Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

I thank Senator O'Sullivan for his question and his longstanding interest in the issue. The government has recently introduced the Food and Grocery Code of Conduct to provide extra protections for suppliers in their commercial dealings with supermarket retailers and grocery wholesalers. The Australian Food and Grocery Council have said:

We congratulate the Government for progressing the Code as an industry-led solution to problems impacting on suppliers and consumers.

And, 'It is a historic day.' The code has three core objectives: to improve clarity and transparency for suppliers, to improve the standard of business conduct and to provide fair and effective dispute resolution.

The code will provide protections to suppliers above and beyond those already in the Competition and Consumer Act, including a reasonable test with the burden of proof squarely on the retailer or wholesaler to establish these circumstances; broadening the good faith obligation to ensure consistency with the common law; improve dispute resolution processes; improved record-keeping obligations; provision for free freedom of association for suppliers, allowing them to have a forum to discuss matters without the risk of adverse consequences if they decide to do so; a tailored regime for wholesalers; and, finally, a review of the code after three years to assess its effectiveness in addressing sectoral concerns and to consider the need for more stringent protections.

These changes that we have outlined are clearly being well received within the community and I congratulate those on the coalition side who have worked so hard to achieve this result.