Australians are being overcharged due to a lack of competition in crucial markets and a push for profits by big business, according to a new report that has called on the federal government to step in and address high prices.
The review, conducted by former Australian Competition and Consumer Commission (ACCC) chair Professor Allan Fels, found that “exploitative business pricing practices” have significantly added to inflation, and that new government policy is needed to remedy it.
“Australians are paying prices that are too high, too often,” Fels said in a speech at the National Press Club this afternoon.
“The cause is weak and ineffective competition in too many markets.
“Two policies are needed.
“First, the Australian government needs to act on high prices, to investigate their nature and causes and, where possible, their remedies. The remedies do not include price controls but there is much that governments could do.
“Secondly, greatly strengthen competition policy to remove or weaken market power, which enables excessive prices to be charged.”
The ACTU-sponsored review was announced last year and received over 700 submissions.
It is one of three reports into high supermarket prices during the cost of living crisis.
The others are a Queensland inquiry announced by Premier Steven Miles and an ACCC investigation commissioned by the federal government.
Economist and former Labor minister Craig Emerson has also been appointed to review the Food and Grocery Industry Code of Conduct.
