Grocery code of practice will only work with ombudsman

The new Groceries Supply Code of Practice must have the backing of an ombudsman so the Government must now act in full on the Competition Commission’s recommendations, the NFU said today.

As well as publishing the order setting out the new Code of Practice, the Competition Commission has also formally recommended the establishment of an ombudsman to the Department for Business, Innovation and Skills.

NFU President Peter Kendall said: "The Competition Commission’s order and ombudsman recommendation follows many failed attempts to get major retailers to introduce voluntary measures themselves and a prolonged and forensic investigation by the Commission. This is an important day for suppliers, including farmers, and I’m absolutely delighted at the news. There is now no logical reason for the government not to act in full on the Commission’s findings.

"The new code will only work if proactively and robustly enforced so the climate of fear that suppliers endure can be eliminated. This can only be achieved through the implementation of an ombudsman.

"Government has said it will act in the best interests of consumers and it seems clear that the establishment of an ombudsman will give suppliers the confidence to invest and to innovate which will, in turn, improve consumer choice, produce better products, and ensure food remains affordable.

"A great deal of time has passed since the conclusion of the Grocery Market Investigation and there is a need to act sooner rather than later."