Charlotte Varcoe
PRICES for fresh produce at leading grocery supermarkets will be under the microscope of the state government, in a move welcomed by Mount gambier/Berrin business owners.
Last week, Members of Parliament agreed to form a select committee regarding the current grocery prices and how inflation has affected farmers, producers and the general public.
The committee is expected to gather evidence from across the state regarding trends in grocery pricing in South Australia compared to other states as well as the effect of high grocery prices on consumers.
It will also investigate price gouging and potential opportunities for further regulation of grocery retailers and opportunities for State Government intervention.
It comes following the federal government recently implementing its own Select Committee into the same issue which will look at similar terms nationwide.
Mount Gambier/Berrin resident and avid hospitality business owner Kirby Shearing expressed his concerns about grocery prices months ago when Federal Shadow Treasurer Angus Taylor was visiting the region.
Mr Shearing expressed his concerns about primary producers not gaining extra funds from grocery price increases and said consumers continued to pay through their teeth.
“The actual money is not being passed onto farmers,” Mr Shearing told The Border Watch.
“That is part of my business is trying to focus on supporting the farmers either directly through a butcher or going directly to the farmer themselves and cutting out the middleman.”
He said anytime “something dramatic” happens such as inflation he believed there would have to be inquiries made.
“There is always something and they always use wording such as committees or say they will look into this,” Mr Shearing said.
“There is no straight cut, no accountability and that is the point I made is the government can form all the committees they want and do a lot of finger pointing but at the ned of the day the buck stops with the government.”
He said inflation and the cost of groceries had tremendously affected his multiple hospitality businesses around town due to people having the inability to spend.
“With inflation, it is across all boards not just produce and perishables,” Mr Shearing said.
“It is also non-perishable fixed items such as rent, electricity or gas and fuel which plays a massive role in being able to maintain a healthy competitive pricing.”
He said although his company was only a small one he still had “mouths to feed” at home.
“It is one of those things when people go out now they are searching for value for money,” he said.
“I will consider us lucky that we have part of our business which is really trying to drive that with the experience side of things but for those people out there who have created a business that supports their family, it is going to be really tough.”
Mr Shearing said he hoped there would be accountability following these discussions, stating he believed there had been very little of that thus far.
“I do not think anything is going to happen, what I do think is going to happen is everything is going to go up and nobody will have any accountability,” he said.
Despite this, Mr Shearing urged the local community to support small businesses across the region as much as possible.
“Every dollar that we spend with our local farmers and with our local providers goes back into the community directly,” he said.
“People need to get out there and support those businesses which are proudly local because we are getting rid of the middleman and the big supermarket chains.”
Member of the Legislative Council Ben Hood supported the initiative and claimed his spot on the select committee.
He said he wanted to join the committee due to being a regional Member of Parliament.
“What we are going to look at is what the farmers are getting compared to what the mums and dads are paying when they get to the check out,” Mr Hood said.
“There is a pretty big disparity there and there has been that pricing and so coming from some of the most productive agricultural land in the state it was important for me to put my hand up to be on that committee.”
He said he would ensure there would be a wide range of evidence given from producers, farmers as well as major supermarket chains during the committee’s time.
“One of the most important parts of the terms of reference is looking at the relationship between wholesale prices paid to producers and retail prices paid to consumers,” Mr Hood said.
“We will be looking at the impact of grocery prices on consumers, especially those on a low income because we do not want a situation where people cannot get access to great healthy protein which we know is essential for people’s health and young people’s development.”
Mr Hood said fresh produce such as fruit and vegetables would also be on the committee’s radar as he did not want consumers to have to choose between fresh produce for dinner or “spaghetti on toast”.
He said he would also be advocating for the committee to visit regional areas across the state to gather further evidence.
