Queensland’s premier Steven Miles is calling for tougher penalties for retailers found to be price gouging, as he prepares to grill supermarket bosses about rising grocery costs.
Miles said he hoped to get answers on Thursday about the discrepancy between what farmers say they’re getting for their produce and what consumers pay at the checkout.
He said stories from farmers about how the supermarket giants were dealing with them when negotiating supplier agreements were “disturbing”.
“I’ve heard from farmers who aren’t sure if they want to keep doing it because they’re struggling to make ends meet as their own costs have gone up,” he said.
“They’re sick of being treated that way by the supermarkets.”
Supermarket chains, particularly Coles and Woolworths, have come under scrutiny after recording large profits while consumers struggle with cost of living pressures.
Mr Miles said he would also meet wholesaler Metcash, which owns IGA, and Aldi to “see what they need to be operating in more communities”.
“Clearly one of the problems here is the sheer amount of power in the hands of two supermarket chains,” he said.
“That matter would predominantly rest with the Australian government but I think they need to think carefully about whether there is sufficient competition both in the buying and selling of fresh food.”
The premier’s comments come after the federal government announced a review of the Food and Grocery Code of Conduct, aimed at improving business standards in the sector.
Miles welcomed the review.
“My personal view is that (the code) shouldn’t be voluntary, it should be mandatory,” he said.
“There should be tougher penalties that make people think twice about price gouging.”
Meanwhile in Greece, new government measures will see lower prices show up on supermarket shelves as of early March said Development Minister Kostas Skrekas.
According to AMNA, Skrekas spoke with Skai radio on Wednesday, saying the new measures will be voted on either this week or next, and companies will be provided a few days to correct their price lists.
He also said that the prices, both before and after will released to the public.
The government expects inflated food prices to slow after having acted on it, and while commenting on high prices for infant formula in Greece, the minister said they will place a cap on the margin of profit to match the European average on pricing.
Authorities are continuing inspections for unfair profits, and “will not hesitate to announce fines, as we are already doing anyway,” he underlined.
With AAP*
