Local Lib Dem MP, Norman Baker, has this week demanded a better deal for Sussex farmers after supermarkets Sainsbury's and Asda admitted that they were part of a dairy price-fixing group that earned about £270m extra from shoppers and agreed to pay multi-million pound fines.
The local MP who is an outspoken critic of the Government's failure to act to curb the market dominance of supermarkets and the stranglehold they have on the fortunes of Sussex farmers, has renewed his calls for an updated and strengthened Supermarket Code and an independent inspector with powers to root out and put an end to anti-competitive practices.
The Office of Fair Trading's provisional findings, published in September, found that the collusion of 10 companies during 2002 and 2003 saw customers charged 3p more for a pint of milk, 15p extra per quarter-pound of butter and 15p per half pound of cheese while farmers received no more money for their products.
The Office of Fair Trading is continuing with its cases against Tesco and Morrison's after early resolution settlements failed to be agreed.
Commenting on the situation, Norman said:
"Supermarkets colluding in shady backroom deals not only disadvantages consumers but also the farmers that supply them. For the supermarkets to claim that this underhand activity was intended to benefit farmers is complete nonsense. There are a significant number of farmers living and working in the local area and, year on year, they tell me of the raw deal they are getting in terms of prices for their produce and the OFT findings clearly back this up.
"While it is of course a step forward that two of these supermarkets have at least admitted to their breach of the law and agreed to pay the fines imposed, it is vital that the Office of Fair Trading and the Competition Commission continue to thoroughly pursue the matter with Tesco and Morrisons and also act to prevent similar occurrences in the future by looking more widely at how supermarkets deal with their suppliers.
"The current Supermarket Code, as it stands, lacks real teeth. What we need to secure a fair deal for farmers in Sussex and indeed the rest of the country, is an independent inspector with the power to root out and take firm action against anti-competitive practices."
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Contact Norman at:
Norman Baker,
23 East Street,
Lewes,
East Sussex,
BN7 2LJ.
Tel: (01273) 480281.
Fax: (01273) 480287.
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