Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer and the Prime Minister, Senator Gallagher. Minister, you have repeatedly refused to acknowledge that some corporations in Australia are engaged in profiteering or price gouging. However, at Senate estimates a couple of weeks ago the Governor of the Reserve Bank, Ms Bullock, agreed that some corporations are using a lack of competition and the cover of high inflation to hike prices above what is required to meet increases in their input costs. Ms Bullock joins the growing consensus among economists, including at the OECD, the IMF, the central reserve bank, the Bank of England, the Federal Reserve, the Australia Institute and former ACCC chair Mr Alan Fels that corporations are price gouging to boost their profits in a cost-of-living crisis, which is making inflation worse. Will you finally accept the truth?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I reject the interjection from Senator Ruston. I know it's unparliamentary, but I just want to put on that record.

Thank you, Senator McKim, we've had quite a lot of discussion about this over many years—

Sorry, President, it's quite distracting, with Senator Ruston's constant—

Opposition senators interjecting—

It is!

Sue Lines (President) Share this | Link to this | Hansard source

I have called Senator Ruston to order a couple of times—

Opposition senators interjecting—

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

She said it—

Sue Lines (President) Share this | Link to this | Hansard source

Order! Minister Gallagher, please resume your seat. Order across the chamber! Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Whilst we want companies to be profitable in this country, because that's good for the economy and good for jobs, we also don't want anyone to be ripped off. That's why we, the government, are looking at our competition policy, and the work that's been done by Dr Andrew Leigh, but also the work that has been commissioned by the Treasurer—particularly the ACCC inquiry—and the work that Dr Craig Emerson is doing, in terms of the grocery code, to make sure that the settings are right and that we are protecting consumers' interests. I think we've all been to the supermarkets and the shops and seen price escalation, and the government is concerned and wanting to make sure that our settings are right, which is why that work is being undertaken.

But I don't agree that it's as black and white as you believe.

Well, I don't want to misquote the governor, but I don't believe it's as black and white as you would argue, Senator McKim—that it's all about companies doing the wrong thing. I think there are a number of inputs into inflation. We are mindful of our responsibilities to act where we can, and I think those reviews that have been ordered by the assistant to the Treasurer and the Treasurer are a good way of monitoring that, and making or acting on— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim, a first supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Minister, people are skipping meals, as food and grocery prices skyrocket, while Coles and Woolies report billion-dollar profits. The ACCC has said that divestiture powers would increase competition and lower the cost of food and groceries. The Prime Minister recently dismissed divestiture powers as a Soviet Union policy. Is the Prime Minister aware that that well-known command-and-control economy, the United States of America, has had divestiture powers for over 130 years? (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I'm not aware of the Prime Minister's—in relation to the specifics of the question, I can't answer that, but I can answer that we, the government, are not looking at divestiture powers at this stage. That is not in our thinking.

As to the reviews that are being sought or put in place, the ACCC is a highly effective organisation that has strong consumer backing. It has strong powers. It has the ability to call for information, as you know from our discussions with the chair of the ACCC at estimates. I think we should await their work—alongside the work that Dr Emerson is doing and the work that Dr Andrew Leigh is leading, through the government.

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim, a second supplementary?

Nick McKim (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Minister, over the last decade, Labor has taken over $100 million in donations from corporations—many in industries that are highly concentrated and currently under fire for price gouging—including from the supermarket duopoly. Corporations do not give money away for nothing. Are those donations the reason Labor is refusing to consider divestiture powers which would create the power to break up price-gouging monopolies and duopolies like the supermarket corporations? (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I said yesterday, there isn't a question that the Greens political party can't add political donations to, in this chamber! It's quite a skill to make every single issue in public policy related—

Sue Lines (President) Share this | Link to this | Hansard source

Senator McKim!

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

to political donations. We—

Sue Lines (President) Share this | Link to this | Hansard source

Minister, please resume your seat. Senator McKim—

An honourable senator interjecting—

and, I believe, Senator McKenzie—although I will apologise if it wasn't you shouting out.

Honourable senators interjecting—

Right. I'm calling the chamber to order. Minister, please continue.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

We have electoral laws in this country. We have donation law in this country. Political parties—all of them, including yours, I presume—abide by those laws. But to suggest that, because there are political donations, that has consequences in all the areas that you raise, every single day, is simply not supported by any evidence, and you never ever bring in any evidence to support the position. It's just about besmirching and smearing and trying to take some sort of moral high ground. If you're going to push this, actually deliver and bring in the evidence to support it. (Time expired)