RESPONSE TO MINISTER’S GROCERY ANNOUNCEMENT

The announcement by Nicola Willis this morning moves the debate on market failure forward and is more positive than some observers had anticipated.

In particular her commitment that the government will consider possible structural separation and has commissioned expert advice on the form this might take, is a significant move. This undoubtedly puts Foodstuffs and Woolworths on notice that the magic days of unconstrained dirty tricks and super-profits are coming to an end.

The Minister also noted that she hoped Foodstuffs and Woolworths might take the initiative by considering voluntary divestment. That would be a very sensible starting point on their part.

The good news is the sense of urgency. A time frame of six weeks has been stated for the collection of information, the formalizing of proposals, and the report on detailed options for structural separation should that be necessary. Most of that information is already available, so that time frame should be achievable.

That said, this is necessarily a long-term project. I hope all parties in Parliament will endorse the direction of travel so that, as with the Telecom resolution, progress is maintained over time and not bogged down by political differences.  Our food distribution chain is clearly broken and every Party should commit to supporting the repairs.