Industry puts pressure on Mandelson to act over ombudsman

The calls came after the Competition Commission (CC) submitted its final proposal to Government today (Tuesday, August 4), after it failed to reach a voluntary agreement with retailers.

MP Andrew George, chair of the Grocery Market Action Group called on Lord Mandelson to step in, warning the new Code of Practice for supermarkets will not work unless an independent body is there to enforce it.

He said: “The Competition Commission has done its job and now Lord Mandelson must accept their advice and introduce a watchdog to keep such behaviour in check.

“The Commission always maintained that the new Code of Practice will only work if an independent body is set up to oversee and enforce it. It is now up to the Government to take the necessary steps to make this happen.

“The case for an ombudsman has already been proved by the Commission’s extensive and thorough investigation of the grocery market. There has been ten years of inquiries and a failed voluntary code. There is no excuse for further deliberation and delay.

“The Government must act decisively to promote that fair trading throughout the grocery market.”

He was backed by NFU president Peter Kendall, who welcomed the CC’s submission to Government and said Ministers had a duty to consumers to ensure the body is established.

He said: “The Competition Commission’s order and ombudsman recommendation follows many failed attempts to get major retailers to introduce voluntary measures themselves and a prolonged and forensic investigation by the Commission.

“This is an important day for suppliers, including farmers, and I’m absolutely delighted at the news. There is now no logical reason for the government not to act in full on the Commission’s findings.

“Government has said it will act in the best interests of consumers and it seems clear that the establishment of an ombudsman will give suppliers the confidence to invest and to innovate which will, in turn, improve consumer choice, produce better products, and ensure food remains affordable.”

Have your say

Please do not complete the following form field for security reasons.

Name

E-mail

Comment

Post as

Anonymously

Display name