Competition laws crippling independent supermarkets, Senator Nick Xenophon says

Updated

Independent senator Nick Xenophon says he will move to reinstate a part of the competition law that prevented companies from charging different prices to different companies for the same product or service.

The move follows a campaign by a large supermarket chain to sell bread for 85 cents per loaf.

"[The] latest discounting gimmick of 85c loaves of bread might seem appealing to consumers, but in the long run it will cripple independent supermarkets who can't access bread at that price from suppliers," Senator Xenophon said in a statement.

Senator Xenophon said both consumers and independent companies would suffer under Australia's current competition laws.

"When independents are pushed out of business that hurts competition and consumers too," he said.

"Prohibiting this sort of price discrimination will level the playing field once and for all."

Senator Xenophon is seeking to reinstate the then-Section 49(1) of the Trade Practices Act, which was in place until 1995.

He said the removal of the sub-section has allowed major supermarkets to expand at the detriment of independent retailers.

Senator Xenophon said he hoped to introduce legislation based on the pre-1995 law to the Parliament in November.

"Next month, I will be putting out a draft of these changes. I'll then seek consultation and I'm sure there will be some invested interests who will be very much against it."

Topics: retail, federal-parliament, parliament, government-and-politics, business-economics-and-finance, australia

First posted