COMPETITION COMMISSION HAS FINALLY SEEN SENSE OVER NEED FOR A SUPERMARKET OMBUDSMAN

11.11.39am GMT Sat 24th May 2008

Local MP Michael Moore has welcomed the recently-published report by the Competition Commission into the grocery sector, which recommends that an independent supermarket ombudsman be appointed to oversee relationships between the big retailers and their suppliers.

Mr Moore has long backed the campaign by the National Farmers Union of Scotland for a supermarket ombudsman to be appointed. Last year he voiced disappointment at the Commission when they published their interim findings. At that time, the NFU called on their members to provide evidence to the Commission to demonstrate the need for an ombudsman, and now their campaign has paid off.

In their report, the Competition Commission also tightened up the supermarket code of conduct which, until now, had been ineffective due to lack of take up, because those suppliers who made a complaint risked losing their contract as there was no guarantee of anonymity.

Speaking after the report was published, Mr Moore said:

"I am pleased that the Competition Commission has finally seen sense and recognised the clear and pressing need for an independent ombudsman to ensure fair play between supermarkets and their suppliers. It is now essential that this post is created without delay, as the relationship between supermarket and supplier has been skewed in favour of the supermarkets for far too long."

Commenting on other aspects of the Competition Commission's report, Mr Moore added:

"The key to whether new supermarkets are allowed in a particular area should not rest solely on competition between different chains, but should be about how large, out-of-town supermarkets affect small high-street shops.

"And, at a time when land is at a premium, land banking by supermarket chains to stop competition is simply unacceptable."