As one Defra agency appears to be finally learning the painful lessons of IT rollouts gone wrong, another seems to have walked into the same trap. Government to set up supermarket Ombudsman
THE Government has announced that it will set up a supermarket ombudsman to protect suppliers from abuses of power by the big retailers.
Consumer Minister Kevin Brennan announced today that he has accepted the Competition Commission’s recommendation for a body to enforce the Groceries Supply Code of Practice (GSCOP).
The Code of Practice comes into force on 4 February 2010. This will be quickly followed by a consultation on how best to enforce it, including who that body might be and the powers it could have.
Mr Brennan said: “The revised Grocery Supply Code of Practice (GSCOP) is a great improvement on the current regime.
“However, the power that large grocery retailers remain able to wield over their suppliers can still create pressures on small producers, especially in these difficult economic times, which ultimately may impact on consumers.
“Free and fair competition is the key to a healthy market and it is right that there should be an enforcement body to make sure that consumers are getting the best value for money.”
Responding to supermarket claims that an ombudsman would lead to higher prices for consumers, he said: “We do not anticipate a significant impact on consumer prices or workers resulting from the creation of an enforcement body.
It is not a question of whether a body is needed, but exactly how that body will operate. The next step is to consult formally on its nature and role, to ensure that all interested parties can make their views heard and that informed decisions are made.”
Defra Secretary Hilary Benn said: “The new ombudsman will help strike the right balance between farmers and food producers getting a fair deal, and supermarkets enabling consumers to get the high quality British food that they want, at an affordable price.”
At the end of its lengthy investigation, the Competition Commission (CC) found that that large grocery retailers were passing on excessive risks and unexpected costs to their suppliers.
The CC had initially sought voluntary undertakings from retailers to set up an ombudsman but the supermarkets rejected then idea.
On 4 August 2009 the CC recommended that the Department for Business, Innovation and Skills take steps to set up, as soon as practicable, an ombudsman that can levy penalties on large grocery retailers for GSCOP non compliance.
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Readers' comments (14)
cyberdoyle | 13 January 2010 10:43 am
Hope the ombudsman does the job and isn't just another quango type jobsworth like many daffy Defra ideas. The supermarkets have ripped off the farmers for too long. We get 18p a litre for our milk... what do the supermarkets get? The sums don't add up any longer.
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agri student | 13 January 2010 10:59 am
I agree with the comment above, and also wonder if the statement released is going to make much difference to farmers, "to protect suppliers" that could mean the processors not necessarily the producers.
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simon gurney | 13 January 2010 11:08 am
It will be another toothless tiger , the producer in this county is under constant pressure to supply lovely product with a nice finish. Surley the consumer needs to be more aware of were there food comes from and not be so fussy . taste should be the priority .
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Anonymous | 13 January 2010 11:44 am
Understanding the true cost of suppling good food is now more important for customers. Too long have the super markets hidden what they are truly doing to the suppliers behind what they call low prices....
Consu,ers wake up to what is happening, and lets hope this ombudsman does its job
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Anonymous | 13 January 2010 12:31 pm
I live in france and they have a similar thing over here even the bakerys have got set prices and it has worked here for years.Thats one of the reasons farming is more better off over here because nearly every farmer gets paided the same price.
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Anonymous | 13 January 2010 1:19 pm
About time to but as an earlier comment notes what will it achieve really we are being treated like third world citizens and have been robbed for a very long time .
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Anonymous | 13 January 2010 1:40 pm
Great idea. This organisation should work as the Monopolies Commission to ensure that the UK farmer gets a fair price for his product. Milk costs more to produce than the farmer gets and we are not self sufficient and have to import milk
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Anonymous | 13 January 2010 1:41 pm
About time! Where have they been until now? Lets hope it works. I am not connected to farming in any way but I appreciate home-produced food having grown up with food rationing.
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Anonymous | 13 January 2010 1:59 pm
lets hope it is not to little to late
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Anonymous | 13 January 2010 4:37 pm
Will it make a difference? Farmers work too hard for too little. Consumers just want what is convienient and cheap and most of them don't care one bit about farmers and we don't want sympathy anyway, just a fair price. How many young people want to go into farming? It is only a matter of time before we get too old to do all the work!
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