The NFF Horticulture Council has today welcomed improvements to the Food and Grocery Code of Conduct tabled in Parliament by the Federal Opposition.
Chair of the Council, Jolyon Burnett said industry had appreciated the time the Opposition had taken to understanding the unique concerns of fresh produce growers when supplying the major supermarkets.
“From the outset, the Council has said not only do the penalties need to be much bigger, but there also needs to be a much greater chance of getting caught, otherwise poor trading practices won’t change,” said Mr Burnett.
“The Opposition are addressing both parts of this equation, by lifting the size of infringement penalties, and also giving the ACCC power to undertake audits without a suspected breach to trigger it.
“The Code needs a regime of penalties and enforcement that counteracts the current ability of supermarkets to leverage their market power with next to no oversight or repercussions.
“The Council also welcomes the reasonable Opposition proposal to introduce of divestiture powers and support the new role of Supermarket Commissioner.
“We still see the Code as a work in progress. Dr Emerson has already made recommendations accepted by government on what was a very weak voluntary Code that gave supermarkets a free run.
“We need to note between Emerson recommendations and these Opposition improvements there are still other amendments we feel are essential for a Code that better balances the playing field, particularly between fresh produce suppliers and supermarkets.
“We can only encourage the government and cross bench parties to carefully consider these proposed Opposition improvements.”
Akshata Giri