Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to his government’s decision to set up ‘grocerywatch’. Prime Minister, will grocery stores be forced to lock in the price of groceries 24 hours in advance, and will they be fined for lowering prices during the day?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

On 22 January 2008 the government directed the ACCC to commence a formal inquiry into grocery prices and report its findings by 31 July 2008. From the farm gate to the checkout counter we thought it was the right thing to make sure that working families are getting a fair deal at the supermarket. The ACCC is considering the industry’s current structure and the nature of competition.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The Prime Minister’s own budget puts $12 million into ‘grocery watch’.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! There is no point of order and I will not entertain calling people on points of order where they are entering into a debate.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! I have ruled on the point of order.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

That ACCC inquiry was launched in January 2008 and it is to report by 31 July. The government has also asked the ACCC to undertake a monthly survey of grocery prices for a typical shopping basket of goods across Australia, and to establish a dedicated website on grocery prices. Also in April the government agreed to extend the time frames for the development of vacant commercial land under Australian foreign investment policy from 12 months to five years, as the government’s interest in introducing—

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The question was specifically about ‘grocery watch’, which is a separate initiative in the budget to anything being undertaken by the ACCC.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Prime Minister will respond to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I just referred in the second part of my answer to the ACCC undertaking a monthly survey of grocery prices—if those opposite bothered to listen to the answer. The third part relates to how you go about bringing greater competition into Australia’s grocery sector. As we indicated in April, we are dealing with how to make it easier for foreign investors who are bringing greater competition into the Australian retail grocery sector. One of the challenges we face here is the concentration within the sector. Major retailers such as Woolies and Coles are estimated to have a combined market share of over 70 per cent in some segments. The annual average growth in food prices in the 10 years to the March quarter 2008 was 3.9 per cent across the CPI headline of three per cent. Given that those opposite were in power for over a decade, what did they actually do on the question of greater competition power in the grocery sector? Let us go to some other data. In the 12 months to March 2008, food prices increased by 5.7 per cent, due to strong increases in dairy and other related products, and that contrasted, of course, with a lower CPI figure for the overall period. The question is: what did those opposite do about that increase?

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Finance, Competition Policy and Deregulation) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. Can the Prime Minister cut the price? The Assistant Treasurer said—

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order: that is the third interruption of the Prime Minister’s answer to a question that was clearly outside of standing order 100(d) and the second question in a row from that side of the House.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! There is no point of order.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

The challenge for us is how to bring about greater competition and greater information for consumers—like on the question of petrol and like on the question of groceries. We stand on the side of consumers, as opposed to being on the side of big business—whether it is in the grocery sector or, in the case of ‘big oil’, whether it is in the petroleum sector. The figures show that over a decade there was a 3.9 per cent on average increase in excess of CPI in the price of food. Those opposite were in power for that period. Over the previous two years there was a 5.1 per cent increase in food compared with a CPI of 3.3 per cent. That was over the last two years. What did those opposite do about it? Nothing. In the 12 months to March 2008 food went up by 5.7 per cent. What did those opposite do about the price of groceries in that period of time? Nothing. The government actually stand for having a go. We stand for giving consumers some of the purchasing power within the marketplace which those opposite seem very happy extending only to those opposite. What we have here is a Liberal Party standing up for the distillery companies and alcopops, for the big oil companies when it comes to petrol prices and for the supermarkets when it comes to grocery prices. They stand condemned.