Western Australians have been issued with a stark reminder of the need to reform the State's archaic retail trading hours laws with Australia's competition watchdog finding independent grocers do not provide customers with the lowest prices possible.

The State's peak business organisation, the Chamber of Commerce and Industry of Western Australia, believes the findings of the Australian Competition and Consumer Commission's grocery prices inquiry provides further compelling evidence why WA’s trading hours laws need to be urgently brought into the 21st century.

Not only are the current laws standing in the way of lower prices, they also unfairly restrict choice, competition and innovation.

The ACCC has found Australia's independent supermarkets fail to take up the fight to their competitors by lowering prices. It is these supermarkets that under the State's current trading laws are allowed to trade on Sundays and weeknights while their competitors can't.

The report concluded that "while small independent retailers provide a competition alternative, they do not contribute significantly to price competition".

Claims by independent grocers they lack the same buying power of the larger chains have also been exposed as a myth.

The ACCC has ruled that the major supplier to independent supermarkets, Metcash, has significant buying power but does not pass on these savings to their customers.

The ACCC in its report found that "the prices Metcash sets for its wholesale packaged groceries are a significant factor holding many independent retailers back from more aggressive price competition".

As a result, it is Western Australian consumers who are being punished by paying more than they should for food and groceries.

It’s a claim supported by recent data released by the Australia Bureau of Statistics showing that Western Australian shoppers pay the most for food and groceries than those in other states.

Reform of the State's retail sector will deliver many benefits to the community including increased choice, convenience, and best of all, lower prices.

CCI calls on the State's political leaders to deliver bipartisan support for fully deregulated trading hours at the next state election.

Statement by CCI Chief Executive James Pearson

The resumption of partial gas supplies from the Varanus Island gas processing plant is a significant and welcome development, however the gas crisis which has hurt Western Australian business and industry is far from over.

CCI, after receiving advice from its members and energy suppliers, believes it is premature to declare the gas crisis over.

The State's peak business organisation, the Chamber of Commerce and Industry of Western Australia, believes the gas market will remain tight, and WA's energy network fragile, until the end of the year when full production resumes.

CCI welcomes the Government's decision to hold a review into the security of the State's gas supplies. However, it is essential that the terms of reference of this inquiry to be broadened to include all energy sources as part of the development of a comprehensive energy blueprint.

The review also provides an opportunity to examine the way in which the response to the crisis was managed, and the lessons learnt.

CCI calls on the Government to consult closely with the WA business community, which has borne the brunt of the gas crisis, to assist in the development of a responsible energy policy, and to ensure that the State is fully prepared to respond swiftly and effectively should energy supplies again be disrupted.

It is important for government, energy suppliers and the business community to take stock of the energy supply situation once the next tranche of gas is made available from Varanus Island in mid August. Decisions can then be made about what steps should be taken next, including the need for households and business to cut back on their energy use.

While it's pleasing progress is being made to resume full production at the Varanus Island gas processing plant and restore gas supplies to business and industry, there remains not enough gas for all users.

Considerable time, effort and money has been spent to reduce the effects on business and industry. However, WA's energy system remains fragile despite temporary measures including increased gas production by other suppliers, recommissioning of several coal fired power stations and increased use of costly alternative fuels such as diesel.

The gas crisis remains one of the most significant challenges facing WA business and the local economy in many years. CCI estimates the gas crisis has already cost business and industry $2.4 billion in lost turnover.

Statement by CCI Chief Executive James Pearson