Tories promise ombudsman to curb 'abuses' by supermarkets

Mark Casci Agricultural Correspondent

A CONSERVATIVE government will seek to “curb the abuses of power” by major retailers with the introduction of a supermarket ombudsman.

Shadow Defra secretary Nick Herbert will today confirm a Conservative government would create an independent figure to oversee the groceries industry, a move he claims will bring benefits for both farmers and consumers.

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The Tory shadow Minister will also call at the Oxford Farming Conference for a “new age of agriculture” which supports British farmers and says a vibrant agricultural industry is necessary to help Britain continue to feed itself.

Mr Herbert will warn that some aspects of the way supermarkets treat their suppliers could harm both the producers, who can be hit by unfair or unexpected costs, and consumers, who could suffer from lower quality products, less choice and higher prices in the long run.

An ombudsman would police the supply chain to make sure that this does not happen.

Mr Herbert’s speech is also expected to attack the Government for its failure to establish the ombudsman, after a decade in which Ministers have “devalued British agriculture”.

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Lord Mandelson, head of Department for Business, Innovation and Skills, had been due to make a decision on the issue last year but as yet no announcement has been made.

In his speech to the conference Mr Herbert will say: “It is not enough to talk loosely about a fair market or the need for better labelling. We need action, with a supermarket ombudsman and legislation to enforce honest labelling if the retailers won’t act.

“While the Government dithers the Conservatives are clear: we will introduce an ombudsman to curb abuses of power which undermine our farmers and act against the long-term interest of consumers.”

He will also attack the Government’s record on agriculture and calls for an end to measures which he claims have undermined the ability of the UK’s producers to compete effectively in the marketplace.

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“It’s meaningless to talk about a competitive agricultural industry while increasing the regulatory burden on farmers and failing to take the necessary action to deal with bovine TB.

“For too long, farming has been treated by government at best as though it doesn’t matter and at worst as an expensive problem.

“The short-sighted response to the decades of food surplus was to believe that domestic production was no longer important. But today we face the extraordinary new challenge of feeding a rapidly rising global population against a background of profound environmental change, and now even those who have been careless about farming can see that food production matters again.”

The Tories’ decision to back the appointment of an ombudsman will find favour with the UK’s farming industry who have long been campaigning on the issue.

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Following a two-year investigation into the industry the Competition Commission has recommended the creation of an ombudsman to arbitrate on disputes between retailers and producers and oversee the new Groceries Supply Code of Practice, which aims to protect suppliers from unfair behaviour by the supermarkets.

Mr Herbert will also hint at the restoration of the word “farming” to the Defra title.

“The last decade was characterised by the creation of a government department whose name didn’t even mention farming or agriculture. But that requires a new start, where government understands that we cannot take farmers closer to the market while undermining their ability to compete.

“If we want to ensure food security in 2030 and beyond, we need to begin by valuing the agricultural industry that will deliver it.”

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