Nationals leader David Littleproud calls for Coles, Woolworths to sell off stores to promote greater competition in grocery sector

Supermarket giants could be stripped of their chains and have them sold off to boost competition under powers being pushed by Nationals leader David Littleproud.

The conduct of Woolworths and Coles has been put back into the spotlight after a Four Corners investigation into the supermarket sectors’ pricing tactics.

Both companies have previously denied the practices amount to price gouging.

But Mr Littleproud said the documentary simply “validated” what he already knew.

“We’ve got the evidence. We have seen that with meat prices and fresh produce,” he told Sunrise on Tuesday morning.

“I think this now demonstrates we need to come together as legislatures, put aside politics and bring in … powers which would strip some of these big supermarkets of their chains and we may even see some of their stores have to be sold off to competitors to increase competition.”

Politicians from all sides have been piling the pressure on the supermarket duopoly in recent months after Coles and Woolworths returned profits that exceeded $1 billion last financial year.

Last month, the Australian Competition and Consumer Commission was tasked with conducting a 12-month price inquiry, just one of four reviews currently taking place.

A Greens-led senate inquiry into price gouging and a review of the food and grocery code of conduct is also taking place.

At a State level, Queensland’s parliament is also holding its own inquiry into grocery prices.

Mr Littleproud called for the Federal Government to just “get on with it”.

“Not only are farmers hurting but consumers too. We just want fair prices from the farm gate to the plate,” he said.

One of the tactics Coles and Woolworths use to stave off competitors, according to the ABC program, was to buy land before they have approvals to build.

Opposition Leader Peter Dutton suggested there needed to be a closer look at the relationship between the supermarkets and developers.

“I suspect that most developers, when they’re opening up a greenfield site, already have a relationship with Coles or Woolies . and they are keen for more market share,” he told 3AW.

“It’s not a clean sheet of paper when you’ve got a legacy of decades of leases and entrenched relationships and practices that have spanned CEOs and chairs, and the rest of it – you’ve got to make a viable return for the shareholders.“

Meanwhile, Mr Littleproud also accused the companies of putting Australia’s food security at risk, pointing to farmers being told their produce did not meet specifications.

“Showing when you have too much market dominance and power you can treat people in a way that actually destroys and tears away our food security,” he said.

“If we lose 34 per cent of our farmers, we lose our food security and we can’t afford that … This is a commodity that underpins all life.

“This is where governments should get involved when it’s a marketplace that has too much distortion, too much power. We need competition and we need fairness.”

Coles and Woolworths have been contacted for comment.