ID :
19245
Fri, 09/12/2008 - 19:40
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Shortlink :
https://oananews.org//node/19245
The shortlink copeid
Grocery scheme 'may drive up prices'
A group representing Australia's supermarket giants says Queensland runs the risk of driving up grocery prices by introducing unit pricing ahead of a national scheme.
Studies have shown that unit pricing - where supermarkets display not only the sale price but the price per unit, such as kilograms or litres - helps buyers get the best deal and drives competition.
Queensland Attorney-General Kerry Shine on Friday released a draft regulation for the state's scheme, which should be in place on July 1 next year. But the federal government wants the public to have a say on the development of a national scheme, on Friday releasing an issues paper.
Mr Shine said he had invited federal Consumer Affairs Minister Chris Bowen to adopt Queensland's model.
Given the potential for Queenslanders to save up to $160 million each year under unit pricing, the state would not wait for the federal government, he said. "If it's the same model as the commonwealth and other states, that's great, because national consistency is desirable," Mr Shine told reporters. "However, we're not prepared to wait around while others give further consideration to the issue over an extended period of time."
But the Australian National Retailers Association (ANRA), which represents the major supermarkets, said it was concerned about the state going it alone.
Chief executive officer Margy Osmond said retailers should not have to implement unit pricing twice. "Queensland runs the risk of introducing prescriptive regulations that just add extra costs to retailers' overheads which will, of course, put pressure on food
prices," Ms Osmond said. "One major retailer has put the compliance cost for the Queensland legislation at $30 million.
"If the Queensland government really has the concerns of shoppers at heart, they'll drop this legislation and participate in developing a cost-effective national scheme."
But Christopher Zinn, of consumer advocacy group Choice, said he had no problem with Queensland leading the way. "We really need to have a uniform national scheme," Mr Zinn told AAP.
"If Queensland has got the template for that, we are very happy because we don't want months and months to go by while everyone tries to reinvent the wheel."
Mr Zinn said the state's scheme had the elements for success, particularly pricing by large units - litres and kilograms - for easier comparison.
It also requires supermarkets to print the unit price in any advertising that includes the sale price, in a 10 millimetre type size, or at least 50 per cent of the height of the price sign.
Mr Zinn said Franklins supermarkets, a small independent chain in NSW, had unit pricing, but the writing was only three millimetres high. "It needs to be large, just so that when people are looking they can actually see what the unit price is without squinting, and it's apparent," he told AAP.
Under Queensland's scheme, groceries that are not sold by mass or volume, for example toilet paper sold in lots of 100 sheets, or nappies - the unit price shown will be per one, 10 or 100 units of the product.
Studies have shown that unit pricing - where supermarkets display not only the sale price but the price per unit, such as kilograms or litres - helps buyers get the best deal and drives competition.
Queensland Attorney-General Kerry Shine on Friday released a draft regulation for the state's scheme, which should be in place on July 1 next year. But the federal government wants the public to have a say on the development of a national scheme, on Friday releasing an issues paper.
Mr Shine said he had invited federal Consumer Affairs Minister Chris Bowen to adopt Queensland's model.
Given the potential for Queenslanders to save up to $160 million each year under unit pricing, the state would not wait for the federal government, he said. "If it's the same model as the commonwealth and other states, that's great, because national consistency is desirable," Mr Shine told reporters. "However, we're not prepared to wait around while others give further consideration to the issue over an extended period of time."
But the Australian National Retailers Association (ANRA), which represents the major supermarkets, said it was concerned about the state going it alone.
Chief executive officer Margy Osmond said retailers should not have to implement unit pricing twice. "Queensland runs the risk of introducing prescriptive regulations that just add extra costs to retailers' overheads which will, of course, put pressure on food
prices," Ms Osmond said. "One major retailer has put the compliance cost for the Queensland legislation at $30 million.
"If the Queensland government really has the concerns of shoppers at heart, they'll drop this legislation and participate in developing a cost-effective national scheme."
But Christopher Zinn, of consumer advocacy group Choice, said he had no problem with Queensland leading the way. "We really need to have a uniform national scheme," Mr Zinn told AAP.
"If Queensland has got the template for that, we are very happy because we don't want months and months to go by while everyone tries to reinvent the wheel."
Mr Zinn said the state's scheme had the elements for success, particularly pricing by large units - litres and kilograms - for easier comparison.
It also requires supermarkets to print the unit price in any advertising that includes the sale price, in a 10 millimetre type size, or at least 50 per cent of the height of the price sign.
Mr Zinn said Franklins supermarkets, a small independent chain in NSW, had unit pricing, but the writing was only three millimetres high. "It needs to be large, just so that when people are looking they can actually see what the unit price is without squinting, and it's apparent," he told AAP.
Under Queensland's scheme, groceries that are not sold by mass or volume, for example toilet paper sold in lots of 100 sheets, or nappies - the unit price shown will be per one, 10 or 100 units of the product.
