Retailers are expected to pay up to $30 million in compliance costs under the government’s national unit pricing scheme.
The Australian Retailers Association (ARA) executive director Richard Evans said the Standing Committee on Economics report tabled in parliament cemented evidence that plans to introduce unit pricing will do nothing to reduce grocery prices for consumers.
"Anyone who thinks unit pricing will reduce grocery prices needs to spend more time analysing the situation. The committee’s report clearly indicates restrictions and additional compliance requirements on the retail market (including in-store redesign and technology upgrades) will increase costs for retailers by up to $30 million, which would ultimately be passed onto consumers.”
Evans believes that if the Rudd Government chooses to ignore the facts in the Committee’s report, they will increase the weekly grocery bill for working families who are already struggling.
"Retailing is an extremely competitive market. However, it is not driven by retailers, it is driven by consumers and the retail market responds to consumer demand and currently there is no consumer demand for such a scheme. The Rudd Government will only increase costs for retailers, and ultimately consumers, by placing restrictions on the market and compliance requirements on retailers,” he said.