Unlikely allies, the National Farmers’ Union and actionaid, have today joined forces to place a full-page ad in The Times, calling for a supermarket watchdog:
The Competition Commission has suggested a supermarket ombudsman / watchdog as a possible remedy to the problems identified in its lengthy investigation into the UK’s grocery market. The proposal has been welcomed by farmers and other supermarket suppliers, but starkly opposed by most of the large retailers.
The NFU-actionaid ad makes clear the breadth of support for tighter control of supermarket buying practices, from both domestic and global producers. The accompanying press release reports independent research by Professor Roger Clarke, Professor of Microeconomics at Cardiff University, that finds that an ombudsman would result in higher prices for consumers, as claimed by some supermarkets. Professor Clarke explains:
The remedies, if effectively enforced, are likely to lead to lower prices in some cases, like agricultural products.
Even very small price reductions and other benefits are likely to result in consumer benefits that far outweigh the modest cost of an ombudsman. A supermarket watchdog would not only benefit consumers but also be, arguably, in the interests of the supermarkets themselves.
The text of the ad is worth quoting in full:
Fairer deal for farmers, workers and consumers
Wherever this asparagus is grown the problem is the same. The abuse of market power by retailers means that farmers and growers in the developing and developed world are subject to unreasonable demands. This means they are less able to invest and innovate for the future, which results in consumers losing out as choice is reduced.
The 11 largest UK supermarkets have just 48 hours left to sign up to the new Ombudsman proposed by the Competition Commission. A strong supermarket code of practice policed by an Ombudsman is in consumers’ best interest. A recent Yougov poll showed that 8 out of 10 shoppers back an Ombudsman.
To date only Waitrose, Marks & Spencer and Aldi have said they do not oppose further regulation. Tesco, Sainsbury’s, Morrisons, Asda, Iceland, Somerfield and Lidl are refusing to support the Ombudsman, while the Co-op remains undecided.
ActionAid and the NFU are calling on all supermarkets to sign up in the next 48 hours.
Responsible retailers have nothing to fear from an Ombudsman. So, who will be first to sign?
So, well done Waitrose, M&S, Aldi! Shame on the rest of you if you can’t bring yourselves to accept policing of your business practices.
