A UK government plan to introduce a supermarket ombudsman to the country to help resolve conflicts between retailers and suppliers has been attacked by Sir Terry Leahy, the chief executive of leading grocery retailer Tesco.

In addition to the arbitration role that the ombudsman would take on, they would also be responsible for ensuring that that the new Groceries Supply Code of Practice is adhered to.

However, Mr Leahy told UK newspaper the Financial Times that the move was unlikely to help supermarket-supplier relations, adding that Tesco already enjoyed 'very good' relationships with suppliers.

'I'm not in favour of an ombudsman,' Mr Leahy told the publication. 'Everyone knows supermarkets are one of the most competitive industries around. That competition put power in the hands of the consumer.

'In a free society, why would you want an ombudsman if there are no problems now as far as consumers are concerned?' Mr Leahy added. 'An ombudsman would be there to protect suppliers but should be there to protect consumers.'

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