ACS

Yesterday (15th December 2008) an adjournment debate took place in Parliament discussing the grocery sector. It was introduced by Andrew George, Liberal Democrat MP for St. Ives. The debate was in response to the Competition Commission's recommendations in April 2008 following a two year investigative into competition in the UK grocery market. Mr George, who is Chair of a cross-cutting group of interest groups, including the Association of Convenience Stores, Friends of the Earth, the ActionAid, and the National Farmers Union, focused his attention on progressing two specific recommendations; the development of a new Grocery Suppliers Code of Practice (GSCOP) and an Ombudsman to oversee this. He raised concerns that the establishment of an Ombudsman is being left up to discussions between retailers in an attempt to voluntarily introduce it and therefore isn’t progressing. He referred to the article in the Competition Commission which states “If it cannot get (voluntary) agreement the Government will consider establishing the ombudsman itself”.

David Drew MP, Labour and Co-operative Member for Stroud who also took part in the debate stated that: “the simple fact is that, according to even the Sainsbury’s briefing for this debate, the supermarkets have no intention of voluntarily agreeing to an ombudsman. The Government must, therefore, now make up their mind. If the supermarkets will not accept a voluntary agreement on an ombudsman, the Government must legislate.”

The Minister for Trade, Investment and Consumer Affairs, Gareth Thomas, addressed Mr George’s comments to the fact that the Competition Commission is seeking undertakings from grocery retailers to establish an ombudsman to monitor and enforce compliance with the new grocery code. He stated that “The Competition Commission still hopes to achieve that through grocery retailers’ agreeing voluntary undertakings.”

On the current progress of establishing an Ombudsman Mr Thomas said, “I should make it clear that the creation of an ombudsman remains with the Competition Commission for the foreseeable future. Under section 159 of the Enterprise Act 2002, it is seeking undertakings from the grocery retailers covered by the new groceries supply code of practice to establish that ombudsman to monitor and enforce compliance with the code. No formal recommendation has been made to Government.

“Implementing the remedies is progressing, albeit at a slightly slower pace than that currently posted on the Competition Commission’s website owing to the sheer number of parties that want to make their views known."

Mr Thomas also stated that “the Commission hopes to conclude the informal consultation before Christmas.”