Kendall wants stronger grocery adjudicator
NFU president Peter Kendall has called for the forthcoming supermarket watchdog to be given the power to fine retailers who treat suppliers unfairly.
The Groceries Code Adjudicator Bill passed its second reading without a vote after support from MPs on all sides in the House of Commons on Monday (19 November).
It will now be considered in committee in the coming weeks and is expected to complete its passage through parliament in early 2013.
The adjudicator will oversee the relationship between Britain’s big retailers and their suppliers, including farmers.
Mr Kendall described the bill as a strong and workable piece of legislation, but added that improvements could still be made if it was to be truly effective.
“We are now in the home straight, after more than a decade of campaigning for an effective body that can ensure the big supermarkets treat their suppliers fairly.
“The NFU has been at the forefront of getting an adjudicator up and running, working with a wide range of organisations and individuals, and we at last have the finishing line in sight.
“However, while the current bill is in many ways a strong and workable piece of legislation, there are still improvements that need making.
Mr Kendall said it was important that MPs amended the bill to ensure the adjudicator would, from day one, be able to fine retailers found to be in serious breach of the Groceries Code.
“Producers and suppliers have for too long been subject to unfair treatment by large retailers. Despite some positive work in recent years, abuse still happens.
“It is vital parliament ensures the adjudicator is equipped with the full range of powers to do the job effectively.”
The government is already recruiting the adjudicator so that they can begin the important job of monitoring and enforcing the Groceries Code as soon as the bill becomes law.
The adjudicator will only be able to fine retailers if the government believes it is necessary for a given offence.
Farm minister David Heath said he accepted many MPs had indicated that they would prefer to see fines from the start. “There are arguments about why that should not be the case,” he added.
These included the fact that it would introduce a new legal process of appeal.
The government believed it had “got it right” at the moment, but would listen to MPs and ensure the legislation is fit for purpose, said Mr Heath.
Fears grocery adjudicator will lack power to fine