Today, 13 Jan, the Labour Government announced it will set up a supermarket ombudsman to enforce the Groceries Supply Code of Practice (GSCOP). The announcement follows the Competition Commission’s recommendation for a grocery sector body.

The code will work to ensure that free and fair trade takes place to create healthy trade within the marketplace.

Ann said:

"This is a very welcome move. It will help farmers, suppliers and producers, but also support local shops.  The power supermarkets wield is enormous and a regulator can help restore a level playing field.

"Many parts of Scotland have a fine tradition of independent suppliers and retailers.  This is good news for them." 

The Code of Practice comes into force on 4 February 2010 and this will be quickly followed by a consultation, beginning in February, on how best to enforce the GSCOP, including who that body might be and the powers it could have.

The enforcement body will work towards striking a balance between farmers and food producers getting a fair deal and supermarkets offering consumers quality products at affordable prices.

Consumer minister Kevin Brennan said:

“The revised Grocery Supply Code of Practice (GSCOP) is a great improvement on the current regime.  However, the power that large grocery retailers remain able to wield over their suppliers can still create pressures on small producers, especially in these difficult economic times, which ultimately may impact on consumers.

“Free and fair competition is the key to a healthy market and it is right that there should be an enforcement body to make sure that consumers are getting the best value for money.

“We do not anticipate a significant impact on consumer prices or workers resulting from the creation of an enforcement body. It is not a question of whether a body is needed, but exactly how that body will operate. The next step is to consult formally on its nature and role, to ensure that all interested parties can make their views heard and that informed decisions are made.”

Environment Secretary Hilary Benn said:

“The new ombudsman will help strike the right balance between farmers and food producers getting a fair deal, and supermarkets enabling consumers to get the high quality British food that they want, at an affordable price.”

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