The Australian Greens, the research wing of the Greens, have unveiled a $25 billion plan in which more than 200 Coles and Woolworths supermarkets would be nationalised. The plan is by Max Chandler-Mather, a former Greens MP and current head of the institute, who proposes using new laws on forced share sales to take over the main supermarket locations and three distribution centres.
According to the plan, the state would fund the opening of 424 new stores and 10 distribution centres. The new non-profit, called Fair Go Grocers, would account for around 20 per cent of the market share of commercial operators. The stores would be opened in areas with the greatest need, with the federal government covering capital costs, including land, construction and acquisition.
Chandler-Mather argues that the new stores would save consumers up to 22 per cent on their average shop, or $60 a week for a four-person household. Large discounts are foreseen on basic foodstuffs such as fruit and vegetables, bread, milk and meat. A statutory body would be established to set prices monthly, as well as minimum wholesale rates for suppliers. Members of the agency would be experts in supermarket business, nutrition and food science, and agriculture.
Following an initial $25.1 billion over five years, Chandler-Mather claims that the stores would become self-financing and would not require additional money from taxpayers. For comparison, the federal government currently spends around $24 billion a year on the Pharmaceutical Benefits Scheme.
Chandler-Mather stated that children are going to school hungry, families are skipping meals, and people are cutting back on basic expenses because the Labor Party has allowed Coles and Woolworths to raise prices for additional profit. He added that food is essential, just as health care and education are, and that it is time for a public option for food.
The plan relies on the idea of Zohran Mamdani, the mayor of New York, on public ownership of grocery stores. Mamdani's plan foresees five urban and subsidised stores, one in each New York borough, which would open by 2029. Last month, a local business group sued the democratic socialist mayor, claiming that existing small shops would not be able to compete. New Zealand Greens have a plan to nationalise 120 supermarkets and establish a new public network called KiwiMark.
The Greens Institute commissioned a poll from YouGov last month on public support for the proposal. Voters were asked: 'Would you support or oppose public ownership of supermarkets that would be trialled in Australia?' A total of 84 per cent of respondents said they strongly or somewhat support the idea, while 16 per cent oppose it to some or a large extent. Support is strongest among 25 to 34-year-old voters (88 per cent), among Greens voters (96 per cent) and women (88 per cent).
The newly elected leader of the Greens, David Shoebridge, welcomed the proposal. He said that the Greens should focus on improving the material conditions of individuals, the environment and the community. He pointed out that public ownership of a supermarket with cheaper food is extremely popular as it improves people's lives. He added that Mamdani's message that the government should address the needs of citizens is working.
The competition authority has launched proceedings against Coles and Woolworths for misleading or deceptive representations about discounts in stores. The report published last year showed that Coles and Woolworths are among the most profitable retailers in the world. Greens argue that the new laws by Labor, which prohibit supermarkets from setting prices excessively, are ineffective and have not led to lower prices for consumers.
