Supermarket inquiry: Greens welcome focus on local markets and stress need to support producers

New research shows Scottish consumers shunning high streets

Greens today welcomed the latest report from the Competition Commission's supermarket inquiry and stressed that evidence so far shows more effective regulation is needed in order to ensure producers get a fair deal, and that consumers and the environment are protected. It comes in the wake of new research by the FSB Scotland showing that shoppers in Dumfries, Dingwall and Alloa are shopping in out-of-town retail developments rather than local high street shops.

Green MSP Mark Ruskell gave evidence to the Commission when it conducted formal hearings in Edinburgh last September. The next stage of the inquiry will focus on local markets and the impact supermarkets are having on them, specifically whether or not supermarkets are effectively wiping out competition. Greens argue that there should be a tougher code of practice that covers the entire supply chain to ensure trade is fair, and that an independent regulator should enforce it.

Shiona Baird MSP, Green speaker on enterprise, said today, "It will come as no surprise to small high street businesses that there is concern over the impact supermarkets' aggressive tactics. Neither are the problems of land-banking and the decline in dairy farmers anything new. So although this inquiry is welcome, it has not so far been earth-shattering nor has it been speedy, having suffered significant delays. The Commission must now press ahead in drawing this to a close, and it should not shirk from making tough recommendations.

"There are businesses and farmers across Scotland whose future hangs in the balance. On land-banking, fair trade for Scottish producers and the need to curb the aggression of supermarkets preying on local high streets, there must be some effective action taken soon.

"The inquiry does not really acknowledge the wider social issues. It must be borne in mind that the way supermarkets operate have repercussions for the environment, the strength or otherwise of local communities, and how those on low incomes and without cars can access good, healthy food."

Issues raised in the Commission's "emerging thinking" document include:

- a decline in the number of pig and dairy farmers, while supermarkets are retaining an increasing share of the retail price of milk

- on landbanking (the anti-competitive practice of hoarding land without developing it), Tesco holds the most land and other supermarkets are increasing their amount. Landbanking can be used to stop rival retailers from opening new outlets, thereby establishing a monopoly over a local market, harming consumer choice and competition.

- there is evidence of below-cost selling and price-flexing