Tony Brown and Clive Beddall
Food industry hopes that the government's controversial Rip-off Britain campaign had suffered terminal damage following publication of the DTI's international price survey are premature, claim Whitehall insiders.
0n Thursday, sources close to the DTI warned: "Don't be too sure. This government is hell bent on proving our shoppers get a raw deal compared with places like the US and Germany. The food industry isn't out of the woods yet."
Earlier this week, supermarket operators rejoiced that the final nail had been hammered into the coffin of the campaign after the survey showed high street prices are much the same in the UK as they are in the US, France and Germany.
The ACNielsen International Price Comparison found only eight items out of a basket of 56 were more expensive in the UK than in the other three countries.
These were the Sega Dreamcast computer console, the top 10 CDs, a two litre bottle of Coca-Cola, canned dogfood, lager, shampoo, ground coffee and toilet tissue.
In the UK, three items were cheaper than the other three nations. These were Kellogg's cornflakes, Choc Chip cookies and a long-sleeved men's shirt. The UK was also cheaper than the US for Pampers nappies, sliced white bread and cleaning liquid, while carrots and washing up liquid cost less than in France and Germany.
The unveiling of the report last Sunday, with leaks over the preceding couple of days, was reportedly delayed to avoid a clash with the Competition Commission's interim report.
Byers defended the government's stance, saying pressure from consumers, the media and government had led to falling prices, producing £500m in savings.
And he warned against retailers' complacency: "I have the power to refer prices to the Director General of Fair Trading for further investigation and I will use this power if I think it is necessary."
But the timing of the report's release led to a rebuke for Stephen Byers from an all-party Trade and Industry Select Committee. The minister was asked why the report had not been published when Parliament was sitting and questions could have been raised in the House. MPs alleged the DTI had sought to minimise the impact of the international comparison's conclusions.
A senior director of one major retailer commented to The Grocer: "Was it coincidence the report appeared in time for the Sunday broadsheets, who have been so ridiculously vocal in their support for the government's Rip-off campaign?"
Meanwhile, a British Retail Consortium spokesman said: "We are sure that further examination of any price differentials will highlight that service levels and costs faced by retailers vary significantly between countries."
l Within hours of the DTI report appearing, Asda announced price cuts on CDs, with some single albums down to £9.99. Tesco and Sainsbury soon followed suit.
See Opinion, page 16.
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