The Australian government has said it is considering ways to encourage the opening of more supermarkets in suburban areas across the country.

In media comments, Consumer Affairs Minister Craig Emerson said he wants to overhaul state planning laws which he believes may be restricting retail to certain areas. Emerson said zoning laws had the potential to be anti-competitive, adding that a report on those laws and their effects will be issued next month.

Emerson’s comments were welcomed by activist group Urban Taskforce Australia, which noted, “Right now, new retail development is routinely denied on the grounds that it will compete with existing businesses. Tackling the power of the retail landlords is essential if we're to get more competition in grocery, clothing and general merchandise retailing”.

The announcement is part of the government’s repeated announced aims to encourage competition in Australia’s grocery sector. It comes just months after the Australian competition regulator got Coles and Woolworths to agree to a deal to drop restrictive clauses which prevented smaller rivals from opening outlets in shopping centres where the big two chains already had a presence.

NamNews - Monday 23rd November 2009

 

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