Leahy: strongly opposed

Leahy: strongly opposed

Tesco boss Sir Terry Leahy has continued his vehement stance against a proposed supermarket ombudsman, saying it would protect suppliers but not consumers.

The supermarket’s chief executive said the ombudsman introduced to oversee compliance with the new supplier code launched on 4 February would not help competition for consumers and would work in the interest of suppliers.

He told the Financial Times: "I'm not in favour of an ombudsman - everyone knows supermarkets are one of the most competitive industries around. That competition puts 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?

"An ombudsman would be there to protect suppliers but should be there to protect consumers."

The Government announced a consultation last week on the scope and power of the ombudsman, which is supposed to ensure "the grocery supply market continues to work in the long-term best interest of consumers".

The body was recommended by the Competition Commission after a lengthy investigation into retail-supply relations regarding costs and risk.

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