Sharp retailer profit increases

SUPERMARKET PROFITS have risen by 300% during the last 15 years, and their directors have reaped a 557% increase in pay, according to the Liberal Democrats.

In the same period, farmers‘ incomes have risen by 29%.

The figures were the result of research carried out by the House of Commons library.

They showed that operating profits for the big five supermarkets increased from £884m in 1988 to £3,355m last year.

These figures, the Lib Dems argue, show the supermarket code of practice, which governs the relations between the major supermarkets and farmers, is totally inadequate.

Andrew George MP, Lib Dem shadow food and rural affairs secretary, said: “While the supermarkets‘ fifty-five top executives are creaming it, many dairy farmers are struggling to make any income at all.”

“It is clear the Government can no longer sit on its hands whilst the supermarkets squeeze the lifeblood from our countryside.

“Food supply chain relationships need rebalancing, the supermarket code must be strengthened, and the Office of Fair Trading must get tough with the bully-boy tactics of the big boys,” Mr George said.

He will meet with the trade and industry minister Gerry Sutcliffe in October to discuss the need for a strengthened Code of Practice and a greater role for the OFT.