20 August 2009
Shoppers are paying far too much for their groceries because of restrictive out-of-date planning laws, according to the Urban Taskforce.
The Taskforces chief executive, Aaron Gadiel, said an overhaul of the State Governments Shopping Centres Policy would allow greater competition, leading to consumers paying up to 18 per cent less for basic food items and up to 28 per cent less for other household products.
Last year, former Australian Competition and Consumer Commission Chairman, Professor Allan Fels, released a report warning that town planning rules were up-holding anti-competitive processes.
The planning system should be about protecting the community from congestion, noise and the loss of cultural and environmental assets, Mr Gadiel said.
Instead, planning laws are protecting existing retail landlords from the threat of competition.
New supermarkets and larger food stores are being denied the opportunity to compete with existing shopping centres. Less choice means higher prices for groceries and everyday household goods.
Mr Gadiel said that the Land and Environment Court was often unable to resolve problems when councils blocked new supermarkets.
The Court cannot overcome the fundamental problems with NSW law, he said.
The planning system tightly controls the number of supermarkets that will be approved limiting opportunities for competition and new entrants.
Struggling families will be the big winners if there is more competition.
Shoppers are being penalised by having to travel greater distances to do their shopping. They need a greater choice nearer their homes.
The report by Professor Fels found that reform of the system could amount to $78 billion in extra income for the NSW economy and $296 billion Australia-wide. It would also be a boom for employment, delivering 147,000 jobs nationally and 47,000 jobs in NSW.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy. The construction activity made possible by property developers contributes $69 billion to the national economy each year and creates 709,000 direct jobs. The construction industry is Australias third largest source of employment.
