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Grocery Trade: Competition

Volume 503: debated on Monday 11 January 2010

To ask the Minister of State, Department for Business, Innovation and Skills (1) whether he has made an assessment of the potential effects of implementation of the Competition Commission’s proposals for a grocery supply ombudsman on (a) grocery prices and (b) affordability of goods in supermarkets; (309303)

(2) what regulatory impact assessment he has made of implementation of the Competition Commission’s proposals for a grocery supply ombudsman;

(3) whether he has made an estimate of the cost of implementing the Competition Commission’s proposal for a grocery supply ombudsman.

An impact assessment will be produced and published alongside any future consultation on the Competition Commission’s (CC’s) proposals for a groceries supply code of practice (GSCOP) ombudsman. The assessment will consider and take into account the effects of the CC’s proposals and include the costs and benefits of the implementing the proposal, grocery prices and the affordability of goods in supermarkets.

To ask the Minister of State, Department for Business, Innovation and Skills what discussions (a) he, (b) Ministers in his Department and (c) his officials have had on the merits of the Competition Commission’s proposal for a grocery supply ombudsman (i) between April 2008 and 3 August 2009, (ii) between 4 August 2009 and 1 November 2009 and (iii) since 2 November 2009. (309304)

BIS Ministers and officials regularly meet with a range of stakeholders to discuss a wide range of issues including the Competition Commission’s (CC’s) groceries market recommendations such as the grocery ombudsman as part of the process of policy development. Other topics such as skills, employment and other business issues will have been covered as part of a wider agenda. The following meetings (where records are available) were held during the specified periods:

(i) Meetings held between April 2008 and 3 August 2009:

22 May 2008—Meeting with Sainsbury's—attended by David Saunders (the then Director for Consumer and Competition Policy, BIS) and other BIS officials.

6 June 2008—Meeting with Tesco—attended by BIS officials.

11 June 2008—Meeting with Sainsbury’s—attended by BIS officials.

12 June 2008—Meeting with Asda—attended by David Saunders (the then Director for Consumer and Competition Policy) and other BIS officials.

26 June 2008—Meeting with Sainsbury’s—attended by Gareth Thomas MP (the then BIS Competition Minister) and another BIS official.

17 July 2008—Meeting with Traidcraft—attended by Gareth Thomas MP (the then BIS Competition Minister) and a BIS official.

31 October 2008—Meeting with Tesco—attended by Geoffrey Norris (Special Advisor to BIS Secretary of State).

10 December 2008—Meeting with Traidcraft and members of the Cross Cutting Group—attended by BIS officials.

11 January 2009—Meeting with Association of Convenience Stores—attended by Ian Pearson, Minister.

11 February 2009—Meeting with Waitrose—attended by BIS officials.

18 February 2009—Meeting with National Farmer’s Union—attended by Sir Brian Bender (the then BIS Permanent Secretary) and a BIS official.

19 February 2009—Meeting with Sainsbury’s—attended by Sarah Chambers (Director for Consumer and Competition Policy, BIS) and another BIS official.

19 March 2009—Meeting with Tesco—attended by Gareth Thomas MP (the then BIS Competition Minister) and other BIS officials.

26 March 2009—Meeting with Tesco—attended by BIS officials.

31 March 2009—Meeting with Association of Convenience Stores—attended by Gareth Thomas MP (the then BIS Competition Minister) and BIS officials.

17 July 2009—Meeting with Tesco—attended by a BIS official.

(ii) Meetings held between 4 August 2009 and 1 November 2009:

12 August 2009—Meeting with Asda—attended by Sarah Chambers (Director for Consumer and Competition Policy, BIS) and another BIS official.

13 August 2009—Meeting with Groceries Market Action Group members: National Farmers Union, British Brands Group, Traidcraft, and Association of Convenient Stores—attended by Sarah Chambers (Director for Consumer and Competition Policy, BIS) and another BIS official.

9 September 2009—Meeting with British Retail Consortium—attended by a BIS official.

15 September 2009—Meeting with Tesco—attended by Lord Mandelson (BIS Secretary of State) and a BIS official.

13 October 2009—Meeting with ActionAid—attended by Geoffrey Norris (Special Advisor to BIS Secretary of State).

15 October 2009—Meeting with Waitrose—attended by BIS officials.

(iii) Meetings held since 2 November 2009:

2 November 2009—Meeting with British Retail Consortium—attended by Simon Fraser (BIS Permanent Secretary) and a BIS official.

3 November 2009—Meeting with Groceries Market Action Group including: ActionAid, National Farmers Union and Association of Convenience Stores—attended by Kevin Brennan MP (BIS Competition Minister).

3 November 2009—Meeting with representatives from ActionAid, National Farmers Union, and Association of Convenience Stores—attended by Kevin Brennan MP (BIS Competition Minister).

4 November 2009—Meeting with Morrisons—attended by Ian Lucas MP (BIS Minister for Business and Regulatory Reform) and a BIS official.

17 November 2009—Meeeting with Sainsbury’s attended by a BIS Official.

23 Novermber 2009—Meeting with the British Retail Consortium and also attendees from the Co-operative Group, Marks and Spencer, Sainsbury’s, Tesco and Iceland—attended by Kevin Brennan MP (BIS Competition Minister) and a BIS Official.

26 November 2009—Meeting with National Farmers Union—attended by Kevin Brennan MP (BIS Competition Minister) and a BIS official.

1 December 2009—Meeting with Food and Drink Federation—attended by Kevin Brennan MP (BIS Competition Minister) and a BIS official.

2 December 2009—Meeting with Consumer Focus—attended by Kevin Brennan MP (BIS Competition Minister) and a BIS official.

8 December 2009—Association of Convenience Stores, plus NISA, Today’s and SPAR—attended by, Ian Lucas (BIS Minister for Business and Regulatory Reform) and a BIS official.

16 December 2009—Meeting with Divine Chocolate and Traidcraft—attended by Kevin Brennan MP (BIS Competition Minister) and a BIS official.

16 December 2009—Meeting with Tesco—attended by a BIS official.

21 December 2009—Meeting with British Brands Group—attended by a BIS official.

To ask the Minister of State, Department for Business, Innovation and Skills what evidence his Department holds on potential effects of implementation of the Competition Commission’s proposals for a grocery supply ombudsman on (a) consumer prices, (b) consumer interests, (c) consumer choice, (d) viability of grocery suppliers, (e) liability of farmers and food growers, (f) economic sustainability of developing world suppliers and (g) product innovation. (309360)

The Department has received a large number of representations including the above issues as part of the evidence gathered on potential effects of the Competition Commission’s proposals for a grocery supply ombudsman.

Those representations, along with the Commission’s careful analysis, will be taken into account when we reach our decision shortly.