Farming News - Government criticised over lack of action on grocery adjudicator

Government criticised over lack of action on grocery adjudicator

Shadow Environment Secretary Mary Creagh yesterday criticised the government for its inaction in implementing a grocery adjudicator, which would ensure large retailers do not take advantage of the farmers supplying them. On opposition day in the House of Commons, MPs from all parties expressed the need to introduce an industry watchdog “with teeth.”

 

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However, Defra chief Caroline Spelman retorted that the Labour party did nothing to introduce a grocery ombudsman while in power. Ms Spelman said, "Despite 13 years spent doing nothing about it, you feel this is a credible basis on which to criticise us for not having completed this process in just over 18 months."

 

Ms Spelman said, “The draft Bill provides the adjudicator with the power to name and shame retailers in breach of the code, and we believe, in a highly competitive market, retailers will not risk reputational damage from unacceptable behaviour towards suppliers.”

 

Nevertheless, Anne McIntosh, a conservative MP and chair of the ERFA select committee joined Ms Creagh in lamented the lack of support for farmers, particularly small-scale producers; she argued that farmers and growers currently have "virtually no protection" from supermarkets.

 

Ms McIntosh called for more powers to be given to the adjudicator, including the power to receive anonymous complaints, which recent reviews of the forthcoming position had done away with, much to the discontent of the farming industry. The NFU said that the ability to complain anonymously or supply information through a third party, such as the union itself,  would be essential in protecting producers from large retailers, who wield a great deal of influence and can exert pressure on farmers.

 

Liberal Democrat Andrew George also called for the grocery adjudicator to have the power to fine supermarkets. He said the government should “waste no more time” in implementing the plans and appoint an adjudicator. The ombudsperson would be tasked with ensuring the largest retailers in the country were complying with the Groceries Supply Code of Practice (GSCOP) to protect consumers and suppliers.

 

Ms Spelman said that, if negative publicity alone did not encourage supermarkets to comply with the GSCOP, the government would consider giving an adjudicator further powers.

 

However, some conservative MPs said that the government should not to interfere with food retailers. One MP said that the “huge choice of food that previous generations could only dream of" and lower food prices all round proved that supermarkets provide a benefit for society.

 

The adjudicator bill is currently in the draft bill status. The government has said it will be pushing the bill through as soon as possible.