Coffee cups, truck laws leave shoppers with hefty bill
A patchwork of laws across states, including those banning single-use plastics, are driving up costs for shoppers.
It’s a claim made by Australia’s largest retailer in a new report arguing that “regulatory fragmentation” is costing households around $900 million a year.
Disposable coffee cups are legal in some states but unavailable in others; This means retailers are forced to run separate, jurisdiction-specific supply chains while spending more to comply with the law.
The Retail Council of Australia says coffee cups are an example of opposing laws harming retailers and driving up prices.
“Currently a truck carrying a legal load in Sydney may have to stop at the border and transfer that load to a different vehicle to continue towards Brisbane,” the council’s chief policy officer Glenn Fahey said.
“Delivery schedules are dictated by incompatible local rules and differing council curfews… this friction ultimately results in the price on the shelf that every Australian pays.”
Different heavy vehicle standards and driving rules, including curfews, are another source of frustration for retailers.
The retail council said it could take up to two years to get permission for some shipping routes, with retailers needing approval from every state and council area the goods pass through.
Financial modeling for the report was carried out by consultancy firm Mandala, which found that judicial fragmentation costs Australia $2.6 billion a year.
Without acknowledging that change of law is natural within the Australian federation, the retail council called for the establishment of a national harmonization council to guide universal decision-making and ease fragmentation.
The company is also seeking $260 million spent on the compliance incentive plan from the national productivity fund.
Retail council chief executive Chris Rodwell said a one per cent increase in retail efficiency would save households $115 a year.
“Businesses are wasting more time and money operating by different rules when they could be investing in jobs, innovation and growth,” he said.
“The good news is that there are obvious solutions and significant financial gains for all Australians if we can seize the moment and solve the problem.”
Retail is Australia’s second largest employment sector, employing more than 1.5 million people.
