Grocery adjudicator draft Bill expected today

Business Ministers are finally expected to publish a draft Grocery Adjudicator Bill, which will detail the proposed structure, remit and operating practices of the Adjudicator.

The Bill will be published for the purpose of ‘pre-legislative scrutiny’ but question marks about when the Adjudicator, formerly known as the ombudsman, will come into place remain.

Liberal Democrat MP Andrew George, who has campaigned for an ombudsman for many years and currently chairs the Grocery Market Action Group (GMAG), said Ministers had no excuse for further delay.

“Every day food producers are going to the wall. And many more are struggling as a result of the market distorting power of the large supermarkets. Every day this happens means that the proposed supermarket watchdog is being introduced another day too late,” he said.

“This proposal has cross-party support. The Government has no excuse to delay. Speed is of the essence. No time should be lost in setting up an effective watchdog with real teeth.

“Food producers here and in the developing world want to concentrate on the efficient production of healthy food not perpetually fight for their survival.”

In a recent Commons debate, Business Minister Ed Davey said the Government’s objective was to introduce a final Bill in the Second Session’ of Parliament, which does not begin until May 2012.  He said Ministers would consider introducing the Bill earlier ‘if parliamentary time allows’, however.

Introducing the full Bill after May 2012 means the Adjudicator is unlikely to be in place until 2013 or even 2014. The GSCOP, which the adjudicator is meant to oversee, has been in place since last February. 

The Competition Commission recommended a supermarket ombudsman to oversee a strengthened supermarket Code of Practice in April 2008, after a long inquiry.

It warned that ‘the transfer of excessive risk and unexpected costs by grocery retailers to their suppliers…if unchecked will have an adverse effect on investment and innovation in the supply chain, and ultimately on consumers’.

The previous Government accepted the recommendation and went as far as consulting on the ombudsman before last year’s General Election defeat.

The Coalition pledged to press ahead with the policy but the draft Bill has been slower in coming than initially expected.

Farming Minister Jim Paice said recently that he appreciated farmers’ frustrations at the delay and insisted Defra Ministers were putting ‘huge pressure’ on their Business counterparts to speed the process up.

Mr Paice insisted he had not given up hope of a full Bill in the first session of Parliament before May 2012.

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