Food producers call for laws to tackle supermarkets abusing power

Food producers are reviving calls for legislation to regulate the retail sector as England has unveiled plans to empower an independent adjudicator to name, shame, and ultimately fine supermarkets who abuse their power in the marketplace.

IFA president John Bryan said the fact that legislation to regulate the retail sector in the UK is in its final stages, with an adjudicator to be appointed shortly, highlights the urgency the Government here should attach to legislation that has been promised.

Mr Bryan said: “Enterprise Minister Richard Bruton had given a commitment that legislation would be introduced by the end of this year. However, we have yet to begin the process of introducing regulations to deal with the power of the retail multiples here in Ireland.

“Once again, we are calling on the minister to publish the bill. Farm incomes are back 22% this year because of high input costs and difficult weather conditions. Producers are entitled to a price that covers their costs of production and gives them a margin.”

Yesterday, Jo Swinson, Britain’s competition minister, confirmed that fines would now be available “as a last resort” if a breach of the Groceries Code uncovered by the UK supermarket watchdog was deemed “serious enough”.

In Westminster debates on the powers to be given to the adjudicator, some ministers had objected to the option of imposing fines on retailers. They argued that “naming and shaming” would be a more effective deterrent.

Nonetheless, despite these concerns, Britain is to give its retail watchdog the power to impose financial penalties when a retailer has breached the Groceries Code.

Ms Swinson said: “Where supermarkets are breaking the rules with suppliers and treating them unfairly, the adjudicator will make sure that they are held to account. We have heard the views of the stakeholders who were keen to give the adjudicator a power to fine, and recognise that this change would give the adjudicator more teeth to enforce the [UK] Groceries Code.

“We expect fines to be used as a last resort, but the fact that the adjudicator has the power to impose them will send a strong message to retailers that compliance with the code is not optional.”