Page 4404 - Week 12 - Wednesday, 14 October 2009
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
pricing strategies. The ACCC recommended actions to lower barriers to entry and expansion in both retailing and wholesaling to independent supermarkets and potential new entrants. The ACCC considered that more regard should be had to competition issues in considering zoning or planning proposals. The specific recommendation from its report in this respect states:
… all appropriate levels of government consider ways in which zoning and planning laws and decisions in respect of individual planning applications where additional retail space for the purpose of operating a supermarket is contemplated should have specific regard to the likely impact of the proposal on competition between supermarkets in the area. Particular regard should be had to whether the proposal will facilitate the entry of a supermarket operator not currently trading in the area.
The ACCC also expressed the view that Metcash’s wholesale arrangements with suppliers could make direct dealings between suppliers and independent retailers economically unattractive and enable Metcash to inhibit competitive supply.
As is evidenced by the terms of reference, John Martin’s review essentially sought to examine the adequacy of the ACT government’s supermarket competition and the current competitive dynamics of the ACT supermarket grocery sector, as well as identify the likely future trends in the Australian supermarket grocery sector and how these are likely to play out in the ACT.
This review also sought ways that the ACT government can support effective and sustainable competition in the grocery sector, the implications of government action for the wholesale sector and, in the context of the findings, develop an overarching policy framework to guide the long-term development of the supermarket grocery sector in the ACT. The terms of reference also indicated a desire to investigate a flexible approach open to policies, procedures and processes that might be applied on a site by site basis to ensure site allocation supports the ACT government’s long-term policy objectives.
Importantly, I believe, the terms of reference also refer to the role of the local planning authorities in supporting competition policy. John Martin was also asked to advise on any current supermarket development proposals seeking ACT government support. The process for undertaking the review involved in-depth discussions with key stakeholders, ACT planners and other arms of government and called for submissions to establish how planning regulations, decision making and development facilitation affecting retail grocery competition have been working in the ACT.
The community engagement strategy played a vital role in formulating the recommendations. Five community consultations were conducted, one in each of the four town centres, Tuggeranong, Woden, Gungahlin and Belconnen, and in the city centre. The consultations were an opportunity for members of the public to provide input into the review. I attended the consultation session in Belconnen, as did Mrs Dunne. There has also been considerable community interest generated on the social media, with footage of John Martin’s presentation available and accessible on the internet.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .