News of the Groceries Code Adjudicator (GCA) Bill has polarised growers and retailers.
The British Retail Consortium (BRC) has slammed this week’s announcement of the Bill in the Queen’s state opening of Parliament. Director general Stephen Robertson said: “The most worrying Bill outlined is the GCA which duplicates an existing supply code of practice and writes a blank cheque on behalf of the retail sector. Every new demand from government that affects the retail sector adds bureaucracy and costs, and makes it harder for the businesses affected to invest, grow and create jobs.
“A lot of little pieces of red tape combine to make one big burden.”
However, many supplier organisations were delighted by the announcement, with the Country Land and Business Association president Harry Cotterell hailing it as “a great day for suppliers”.
The NFU was more cautious, calling the introduction of an adjudicator a “relief” for growers and farmers, but issuing a warning on the Bill’s content.
President Peter Kendall said: “We remain concerned government plans to include complicated and unnecessary provisions in the Bill will fetter the adjudicator’s ability to investigate unfair practices by the major supermarkets.
“It is vital it has the power to take credible evidence from reputable sources, and to use its judgment to assess its worth, before launching an investigation. At present, the ability of third parties such as trade associations to provide such evidence is likely to be prohibited by the Bill, something which will seriously hinder the effectiveness of the adjudicator.
“While today we move one step closer to a better functioning supply chain, there’s still work to be done.”
Kendall also warned against a half-baked Bill. “We warn that to introduce one without the powers to do a proper job could in fact be counter-productive, entrenching unfair practices in the grocery supply chain even more deeply,” he said.
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