Just before Christmas there was discussion in the media about work between Coles, Woolworths and the ACCC on the oversight and regulation of their purchases of independent retailers. At the time, the ACCC Chair said they needed to watch for market power of the two supermarket giants.
Huh?! By any measure overseas, Coles and Woolworths already have too much market power. Farmers, wholesalers, independent retailers, logistics companies – many complain about the bullying of these two on price. The only winners are the shareholders of the two and while that is good for them, the economic damage of their market share is considerable.
Politicians concerned about small businesses and having a strong and balanced economy should legislate to stop Coles and Woolworths. Politicians concerned for the Australian voice to be heard through high street retail ought to legislate to stop Coles and Woolworths.
But politicians won’t act. When it comes to these matters they are all words and no action.
Without legislation, the ACCC is powerless in this area as time has shown.
The Pollies will not act as big business donates to political parties and he who pays the piper calls the tune. Just look at Poker Machines where one political party owns registered clubs (or a nominee on their behalf).
The duopoly should be made to break in to smaller companies as should the banks.
The duopoly are too big now and are affecting the market, the old line that they are providing cheap goods to the masses is no longer true, they need to be regulated down.
Well said Wally
Toll was made breakdown into smaller companies, why shouldn’t these two.
When two companys control 80% of food,grog,petrol and hardware it seems no one cares, they don’t inspire you with witty advertising, just dumb it down and tell you that their food is not rotten and they slaughter the compertition on price, ask any farmer/grower. so what does fairfax do, put a grocer on the board.
Here in SA Coles/Woolworths are buying
the water rights to areas and then charging the farmers for the water only if
they agree to the Coles/Woolies terms of
trade (which means a lower price for the farmgate).
Last night on talkback radio the farmers were given 4 hours (8-12midnight) and it
was a fascinating insight into the power of
the people.
It all started with 1 farmer ringing up in tears one night at what was happening to him by the Resource management water group. They were fining him $25,000
for having a red perch (fish) in his dam.
He claimed that the fish had been deliberately put there so that they could close down his farm (knowing he couldn’t fund the fine) and this phonecall has escalated into a fullblown fullscale war between the duopoly, the water resource people and the farmers.
Peoples – it is not dissimilar to what is happening to our industry. We are being forced to take product that we don’t want and being forced to pay for it under the terms of trade (now archaic) negotiated many many years ago.
We need to do the same as these farmers.
They now have a fighting fund and they are taking the duopoly and the water resource people head on.
We still have the power to do the same but we don’t have the people at the helm who are committed to us (they are paid people with no investible funds in our industry so they really don’t understand our issues because their hip pockets are
not affected (yet!)
The ANF has never lobbied or negotiated on our behalf at the federal level with MP’s
and Independents and we have withdrawn our money from them so I guess they don’t have the resources to do so now.
However, WHAT IF THEY DID – WHAT IF THEY GOT A RESULT FOR US – JUST ONE
GOOD RESULT – we would all rejoin and
be full of praise.
June I think we are responsible too. Too many newsagents complain and stop there. Look at the lack of submissions on recent government inquiries. Almost zero from newsagents – when these inquiries want to hear from individuals.