Useless And Unused Supermarket Code Of Practice Must Be Rewritten

9.00.00am UTC (GMT +0000) Wed 7th Jun 2006

The Welsh Liberal Democrats today called for the Supermarket Code of Practice to be reformed and rewritten, saying the old Code- introduced in 2001- had categorically failed to protect farmers and suppliers from abuse by powerful supermarkets.

In a submission to an inquiry into the groceries market, the Welsh Lib Dems called for sweeping changes to be made to the way the market is scrutinized, including the establishment of an independent watchdog to ensure fair practice within the industry. Roger Williams, Welsh Liberal Democrat MP for Brecon and Radnorshire, said today:

"Changes must be made to prevent the exploitation of Welsh farmers and the annihilation of small shops across Wales.

"We need robust measures in place to prevent supermarkets abusing their awesome market power. The current Code of Practice is a fig leaf with no practical purpose- it hasn't been used once since its introduction five years ago. The Code must be radically reformed and a Food Trade Inspector should be appointed to pro-actively seek out unfair trading practices in the Groceries industry.

"We need new rules and a new approach, otherwise many services and communities in Wales could face terminal decline."

In their submission to the Competition Commission the Welsh Liberal Democrats put forward eight recommendations which would 'help provide a sustainable future for Welsh farmers and small shops.' Commenting, Lembit Öpik, MP for Montgomeryshire and Leader of the Welsh Liberal Democrats, said:

"The Supermarket Code of Practice must be overhauled so that it properly protects farmers and small suppliers from supermarket abuse. The Code should be rewritten and made legally binding so what it says and what it does are clear to everyone. It should be expanded so it incorporates the entire food chain, from the producer to the plate, and anyone who makes a complaint should be granted whistleblower protection.

"The OFT should change its approach so it takes into account the massive imbalance between supermarkets and suppliers and producers. This means treating the groceries market realistically, and it means the OFT broadening its approach, so it no longer focuses exclusively on consumer interests, but also takes into account the social and environmental impact of market trends."