Consultation Begins on Supermarket Body
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Issued 05 February 2010
Consumer minister Kevin Brennan today announced the next step in the
Government’s plan to put in place a body to enforce compliance with the
Groceries Supply Code of Practice (GSCOP).
Launching a consultation on the powers and operation of the body,
Kevin Brennan said:
“Today we’re pushing ahead with our plans for a new body to ensure free and
fair competition and that the grocery supply market continues to work in the
long-term best interest of consumers.
“It’s important to hear people’s views on exactly how the body should
operate, its nature and exact role. This consultation will enable us to take
informed and responsible decision on the make up of the new body that will
balance the needs of suppliers, the supermarkets and consumers.”
Farming Minister Jim Fitzpatrick said:
“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
“The consultation will give farmers, food producers, consumers and retailers
the chance to say how this balance should work.”
The launch of the consultation comes the day after the new Code of Practice
came into force, meaning that the body can be established as soon as possible.
1. The Competition Commission (CC) found that that large grocery retailers
were passing on excessive risks and unexpected costs to their suppliers. The CC
failed to obtain voluntary undertakings from retailers to set up a GSCOP
monitoring body. On 4 August 2009 the CC recommended that BIS take steps to set
up, as soon as practicable, a monitoring body that can levy penalties on large
grocery retailers for GSCOP non compliance.
2. On 13 January the Government announced that it intended to go-ahead with
the Competition Commission’s recommendation to set up a body to monitor and
ensure compliance with the Groceries Supply Code of Practice.
3. The consultation will run for 12 weeks and the consultation document is
available at www.berr.gov.uk/files/file5442 5.pdf
Please contact the Department for Business press office on 0207 215 3496 for
Department for Business, Innovation & Skills
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Article Published/Sorted/Amended on Scopulus 2010-02-09 13:34:57 in Business Articles