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Tory plan to 'curb' supermarkets | Tory plan to 'curb' supermarkets |
(about 10 hours later) | |
The Conservatives have pledged to introduce an ombudsman to help settle rows between farmers and supermarkets. | |
Frontbencher Nick Herbert accused the government of "dithering" on the issue of an ombudsman - which was recommended by the Competition Commission. | |
He said a Tory government would create one to "curb abuses of power which undermine our farmers". | |
The government said it was looking at how best to enforce a new code of practice to govern the relationship. | |
Both the Conservatives and the government have been outlining their plans for British agriculture at the Oxford Farming Conference. | |
'Let down' | |
Shadow environment secretary Nick Herbert called for a "new age of agriculture" where farming was important in responding to a rising population and climate change. | |
He accused the government of "letting down British farmers" and criticised it for having failed to set up an ombudsman to govern disputes between retailers and suppliers. | |
While the government dithers the Conservatives are clear: we will introduce an ombudsman to curb abuses of power Nick HerbertShadow environment secretary class="" href="/2/hi/uk_news/politics/8440863.stm">Plans to boost UK food unveiled | |
He said a voluntary code of practice governing the relationship was not "worth the paper it is written on" unless it was properly enforced. | |
"It is not enough to talk loosely about a fair market or the need for better labelling," he said. | |
"We need action, with a supermarket ombudsman and legislation to enforce honest labelling if the retailers won't act." | "We need action, with a supermarket ombudsman and legislation to enforce honest labelling if the retailers won't act." |
He told the BBC an ombudsman could put a stop to practices like "retrospective discounting", where supermarkets go back to farmers and say they want to drive down prices which have already been agreed. | |
Not dominant | |
Following a long-running inquiry, the Competition Commission concluded in April 2008 that the supermarket industry was operating in the public interest and leading retailers such as Tesco were not overly dominant. | |
But they called for an ombudsman to resolve disputes and ensure retailers did not exploit relationships with suppliers to push through unfair or retrospective contractual agreements. | But they called for an ombudsman to resolve disputes and ensure retailers did not exploit relationships with suppliers to push through unfair or retrospective contractual agreements. |
class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAYLet's go back to rationing - people were less glib about wasting food when they didn't have any!Margaret Woodward, London class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=7390">Send us your comments | |
Mr Herbert said supermarkets had got "too much power" which could mean smaller farms were damaged and did not invest, which could drive up prices in the long term. | |
He said: "While the government dithers the Conservatives are clear: we will introduce an ombudsman to curb abuses of power which undermine our farmers and act against the long-term interest of consumers." | |
For the government, Environment Secretary Hilary Benn told the BBC Radio's 4 Today programme: "We are looking at the Competition Commission's recommendations. It is a very important report that they have produced. | |
"We have already agreed there is going to be a new code of practice to govern these kind of relationships, which will come in next month, and we are considering how best we can enforce that." | |
'Harm customers' | |
National Farmers' Union president Peter Kendall said: "While we await further details of the Conservatives' proposal with interest, we would look forward to working with any government that sees the creation of a grocery market ombudsman as a priority in delivering the Competition Commission's recommendations in full." | |
But Stephen Robertson, director general of the British Retail Consortium, said: "This will harm customers. The last thing they need is a new multi-million pound bureaucracy - unnecessarily piling on costs and pushing up shop prices." | |
He said few farmers dealt directly with retailers and multi-national food businesses who supplied supermarkets were "perfectly able to stand up for themselves". | |
"Where's the evidence to support claims that retailers are unfairly putting the squeeze on their suppliers?" he said - adding the "big four" supermarkets already signed up to a supplier code overseen by the Office of Fair Trading. | |
But Liberal Democrat environment spokesman Tim Farron said the government had "colluded in the dominance of the supermarkets" by not introducing an independent regulator. | |
"Farmers will only get a fair deal if a new regulator is given the teeth to enforce a strict, legally binding code governing the relationship between supermarkets, suppliers, and pricing," he said. |