Competition

As low-productivity sectors like health care rapidly expand, Australia faces a pressing need to boost productivity in other areas to maintain economic growth and living standards.

Here are a few short takes for you to chew over on the weekend, from the week’s happenings that probably didn’t need a full post. 1. Confusing cause with effect # Former chair of the ACCC, Allan Fels, released his much anticipated report into “price gouging and unfair pricing practices” on Wednesday, and let’s just say it’s a good thing Fels has been out of public policy making for over 20 years.

Over the past couple of years, food in Australia has become expensive. So much so that even politicians have started to (belatedly) take notice. That’s usually a good sign that there’s going to be some kind of policy response, once the various reviews are completed and briefing notes are prepared. I’m not sure what form it will take, or how and when it will happen, but the sheer volume of political statements made over the past couple of weeks all but guarantees something is brewing. The common thread throughout: the perceived lack of competition and pricing power in the sector, but especially for the two major supermarket chains, Coles and Woolworths.