Already a subscriber?Former Victorian Liberal premier Jeff Kennett says the Coalition’s plan to break up Coles and Woolworths was “madness” that demonised employers and would not bring down prices at the checkout.
Peter Dutton negotiated the plan with Nationals leader David Littleproud and shadow treasurer Angus Taylor.“If governments are serious about lowering prices for consumers above what has already happened, then reduce the taxes and charges they force these organisations to pay,” he toldThe Coalition’s own spokesman for competition, Dean Smith, has previously opposed divestment powers, saying in February they are “ill-conceived in the Australian context”.
He pointed to unfair prices paid to farmers and other suppliers, as well as moves by Coles and Woolworths to buy up key development sites and local shopping centres to edge rivals out of lucrative locations.“This policy aligns Australia with our major trading partners, ensuring Australians get a fairer go,” he said.
The court could force the break-up of a supermarket or hardware company that fell foul of the law, where such a move was found to be in the public interest. The change follows the former Coalition government’s so-called “big stick” laws targeting energy providers, which used a similar legal mechanism.