Greens launch election platform with promise to slash grocery prices

The Victorian Greens have promised to slash grocery prices by up to 30 per cent by building 10 government owned supermarkets as part of their election campaign launch.

The party will commit $300 million to building the state-owned supermarkets across Victoria, with five in Melbourne and five in regional areas.

The stores would offer essential groceries such as bread, milk and fresh produce at a 30 per cent discount compared to the major supermarkets, while other goods would be at a 20 per cent discount.

Victorian Greens leader Ellen Sandell said the initiative mirrors one proposed by New York mayor Zohran Mamdani, who has pledged $100 million to build five city-owned supermarkets by 2030.

"Zohran Mamdani's done this in New York, we should do this too in Victoria to bring down the cost of living for all Victorians," Ms Sandell said.

"Parents shouldn't be standing at the supermarket wondering if they have to take things out of the trolley to afford their kids' lunches."

The party says it will also boost the powers of the Essential Services Commission, allowing it to set price ceilings on key essential goods.

The Greens say the stores would eventually become self-sustaining, while offering an average of 25 per cent off a basket of groceries.

Ms Sandell said additional savings would come from the state-owned stores not needing to pay for expenses like advertising or chase profits.

"As well as the profit motive, Coles and Woolworths spend an extraordinary amount on CEO salaries, on dividends for shareholders," Ms Sandell said.

"All of those costs will be cut out with a publicly-owned option."

Research from the party's think-tank The Green Institute proposes expenses at government-owned stores could be cut by 25 per cent by eliminating operating costs such as security guards and CCTV at stores.

In the 2025/26 financial year, Coles supermarkets had a profit margin of 5.7 per cent before tax, while Woolworths had an operating profit margin on 5.5 per cent before tax.

It means for every $100 spent at one of their supermarkets, Coles made $5.70 and Woolworths made $5.50 before tax.

Senior economics lecturer at the University of Melbourne Aaron Barkley said the proposed plan was "ambitious", but that governments faced significant challenges competing with existing companies in the industry.

"You really need to be in this position to have a sizeable share of the market before you're really going to make a serious dent in the existing competitive landscape," Dr Barkley said.

Dr Barkley said government involvement in a market could be effective, but it often needed to be targeted.

"In other instances where this policy has been floated or implemented, like in New York City for example, the point is made that on a per-item-basis the profit margins tend to be not that high," Dr Barkley said.

"In order to get the discounts that are being claimed here, that's really going to end up being taxpayer funded, and if you're taxpayer funding this, then maybe other avenues might be better for achieving the same goal."

Dr Barkley said targeted subsidies for people on lower incomes or in rural areas could be equally as effective in alleviating grocery stress.

Greens to borrow from NYC's Mamdani on crime

The Greens have also pledged to pour $1 billion into community safety over four years in a program also inspired by one introduced in New York City in March.

"We've seen New York just experience their safest summer on record after mayor Mamdani introduced an Office of Community Safety," Ms Sandell said.

"It's been proven to work in New York and we should be adopting kind of ideas here in Victoria to keep our community safe."

The newly established office would fund 24/7 crisis outreach teams of health and social workers.

The Greens also pledged further funding for frontline mental health, alcohol and other drug treatment and homelessness services. 

Ms Sandell said the approaches to crime proposed by the Coalition and Labor were not working, as Victorians did not feel any safer.

The government have pledged to hire 1,500 more police officers if re-elected, while the Coalition has promised to recruit 3,000 new officers if elected.

"It would be ludicrous to keep trying to double down on the same failed approach," she said.