Stop "Pussyfooting" Around And Set Up Retail Regulator

4.06.55pm GMT Mon 23rd Feb 2004

Responding to news today that the OFT found "no hard evidence" to support the view that the Supermarkets Code of Practice is not working effectively, Liberal Democrat Shadow Farming and Rural Affairs Minister, Andrew George MP, called for Government intervention.

The report, which was due last year, concluded that 80-85% of suppliers were unhappy with the Code of Practice. Although no complaints have been made since the Code was introduced in March 2002, the report showed that 73% of suppliers fear reporting supermarkets for unfair practices.

Despite the problems, the OFT now plans to undertake a 'compliance audit' of the big four supermarkets to after concluding there was 'no hard evidence' to support suppliers' claims.

Commenting, Mr George said: "Farmers and growers, like those I met today in my constituency, will respond to this report with absolute derision."

"All the OFT want to do is to pussyfoot around a little bit more by commissioning further research. The OFT have had long enough to look for the evidence to back up the suppliers' claims."

"What we need is a statutory code of practice which would enable the OFT to proactively spot-check how satisfactory contract arrangements are between supermarkets and their primary producer/suppliers, thus overcoming the problem of the fear of any backlash amongst those farmers and growers who raise complaints themselves."

"The anecdotal evidence and information supplied to me by farmers on a private basis raises very serious questions about the way in which the Code is failing to work. The fact that the OFT have identified no cases which have gone to mediation under the Code appears to confirm its ineffectiveness and the fact that suppliers fear the possibility of a backlash if they were to use the Code to protect themselves."

"It is an open secret that supermarkets have farmers and growers by the throat. It is high time the Government protected consumers and producers. The only way forward is to establish a simple Retail Regulator operating within the OFT."

"Farmers get a fraction of the retail price and can no longer be expected to put up with the treatment they receive from supermarkets. This report is a whitewash that neither farmers nor consumers will welcome."