WILLIAMS OPTIMISTIC THAT GOVERNMENT MOVING IN RIGHT DIRECTION ON SUPERMARKET OMBUDSMAN

1.19.20pm GMT Fri 7th Nov 2008

Commenting today on his exchange with the Minister of State for Farming and Environment, Jane Kennedy MP, during DEFRA Oral Questions, Roger Williams MP, Liberal Democrat Food and Rural Affairs spokesperson, has said it appears progress is being made on the appointment of a supermarket ombudsman but that they must move quicker on this issue.

Speaking after the exchange, Mr Williams said:

"When I asked the Minister about establishing a supermarket ombudsman to oversee the relationship between producers and retailers in the grocery trade, she suggested the government were awaiting the outcome of talks between the competition and the grocery sector.

"It would appear that progress is being made on this but the Government still seem opposed to introducing legislation to oversee this matter and would rather see a voluntary agreement between farmers and supermarkets.

"In the current economic situation the Government should be doing all they can to support rural economies.

"Establishing an ombudsman to ensure fair trade in the grocery sector would be a simple but effective step in this process.

"While it appears that this issue is finally being taken seriously by the Government they are not moving quickly enough for many rural businesses that are facing serious financial pressures."

NOTES:

The full text of the exchange was as follows:

Mr. Roger Williams (Brecon and Radnorshire) (LD): One of the main conclusions of the report produced by the Competition Commission on the grocery trade was that, in order to protect consumers and producers, an ombudsman needed to be established for the trade to protect against uncompetitive practices. What progress have the Government made in establishing such an office?

Jane Kennedy: I acknowledge the concerns about the concentration of the buying power of supermarkets. I am awaiting the outcome of the discussions between the Competition Commission and the grocery retailers before seeing whether any further action needs to be taken.

The full debate can be found at: http://www.publications.parliament.uk/pa/cm/cmtoday/cmdebate/01.htm#hddr_13