Proof of who really runs this country 308



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The bosses of Woolworths and Wesfarmers, which owns Coles, can rest easy this weekend, knowing that their dominance over the grocery sector is safe once more.

The New Daily and Fairfax news are reporting that the government has quietly backed away from a major reform to competition laws, which would threaten the supermarket duopoly’s power over suppliers and prices.

According to The New Daily, the Business Council of Australia (BCA), on behalf of companies like Woolworths and Wesfarmers, threatened to launch an anti-government smear campaign, similar to the one the mining industry waged against the Rudd administration, should the government went ahead with the reform.

The reform would have made it easier for the ACCC to intervene when a big business uses its market power to damage or decrease competition.

Master Grocers Australia chief executive Jos de de Bruin said the government’s decision to cave was “spineless”.

Peter Strong, the head of the Council of Small Businesses Australia, said the companies represented by the BCA – in particular Coles, Woolworths and Telstra – were the only “people that had a problem with the reform”.

“They’ve been stalking every Cabinet minister. You can’t move in parliament without turning around, and there’s someone from Coles or Woolies or the BCA.”

The reform would have put an end to practices such as predatory pricing, bundling, and buying up land and leaving it unused. At the moment, it is incredibly difficult for the ACCC to act on allegations of businesses doing these things.

According to Fairfax media, the reform provision would bring Australia in line with 127 of 129 countries with competition laws – but it’s not to be.

Critics of the two big supermarkets’s practices say, despite promising lower prices, together the duopoly actually drives prices up with ant-competitive behaviour.

Do you think the two big supermarkets have too much power? Does it turn you off shopping with them? 

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  1. In my opinion ever since they started in this country they had to much power, we have all seen shops shut down and small suburban shopping areas become mini ghost towns. And we lost a lot colour and appeal when that happened, as a child I can remember the smells coming out of the local bakery, and the smell of the fruit shop, that is all gone. So what is this current Government doing about it? nothing?

    6 REPLY
    • And what did the previous government do about it? Nothing! Successive governments of both political persuasions have allowed this to continue, so to blame the present government is grossly unfair!

    • Peter Leotta it is current Government who is in power now, they matter to what to is happening today, yesterday is gone !!

    • They are bullies, particularly Woolies. They have undercut the prices of small businesses until they have sent them to the wall. They have no concept of a fair go for everyone, profits are their god. It will be a cold day in hell before I shop at Woolies, and I go to Coles only for things that I absolutely can’t get anywhere else

    • Exactly Libbi Elliot,think this could be a liberal trait “living in the past tense” but doing nothing about the present situation.

    • How stupid, to blame the present government! Only a devout socialist would make such a remark – Labor are as much to blame as the Liberals, they are both up against a very powerful adversary here!

    • Yes, Libbi Elliott “it is current Government who is in power now, they matter to what to is happening today, yesterday is gone !!” and I hope they do something about it. Something that the previous governments of both political persuasions have been too gutless to address. That includes my side of politics and your beloved side of politics as well.
      And Deborah Davers, I don’t know how old you are and I really don’t care. I don’t live in the past, but I can remember a time when life was simpler and things were better. I may be approaching my “Use By Date”, but I often long for those halcyon times of the fifties and sixties.

  2. They are selling us out. Whoever is in government will do the same. They are spineless. I choose to shop at Aldi now. They have a lot more brands and it is great value.

  3. seriously don’t know why anyone would shop at them if there is an Aldi nearby.. Support @aldi australia and you will support your self and the break up of these two. Plus also consider supporting your local shops and also consider creating a street green veggie exchange .. we saved our 40% btw per week by using Aldi and the beer and wine is OK lol

    10 REPLY
    • And all the profits go back to Germany. Good one. Nice to know you support your own country.

    • Sue Allen Do you know their business model ? They source locally where they can, they pay fair to growers, they employ locals in the community, they invest in infrastructure, sure they are German and will repatriate funds, that being said the current model is about expansion and providing a competitive model to the current Duopoly.. Metcash tried but got smashed by the Duopoly .. and yes we are proud Australians and support , please don’t judge and answer the Question in the main body

    • Sue Allen- are you sure all Coles and Woolies profits stay in Australia? If you want to support local – shop at an IGA, if available.

    • Sue Allen. If the mega rich spent their money in Australia I would agree with you. I suspect much of the money you spend at the big 2 goes into tax havens.

    • Coles does appear to be Australian owned (Wesfarmers), but there’s no guarantee their shareholders are Aussies

    • Sue Todd that is new zealand silly girl new zealand ..woolworths is australian owned as is coles .so annoying we are an iseland yes but we are part of the world …is having shares in another country a crime now??

      1 REPLY
      • I have to agree, that was Woolworths NZ. Woolwoths Australia has no connection to Woolworths South Africa, America, but did have a connection to NZ in the very early years.

        Woolworths Australia, has been an Australian company since 1924.

    • My husband worked for wesfarmers and all emloyees are offered shares . They are a WA company .the problem is ,its CEO ‘s from other country’s that get the top job then half the time stuff everything up .

    • And your point is Graeme? Last I looked NZ was a separate country to Australia, with their own government and everything. If you click on ‘our story’ you’ll find this is indeed Australia’s woolies, and it’s owned by a NZ company. Try reading this if you still don’t believe me

  4. The old politicians have a lot to answer for. Selling the Commonwealth bank, telstra and all the bits we dont hear about.

    4 REPLY
  5. I’m beginning to think that whoever writes your articles is either a reporter from Fairfax or an extremely left labour supporter! I hope people who read your dribble won’t be so gullible as to believe you, I shop independent anyway and still get good prices!

    3 REPLY
    • Your not very well informed, most of us here know who Rebecca is and she hasnothing to do with any Political Party or any newspaper, before you make these untrue allegations, check your facts

    • Some people can’t handle the truth, stick your head in a bucket Suzanne ad the world will pass you by without having to see the truth

  6. Shop in the local fruit markets and small butcher shops and bakeries and get the rest from will save money..get fresher food and if enough people do this a..also show the big supermarkets what we want matters

    6 REPLY
  7. I rarely shop at Coles or Woolworths they are both to expensive, they won’t continue to have any kind of monopoly because people will go where they can buy what they want at the cheapest price.

    2 REPLY
    • I think it’s more than looking for the cheapest price…. It’s about supporting local, smaller businesses and giving those two some competition. Hurray for Aldi and IGA and markets and corner stores!!

    • Yes agreed i always look to see where fruit, vegetables and meat are sourced, if it isn’t Australia i don’t buy it.

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