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‘Too good for too long’: The Greens’ $30 million plan to lure Aldi to Tasmania

Aldi has been rated Australia's cheapest supermarket.

Aldi has been rated Australia's cheapest supermarket. Photo: Aldi

Greens senator Nick McKim says Aldi could be the answer to easing Tasmania’s cost-of-living crisis, and he has a $30 million plan get it there.

The German discount supermarket chain operates in every Australian jurisdiction except for Tasmania and the Northern Territory, leaving Tasmania dominated by Coles and Woolworths.

On Thursday, McKim said the Greens planned to take on the supermarket giants and “lure” Aldi to Tasmania.

“Coles and Woolworths have had it too good for too long and Tasmanians are paying the price,” he said.

“A lack of competition means shoppers [in Tasmania] are paying at least $15 more on a basket of essential groceries compared to Aldi, which adds up to hundreds of dollars a year.”

The Greens plan would allocate $30 million to the state government to help discount retailers set up in Tasmania.

About $2 million would fund a supermarket competition review to identify the barriers stopping discount retailers from entering the state, while up to $28 million would support them opening in Tasmania.

The Greens’ proposed support measures would include making government land available, helping set up distribution centres and improving supply chains.

The money required would be raised by taxing “big corporations”.

“Labor is letting the supermarket duopoly run rampant, while the Liberals are missing in action. The Greens are the only party willing to take these big corporations on,” McKim said.

“The Greens will force real competition into the Tasmanian market and make groceries affordable again.”

Aldi is yet to comment on McKim’s proposal.

The latest quarterly supermarket survey released last month by consumer advocacy CHOICE found the cost of a basket of groceries at Aldi was cheaper than the equivalent at Coles and Woolworths.

CHOICE visited 104 supermarkets across the Australia, including Aldi, Woolworths, Coles and IGA, and recorded the prices of 14 common grocery items.

Based on prices both with and without specials, the cost of baskets at Aldi and Coles dropped since the first quarterly survey, while the Woolworths basket price has increased.

“In March, Aldi’s basket was $51.51, compared to $51.36 in December,” CHOICE chief executive Ashley de Silva said at the time of the survey’s release.

“The Coles basket with specials cost on average $68.52 in March, compared to $66.84 in December, a 2.5 per cent decrease.

“The Woolworths basket with specials increased by 3.7 per cent, with the price going from $64.93 in the first quarter to $67.34 in the latest quarter.”

IGA shoppers, meanwhile, paid the most for their groceries at $74.90 for a basket in December.

In March, Prime Minister Anthony Albanese vowed to ban supermarket price gouging if Labor is re-elected, in the first major promise of the federal election campaign.

Albanese promised to make excessive pricing illegal and fix a gap in the nation’s competition and consumer protection framework.

Both Coles and Woolworths have delivered record revenues and profits in the past few years, while consumers endure a cost-of-living crisis driven by rising inflation and high interest rates.

Albanese said Labor would first implement recommendations from the Australian Competition and Consumer Commission’s supermarket inquiry report to improve transparency about prices, promotions, and loyalty programs.

The ACCC’s 441-page report into the sector released last month found no evidence of price gouging, but pushed for greater pricing transparency in the sector.

Woolworths has about a 38 per cent share of the grocery retail market, while Coles controls about 29 per cent, according to the ACCC.

Aldi is third with about 9 per cent of the market, followed Metcash with 7 per cent, and other independent retailers at around 17 per cent.

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