THE Rudd Government's embattled GroceryChoice scheme has won a reprieve, with consumer body Choice agreeing on a takeover.
An announcement on the $13 million bailout is expected within a week, delivering the Government a much-needed boost on a core election promise.
But, AdelaideNow reports, the decision has plunged Choice into controversy.
One board member has resigned and consumer advocates warn the deal will undermine the organisation's reputation.
Choice also will have to overcome consumer apathy which has seen hits on the grocery website nosedive from 3.3 million in August to just 54,000 this month.
Cash-strapped shoppers looking for a bargain can expect an improved scheme, including real-time information on the price of groceries at supermarkets.
Assistant Treasurer Chris Bowen last night predicted a positive future for GroceryChoice, which has been slammed by retailers, consumer groups and MPs.
"If you look at Choice, they run a lot of good services," he said.
Choice has promised to deliver more information to help shoppers decide where to buy their groceries.
"They do bring a lot of expertise to the table," Mr Bowen said.
It is understood Choice approached the Government several months ago with an offer to revitalise the website.
This month, the website reported that retail giants Coles and Woolworths were cheapest in 30 regions across Australia.
Choice will receive around $13 million over four years to run the scheme. It has promised to give consumers a lot more information to allow them to compare the best grocery deals.
But the issue has ignited strong passions on the Choice board. The organisation's chairwoman, Jenni Mack, said the decision to manage the scheme had been "overwhelmingly" supported by directors.
One long-standing Choice member, John Wood, warned the move would likely undermine public confidence in the respected organisation.
"Choice has a reputation for being a fearless champion of consumer rights," said Mr Wood, a former deputy commonwealth ombudsman.
"Its independence, though, could be compromised by accepting a lot of money from government.
"The organisation would be well advised to leave this service alone."
Concerns have also been raised that Choice's diverse membership had not been consulted on a decision that would boost its annual revenues by around 33 per cent.
Since being launched in August, GroceryChoice has been managed by the Australian Competition and Consumer Commission. But the ACCC has privately complained to the Government about managing the controversial scheme.
Liberal senators Guy Barnett and Mary Jo Fisher plan to introduce a parliamentary motion this week for the website to be scrapped.
Senator Barnett said he would highlight the deep flaws in the scheme and was confident other senators would support the motion.
"I think the facts should speak for themselves," he said. A senior Liberal frontbencher claimed the motion was long overdue because the GroceryChoice website was a "basket case from the beginning".
While attracting 3.3 million hits in its first month of operation, an ACCC spokeswoman said there had been only 54,608 hits up to November 16.
The ACCC's deputy chairman, Peter Kell, is a former Choice chief executive. When asked if Mr Kell was directly involved in discussions with Choice, the spokeswoman paused and replied: "No comment."




