Will we ever get a supermarket ombudsman?

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There's been a lot of noise about the supermarket ombudsman in recent weeks, with the subject hitting the headlines at all three party conferences and at the IGD conference in London last week.

 

But going over the recent coverage and looking at what Ministers are saying, I am starting to feel a little less optimistic that we might soon see an independent watchdog taking on the might of UK reailers.

 

The matter now rests with consumer affairs Minister Kevin Brennan, who took part in a Q&A with readers of The Sun last month where he failed to acknowledge the potential for an ombudsman.

 

Asked about the ever increasing discrepancy between farm gate and retail prices, Mr Brennan failed to give an answer which would convince us of his appetite to take on the big retailer.

 

Following a spiel about how the Government can't set prices (10/10 for stating the obvious!) he said 'The supermarket industry has been investigated several times recently, and has been found to be competitive'.

 

Perhaps he forgot the piece of paper on his desk from the Competition Commission (CC) recommending Ministers set up an ombudsman?

 

The very fact an independent competition authority has made the recommendation would suggest, contrary to his answer, that more does need to be done to regulate retailers.

 

Add to that the response I got from the press office at DBIS last week where they were only willing to give the same bland statement they did when the recommendation was first put before Ministers, and I get the sinking feeling the Government is looking for a way to wriggle out of this one.

 

Hopes were raised very briefly last week when international development Minister Michael Foster rejected the supermarkets' argument the ombudsman would lead to higher food prices.

 

But in the same sentence he said he didn't feel there was sufficient evidence to back up some of the CC's claims.

 

Early November is the deadline for the Government to respond to the recommendation, and all the signs point to a dodging of the bullet.

 

That in itself must raise some serious questions about how a Government could overrule an authority - funded no less through taxpayers money - which exists solely to make independent judgments and recommendations to Ministers.

 

But for all that, the decision has not yet been made and it is up to the industry and other players within the supply chain to make as much noise as possible in the coming weeks and really put pressure on Ministers to bite the bullet.

 

If they don't it will be held up as another example of a Government unwilling to take on the might of retail power and support farmers, suppliers and perhaps most importantly, consumers.

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This page contains a single entry by Jack Davies published on October 19, 2009 9:46 AM.

Fascinating NFU council session was the previous entry in this blog.

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