Miles Doing What Matters: Government backing competition for supermarket sector

• Miles Labor Government releases consultation paper, to encourage more independent supermarket retailers to the market.
• Utilising government planning framework to enhance competition in the grocery trade with an aim to reduce grocery prices.
• Particular focus on regional areas that have less access to alternative retain chains.

The Miles Labor Government has today releases a consultation paper to industry that proposes opportunities for the government’s planning framework to enhance competition in the supermarket sector.

Consultation is in direct response to the Supermarket Price Inquiry, led by Bundaberg MP Tom Smith, earlier this year.

The Government has had a firm focus on doing what matters to bring down pressures of Queensland households, particularly on the essentials like groceries, energy bills and transport costs.

Already the Miles Labor Government has provided every Queensland household with $1,000 off their energy bill, increasing to $1,372 for vulnerable households and seniors.

The market share within the grocery sector in Australia is largely held by Woolworths and Coles, who have a combined market share of 65%. Woolworths holds a 37% market share, while Coles follows closely behind with a 28% market share, Aldi holds 10% of the market share and IGA holds 7% market share.

The remaining 18% of the market share is made up of smaller independent retailers.

In Queensland, these retailers include, but are not limited to Foodworks, Harris Farm Markets, Fresh and Save Warehouse, Costco and speciality organic and international stores. 

Feedback is being sought from the supermarket industry, local governments, land use developers and the public on matters relating to the Queensland planning framework and the role it plays in the creating healthy competition in the supermarket industry through land use planning and development.

Consultation begins online tomorrow (30 September 2024) and will be open until 12 November 2024.

The Government's response to the Supermarket Pricing Select Committee report can be found here.

Quotes attributable to Premier Steven Miles:

“Since becoming Premier, I’ve set out to to alleviate pressure on Queensland households.

“From the Supermarket inquiry, to delivering $1,000 energy bill relief, 50 cent fares and a commitment to drive down fuel prices if elected next month.

“There is more to do to encourage competition in the grocery sector, to drive down prices at the checkout.

“We’ll seek feedback from industry and from Queenslanders on how we can best leverage our powers to do what matters.”

Quotes attributable to Planning Minister Meaghan Scanlon:

“From my community on the Gold Coast right up to the Torres Strait, Queenslanders have been paying more at the checkout while our farmers have been getting less for their product.

“We’re not leaving any stone unturned, and this paper will look at what planning measures could be changed to encourage more independent retailers.

“This is about doing what matters and getting Queenslanders get a fairer deal – whether that’s at the checkout, or at the farm gate.

“You can only trust Labor to stand up to the big supermarkets, unlike the LNP who are happy to be in their pocket while Queenslanders pay more.”

Further information:

The following opportunities are proposed to be consulted on to encourage competition in the supermarket sector:

• Development of guidance - to assist local governments in implementing updated supermarket provisions such as definitions and/or a new ‘competition test’ for certain types of grocery retailers.
• Making State policy changes – making grocery competition a State interest.
• Amendments to planning legislation – which could include:
  • new definitions to acknowledge alternative grocery retailer typologies such as municipal markets, corner stores, neighbourhood supermarkets.
  • Establish State-wide capped category of assessment for different scales of grocery retail uses such as prescribing that lower categories of assessment are to be given to grocery retail uses in centre zoned land
  • Establishing a competition test to be used in the development assessment process
  • ‘Use it or lose it’ development approvals whereby the State could legislate a maximum timeframe for grocery retail use development approvals before they lapse and/or limit the ability for extensions to these development approvals.
• Limit ability to appeal on commercial grounds - investigate the provisions outlined in the Planning and Environment Court Rules 2018 to stop vexatious appeals.

ENDS