PRESS RELEASE

Moore Presses Mandelson On Supermarket Ombudsman

Michael Moore MP

15-Dec-2009

Borders MP Michael Moore has written to Lord Mandelson urging him to act on the findings of a report from the Competition Commission on the purchasing practices of major supermarkets, and create an independent ombudsman to adjudicate in disputes between grocery retailers and their suppliers.

The establishment of an independent ombudsman for the sector was first suggested by the Competition Commission in 2008. It was announced in August that the Commission would recommend formally that the Government create an ombudsman in statute after months of discussions with major retailers had failed to produce a positive consensus around the Commission’s proposals.

The Department of Business, Innovation and Skills was expected to respond to this recommendation by early November, but repeated delays have meant that a final decision is yet to be announced. Mr Moore is highly critical of the supermarkets for failing to accept the need for an ombudsman and believes that in the absence of an effective voluntary agreement the Government must act urgently to create the ombudsman.

Commenting, Mr Moore said:

The supermarkets managed to stall the creation of an ombudsman for the grocery sector successfully for almost a year. It is disappointing that the Government has chosen to follow their example and is dragging its feet on these essential reforms.

The report from the Competition Commission on this issue was comprehensive and explicit in its recommendations - the current voluntary arrangements leave suppliers in the Borders at risk and binding agreements are required to protect them from the worst excesses of the major retailers.

There is a complete imbalance between the power of the supermarkets and their suppliers, particularly in agriculture. Farmers, suppliers and consumers in the Borders will all benefit from the establishment of an independent watchdog to protect their interests and I have urged Lord Mandelson to implement the recommendations of the Competition Commission as soon as possible.

ENDS

Notes To Editors:

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