Former Greens MP Proposes Nationalizing Supermarkets to Lower Grocery Prices

A prominent figure in Australian politics, former Greens MP Max Chandler-Mather, has unveiled a bold proposal to address rising grocery costs: the nationalization of over 200 supermarkets. The plan, spearheaded by the Green Institute, a public policy think tank affiliated with the Greens, envisions a $25.1 billion investment over five years to establish a government-owned supermarket chain called 'Fair Go Grocers.' This initiative aims to forcibly acquire existing Coles and Woolworths stores and distribution centers, rebranding them as publicly operated outlets. The goal is to offer discounts of up to 30 percent on essential food items, potentially saving an average Australian family over $3,000 annually.

M Chandler-Mather, who previously gained notoriety as a vocal critic of Prime Minister Anthony Albanese, argues that current government measures to control prices have been insufficient. "Tinkering around the edges has failed," he stated, advocating for public ownership as a direct method to remove profit motives from essential goods. He drew parallels to public services like healthcare and education, suggesting "a public option for food" is now necessary.

The proposal comes amid significant public concern over food affordability. According to a recent YouGov poll cited by the Green Institute, 79 percent of Australians find it harder to afford groceries than a year ago, with 38 percent reporting skipping meals or eating less due to rising costs. The same poll indicated strong public support for publicly owned supermarkets, with 84 percent backing the idea if it reduces prices by cutting profit margins, and 62 percent more likely to vote for a party supporting such a proposal.

According to the Green Institute's modeling, Fair Go Grocers could capture 20 percent of the supermarket market. The plan projects that by eliminating shareholder dividends, executive salaries, profit margins, and marketing costs, the chain could operate cost-neutrally within five years, with revenues covering operating expenses. This approach aims to offer substantial savings by foregoing profit, unlike private competitors such as Coles, which have seen profits rise significantly since 2019 while real wages have declined.

The concept of divestiture powers, which would allow regulators to compel dominant companies to sell off parts of their businesses, is central to the proposal. This idea has previously been met with resistance from Prime Minister Albanese, who in 2024 rejected a similar suggestion from the Greens, stating, "Australia is not the old Soviet Union." The proposal also follows similar initiatives in New York, where Mayor Zohran Mamdani is advocating for city-backed grocery stores, and a proposal from the New Zealand Greens to nationalize supermarkets in their country.

M Chandler-Mather believes that for the cost of approximately one AUKUS submarine, Australia could establish a national network of publicly owned supermarkets. This, he contends, would not only break the existing supermarket duopoly but also provide lasting relief for millions struggling with the cost of living. The plan suggests investing $25.1 billion over five years to acquire 200 existing stores and three distribution centers, alongside building 424 new supermarkets and 10 new distribution centers across Australia.