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 Wake up and get angry, the new chief at Choice tells consumers 

Wake up and get angry, the new chief at Choice tells consumers

13 Apr, 2009 10:37 AM
The British pay more for their everyday groceries than do residents of any other country in Europe. The Americans pay more for their groceries than the British. And the Australians? They pay more than does anyone else.

What puzzles the British Prime Minister's former spin doctor turned new chief executive of the consumer advocacy group Choice, is why Australians remain so upbeat about their predicament.

Nick Stace has been in the country little more than a month.

But the differences he's already observed between the British and Australian consumer psyche are enormous.

British consumers feel a fatalistic resignation about being ripped off and must be prodded to the point of anger before taking action, but Australians display a curious, complacent optimism.

Mr Stace is here to give us a condensed dose of reality.

"Australia needs to get out of its comfort zone," he says. "You pay more for your groceries than [do people] in many other countries.

"The supermarkets here do not want to be transparent.

"That is incredibly irresponsible and incredibly worrying, yet there doesn't appear to be the desire to have a competitive market."

The Australian supermarket duopoly, the big four banks and the telecommunications industry is a three-headed hellion, Choice has pledged to do battle with under its new chief executive. These sectors are looking unusually vulnerable in the face of a steep economic downturn, Mr Stace says, and he has past form in goading consumers into belligerent activism.

Before the 37-year-old's brief incursion into politics last year - when he served as Gordon Brown's head of strategic communications - he had spent almost a decade working for Britain's Consumers Association, now known as Which?

The motor vehicle industry was the first sector to feel the pressure from Mr Stace's particular brand of consumer activism.

The industry had long argued it should be exempt from European Union competition laws.

Easy cross-border access kept dealerships competitive across continental Europe, but the English Channel provided a protective barrier to the British car-making industry and its exclusive anti-competitive contracts with local dealerships.

Despite consumer focus group evidence of widespread fatalistic apathy, in 2000 the association sabotaged the London Motor Show with print journalists and television crews in tow to launch its Great British Car Rip-off campaign, culminating in the call for a national boycott of new-car dealerships.

Three months into the campaign, the Bank of England was forced to put an interest rate increase on hold, such had the dramatic drop in car sales affected the economy.

It subsequently took the EU three years to close the anti-competitive loophole which in turn forced down the price of cars in Britain.

As Britain's representative of the European Commission's European Consumer Consultative Group for the past five years, Mr Stace cultivated a distinctly British brand of patience when it came to negotiating consumer laws from Brussels, which must be relevant and practical across 30 different countries.

Armed with this experience, grappling with Australian consumer law spread across multiple states and territories does not faze him.

Nor does doing battle with multiple fair trading, consumer and competition and primary industry ministers.

After 11 bruising months in politics, where Mr Stace became one of the central suspects in a series of damaging leaks over the Prime Minister's lacklustre performance and waning popularity, the lessons learnt were brutal but not terminal. (He insists he was not the source.)

Dodgy plumbers and household appliances are the only leaks Mr Stace expects to be investigating in Australia as he pledges to alter the consumer landscape and whip Australians out of their complacency.

"Choice is a household name," he says. "Now we need to move from being a household name to something that is essential to every household."

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Outside the major cities, US consumers pay LESS than Australian consumers. British lamb is cheaper in London than Australian lamb in Melbourne, but British farmers get paid more for their product than Australian lamb producers. Australian lamb is cheaper in Abu Dhabi than it is in Melbourne. These are all facts, witnessed first hand. Why is this so? Because our supermarket duopoly farms the consumer and the farmer.
Posted by ME, 14/04/2009 9:08:00 AM
I would be more interested in seeing (Australian) farmers being paid a fair price for the goods they produce - and achieving this outside supermarkets (farmers markets?) would be a good start.
Posted by me too, 14/04/2009 9:15:15 AM
Hopefully Nick Stace is the shot in the arm consumer advocacy badly needs. We all know the ACCC is a do-nothing lame duck, merely paying us lip service. I don't care how Nick shames the supermarkets and banks into doing the right thing. He can drag them kicking and screaming for all I care, just as long as the rip offs stop.
Posted by CQ, 14/04/2009 11:14:00 AM
There is little competition in Australia. It is hard to think of a sector that does have a lot of competition. There always seems to be one or 2 big players dominating a product/service in each region. No wonder the profitability of Australian companies has been so high for the last 15 years.
Posted by tel, 14/04/2009 2:47:44 PM
Time indeed to break the back of the local supermarket duopoly. Consumers do pay too much - to the point that some low-income households experience difficulty accessing enough, healthy food. Nick is right to say that there is a lack of transparency here in Australia. One of the big two was recently criticised for threatening suppliers with the removal of products if they didn't agree to a 4 per cent increase in trading rights. The supermarket responded with: “We want our customers to get the best possible value in our stores, and we expect our suppliers to share that goal.” Does this mean customers will see lower prices? Hardly likely and it's impossible for us to know. This will be one of Nick's first challenges - to turn the much maligned GROCERYchoice website into a tool that can shame supermarkets into doing the right thing by consumers.
Posted by Granjero, 14/04/2009 7:30:19 PM

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Competition is needed... Nick Stace has gone from working for the British PM, Gordon Brown, to consumer advocate in Australia. Photo: Peter Rae
Competition is needed... Nick Stace has gone from working for the British PM, Gordon Brown, to consumer advocate in Australia. Photo: Peter Rae
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