Final push on ombudsman as EU plans retail shake-up

The Government is expected to respond to recommendations by the Competition Commission (CC) to set up the watchdog next week amid fierce opposition from retailers.

The meeting came as the European Commission issued a communication setting out new plans to increase farmers’ bargaining power with retailers and improve suppliers’ position in the supply chain.

NFU Scotland chief executive James Withers said the UK now had the opportunity to lead the way in Europe in establishing an ombudsman and called on Business Secretary Peter Mandelson to take immediate action.

He said: “Government in general, and Lord Mandelson in particular, must take important decisions in the next few days before responding to the Competition Commission recommendation. 

“A significant number of representative bodies are here today to convince MPs of all parties that the introduction of legislation to create an independent grocery sector Ombudsman is totally justifiable and absolutely necessary.”

“Here in the UK, we have the most highly developed retail sector in Europe, if not the world.  Lessons learned here, backed by the creation of an ombudsman, will provide a useful platform on which the Commission can develop policies aimed at delivering more equitable supply chain arrangements across the whole of Europe.”

The plans set out by the Commission include moves to strengthen farmers’ bargaining power by the creation of producer organisations as well as establishing a food price monitoring tool to increase transparency in the supply chain.

The Commission urged all member states to set up similar tools, where prices at retail level can be constantly monitored.

Economic and Monetary Affairs Commissioner Joaquin Almunia said. “It is very important for the actors of the food supply chain, consumers and policy makers to increase the transparency of prices along the supply chain.

“The new European monitoring tool on food prices is an important step forward in this direction.”

The Commission’s proposals follow concerns in Europe over ‘persistently high’ consumer food prices despite a sharp decline in agricultural commodity prices.

Agriculture Commissioner Mariann Fischer Boel said: “As recent developments in the dairy market show, there is too often a disconnection between the price the farmer gets and what the consumer pays in the shops.

“Together with national authorities, we will redouble our efforts to ensure that the supply chain works effectively from farm to fork.”

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