Jeff Kennett slams Coalition’s promises of supermarket, hardware break-up powers

Former Australian Football League (AFL) CEO and Victorian Premier Jeff Kennett has come out swinging against the Morrison Government’s latest promises to give the Australian Competition and Consumer Commission (ACCC) the power to break up big supermarket and hardware chains.

Speaking to the Australian Financial Review, Kennett described the plan as a “pie-in-the-sky” proposal that would not address the underlying issues of competition and consumer power in the retail sector.

The Coalition government has pledged to give the ACCC the power to order the break-up of Australian supermarkets and hardware chains if they are deemed to be too dominant or restrictive. The move is seen as a way to increase competition and drive down prices for consumers.

However, Kennett, who is currently the Chairman of the Australian Football League, believes that the proposal is too broad and would likely have unintended consequences.

“I just think it’s a very simplistic solution to a very complex problem,” Kennett said. “The reality is that our retail sector is already highly competitive, and there are already many other players in the market.

“Breaking up the big supermarkets and hardware chains is not going to create a more competitive market, it’s just going to create a whole bunch of winners and losers. I think it’s a very flawed approach.”

Kennett, who has a background in economics and business, believes that the real issue is not the size of the supermarkets, but rather the lack of effective competition and the failure of small and medium-sized businesses to compete effectively.

“I think the real problem is that we have a lot of small and medium-sized businesses that are struggling to compete with the big players, and that’s where our focus should be,” he said. “We should be supporting those businesses, not breaking up the big ones.”

The Coalition’s plans to give the ACCC the power to break up big supermarkets and hardware chains have been met with skepticism from many business leaders and economists. The Australian Retailers Association has said that the plan is a “knee-jerk reaction” that would damage the retail sector, while the Australian Institute of Business and Economics has warned that it wouldlead to a “massive” increase in job losses and a “shake-out” of the economy.

The Morrison Government has defended the proposal, saying that it will help to increase competition and drive down prices for consumers. However, it remains to be seen whether the ACCC will be given the power to break up the supermarkets and hardware chains, or if the plan will be scrapped in favor of alternative solutions.

In the meantime, Jeff Kennett’s criticism of the proposal has added to the growing chorus of opposition from business leaders and economists. As the debate continues to rage on, it is clear that the future of the Australian retail sector is uncertain, and that the government will have to tread carefully to avoid causing unintended consequences.