Food and Grocery Code Key to Competitive Retailing Markets
Tuesday, 23 September 2014 10:20

The Australian Food and Grocery Council (AFGC) has welcomed the release today of the Competition Policy Review Draft report.

AFGC CEO Gary Dawson said the Competition Policy Review was a timely and important driver of economic reform aimed at getting the settings right for growth, investment and jobs.

“Jobs growth will only come from businesses having the confidence to invest, and competition reforms are important to build that confidence,” said Mr Dawson.

“The report highlights a number of areas of micro-economic reform that are critical to reducing the input costs of Australian industry at a time when our international competitiveness continues to fall. Reforms to energy, roads and shipping are vital.”

“The draft report’s recommendations cover a range of matters of particular importance to the food and grocery sector including:

  •               Support for Industry Codes and specifically support for the draft Food and Grocery Industry Code of Conduct now undergoing regulatory review. This Code will improve the operation of the market by building certainty and setting clear rules of engagement for retailers in their dealings with suppliers;
  •               Reform of Section 46 dealing with market power.  The Review Panel’s recommendations are a good starting point for further discussion on pro-competition reforms;
  •               Retention of both competition and consumer regulatory functions within the ACCC;
  •              A longer term view of what constitutes consumer benefit;
  •              Greater consideration of the global market realities facing many Australian businesses competing in trade-exposed sectors;
  •               Regulatory reform including zoning law changes and trading hours that will improve the capacity for businesses to respond to consumer demand.

“The AFGC will analyse the report in detail, in consultation with its member companies, and engage further with the Review Panel and the government as the competition reforms are further developed,” said Mr Dawson.

 

 -ENDS-

AFGC Media Contact: James Mathews 040 741 6002