Borders MP Demands Urgent Action on Supermarket Ombudsman (North Tayside Liberal Democrats)

North Tayside Liberal Democrats <info@libdems.org.uk>

Borders MP Demands Urgent Action on Supermarket Ombudsman

August 5, 2009 9:50 AM
Originally published by Scottish Liberal Democrats

MP Michael Moore has demanded urgent action from the Government after the decision by the Competition Commission to recommend the creation of a supermarket ombudsman to adjudicate in disputes between grocery retailers and their suppliers.

The establishment of an independent ombudsman for the sector was first suggested in a report from the Competition Commission last year, with today's announcement coming after months of discussions with major retailers had failed to produce a positive consensus around the Commission's proposals.Michael Moore MP: Borders

Mr Moore is highly critical of the supermarkets for failing to accept the need for an ombudsman and believes that in the absence of a voluntary agreement the Government must act urgently to create the ombudsman.

In the meantime, he hopes that the new Groceries Supply Code of Practice, also set out by the Competition Commission yesterday, will be a step in the right direction. It is intended that the new code will be included in all contracts between retailers and their suppliers, and prevent suppliers being subject to unexpected or unfair costs.

Commenting, Mr Moore said:

'There is a complete imbalance between the power of the supermarkets and their suppliers, particularly in agriculture.

'Since the Competition Commission made their initial recommendation on the creation of an ombudsman for the grocery sector last year, major retailers have dragged their feet and resisted this very reasonable effort to make things fairer in their supply chain.

'These latest recommendations from the Commission are welcome steps towards ensuring that in future, supermarkets and other major retailers will no longer be allowed to abuse the market power afforded them by their size.

'Farmers, suppliers and consumers in the Borders will all benefit from the establishment of an independent watchdog to protect their interests, and I am urging Ministers to implement these recommendations as soon as is possible'.