NFUS WELCOMES MOVE TO INSTALL OMBUDSMAN

NFU Scotland has welcomed the Competition Commission’s announcement that it has formally recommended that the Department for Business, Innovation and Skills (BIS) establish an ombudsman to ‘arbitrate on disputes between grocery retailers and suppliers and investigate complaints under the new Groceries Supply Code of Practice (GSCOP).’

The Competition Commission’s action comes more than one year after the publication of its groceries market investigation report, which recommended the introduction of an independent ombudsman to oversee relationships between retailers and suppliers. Because the Commission does not have the power to establish an ombudsman itself it has, in the eighteen months since the report’s publication, tried to get major retailers to agree to establish an ombudsman themselves.

Since the majority of retailers have not agreed to this, the Commission is following the next formal step in the process i.e. to recommend that BIS establish the ombudsman instead.

NFU Scotland’s Chief Executive, James Withers, said:

“Sadly, but not surprisingly, the major supermarkets have walked away from setting up the ombudsman themselves. Clearly they are not secure enough in their own claims about fair trade to open them up to independent scrutiny. That is a pretty sorry place for them to be.

“However, credit is due to the Competition Commission who have now done what they committed to do in their report and refer this to Government. The ball is very much in the UK Government’s court now. If they wish to protect the interests of consumers, the food industry and supermarket suppliers, they must legislate to set up the ombudsman. Without an independent policeman, the strengthened supermarket code of practice will be of very little value indeed.

“We are likely to have a general election next year, and the attitude of this government and the other political parties towards a supermarket ombudsman will be a key issue in rural communities. All parties will be judged on the action they commit to now.”

Ends

"This message is private and confidential. If you have received this message in error, please notify us and remove it from your system. All information or opinions expressed in this message and/or any attachments are those of the author and are not necessarily those of NFUS. NFUS accepts no responsibility for loss or damage arising from its use, including damage from virus." NFU Scotland is a company limited by guarantee. Registered Office - Rural Centre, West Mains, Ingliston, Newbridge, Midlothian, EH28 8LT, Registered in Scotland No - 214564

PLEASE PLEDGE YOUR SUPPORT FOR SCOTTISH FOOD & FARMING - VISIT www.whatsonyourplate.co.uk

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Begin forwarded message:

> From: ashley.handy@nfus.org.uk
> Date: 4 August 2009 14:26:23 BST
> Subject: NFUS News Release 141 - NFUS WELCOMES MOVE TO INSTALL
> OMBUDSMAN
>
>
>
> News Release
>
> Date : Tuesday 4 August 2009
> No : 141/09
> Contact : Sarah Anderson
> Telephone : 0131 472 4108
> Email : sarah.anderson@nfus.org.uk
>
> NFUS WELCOMES MOVE TO INSTALL OMBUDSMAN
>
> NFU Scotland has welcomed the Competition Commission’s announcement
> that it has formally recommended that the Department for Business,
> Innovation and Skills (BIS) establish an ombudsman to ‘arbitrate on
> disputes between grocery retailers and suppliers and investigate
> complaints under the new Groceries Supply Code of Practice (GSCOP).’
>
> The Competition Commission’s action comes more than one year after
> the publication of its groceries market investigation report, which
> recommended the introduction of an independent ombudsman to oversee
> relationships between retailers and suppliers. Because the
> Commission does not have the power to establish an ombudsman itself
> it has, in the eighteen months since the report’s publication, tried
> to get major retailers to agree to establish an ombudsman themselves.
>
> Since the majority of retailers have not agreed to this, the
> Commission is following the next formal step in the process i.e. to
> recommend that BIS establish the ombudsman instead.
>
> NFU Scotland’s Chief Executive, James Withers, said:
>
> “Sadly, but not surprisingly, the major supermarkets have walked
> away from setting up the ombudsman themselves. Clearly they are not
> secure enough in their own claims about fair trade to open them up
> to independent scrutiny. That is a pretty sorry place for them to be.
>
> “However, credit is due to the Competition Commission who have now
> done what they committed to do in their report and refer this to
> Government. The ball is very much in the UK Government’s court
> now. If they wish to protect the interests of consumers, the food
> industry and supermarket suppliers, they must legislate to set up
> the ombudsman. Without an independent policeman, the strengthened
> supermarket code of practice will be of very little value indeed.
>
> “We are likely to have a general election next year, and the
> attitude of this government and the other political parties towards
> a supermarket ombudsman will be a key issue in rural communities.
> All parties will be judged on the action they commit to now.”
>
>
>
> PLEASE PLEDGE YOUR SUPPORT FOR SCOTTISH FOOD & FARMING - VISIT www.whatsonyourplate.co.uk
>