April 23, 2008
Plans by the Rudd Government to cut grocery prices by making it easier for foreign supermarket chains to set up shop won’t save the consumer a cent, the Shadow Consumer Affairs Minister, Luke Hartsuyker, said today (Wednesday).
Mr Hartsuyker, the Nationals’ Federal Member for Cowper, was commenting on the announcement by the Assistant Treasurer, Chris Bowen, that foreign chains would be given five years to develop land once they bought it, rather than the current one year. According to Mr Bowen, this would provide more competition for Coles and Woolworths.
“While I welcome anything that will cut grocery prices, this just won’t work,” said Mr Hartsuyker. “Chris Bowen has completely ignored the fact that there is a national shortage of land for retail development. There is nowhere for Australian companies to go, let alone foreign investors. Consumers won’t have greater choice because there won’t be any more supermarkets. In Sydney, for example, there are estimates that current planning strategies only allow for 11 per cent of the retail development needed by the community. That means consumers will have less choice and will have to drive further to do their shopping, using more expensive petrol, all adding to their costs.
“What Chris Bowen should be doing is putting pressure on his Labor mates in the state governments to get their act together and respond to land shortages, not just for retail development, but also for housing. What he’s actually doing is giving wealthy foreign companies an opportunity to tie up land and possibly sell at a profit without laying a single brick. It will increase land shortages.
“Just as FuelWatch won’t save motorists money, this is another example of Labor rhetoric over reality. It’s like the supermarket trolley that just won’t go where you point it. If you’re an overseas property developer, you’ll love it. If you’re a consumer, it won’t save you a cent.”
