SUPERMARKETS INVESTIGATION WELCOMED BY HELEN
The decision by the Office of Fair Trading to refer the supermarkets to the Competition Commission for investigation has been welcomed by Helen. However, she is calling for the terms of the inquiry to be as wide as possible.
She said, “This decision is good news but it is long overdue. I hear on a regular basis of how the unequal relationship between suppliers and supermarkets is driving many farmers to the point of bankruptcy. We need a new Code of Practice for the market, backed up by an independent watchdog.
“I will be writing to the OFT and Competition Commission to tell them that the inquiry needs to be as wide ranging as possible. The problems faced by farmers stretch across the entire supply chain.”
Helen has previously taken up the issue of supermarket dominance with Government Ministers and also directly with the OFT itself. She has held regular meetings with farmers’ representatives and heard of farmers’ fears of reporting abuses by the supermarkets for fear of losing contracts.
Helen added, “The four largest supermarkets have consolidated and expanded their position within the market in recent years. They have also moved into the convenience store sector – a move which threatens thousands of small independent retailers.
“The big stores have a valuable role to play in the grocery market and they often provide a convenient way of shopping that customers appreciate. But it is not in the interest of producers or shoppers if we have an uncompetitive market where a few big players dictate terms to everyone else.”
In the House of Commons on Wednesday, the Prime Minister said, “I sympathise with the position in which farmers find themselves, which is why we established the code of practice, particularly when they are trying to restructure their own businesses. In meetings in the past few months, we have looked carefully at how we can respond to that concern in a way that is consistent with the interests of consumers, too. The code of practice should be adhered to, and I know that many parts of the farming community believe that it has been broken. We will carefully examine the matter, and if necessary, we will take further action.”
Filed under: Uncategorized on March 10th, 2006
