Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

That is harsh, Senator. The government is aware of the report by Master Grocers Australia to which the senator refers and is also aware more generally about concerns regarding the behaviour of major market players towards their suppliers. The government takes these concerns seriously. Whilst price competition between large supermarkets has, thus far, benefited consumers through lower prices, people are concerned that this may have been achieved by major market players adopting practices which may raise questions under our competition and consumer laws—and I know senators in this place would have experienced their constituents expressing these views.

The government has amended the law in recent years to strengthen competition law and to provide the independent regulator, the ACCC, with the powers it needs to effectively pursue anticompetitive conduct. I advise that Master Grocers Australia have called for the reintroduction of the prohibition on anticompetitive price discrimination. The former law prohibiting anticompetitive price discrimination was the subject of a number of comprehensive reviews. I am advised that these reviews found that the prohibition actually increased, or locked in, the high prices paid by consumers and by small business.

In the Dawson review, which was the most recent comprehensive review of Australia's competition laws, it was noted that misuse of market power provisions in the competition laws are able to tackle anticompetitive pricing practices. In relation to allegations about cross-subsidy between related entities, the government is of the view that the current laws are appropriate and provide suppliers and consumers with significant protections against anticompetitive conduct.