Greens Institute pitches $25.1bn plan to nationalise 200 Coles and Woolworths supermarkets

Proposal would create a publicly owned grocery chain and take about 20% of the commercial market

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The Greens Institute has proposed a $25.1bn plan to nationalise more than 200 Coles and Woolworths supermarkets and open hundreds of government-owned grocery stores under a new public chain, saying it would cut grocery prices and guarantee food access.

More than 200 Coles and Woolworths supermarkets would be nationalised and hundreds of government-owned grocery stores opened under a $25.1bn proposal from the Greens Institute, the party's thinktank.

Former Greens MP Max Chandler-Mather, who leads the institute, said the plan would use forced divestiture laws to take over major supermarket sites and three distribution centres. The government would fund another 424 new supermarkets and 10 distribution centres, giving the non-profit network about 20% of the commercial market.

A new statutory authority would set prices monthly and minimum wholesale rates for suppliers, with members including experts in supermarket operations, nutrition and food science, and farming. The federal government would cover capital costs including land, construction and acquisition, with stores located in areas of highest need. Chandler-Mather says the stores would become self-funding after the initial $25.1bn over five years.

"Kids are going to school hungry, families are skipping meals, people are cutting back on essentials, all because Labor has allowed Coles and Woolworths to jack up prices for extra profit, regardless of the human consequences," he said.

"Just like healthcare and education, food is essential to life. And just like Medicare and public schools, it's time we had a public option for food."

Chandler-Mather said the new stores, called Fair Go Grocers, would save consumers as much as 22% on an average shop, or $60 a week for a four-person household, with heavy discounts on essentials including fruit and vegetables, bread, milk and meat.

The proposal echoes a plan by New York City council member Zohran Mamdani for five publicly owned grocery stores, which has already drawn a lawsuit from a local business group. The New Zealand Greens have also proposed nationalising 120 supermarkets under a publicly owned chain.

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Analysis

Why This Matters

  • The plan would reshape Australia's supermarket sector by creating a major public competitor to Coles and Woolworths, directly targeting grocery prices and market concentration.
  • It signals a significant escalation in the political debate over supermarket power and the cost of living, with a major party's thinktank backing public ownership as a solution.
  • If pursued, the proposal would test the federal government's willingness to intervene directly in the grocery market and could influence the broader political contest over supermarket reform.

Background

Supermarket pricing and market power have become a recurring issue in Australian politics, with the major chains facing sustained scrutiny over their treatment of suppliers and consumers. The Greens Institute's proposal draws on international precedents, including a New York City plan for publicly owned grocery stores and a New Zealand Greens proposal for a nationalised supermarket chain. These parallels suggest the idea of public grocery ownership is gaining traction beyond Australia, even as it faces significant political and legal hurdles.

Key Perspectives

Greens Institute and Max Chandler-Mather: The plan is framed as a public option for food, similar to Medicare and public schools. Proponents argue it would cut prices by removing the profit motive, force down the cost of essentials, and pay for itself after the initial investment.

International precedents: The proposal is explicitly modelled on Zohran Mamdani's plan in New York, where five city-owned grocery stores have been proposed. In New Zealand, the Greens have put forward a similar plan to nationalise 120 supermarkets under a publicly owned chain called KiwiMark.

Potential obstacles: Forced divestiture would require new laws and would face strong opposition from Coles and Woolworths. The New York version of the plan has already drawn a lawsuit from a local business group arguing existing small grocery stores would be unable to compete, highlighting the kind of resistance the idea can expect.

What to Watch

  • Whether the Greens formally introduce legislation and secure parliamentary support for the plan.
  • Independent scrutiny of the $25.1bn cost estimate and the claim that the stores would become self-funding.
  • How Coles, Woolworths and the federal government respond to the proposal, and whether similar public ownership plans advance overseas.

Sources

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