Member News
Big supermarket chains such as Tesco, Asda and Sainsbury's faced criticism last night over their reluctance to take steps to address concerns over fair competition between retailers.
Lindsay Hoyle (Lab, Chorley) made an impassioned speech, drawing on his Chorley roots and a clear love of local Lancashire produce.
He raised a number of issues at the adjournment debate last night entitled 'Supermarkets and Regional Farming'.
Of primary concern was that despite the Competition Commission's recommendation that an ombudsman should be created and in place by August 2009, the Commission had failed to secure the voluntary agreement between the big supermarket chains – particularly Tesco and Sainsbury's.
This, he suggested, has meant that local producers, farmers and retailers are continuing to suffer at the hands of the large supermarket chains, as they cannot compete with the low prices that supermarkets demand. Farmers in particularly have been particularly hard hit, with ever decreasing farm-gate prices, whilst consumer prices are often rising. British farming has, according to Mr. Hoyle 'been under the cosh'.
He called for assurances that the ombudsman is set up, but more importantly to ensure that supermarkets keep their stock as locally sourced as possible – local meat and dairy from local farms, and specialist local produce from small regional producers. This would help local businesses thrive, and, as David Crausby MP (Bolton, North-East), help protect the environment by reducing food miles.
The responding DEFRA minister, Jim Fitzpatrick, appeared to share many of Mr. Hoyle's criticisms of the supermarkets' practices, agreeing in particular that supermarkets had in the past become involved in price wars which had contributed to the failure of many British dairy farms.
However, the minister refused to be drawn to make any firm commitment from the government to press ahead with the creation of an ombudsman, stating that whilst the matter is 'under collective Government discussion' it would not be possible to 'tempt' him to comment.
No doubt this will leave a disappointing taste in the mouth of Lindsay Hoyle.
The debate was a constructive one with much consensus on the real need for supermarkets to embrace local communities by selling local produce and paying a fair price to local farmers, but the government again shied away from any firm commitment to implement the Competition Commission's recommendations.
Instead, he lauded the arrival in February 2010 of the new groceries supply code of practice (GSCOP) for all supermarkets with a turnover of more than £1 billion a year, stating that it's introduction will provide 'some certainty' for smaller farmers who themselves are not covered by GSCOP, but who work with businesses that are.
The debate ended with a promise from the minister to write to Mr. Hoyle on several issues concerning sustainable production and food miles – issues which are of course important but were perhaps not Mr. Hoyle's main concern.
Dods Parliamentary Communications Ltd