ACCC will inform the work that happens from here as well.
Stefanovic:
Okay, just – ‘cause we’re almost out of time, but I want to get you on this story this morning about big tech now pushing Donald Trump to target Australia over our laws on social media and the digital economy. They claim these laws are causing them to sacrifice revenue. What’s the government’s response to this, this morning?
Chalmers:
First of all, it’s not surprising that the tech giants would have that view, but our job, and we embrace this, is to make decisions in Australia’s national interest, to protect kids online – for example – or to make sure that there’s a level playing field in our media with our media organisations, so those are our motivations there.
We’re not surprised that from time to time the tech giants will have different views about that. But our job is to implement the best set of arrangements that we can to look after Australians online.
Stefanovic:
Right. I mean we also saw this with big pharma this week, but when it comes to big tech, I mean Tump’s got Musk, Zuckerberg, Bezos, all in his corner. I mean what sort of a chance do we have against that?
Chalmers:
I’m obviously not privy to the conversations that they have with President Trump from time to time, it’s self‑evident that they’re very close with the US Administration. Our focus and our job is to make our case in the US, as we have been doing, but to also make sure that we continue to make the best decisions that we can for Australia.
I think a lot of people around the country – not just parents, but including parents – they want to make sure that there are appropriate protections for people online. The tech giants won’t always like that, they won’t always agree with that, but we’ve got to do that job on behalf of the people of Australia, and there will be different views about how we go about that as we roll it out.
Stefanovic:
All right. Treasurer, Jim Chalmers, thanks as always for your time.