Proposals to give a Groceries Code Adjudicator more powers to monitor retailers’ behaviour in the food supply chain will go much further to stamping out unfair practices, the NFU said today.

A report on the Draft Groceries Adjudicator Bill by the House of Commons Business, Innovation and Skills (BIS) Committee has recommended that the government makes a number of significant improvements to the bill such as giving a proposed adjudicator more power to launch investigations and the ability to impose fines from the outset.

NFU head of government affairs Nick von Westenholz said: “It’s good news that the committee has recognised the need for a Groceries Code Adjudicator to be established speedily, to monitor and enforce the Groceries Supply Code of Practice. Moreover, the committee shares the NFU’s view that the draft Bill should be amended and improved before being formally introduced to parliament.

“In particular, we are extremely pleased to see that the BIS Committee agrees with us that the adjudicator’s powers should be extended to include information from trade associations, such as the NFU, when deciding whether to launch an investigation into breaches of the code. The committee has also recommended that the power to fine retailers for breaches of the code should be available to the Adjudicator from the outset, something we have also argued for strongly.

British Retail Consortium food director Andrew Opie said: “We have always said it’s in supermarkets’ own interests to have good long-term relationships with their suppliers and an adjudicator is not necessary. But, if the Government is set on introducing one, it must keep the regulatory burden and related costs down, to avoid higher shop prices for customers.

“I’m pleased the BIS Committee has recognised supermarkets’ investment in complying with the supplier code and the good job they do for customers. It has responded to our comments to it with a number of recommendations which can help minimise the burden the adjudicator will place on retailers.

“The committee is right to call for a high level of evidence before the adjudicator launches an investigation and to say it should only respond to complaints, not go on fishing trips.

“It should have rejected anonymous and third-party complaints but the recognition of our concerns about the, ‘potentially huge costs to retailers of having to respond to anonymised complaints,’ and the need for strict guidance is welcome.

Von Westenholz added: “The committee should be applauded for the speed in which it has conducted its inquiry and we very much support its call for government to introduce a formal nill at the earliest opportunity. Having published the draft bill so it could be scrutinised by the committee, we hope the government accepts its recommendations and introduces an improved bill to parliament this autumn that ensures an adjudicator has the scope and depth of powers to enforce the groceries code effectively.”

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