The Australian Council of Trade Unions (ACTU) has initiated an inquiry into alleged corporate price gouging across various industries in Australia. At a recent hearing in Cairns, Ann Kreger, a retired nurse, voiced her financial struggles, highlighting the broader impact of the rising cost of living on individuals.
Kreger, a 25-year resident of Cairns, shared her dire situation, which included dropping her contents insurance in the cyclone-prone region and contemplating forgoing car insurance due to escalating costs. With her savings depleted and living on a fixed pension, Kreger’s testimony underlines the severity of the current financial crisis faced by many Australians.
The inquiry, overseen by Allan Fels, former head of the Australian Competition and Consumer Commission (ACCC), has traversed cities including Melbourne and Adelaide and is scheduled to proceed to Sydney. Over 600 submissions have been received, reflecting widespread concerns.
Cairns, known for its proximity to Cape York and the Torres Strait, was selected for the hearing due to the exceptionally high living costs in these areas. Evidence presented at the inquiry highlighted exorbitant prices for everyday items, with grocery and fuel costs significantly exceeding those in urban centres.
Australia's cost of living crisis
Jacqueline King, general secretary of the Queensland Council of Unions (QCU), stated the inquiry aims to uncover the root causes of the substantial price increases experienced this year, particularly in housing, food, transport, energy, insurance, and education sectors.
In contrast, business groups like the Australia Chamber of Commerce and Industry, represented by Andrew McKellar, have questioned the inquiry's credibility, attributing rising costs to supply shortages and sustained demand rather than corporate malpractice.
The inquiry continues to face challenges, with major banks and supermarket giants absent from hearings. An interim report is expected by year’s end, which will likely shed more light on the factors driving Australia's cost of living crisis.