Supermarket watchdog will not help consumer, says Tesco boss

The chief executive of Britain's biggest supermarket hit out at

proposals for an incoming ombudsman.

He said the body – given the go-ahead by the Government last month – would work in the interests of suppliers rather than helping

competition for consumers.

He said: "I'm not in favour of an ombudsman – everyone knows supermarkets are one of the most competitive industries around.

"That competition puts power in the hands of the consumer."

He added: "In a free society, why would you want an ombudsman if there are no problems now as far as consumers are concerned?

"An ombudsman would be there to protect suppliers but should be there to protect consumers."

The Government announced a consultation last week on the scope and power of the ombudsman.

Billed to ensure "the grocery supply market continues to work in the long-term best interest of consumers", the ombudsman will oversee compliance with a new supplier code launched on February 4.

The setting up of an independent body was recommended by the Competition Commission after a lengthy investigation of the supermarket sector that found the large retailers were passing on excessive risks and unexpected costs to their suppliers. It was initially hoped the industry would voluntarily move to launch a body, but the Commission stepped in when it failed to garner support.

Farming Minister Jim Fitzpatrick said last week that "the new body will need to strike a balance between ensuring consumers can get access to high-quality food and that farmers and food producers get a fair deal".

The National Farmers' Union has welcomed the plans, with dairy farmers having been particularly squeezed in recent years.