Monday 2 November 2009

NFUS LOBBIES FURTHER FOR RETAILER OMBUDSMAN AS EUROPE MAKES RECOMMENDATIONS ON FOOD SUPPLY CHAINS

NFU Scotland has lobbied politicians in Westminster today (Wednesday, 28 October) as part of its campaign calling for the UK Government to adopt the Competition Commission’s recommendation on the creation of an Ombudsman to police the grocery sector.

The lobby by NFUS and others coincides with the publication of fresh priorities for the food supply chain identified in a European Commission communication. The communication highlights several areas for action including the promotion of sustainable and market-based relationships between stakeholders in the food supply chain and greater transparency along the chain to encourage competition and improve its resilience to price volatility.

NFU Scotland believes the creation of an Ombudsman in the UK will ensure fair play in the UK food production sector as well as helping deliver on these new EU objectives

Speaking from Westminster, NFU Scotland’s Chief Executive James Withers said:

“When food supply chains work well, the winners are the consumers, the producers and all parties in between. It is when relationships break down, that the problems start. Here in the UK, the Competition Commission has recognised the need for a check in the system and recommended to Government the creation of an Ombudsman for the grocery sector.

“Government in general, and Lord Mandelson in particular, must take important decisions in the next few days before responding to the Competition Commission recommendation. A significant number of representative bodies are here today to convince MPs of all parties that the introduction of legislation to create an independent grocery sector Ombudsman is totally justifiable and absolutely necessary.

“All major retailers are dragging their heels on this issue. They need to accept that a more open and transparent approach to how they go about the business of securing food for their stores will reassure those farmers who produce that food and those consumers who buy it. It is in the interests of consumers, retailers, food processors and food producers that an independent body, in the shape of an Ombudsman, is created to provide the necessary reassurance to all that when the chain breaks down, there is a route to addressing the problem.

“It is refreshing to see that many of these themes are now being picked up at a European level. Here in the UK, we have the most highly developed retail sector in Europe, if not the World. Lessons learned here, backed by the creation of an Ombudsman, will provide a useful platform on which the Commission can develop policies aimed at delivering more equitable supply chain arrangements across the whole of Europe.”