Former Labor minister and economist Craig Emerson has published an interim review of the grocers code of conduct, which has suggested fines of up to 10 per cent of annual revenue for supermarket corporations which mistreat suppliers.
Mr Chalmers said the government supported Dr Emerson's recommendations, subject to consultation with the industry.
"What we're talking about here is making the code compulsory, having big penalties for people who do the wrong thing, getting the dispute resolution right, so farmers and suppliers can't be dudded," Mr Chalmers said.
"We know that this is an interim report, we know that there's a few weeks of consultation to follow, but he's made it clear about those eight firm recommendations.
"We support those in-principle subject to consultation that will happen over the next few weeks.
"A big motivation is to put downward pressure on prices … we want to make sure our businesses are more productive and competitive."
The government-initiated review did not, however, back a push for break-up powers that could force Coles and Woolworths to sell off parts of their businesses if a court ordered them to do so.
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compulsory adherence to a code of conduct because voluntary compliance to a pathetically weak code designed by the companies concerned plainly has not had any beneficial effect.
one key problem though is the practice of Coles and Woolies ensuring competition cannot access towns by buying all suitable land and leaving such land unavailable to competitors. this is the one divestment that I would support and should be compulsory.
with the Libs now in favour of Govt forcing supermarkets to be broken up and divest parts of their business they should support this.
but crikey haven't the Lib/Nats gone so far down the communist path with their announced position. next thing they'll be suggesting nationalisation of supermarkets
