AM calls for tougher action needed to make supermarkets green giants of the future

12.29.38pm BST (GMT +0100) Wed 30th Apr 2008

Mick Bates AM, Welsh Lib Dem spokesperson for the Environment, welcomes the final report by the Competition Commission following its two year long investigation into the grocery market, but highlights that more must be done to protect local food producers, protect diversity in our high streets and encourage supermarkets to become the 'green giants' of the future.

As the country's largest supermarket chain, TESCO, announced record profits of £2.846bn for 2007, the report by the Competition Commission proposes a number of recommendations to curb the power of major retailers, among these the need for a 'supermarket ombudsman' to ensure fair play between supermarkets and suppliers and to assist the Office of Fair Trading in monitoring and enforcing the Supermarket Code of Practice.

Montgomeryshire AM Mick Bates: "I am pleased that the Competition Commission has recommended a new supermarket ombudsman. Farmers need a fair return for their labours - supermarkets are powerful, profitable and have been exposed for profiteering on their produce at the expense of the agricultural industry, but it is time for this to change if we are to protect our local food producers in Wales and secure our food supplies for the future."

Under further recommendations the Office of Fair Trading would be required to be consulted on all applications to extend existing or build new supermarkets and would apply a 'competition test' to stop one supermarket becoming too dominant in a local area.

"I welcome the proposal for a competition test but the test must be tougher. The market share allowed must be much smaller than 60% and must include smaller stores which are part of large retail chains otherwise supermarkets will take advantage of this loophole" adds Mick.

"Supermarkets should be encouraged to compete with one another by establishing who sells the most local food, who recycles the most waste and who sells the most Fair Trade products. This is a challenge for supermarkets, government and consumers who must demand that supermarkets take firmer action to protect our environment.

"The growth of supermarkets is indicative of our nation's changing culture. Supermarkets now control the bulk share of the grocery market and are growing in the entertainment and clothing market. By knocking down prices and offering everything under one roof, people have convenient access to better quality goods and supermarkets can be major employers in an area.

"There is no denying that supermarkets will continue to prosper but unfortunately there is always a price to pay and it is usually the producer and the environment that suffer.

"Our supermarkets are keen appear green and to show their support for local producers but are not so keen when it comes to paying a fair price to suppliers and taking real action to reduce their environmental footprint. If supermarkets are to continue to dominate the retail market then they must lead the way with good environmental practice and become the green giants of the future.

"I am disappointed that the report focuses on competition between larger supermarkets as it is vital that we also protect our smaller, independent shops and stores if we are to retain a vibrant and diverse high street that gives consumers real choice. I hope that the Government will recognise the importance of independent retailers when developing planning guidance, so that we can ensure sustainable town centres for the future."