Page 4881 - Week 13 - Wednesday, 11 November 2009
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Mr Seselja: No-one is arguing against direct sales. Who is arguing against them?
MR STANHOPE: Mr Samuel is. Now he is, in the Senate. He was not then, when he wrote that letter. Those are the ACCC’s own words—their own words. On the basis of those words, that advice of the ACCC is reflected in John Martin’s report at recommendation 4, which states:
The ACT Government note that it is in no way constrained from intervening through the planning and land allocation system to achieve increased supermarket competition at sites where proposed acquisitions by a major chain have received informal ACCC clearance.
I understand that John Martin subsequently emailed Graeme Samuel, following discussions he had with Neil Savery, head of the ACT Planning and Land Authority, seeking Graeme Samuel’s comments. And John Martin advised that he did not receive a reply to that particular email to Mr Samuel.
There was a further meeting on 15 September between Graeme Samuel, David Dawes and John Martin prior to the release of the final report. This was a courtesy meeting at the ACT government’s instigation to alert the ACCC on the directions of the soon to be released Martin report. Mr Martin is adamant that the ACCC was given every opportunity for input into the report.
Mr Martin has expressed the view that efforts by the ACT government to facilitate the entry of new full-line supermarkets at some sites would be pro-competitive; whereas Mr Samuel appears now to have a contrary opinion. Mr Martin believes that unrestricted auctions may sometimes have the effect of actually limiting the number of interested bidders, rather than promoting competition.
We note that other interested stakeholders have been very supportive of and have recognised the depth of the ACT’s response. The Australian Consumers Association has welcomed the ACT government’s decision to accept the recommendations of the Martin review. The Canberra Business Council and the ACT Retail Traders Association have supported the government’s announcement to enhance competition in the ACT supermarket sector by increasing opportunities for independent supermarket operators. The ACT Council of Social Service supports the expansion of supermarket competition in the ACT with greater diversity leading to greater choice in prices which will benefit many Canberrans struggling to make ends meet.
Aldi has also stated that it is pleased that the government has accepted all 15 recommendations which will assist in bringing more Aldi stores to the ACT. Aldi acknowledged that one of the largest impediments to its expansion in the ACT is the inability to identify and access correctly zoned sites. As recently as yesterday, two leading consumer advocates were arguing that the ACT government’s new approach could even act to curb fast-rising grocery prices, a problem besetting not just the ACT but the nation as a whole.
University of New South Wales Associate Professor Frank Zumbo joined Choice spokesman Christopher Zinn to argue in the pages of the Canberra Times that the
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