Dr Haines wants the next parliament to deliver strong powers to the Australian Competition and Consumer Commission to rein in corporations that abuse their market power.
She said current laws coudn’t break up big operators that were abusing their power, and Australia needed to catch up to other countries.
“We are all feeling the squeeze of rising costs, especially at the supermarket,” Dr Haines said.
“Coles and Woolworths collectively control two-thirds of the grocery sector and made more than $1 billion in after-tax profits last financial year.
“The ACCC is already taking Coles and Woolworths to court for allegedly misleading customers, but we need a supermarket ombudsman to help reset the power imbalance between the major supermarkets, suppliers and consumers.”
Dr Haines said a supermarket ombudsman was necessary to regulate the operation of the Food and Grocery Code of Conduct, with powers to create binding determinations, issue infringement notices and refer investigations to the ACCC for court action.
“A new mandatory code of conduct is coming into effect for the grocery sector, but there is no independent figure in place to uphold the code and proactively address breaches,” Dr Haines said.
“The current model still largely enables the supermarkets to select their own umpire.
“It’s akin to marking your own homework, and I think will end up being ineffective and exploited.
“Ultimately, it will be consumers and suppliers who are still short-changed.
“An independent supermarket ombudsman would hear complaints directly from consumers and suppliers, and have tools to take quick and effective action when necessary.”
Calls for a supermarket ombudsman or a similar position have been supported by the National Farmers’ Federation, Australian Dairy Farmers Limited, AusVeg and the Australian Food and Grocery Council.
Dr Haines is also backing new, broad divestiture powers to give the ACCC the power to break up big companies if they abuse their market power or engage in conduct that decreases competition and hurts consumers.
“Australia has very concentrated markets, and we need to make sure the big players aren’t abusing their power over consumers and smaller competitors,” she said.
“We want successful businesses in Australia, but right now, bigger profit margins come at the expense of fairness, and it’s bad for consumers, bad for farmers and bad for the economy.
“We need broad powers that give the ACCC the big stick they need to rein in corporations that are abusing their power, without carve outs. This would send a message to big business to clean up their act or face big consequences.
“Our current laws aren’t strong enough and enable companies to hike their prices or squeeze suppliers because they know they have the upper hand.”
Dr Haines said the ACCC needed broad powers that could force divestiture in any sector but pointed to the food and grocery, aviation or banking sectors as concentrated sectors where a lack of competition worked against consumers getting a better deal.
