A $25.1 billion proposal to establish a government-owned supermarket chain has been welcomed by the Greens but criticised by MGA, which says Australia should focus on strengthening competition and supporting independent retailers.
MGA chief executive Martin Stirling warned the proposal risked repeating “failed 20th-century experiments in state-controlled food distribution”, which he said had led to “shortages, rationing, empty shelves and people standing in hours in queues”.
“This idea, which has been tried and tested by communist regimes, has been shown to lead to shortages, rationing, empty shelves and people standing in hours in queues, and is not the right way to distribute food across an economy,” Stirling said.
Stirling said it was “completely unnecessary” to spend $25 billion in taxpayer money establishing another supermarket chain.
Instead, the government should make it easier for independent operators such as IGA, FoodWorks, SPAR and Friendly Grocer to compete, invest and grow.
“There are thousands of independently owned and operated supermarkets around the country, many in regional and rural areas, and they are the best and most efficient way to provide excellent customer service, to provide consumer choice, and to put downward pressure on grocery prices,” Stirling said.
