Supermarket suppliers need protecting says MP

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Monday, March 08, 2010
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This is Gloucestershire

A CULTURE of fear exists among supermarket suppliers, according to a county MP.

David Drew, who represents Labour in Stroud, said an industry ombudsman would bring "fairness and justice" to the grocery supply chain for consumers and producers.

He was speaking as he gave his backing at Westminster to proposed legislation which would set up an independent ombudsman to ensure "fair dealing" and enforce a code of practice.

The move follows growing concern about the power of the major supermarkets over food producers and suppliers.

It comes two months after the Government announced it was accepting the Competition Commission's case for an ombudsman to enforce a code of practice and that it would consult on the proposal. Mr Drew, who was a co-sponsor of the Grocery Market Ombudsman Bill, claimed there was a "culture of fear" among suppliers to the superstores.

"Even the biggest suppliers do live in fear of what could happen to them. This is about the big guys who still fear the even bigger guys," he told MPs.

Earlier, the Commons heard that the grocery market, was like a game of rugby "very rough", that not only needed a set of rules, but also a referee to ensure they were followed. Continuing the rugby analogy Mr Drew said: "This is not about the odd trip or the push in the line-out or the ball been chucked into touch when they should be keeping it in play.

"That still goes on, but we are talking about the intricacies of the front row here. The odd bit of eye-gouging, the use of the boot to make it clear who is in control of this game and who actually stands to lose if they push their luck too far. The ombudsman, like a referee, would bring "fairness and justice and transparency".

Tory MP Philip Davies intervened, with a reference to rugby's fake-blood injury scandal, saying: "Do you not fear that, with a potentially pro-active ombudsman, there may well be some supplier who has got some fake blood and then pretend they have got a fake injury when there wasn't actually an injury in the first place?"

But Mr Drew replied: "What would then happen would be, if those people are found out to have cried wolf, they would face even more retribution."

Business Minister Rosie Winterton said grocery retailers were doing a "good job overall" in keeping prices down for consumers.

But the Competition Commission has raised concerns about "buyer power" forcing unexpected costs on food producers. Backing the Bill, Ms Winterton said: "The Government recognises that there is a legitimate need for the groceries supply code of practice."

The consultation ends on April 30 and the Bill provided a "sound basis" on which to proceed. It was given a second reading by 44 votes to nil and goes into committee.

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