Grocery Market Ombudsman (No. 2)

EDM number 2126 in 2008-09, proposed by Andrew George on 21/10/2009.
Categorised under the topics of Competition and Service industries.

That this House welcomes the Competition Commission's establishment of a strengthened Grocery Supply Code of Practice (GSCOP) following their inquiry into the UK grocery market which found that supermarket practices which transfer excessive risk to suppliers, such as retrospective unilateral changes to the terms of supply agreements, charges for loss or damage to goods after delivery and withholding payment without cause could have an adverse effect on investment and innovation in the supply chain, and ultimately on consumers; notes the Commission's recommendation that for the GSCOP to be effective it must be monitored and enforced by an independent Ombudsman; is disappointed that the supermarkets affected have failed to agree voluntary undertakings to establish an Ombudsman which offers the opportunity for independent verification of their commitment to the principles of fair trading; believes that the current recession has increased pressure on suppliers, but further notes that UK supermarkets continue to report healthy profits from their grocery business; recognises that fair treatment of primary producers is crucial to achieving UK commitments to eradicating poverty in the developing world and guaranteeing food security for the UK; and calls on the Government to act on the considered recommendation of the Commission to introduce the necessary legislation to establish the proposed Ombudsman to protect the interests of suppliers and consumers alike.

This motion has been signed by a total of 44 MPs.