Here comes the floor space test for retail competition

johnboy 9 January 2011 5

Mr Stanhope has announced that he’s having a look at introducing a “floor space test” in his government’s quest to crush the Liberal supporting IGA owners bring more competition to Canberra’s supermarkets.

Mr Stanhope said the floor space test is based on a scheme in operation in NSW where any applications for development by a single operator that has more than 25% of the floor space in a single industry automatically receive greater scrutiny.

“Through the 2010 Supermarket Competition Policy, the ACT Government has implemented a range of strategies to ensure Canberra shoppers are assured of the best value for money when buy their groceries,” Mr Stanhope said.

“For example, we have removed barriers to entry for smaller supermarket players and have excluded major players from a small number of new supermarket sites in a bid to diversify the market.

“Now we are looking at the possibility of introducing the floor space test. Such a test would ensure that the overall presence of supermarket chains is included when we assess levels of competition.”

Mr Stanhope said the review of the success of the 2010 Supermarket Competition Policy would also examine issues such as the optimum retail mix in local centres and the possibility of a cap on the proportional size of a supermarket in a local shopping centre.

Never let the market decide when you can expand the power and influence of Government.

What's Your Opinion?

Please login to post your comments, or connect with
5 Responses to Here comes the floor space test for retail competition
trevar trevar 9:12 am 20 Jan 11

And are the farmers markets at EPIC and the now homeless Southside Farmers Markets included in his definition of this ‘industry’?

I’m guessing not, but they are a factor. I don’t buy the long-haul fruit and vegetables from the supermarkets when I have another option, and being without the markets this week has reinforced my prejudice (on most counts at least). I imagine that few of those who get F&V from the markets also buy from the supermarkets, and this puts the markets in direct competition with supermarkets.

If the Chief was committed to competition, he’d be considering the markets in all this.

screaming banshee screaming banshee 7:39 pm 09 Jan 11

Will this apply to Giralang?

Will this be retrospective?

bd84 bd84 7:08 pm 09 Jan 11

Another attempt by Stanhopeless to breach the Trade Practices Act that will do absolutely nothing to promote competition.

beejay76 beejay76 6:24 pm 09 Jan 11

Yeah, because Coles and Woolies banning competition in developments has been working so well for us, hey?

Deref Deref 2:18 pm 09 Jan 11

Anything that helps to crush Liberal supporters can’t be all bad.

CBR Tweets

Sign up to our newsletter


Search across the site