Britain's major supermarket chains have been lobbying senior civil servants and ministers to reject proposals that would put their relationships with suppliers under the authority of an independent ombudsman.
Concerns about the way the chains have been treating some suppliers have prompted a series of proposals to regulate the supermarket sector. Disparate groups, from British dairy farmers to banana growers in the Windward Islands, claim that the actions of some of the majors could put them out of business. But the supermarkets say that the introduction of an ombudsman will only push up prices for consumers.
A report from the Competition Commission in April 2008 proposed an ombudsman. In August 2009, the commission passed the decision on to the Department for Business, Innovation and Skills (BIS). Now it has emerged that the three biggest chains – Tesco, Asda and Sainsbury – have been meeting ministers and civil servants to express concerns.
Freedom of Information requests made by Friends of the Earth and ActionAid reveal that, between April 2008 and August 2009, the retail giants held 13 meetings with BIS officials and ministers, including three with the secretary of state, Lord Mandelson.
The Groceries Market Action Group, which represents UK farmers, manufacturers and small shops and producers from developing countries, has had only one meeting, with the competition minister, Kevin Brennan.
The Competition Commission has suggested that suppliers could make anonymous complaints to the ombudsman, but the chains complain that this would prevent them from addressing the complaint and would not allow them a right of reply.
A spokesman for Sainsbury said: "We don't agree with the need for an ombudsman and consider that it will result in additional bureaucracy and unnecessary cost. We consider that the Office of Fair Trading is well placed to continue in its current role of regulating the code and that there is no need to establish new powers."
Source:guardian.co.uk
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