Eli Greenblat
April 10, 2013
The Age
Australia’s leading supermarkets, Coles and Woolworths, could be six weeks away from a voluntary code of conduct with suppliers, possibly alleviating political pressure for a deal to be done or the government imposing a mandatory code.
Coles boss Ian McLeod confirmed this morning a voluntary code with suppliers could be four to six weeks away, with nearly 90 per cent of the issues agreed to.
However, Mr McLeod warned any voluntary code in the way supermarkets deal with their grocery suppliers should not impose extra costs and bureaucracy on the supermarkets and supplier sectors.
Talks between suppliers – through the Australian food and grocery council – and supermarkets began last year but as yet no deal has been reached as the parties disagree on fundamental matters. Recently the National Farmers Federation pulled out of the voluntary code talks.
The government is keen for a deal to be struck and could force through a mandatory code.
The ACCC has warned that its investigations into alleged improper behaviour by supermarkets when dealing with suppliers would not be stopped if a voluntary code was agreed to.
Mr McLeod said this morning a deal was potentially close but stressed it must not impose extra costs on supermarkets or suppliers.
“I don’t think anybody wants extra levels of bureaucracy bringing in to the relationships we have,” Mr McLeod said.
“I think they (suppliers) just want to know where they stand so there is a code of practice we can agree to and principles we can follow to give people security and peace of mind when negotiating with the main retailers.”
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