Key facts
- The Australian Greens proposed nationalizing over 200 Coles and Woolworths supermarkets.
- The plan includes establishing 424 new government-funded supermarkets.
- The proposal aims to save consumers up to 22% on average grocery bills.
- A statutory authority would set monthly prices and minimum wholesale rates for suppliers.
- The initial five-year cost is estimated at $25.1 billion.
- 84% of surveyed Australians supported the idea of publicly owned supermarkets.
The Australian Greens have unveiled a comprehensive plan to nationalize over 200 supermarkets operated by Coles and Woolworths, and to establish hundreds of new government-owned grocery stores. The proposal, spearheaded by Max Chandler-Mather, head of the Greens Institute, is inspired by a similar initiative by New York City Mayor Zohran Mamdani.
Under the plan, dubbed 'Fair Go Grocers,' the government would utilize forced divestiture laws to acquire major supermarket sites and three distribution centers. An additional 424 new supermarkets and 10 distribution centers would be funded, aiming to capture approximately 20% of the market share from existing commercial operators. Chandler-Mather estimates that these new stores could reduce grocery bills for consumers by as much as 22%, translating to about $60 per week for a family of four, with significant discounts on essential items.
A new statutory authority would be created to manage pricing, setting monthly price levels and minimum wholesale rates for suppliers. This authority would comprise experts in supermarket operations, nutrition, food science, and farming. The federal government would cover the initial capital costs, including land acquisition and construction, with stores prioritized for areas of greatest need. After an initial investment of $25.1 billion over five years, the network is projected to become self-funding.
Chandler-Mather argued that the current system allows Coles and Woolworths to increase prices for profit, impacting families struggling with essential costs. He drew a parallel to public services like healthcare and education, advocating for a "public option" for food. The proposal mirrors Mamdani's plan for five city-owned grocery stores in New York City, which has faced legal challenges from local business groups concerned about competition.
Public support for the idea in Australia appears strong, with a recent poll commissioned by the Greens Institute showing 84% of respondents supporting the concept of publicly owned supermarkets. Support was particularly high among younger voters (25-34), Greens voters, and women. Greens leader David Shoebridge endorsed the proposal, emphasizing its potential to improve citizens' material conditions and reduce the financial stress associated with grocery shopping.