The ACT Government has a Supermarket Competition Policy that seeks to maintain a
balance of competitive retail grocery performance throughout the Territory in respect of keen prices, service delivery, convenience, product diversity, innovation and adaptation to changing market trends.
The ACT Government has released land for five new supermarkets in the Territory in a bid to increase competition.
Independent supermarkets are being encouraged to compete with big players Coles and Woolworths. (ABC News)
Audio: Extended interview: Jon Stanhope talks with 666 ABC Canberra's Louise Maher (ABC Canberra)
The ACT Government has released land for five new supermarkets in the Territory in a bid to increase competition.
The move is part of the Government's Supermarket Competition Policy Implementation Plan that incorporates recommendations from last year's review by former Australian Competition and Consumer Commissioner John Martin.
Coles and Woolworths currently control more than 70 per cent of the ACT's grocery market and the Government signalled last year it would try to break their grip.
It has released land in Kingston for a new Supabarn supermarket and opened sites for a new ALDI and Supabarn in Casey.
Coles and Woolworths have also been blocked from another new supermarket site in Amaroo.
But Coles will be able to bid for a site in Dickson where a second supermarket is to be built beside the existing Woolworths.
Chief Minister Jon Stanhope says Superbarn has indicated it will open a distribution centre at Canberra Airport and the Government is helping it emerge as a major player to boost competition.
"The Government is determined to offer Canberra families more choices ... and potentially cheaper prices," he said.
Mr Stanhope says Woolworths and Coles will still be given opportunities to expand.
"The Government has recently approve sales of land to enable Woolworths to expand in centres such as Charnwood," he said.
"As recently as last month Woolworths secured another supermarket site in Bonner."
Opposition Leader Zed Seselja says the Government is stifling competition.
"What we do know is that IGAs and other independants who wish to come into the market have an important role to play," he said.
"We want to see as much competition as possible. We don't want to simply turn it from having two major players to having three major players," he said.
The ACT Government has announced a package of supermarket site releases in group centre redevelopments at Dickson and Kingston, and new developments at Casey and Amaroo in Gungahlin.
The package provides the opportunity for independent chain operators, including locally-grown independent chain Supabarn, to secure large format stores that will complement Supabarn's entry into fast-moving wholesale competition in the ACT.
It will also assist in the entry of a new ALDI store at Casey.
Chief Minister Jon Stanhope said the Government expected the first of the land sales for the new supermarkets to start within three months after site and marketing preparations.
The new supermarket in Kingston would require a variation to the Territory plan and this would probably take longer than the others.
"The Government is determined to offer Canberra families more choices, more suburban supermarkets and potentially cheaper prices," Mr Stanhope said.
"This package is the culmination of several years' work to respond to community and Government concern that the domination of large format supermarkets by Woolworths and Coles provided insufficient choice for consumers and competitive tension.
"Woolworths and Coles have jointly controlled more than 70 per cent of the grocery dollar in Canberra, and, if convenience stores were taken out, more than 90 per cent of large format supermarkets."
"Implementation of the Supermarket Competition Policy will result in greater competition and choice and potentially lower prices for Canberra shoppers."
Mr Stanhope said the ACT Government was encouraged by the 2008 Australian Competition and Consumer Commission Retail Grocery Report criticisms of impediments to new entrants to compete with major supermarket chains and lack of independent wholesale competition.
A review for the ACT Government by John Martin, a former commissioner of the ACCC, found grounds for some intervention by the Government to correct distortions and create competitive tension.
The Martin Review, which was accepted by the ACT Government and released in September 2009 recommended factoring competition and flexibility into planning, zoning and land release processes.
The Government took advice on the Martin Review from the inter-agency Supermarket Competition Co-ordination Committee, which considered competition factors and consulted stakeholders.
Mr Stanhope said the Government had decided:
Mr Stanhope said the package recognised that Supabarn would be opening a wholesale facility at Canberra Airport later this month. This facility would increase competition in the ACT's supermarket and wholesaling sector.
"The package still provides opportunities for the major market forces - Woolworths and Coles - to expand and the Government has recently approved sales of land to enable Woolworths to expand in centres such as Charnwood," he said.
"As recently as last month Woolworths secured another supermarket site in Bonner."
He said he expected to make further announcements by the middle of the year on direct sales of land to enable supermarkets to expand in local centres such as Holt and Kambah.
"The Government has a preference for land release by an open process, but application of the new supermarket policy will at times involve other methods, including restricted auction or other process.
"In relation to Kingston, Casey and Amaroo, the approach will involve the release of land for a mixed development, with a pre-commitment to a selected supermarket operator.
"This means that any developer will be able to bid for the development of these centres," Mr Stanhope said.
*NB: Chief Minister Jon Stanhope and author of the Supermarket Review John Martin will be available for comment in the courtyard of the Legislative Assembly building at 12.00pm today.
