SUPERMARKETS AND ALCOHOLIC LOSS LEADERS

That this House notes the Competition Authority's Groceries Market Provisional Findings report and the surprising finding that loss leaders are not directed at or detrimental to smaller retailers; recalls that its previous Emerging Findings report had stated that alcohol was one of two main product groups in which supermarkets engage in below cost selling; expresses surprise that the British Retail Consortium holds there is no evidence to link pricing and binge drinking; agrees with the Royal College of Physicians that the two major factors affecting alcohol consumption are price and availability; is concerned at the Chief Medical Officer's finding that annual mortality rates from chronic liver disease rose by 466 per cent. from 1970 to 2000; further notes the British Retail Consortium's claim that less than one per cent. of all supermarket purchases are of alcohol alone; believes below-cost alcohol selling increases consumption amongst vulnerable drinkers and young people; urges supermarkets to agree a code of practice to require a minimum non-alcohol shop spend in order to purchase discounted alcohol; calls upon the Secretaries of State for Health and for Business, Enterprise and Regulatory Reform, with relevant bodies, to encourage such agreement and to keep its effectiveness under review; welcomes the commitment by the Prime Minister on 28th November that government will bring forward a paper on issues around alcohol selling; and is minded to support legislation to end stand-alone alcohol sales by supermarkets should that sector not adopt effective restraining measures.