15 June 2011

NFU President Peter Kendall has said he is “staggered” by the claims of retailers that the cost of the new Groceries Code Adjudicator will lead to higher prices in store.

He said the £120,000 annual cost of the Adjudicator “to demonstrate that they (retailers) are treating their suppliers fairly” was negligible when set against the salaries of the chief executives of some retailers covered by the code.

Speaking to MPs on the Efra Select Committee, who are conducting an inquiry into the draft Groceries Code Adjudicator Bill, Mr Kendall emphasised that, while welcoming the draft Bill, it would need improving before beginning its Parliamentary passage.

He said that the Adjudicator must have powers to launch proactive investigations, to take evidence of breaches of the groceries code from organisations such as the NFU, and to fine bad behaviour from the outset, none of which are included in the current draft Bill. “We do think it needs strengthening, both on being proactive and on fines”, Mr Kendall told the Committee.

The NFU has argued that the draft Bill must give the Adjudicator the power to launch investigations on the basis of “credible evidence”, whatever its source, so that suppliers’ anonymity can be protected and so that the body is able to effectively investigate suspected breaches of the code.