Free market think tank, The Institute of Public Affairs, has looked into the ACT’s brave new statist experiment into supermarket competition which seems to have pleased no one except Supabarn.
The key consequences of the government’s implementation of its supermarkets policy at Kingston, Dickson, Casey and Amaroo will be to:
• Require the price of groceries at these news supermarket sites to be between $6.52 and $13.45
more expensive than the cheapest ACT supermarket site.
• Increase the price of the mean ACT basket of groceries to $8.02 compared to the cheapest basket
available in the ACT amounting to a mean price nearly ten per cent higher than necessary.
• Increase the price of the mean basket of groceries in the ACT by $1.05 or 1.18 per cent adding an
additional third increase on top of inflation.
Instead of being a policy to promote lower prices, the ACT government’s supermarkets policy
appears to be a form of industry protection for Chief Minister Stanhope’s preferred Supabarn. But as
the ACT Treasury’s own data shows, the cost of that protection will be felt through higher grocery
prices for supermarket shoppers.
In the Canberra Times Mr Stanhope has dismissed this ananlysis as ‘nothing but arrant, unadulterated nonsense”.
(For those of you who have not been paying attention here’s a history of the issue.