The government of the Australian state of Queensland has formed the state’s first select committee to investigate supermarket price gouging.
The committee was created following discussions between the state’s Premier and the heads of Australia’s leading supermarkets.
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The selected committee will examine the rising costs of groceries, particularly fresh produce, and why these increases are not reflected in farmers’ profits.
The committee’s remit includes investigating discrepancies between retail, wholesale and farm gate prices, the variability of supermarket offerings across the state and the long-term profit trends within the perishable produce supply chain.
It will also look into the conduct of retailers in negotiations with local producers and the impact of information asymmetry.
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The bipartisan committee, chaired by Bundaberg MP Tom Smith, will also look into the improvements made to Queensland’s policy environment to increase transparency for food producers.
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By GlobalDataThe team consists of three government members, Tom Smith, Joan Pease, and Jess Pugh, as well as three opposition and crossbench members.
Premier Steven Miles said: “Everywhere I go, people tell me that the cost of living is having a big impact on the family budget.
“From high interest rates to price gouging, it’s all adding up and putting pressure on the most vulnerable.
“In my first speech as Premier, I made a commitment to meet the big supermarkets to share the stories from families that the cost at the checkout was far too high and that farmers felt ripped off at the farm gate.
“What those supermarket CEOs had to say simply wasn’t good enough, so I have moved to form this committee.
“I’d like to encourage all Queenslanders with something to say to come forward. I am very much looking forward to seeing the committee’s report.”
The committee is scheduled to present its findings to the Queensland parliament by 21 May 2024.
The Australian Competition and Consumer Commission (ACCC) was tasked by the Albanese government in early 2024 to conduct a comprehensive inquiry into supermarket pricing and competition.
