Supermarket watchdog powers come into force

The Groceries Code Adjudicator, Christine Tacon will oversee the relationship between Britain's supermarkets and their suppliers, including farmers.
The Groceries Code Adjudicator, Christine Tacon will oversee the relationship between Britain's supermarkets and their suppliers, including farmers.

The powers of a new independent supermarket watchdog have come into force and has been welcomed as a 'dawn of a new chapter of fairer dealing', according to St Ives MP Andrew George.

"This is the culmination of fourteen years of lobbying on this vital issue" said NFU President Peter Kendall.

The Groceries Code Adjudicator, Christine Tacon will oversee the relationship between Britain's supermarkets and their suppliers, including farmers.

The GCA will help to enforce and monitor the Groceries Supply Code of Practice. Which sets minimum standards in the way big retailers treat their suppliers.

MP Andrew George condemned the 'bully-boy practices' of supermarkets and retailers. The Groceries Code Adjudicator has the power to scrutinise and expose supermarkets that break fair trade rules when dealing with their smaller suppliers. It will also be empowered to impose fines.

George, who led the Parliamentary campaign for a decade, and who has chaired the national Grocery Market Action Group (GMAG) since 2006, said: “It’s a great day for British industry. It's been a long campaign. The Competition Commission found that some larger supermarkets had gone beyond clever use of market muscle, to abuse of buyer power.

"But supermarket chiefs should be reassured too. If they have nothing to hide they have nothing to fear.”

The adjudicator will investigate alleged breaches of the code, this applies to all retailers with a turnover of more than £1bn in groceries in the UK.

"The adjudicator will bring to light supply chain imbalances between large retailers and direct suppliers. It is critical to see better functioning supply chains which focus on longer term relationships and reward all players fairly, to encourage innovation and sustainability of supply" said NFU President Peter Kendall.

The need for a Grocery Code Adjudicator, which has cross party support, was made clear in two reports by the Competition Commission published in 2000 and 2008.

"This breakthrough has only come through dedicated campaigning, with members of the public across the country pushing MPs for action to curb supermarkets’ excessive power" said Murray Worthy, campaigner for the charity War on Want.

Farming unions across the UK have consistently called for a watchdog to ensure a level playing field in the grocery supply chain, for the adjudicator to have the power to take credible evidence from reputable sources, and to be able to fine retailers for breaking the code.

"This is an important step forward and will reassure farmers that progress continues to be made to introduce an adjudicator that will have the necessary ‘teeth’ to curb the abuses of power that can undermine farmers and the supply chain, with implications for consumers" said NFU President Ed Bailey.

NFU head of food and farming Phil Hudson said: "This is an important step forward and will reassure farmers that progress continues to be made to introduce an adjudicator that will have the necessary 'teeth' to curb the abuses of power that can undermine farmers and the supply chain, with implications for consumers."

"Now Ms Tacon has been appointed, we look forward to her taking up post and quickly getting to grips with the issues affecting our members. Once she has formally taken up her role we will look to meet her to discuss our concerns over the way in which the supply chain operates."