GROCERY MARKET OMBUDSMAN

That this House welcomes the recommendations of the Competitions Commission's Grocery Market Inquiry that a strengthened Grocery Supply Code of Practice (GSCOP) monitored and enforced by an independent Ombudsman should be established; notes that the Commission found supermarket practices which `transfer excessive risk' to suppliers, such as retrospective unilateral changes to the terms of supply agreements, charges for loss or damage to goods after delivery and withholding payment without cause could have `an adverse effect on investment and innovation in the supply chain, and ultimately on consumers'; believes that the current recession has increased pressure on suppliers but further notes that United Kingdom supermarkets continue to report healthy profits from their grocery business; recognises that fair treatment of primary producers is crucial to achieving United Kingdom commitments to eradicating poverty in the developing world and guaranteeing food security for the United Kingdom; hopes that supermarkets will recognise that the establishment of an Ombudsman offers the opportunity for independent verification of their commitment to the principles of fair trading and that they will agree undertakings with the Commission; urges the Commission to implement its recommendation to give primary producers and other suppliers to intermediaries the right to submit complaints to the Ombudsman regarding the conduct of grocery retailers; and calls upon the Government to respect the considered recommendations of the Competition Commission and to confirm that it is prepared to introduce the necessary legislation to establish the proposed Ombudsman if a voluntary agreement cannot be achieved between the Commission, supermarkets and suppliers.