We are urgently developing research requirements with other European laboratories to make sure we understand and the disease (Schmallenberg) better.Supermarkets slam ombudsman plan
SUPERMARKETS have responded angrily to Government plans to set up a retail ombudsman.
The British Retail Consortium (BRC) said establishing a ‘costly new bureaucracy’ to oversee relationships between supermarkets and their suppliers would hand power to multi-national food businesses and cost customers millions of pounds in higher prices.
The BRC said it disputed the claim that the only extra cost would be the £5 million the Government says retailers would be charged for setting up the new body.
BRC director general Stephen Robertson, said: “This would tip the balance of negotiating power in favour of multi-national food manufacturers allowing them to drive up the prices customers pay.
“This is not about farmers, very few deal directly with supermarkets, and it’s not about a ‘mere’ £5 million pounds of extra costs.
“The UK grocery market is worth £130 billion a year. If threats of involving an ombudsman allow big food companies to squeeze even 0.1 per cent more out of supermarkets, that’s £130 million extra on customers’ bills.”
He said the Government has decided to pursue the policy ‘despite the lack of evidence that it is needed’.
“There is already a supplier code, overseen by the Office of Fair Trading (OFT) and offering the right to independent arbitration. It has long been compulsory for the ‘big four’ supermarkets and is being extended to more retailers next month,” he said.
“Office of Fair Trading chief executive John Fingleton has said supermarkets are pro-consumer, bringing lower prices, innovation and new services and an ombudsman is not necessary.”