Ms MARTIN - 1999-02-16
Territorians want answers on their high grocery bills - not just the cost they face for fresh food. Fresh food accounts for only 25% of the money Territorians pay at the supermarket checkout; 35% goes on packaged food and 40% goes on non-food goods. A fall in fresh food prices will mean nothing if the prices for other groceries, including packaged food and non-food goods, go up. Why is the Chief Minister proposing a narrow prices inquiry that only looks at 25% of the problem facing Territorians? Will he adopt Labor’s move to ensure the prices inquiry looks at all grocery items?
ANSWER
Thank you, Mr Speaker. That is a good question. It would be sad if we started off this prices inquiry with some sort of a political division because, believe it or not, the intent is genuine. The intent is to get clear information out to Territorians on the situation with relation to prices in the Northern Territory. The inquiry is fairly general in its terms of reference. I have said: ‘Are the prices of food in the Northern Territory high compared to other comparable jurisdictions and, if so, why?’ I used the word ‘food’, and I can tell you I have no ownership of that issue. I am quite happy for the parliamentary committee to decide the scope of the items they include in that inquiry.
What I would say is that, when I talked to Coles-Myer as one major retailer, they were keen to point out to me that when you talk about a basket of goods, things very much depend on what sort of basket you pick. We could use the commonly quoted ‘basket of goods’ used in the consumer price index variations – that is one option for the inquiry. But an interesting point Coles-Myer made, in talking to me about their particular business, was that they were talking about up to 2000 of what they call ‘high volume items’. They were at pains to point out that you can pick 50 or 100 or 1000 items, but the inquiry should be based on high volume items. So, there is no intention of excluding particular items. The intention is to give the inquiry the scope so that they would come up to Territorians with some ...
Ms Martin: So it would be a wide grocery definition?
Mr BURKE: I believe it should be high volume items. They are what people are buying and they are what people are complaining about. I think the important thing that should come out of the inquiry is that Territorians will know. I think it is self evident that prices are high, by Coles’ own admission. I would say they are 6-7% higher than, say, in the ACT. I think, when looking at comparable jurisdictions, we have to make it very clear that we are not comparing with Melbourne or Sydney. We also have to be very careful that we do not pick a similar sized jurisdiction, for example Cairns or Townsville, because remember, those cities are getting fresh produce from what is essentially a Garden of Eden - the Atherton Tablelands.
Ms Martin interjecting.
Mr BURKE: Bowen is the same – it is a major stone fruit growing area. We have a unique situation in the Northern Territory in that we probably cannot be compared to any other jurisdiction. Therefore, we need to look at the cost of freight, which is a factor and the other add-ons to retailers. I am hoping the inquiry will determine whether these prices are fair and reasonable. I think if that can be explained to Territorians they will understand it. If they are not fair and reasonable, the inquiry should be able to give Territorians that information so that they can use their own vote-with-their-feet logic and decide whether they want to frequent a retailer or otherwise.
ANSWER
Thank you, Mr Speaker. That is a good question. It would be sad if we started off this prices inquiry with some sort of a political division because, believe it or not, the intent is genuine. The intent is to get clear information out to Territorians on the situation with relation to prices in the Northern Territory. The inquiry is fairly general in its terms of reference. I have said: ‘Are the prices of food in the Northern Territory high compared to other comparable jurisdictions and, if so, why?’ I used the word ‘food’, and I can tell you I have no ownership of that issue. I am quite happy for the parliamentary committee to decide the scope of the items they include in that inquiry.
What I would say is that, when I talked to Coles-Myer as one major retailer, they were keen to point out to me that when you talk about a basket of goods, things very much depend on what sort of basket you pick. We could use the commonly quoted ‘basket of goods’ used in the consumer price index variations – that is one option for the inquiry. But an interesting point Coles-Myer made, in talking to me about their particular business, was that they were talking about up to 2000 of what they call ‘high volume items’. They were at pains to point out that you can pick 50 or 100 or 1000 items, but the inquiry should be based on high volume items. So, there is no intention of excluding particular items. The intention is to give the inquiry the scope so that they would come up to Territorians with some ...
Ms Martin: So it would be a wide grocery definition?
Mr BURKE: I believe it should be high volume items. They are what people are buying and they are what people are complaining about. I think the important thing that should come out of the inquiry is that Territorians will know. I think it is self evident that prices are high, by Coles’ own admission. I would say they are 6-7% higher than, say, in the ACT. I think, when looking at comparable jurisdictions, we have to make it very clear that we are not comparing with Melbourne or Sydney. We also have to be very careful that we do not pick a similar sized jurisdiction, for example Cairns or Townsville, because remember, those cities are getting fresh produce from what is essentially a Garden of Eden - the Atherton Tablelands.
Ms Martin interjecting.
Mr BURKE: Bowen is the same – it is a major stone fruit growing area. We have a unique situation in the Northern Territory in that we probably cannot be compared to any other jurisdiction. Therefore, we need to look at the cost of freight, which is a factor and the other add-ons to retailers. I am hoping the inquiry will determine whether these prices are fair and reasonable. I think if that can be explained to Territorians they will understand it. If they are not fair and reasonable, the inquiry should be able to give Territorians that information so that they can use their own vote-with-their-feet logic and decide whether they want to frequent a retailer or otherwise.
Last updated: 09 Aug 2016