SUPERMARKET COMPETITION POLICY

An ACT Government plan to offer Canberra's grocery shoppers more choices, more suburban supermarkets, and potentially cheaper prices was launched on 22 January 2010 by the Chief Minister and Minister for Business and Economic Development Jon Stanhope.

Mr Stanhope released the ACT Supermarket Competition Policy Implementation Plan which will guide future supermarket development, and, in particular, address a shortage of larger, full-line independent supermarket stores in central Canberra and Gungahlin.

The Implementation Plan incorporates the ACT Government's response to the 15 recommendations of the Review of ACT Supermarket Competition Policy conducted by Mr John Martin, former Australian Competition and Consumer Commissioner.

The Martin Review found that while there was reasonable supermarket competition in the ACT retail grocery market, there were benefits in providing competition and potentially supporting an alternative source of wholesale grocery supply.

The ACCC—in a major review of the competitiveness of retail prices for standard groceries in 2008—also found supermarket retailing in the ACT was workably competitive, yet some factors limited the effectiveness of price competition.

The ACCC concluded the appropriate policy response was to lower barriers to entry and expansion in both retailing and wholesaling, to independent supermarkets, and potential new entrants.

Mr Stanhope said the ACT Government supports the findings which are also generally supported by the local industry, the Australian Consumers Association, Choice Magazine and the University of NSW.

The Implementation Plan sets out the essential elements of the Government's Supermarket Competition Policy, including amending the eligibility criteria, which are among factors the Government must consider when making decisions on new supermarket sites.

A copy of the ACT Supermarket Competition Policy Implementation Plan is available by clicking: Here.

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