Fed: Govt to consult small business over unit pricing scheme

AAP General News (Australia)
08-06-2008
Fed: Govt to consult small business over unit pricing scheme

CANBERRA, Aug 6 AAP - The federal government will consult small operators and consumer
groups before deciding whether to impose a mandatory national unit pricing scheme on all
supermarkets.

The last thing the government wanted to do was put more compliance costs on small business,
says Assistant Treasurer Chris Bowen.

The introduction of a unit pricing scheme, which would change the way supermarkets
display prices for groceries, was a key recommendation of the Australian Competition and
Consumer Commission's six-month inquiry into grocery prices.

Mr Bowen has said the government will consider the best way to introduce the scheme.

"Woolworths says 'if you give us 12 to 18 months to do it, it really shouldn't drive
up our costs', Mr Bowen told the Nine Network today.

"Now the smaller retailers, of course, there would be a tight increased cost as a percentage,
so I need to work with industry and consumer groups over the next few weeks to try and
get that balance right.

"The last thing we want to do is put more compliance costs on smaller businesses."

The commission recognised the issue by recommending unit pricing apply only to significant
supermarkets, Mr Bowen said.

"The key is working out what is significant and where you draw the line.

"We do need to ensure that everybody has a level playing field and we're not giving
one supermarket an advantage over another, but we do need to ensure that smaller supermarkets
aren't disadvantaged.

The opposition has given its qualified support for the introduction of unit pricing,
but not for another government initiative - a new website which starts up today.

The site - www.GROCERYchoice.gov.au - will provide monthly comparisons of a basket
of selected groceries from supermarkets in 61 regions across the country.

Opposition finance spokesman Peter Dutton says the government should guarantee prices
will fall as a result of the service.

"If they can't provide that guarantee, then this is another political stunt by (Prime
Minister) Mr (Kevin) Rudd," Mr Dutton told ABC Radio.

"This grocery watch or grocery choice won't take into account any specials, won't take
into account multiple purchases ... it's a scheme based on prices a month old, and that's
why it won't work," he said.

AAP srj/rl/it/de

KEYWORD: GROCERY SECOND DAYLEAD

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