THE EFFECTS TEST WILL INCREASE PRICES: COLES
“I cannot get an answer… on whether we will be able to sell bread, beans and nappies for the same price in regional Australia as in Toorak”
JOHN DURKAN, COLES MANAGING DIRECTOR – 24 MARCH 2016
Less than a week after Barnaby Joyce claimed the “proper price” of milk was anywhere up to $11 a litre, we see yet another warning that the Government’s dangerous effects test policy will raise prices on everyday groceries.
The effects test will have a chilling effect on the competitive process.
Businesses will fear that by engaging in legitimate competitive conduct – such as selling cheap bread, beans or nappies in regional areas – they will be taken to court.
Mr Durkan’s comments yesterday clearly demonstrate that consumers in regional areas will be disproportionately hit by rising grocery bills under the effects test.
Today’s reports are more evidence that the effects test will have the same impact on prices as a higher GST.
THURSDAY, 24 MARCH 2016