Local Lib Dem MP, Norman Baker, has welcomed measures announced today by the Competition Commission to curb the power of supermarkets and appoint a new independent ombudsman to offer greater support to farmers and suppliers in Sussex.
The new independent ombudsman has been appointed to oversee a stronger code of practice that will cover all grocery retailers with a turnover greater than £1bn and resolve any disputes between suppliers and retailers. The Competition Commission has also recommended that the ombudsman should have the power to "levy significant financial penalties" for non-compliance with the ombudsman's findings.
Mr Baker, who is an outspoken critic of the Government's failure to act to curb the market dominance and anti-competitive practices of supermarkets and the stranglehold they have on the fortunes of local farmers and retailers, has also welcomed the proposed planning changes outlined in the report which will make it harder for one chain to dominate a local area. Under this set of proposals, the Office of Fair Trading would have to be consulted on all planning applications to build new larger supermarkets or extend existing ones by applying a "competition test".
The local MP has however expressed concern that the report's proposals do not go far enough. For example, those supermarkets accused of land banking, will not be required to sell any undeveloped land they own, but will simply not be able to enforce any restrictions on what can or cannot be built on any land they sell. Mr Baker has also lamented the lack of proposals to address the concerns of independent retailers that they are being squeezed out by the larger supermarket chains.
Commenting on the report, Norman said:
"Today's Competition Commission report and the new code of conduct is welcome news for farmers in Sussex. There are a significant number of farmers living and working in my constituency who tell me, with justification, of the raw deal they are getting in terms of prices for their produce. Supermarkets colluding in shady backroom deals simply compound the problem and I hope that this new code and the new ombudsman will make significant progress in getting a fairer deal for farmers.
"I am however concerned that the proposals don't go as far as they should. The new planning proposals appear to be restricted to measuring competition between supermarket chains rather than looking at how large out of town supermarkets affect small high-street shops such as those in Lewes, Seaford and Newhaven and Polegate. This should be the key determinant on whether a new supermarket is allowed in a particular area. What is more, at a time when land is at a premium, land banking by supermarket chains to stop competition is completely unacceptable and it is disappointing that the Commission has not put an end to it once and for all."
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