UK government pledges greater regulation of grocery sector
The Liberal-Conservative coalition government said it would cut regulation for small businesses and farmers, but increase regulatory oversight of the grocery sector, and appoint an ombudsman to enforce the Groceries Supply Code of Practice.
The Code was introduced in February, providing retailers with guidelines of how to deal with suppliers in an effort to ensure fairness. Its introduction follows investigations by the UK Competition Commission, which also recommended that an ombudsman should arbitrate on disputes between grocery retailers and suppliers and investigate complaints under the new code.
The government's policy document said: “We will introduce, as a first step, an Ombudsman in the Office of Fair Trading who can proactively enforce the Grocery Supply Code of Practice and curb abuses of power, which undermine our farmers and act against the long-term interest of consumers.”
The British Retail Consortium has said it opposes the appointment of an ombudsman, saying that the Office of Fair Trading oversight of the new Groceries Supply Code of Practice is sufficient and that the market already works effectively.
Krishan Rama of the British Retail Consortium told FoodNavigator.com: “Given all these extra safeguards I think we would be concerned if there is more costly bureaucracy put in place. We need to wait for this to bed in.”
He added that the BRC would continue to put forward its case to government in an effort to prevent the appointment of an ombudsman.
However, the UK’s Food and Drink Federation (FDF) has welcomed the proposed appointment, saying that much of the government’s manifesto is in line with the organisation’s previous policy calls.
FDF’s director general Melanie Leech said: “We are pleased to see the commitments to cut red tape, end the gold plating of EU rules, stop the planned increase in NI contributions on employers, introduce a supermarket ombudsman and develop more coherent energy policies. We are keen to work in partnership with the new government on all aspects of its manifesto – but our priority is also to ensure that ministers continue to understand the importance of developing policies that support a successful, and sustainable, food and drink sector here in the UK.”
Among other food policy pledges, the coalition document said the government intends to “introduce honesty in food labelling so that consumers can be confident about where their food comes from and its environmental impact.”
The document also promised the promotion of high standards of farm animal welfare and “work to reduce the use of animals in scientific research.”
The full document is accessible here.
