The new grocery supplier code of practice has come into force, with the government announcing it is “pushing ahead” with the plans for an ombudsman as retailer representatives claim such a body is unnecessary.
New terms kicked in under the code last week. The terms apply to the 10 largest retailers in the UK with a turnover of more than £1 billion, rather than just the top four under the old code.
The British Retail Consortium (BRC) claims the new deal represents a commitment on the part of retailers to good, long-term relationships with suppliers and gives suppliers access to independent and binding arbitration.
Meanwhile, on 5 February, the government department for business, innovation and skills announced the next step in the government’s plan to enforce code compliance. Consumer minister Kevin Brennan said: “We’re pushing ahead with our plans for a new body to ensure free and fair competition.”
His department has launched a 12-week consultation on the powers and operation of the proposed body, to give suppliers and consumers a chance to have their say.
And the BRC has already made its views clear. Director general Stephen Robertson said: “The effort and money that retailers are putting into demonstrating they meet the code’s requirements and informing suppliers shows they accept their responsibilities as major players in the supply chain. Retailers want successful, sustainable long-term relationships with suppliers. The code is regulated by the Office of Fair Trading and gives suppliers more protection and a new right to independent arbitration if they are unhappy. Now, politicians of all parties need to recognise that these strong and wide-ranging new rules make an ombudsman unnecessary.”
But the National Farmers’ Union is appalled at retailer behaviour.
President Peter Kendall said: “Recent reports to me about retailer behaviour in the supply chain have demonstrated nothing but bully-boy tactics.”
Kendall said the whole supply chain should be working together to meet the challenges that the food system faces. The union still believes that the code should be policed by an ombudsman, despite BRC declarations that such a move is unnecessary.
No comments yet