Greens Propose AU$30 Million Plan To Boost Supermarket Competition In Tasmania

The Greens have presented a AU$30 million plan aimed at encouraging discount retailers like Aldi to expand into Tasmania, Australia's smallest state.

Tasmanian Greens Senator, Nick McKim, unveiled the proposal on Thursday, focusing on alleviating the high cost of living by increasing supermarket competition in the state, News.com reported.

Tasmania's grocery market is currently dominated by major retailers Coles and Woolworths.

The proposal suggests directing AU$30 million to the state government to help discount supermarkets establish a foothold in Tasmania. Approximately AU$2 million would be allocated to a supermarket competition review aimed at identifying obstacles preventing discount chains from entering the state. The remaining AU$28 million would be used to support new entrants to the retail sector.

Key elements of the plan include assistance for building distribution centers, enhancing supply chains, and offering government-owned land to supermarket retailers on a competitive basis.

"Coles and Woolworths have had it too good for too long and Tasmanians are paying the price," McKim said. "A lack of competition means shoppers here are paying at least AU$15 more on a basket of essential groceries compared to Aldi, which adds up to hundreds of dollars a year."

The Greens propose that the AU$30 million would be funded through taxes on "billionaires" and "large corporations."

McKim criticized the Labor party for allowing the supermarket duopoly to dominate and accused the Liberal party of inaction. He stressed that the Greens are the only party willing to confront these large corporations, stating, "The Greens will force real competition into the Tasmanian market and make groceries affordable again."

Aldi's limited presence in Tasmania

Aldi, a German-owned retailer, operates in every Australian state and territory except Tasmania and the Northern Territory. According to a recent CHOICE survey, Aldi offers lower prices for grocery baskets compared to Coles and Woolworths.

Recent data from the Australian Competition and Consumer Commission revealed Woolworths holds about 38% of the market share, while Coles commands roughly 29%. Aldi has about 9% of the market, and other players like Metcash, IGA, and Drakes Supermarkets account for around 17% of the market.

Aldi recalls products in the UK

Meanwhile, in the UK, Aldi announced a recall and issued a "do not eat" warning to customers regarding its Inspired Cuisine Baby Potatoes with Herbs and Butter.

Aldi's recall came after it was revealed that the product contained milk, which was not listed on the packaging. The Food Standards Agency advised that the product could pose a health risk to anyone with milk allergies or intolerances.