Friday, November 27, 2009

More Barriers to Supermarket Competition Being Torn Down
Source: Australia. Competition Minister.
"The Federal Government is moving with states and territories to ensure planning laws do not unjustifiably restrict competition in grocery retailing.
A NSW government review of anti-competitive features of its planning and zoning laws is underway and the Federal Government is keen to work with the state government to the benefit of consumers. “Competition in groceries is good for consumers, and more competition is better,” Competition Minister Dr Craig Emerson said. In its grocery inquiry report, the ACCC found that planning and zoning legislation restricts competition in the supply and use of retail space. This finding was backed up by the Productivity Commission in its report on The Market for Retail Tenancy Leases in Australia. The Rudd Government’s policy paper released in September, Introducing more competition and empowering consumers in grocery retailing, noted that planning laws can particularly be a problem for independent supermarkets, with most states and territories adopting centres policies which concentrate retail activities in one location and with shopping centre owners having a strong preference to lease space to the largest retailers."

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