Calls for the government to create a supermarket ombudsman have grown louder in the corridors of power as the issue stands on the brink of a decision from business secretary Lord Mandelson.
Liberal Democrat MP Andrew George, chairman of the Grocery Market Action Group, hosted a parliamentary symposium on the issue ahead of the government’s response to the Competition Commission’s recommendation.
MPs, unions, NGOs and business groups came together in Westminster recently to discuss the need for the government to implement the commission’s recommendation for a supermarket watchdog and not give in to pressure from retailers to water down the proposed regulations.
The government had 90 days to respond to the commission’s referral and an announcement was due from business secretary Lord Mandelson in early November. But competition minister Kevin Brennan said that he was now going to delay the decision to embark on another round of meetings with interested parties over the next few weeks, before coming to a conclusion at the end of November or early December.
George said: “Frankly, it would be astonishing if the government believed it could reverse the conclusion of a two-year inquiry on the basis of a few meetings over a matter of weeks...
“The government would have to come out with some pretty earth-shattering evidence to take the risk of contradicting its competition authority...
“For government to dismiss or delay this announcement could crucially undermine the Competition Commission’s status. The government being seen to ignore its own competition authority would have considerable ramifications.”
A spokesperson for George told FPJ the practicalities of an ombudsman were yet to be decided. He said: “It is a case of using market intelligence to undertake proactive mini-investigations. One of the major benefits of an ombudsman would be the opportunity for suppliers and producers to inform it anonymously of bad supermarket practice.”
John Breach, chairman of the British Independent Fruit Growers’ Association, who spoke at the meeting, told FPJ: “It is the size of the supermarkets that is the problem. A decision made by one buyer can affect the livelihoods of many and the eating habits of a nation.
“The disappointment we have is that it is not clear if the ombudsman will talk to primary producers. The supermarkets say they don’t work directly with primary producers, but are happy to herald them on pack and boast about their close relationships when it suits them.”
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