The move comes as the Federal Government is increasingly worried by Coles’ and Woolworths’ domination of the nation’s supermarket industry.

Assistant Treasurer Chris Bowen said this week the government would help small companies under pressure from major corporations who want to take them over.

He said the government wants to see smaller competitors survive and thrive. The government released a discussion paper on creeping acquisitions and foreshadowed increased powers for the ACCC to deal with them.

“I think it is a worry. I think the ACCC for example has been concerned that they’re in some cases involved in decisions about whether a store can be acquired when they may not have proper legal backing to do so,” Mr Bowen said.

At Wallaroo, Woolworths has been given council approval to build a supermarket on council land, in competition with a long-established local supermarket.

Three thousand people, more than the population of Wallaroo and almost one third of all the residents of the Copper Coast, have signed a petition to keep Woolies out.

More than 70 angry locals protested the planned new supermarket at a meeting a fortnight ago, prompting Democrat MLC to call on the Copper Coast Council to review its decision to make Woolworths the centre of the township’s redevelopment.

“Local people think the Copper Coast Council has made the wrong decision,” Ms Kanck said. “The council is required under the Local Government Act to consult with its community about major decisions – locals say they haven’t. Local traders say a Woolworth’s mall will kill the main street.”

Ms Kanck says the plan to build an enclosed mall may be seriously at variance with the development plan.

“Council documents show that the successful tenderer, Leasecorp, which is handling the Woolworths development, was given the opportunity to renegotiate their bid for this project,”

Ms Kanck said. “No other tenderer was given a second chance.”

“This $30 million development is a massive project for this town and it will have a huge impact on the character of the town and the local traders,” Ms Kanck said.

“With all the controversy surrounding the District Council of the Copper Coast, the community also needs to feel confident that the council has run a fair and transparent process.”

Last week Woolworths posted a $1.63 billion profit for the year, up 26 per cent.

The ACCC found last month that there was not enough competition between Coles and Woolworths.