Farming News - TFA demands more powers for Groceries Adjudicator
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TFA demands more powers for Groceries Adjudicator
The Tenant Farmers Association (TFA) has called on the government to expand the role of the Groceries Code Adjudicator at the Great Yorkshire Show.
The TFA pointed out that in 2008 the Competition Commission highlighted numerous instances of power imbalances in the grocery supply chain which were unfairly benefiting retailers, which led to the creation of the Groceries Code Adjudicator. However, the GCA’s remit currently only covers the trading relationships between the UK’s ten largest supermarkets and their direct suppliers, and the watchdog was only given the power to fine supermarkets breaching the sector code in 2015. The TFA said primary producers are exposed to unfair practices elsewhere in the supply chain, and wants relations throughout the chain to be covered by the CGA.
The Labour Party and Lib Dem manifestos both promised an extension of the GCA’s remit and power ahead of June’s General Election. In late June, Christine Tacon was reappointed as the supermarket adjudicator for another year, while the government considers the role and powers of the watchdog.
On Tuesday, TFA’s North East Regional Chair Stephen Wyrill said, “The TFA was a lone voice in the 1990s when it called for a retail ombudsman with teeth. It took until 2013 for the Government to respond to the problem by creating the current Adjudicator and having made a good start, more needs to be done to extend the adjudicator’s role to cover unprotected parts of the supply chain.”
“In the context of Brexit it is vital that we ensure that the groceries market is operating as efficiently as possible and given the clear evidence of the market failure which currently exists, it is time for the government to put in place the necessary measures to extend the remit of the Adjudicator at this time.”
The TFA is calling for the GCA’s role to cover the whole supply chain, and wants the watchdog to have additional powers, including the ability to conduct spot checks on retailers without notice and demand mandatory price reporting, detailing how items’ retail price is shared between retailers, processors and primary producers.
Mr Wyrill said, “These changes are practical, proportionate and necessary. A Government consultation on an extension to the remit of the Adjudicator ended in January and since then we have heard nothing from the Government about what it intends to do. Some of the biggest impacts of Brexit will hit the food supply chain and we must therefore ensure that it is operating as efficiently as possible, ensuring fair returns for everyone and this can only be achieved by enhanced regulation.”