Supermarkets ombudsman would need real powers says NFU
Action to curb supermarket malpractice is urgently needed, says the NFU, on the back of the Competition Commission's provisional findings that the major supermarkets are guilty of "transferring excessive risk and cost to suppliers through various purchasing practices", and its warning that this could damage innovation and investment to the ultimate detriment of consumers.
One of the solutions muted by the Competition Commission is the possible creation of a supermarkets ombudsman, something NFU North West chairman, Alistair Mackintosh, thinks is a good idea but only if the job comes with real influence and powers.
"I feel like we have been here before but if an independent negotiator can make a difference then let's see what we can achieve," said Mr Mackintosh.
"An ombudsman would only be effective if the person doing the job is given the status and ability to force change.
"We submitted detailed evidence on the widespread abuse of supermarket power, and we are not in the least bit surprised that the Competition Commission has accepted that this has happened and does need to be addressed.
"I don't think the supermarkets always deliberately abuse their powers but I do believe that there is an abuse of power because their influence exerts a disproportionate amount of pressure on primary producers.
"It is in everyone's interests that the food supply chain is transparent and profitable, so that farmers and growers are able to supply the quality and choice that consumers expect and deserve.
"The NFU is committed to working with the major retailers and other customers to forge strong business relationships in the supply chain that will deliver the goods for all concerned.
"But in the light of the practices exposed by the Competition Commission, there is a clear need for a much tighter code of practice to govern supermarkets' relationships with their suppliers, and for that code to be enforced.
"A tougher code, independently monitored, will provide the basis to dispel the culture of fear in the supermarket food supply chain, and replace conflict and suspicion with transparency and trust."
The NFU will be submitting detailed evidence to the next stage of the Commission's inquiry and look forward to playing a constructive part in putting in place arrangements to ensure fair and enforceable terms of trade for supermarket suppliers.
