Momentum is building behind calls to curb the power of the leading supermarkets following a series of meetings hosted by competition minister Gerry Sutcliffe this week.
Sutcliffe met representatives from the independent sector on Monday and a cross-party group of MPs on Wednesday to discuss the impact of the massive consolidation in food retail since the Competition Commission last reported on the market in 2000.
The talks follow a series of meetings between OFT officials and independent retailers in recent weeks as pressure builds on the government to take action to prevent the big supermarkets from abusing their market dominance.
Although Sutcliffe had not made any firm commitments, the fact he was taking suppliers’ and retailers’ concerns so seriously was encouraging, said Liberal Democrat rural affairs spokesman Andrew George.
However, action rather than words were needed, he said.
“It’s been like treading through treacle trying to get things moving. The OFT’s next report into the code of practice should be its last. The abuse of
supermarket power isn’t new and my colleague Colin Breed raised substantially the same issues as long ago as 1999.
“What we need is continuous, proactive auditing of supermarket behaviour.”
There was also scepticism over whether a report into supermarket compliance with the code, which auditor PKF has promised to hand to the OFT by late November, will uncover any concrete evidence of abuse.
He added. “I’ve been told that PKF has been going through retailers’ papers, but not necessarily the corresponding records at suppliers. They are also covering a very limited period of time.”
David Smith, chairman of the
Association of Master Bakers, met Sutcliffe on Monday along with David Rae, CEO of the Association of Convenience Stores, and Jim Dowd MP, chairman of the All-Party Small Shops Group.
Smith said: “It was a good meeting. Did I get the feeling he was going to jump instantly into action? No. He took all of our concerns on board and asked us to supply him with more information and come back.
“There is no question that the complex monopoly situation we have in UK food retail is acting against the public interest. The last Competition Commission report admitted that. The question is, what are they going to do about it?”
Elaine Watson
Sutcliffe met representatives from the independent sector on Monday and a cross-party group of MPs on Wednesday to discuss the impact of the massive consolidation in food retail since the Competition Commission last reported on the market in 2000.
The talks follow a series of meetings between OFT officials and independent retailers in recent weeks as pressure builds on the government to take action to prevent the big supermarkets from abusing their market dominance.
Although Sutcliffe had not made any firm commitments, the fact he was taking suppliers’ and retailers’ concerns so seriously was encouraging, said Liberal Democrat rural affairs spokesman Andrew George.
However, action rather than words were needed, he said.
“It’s been like treading through treacle trying to get things moving. The OFT’s next report into the code of practice should be its last. The abuse of
supermarket power isn’t new and my colleague Colin Breed raised substantially the same issues as long ago as 1999.
“What we need is continuous, proactive auditing of supermarket behaviour.”
There was also scepticism over whether a report into supermarket compliance with the code, which auditor PKF has promised to hand to the OFT by late November, will uncover any concrete evidence of abuse.
He added. “I’ve been told that PKF has been going through retailers’ papers, but not necessarily the corresponding records at suppliers. They are also covering a very limited period of time.”
David Smith, chairman of the
Association of Master Bakers, met Sutcliffe on Monday along with David Rae, CEO of the Association of Convenience Stores, and Jim Dowd MP, chairman of the All-Party Small Shops Group.
Smith said: “It was a good meeting. Did I get the feeling he was going to jump instantly into action? No. He took all of our concerns on board and asked us to supply him with more information and come back.
“There is no question that the complex monopoly situation we have in UK food retail is acting against the public interest. The last Competition Commission report admitted that. The question is, what are they going to do about it?”
Elaine Watson
No comments yet