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Groceries Code Adjudicator

Volume 637: debated on Thursday 8 March 2018

2. What discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on extending the role of the Groceries Code Adjudicator. (904249)

I have had regular dialogue with Ministers in the Department for Business, Energy and Industrial Strategy regarding the role of the Groceries Code Adjudicator, and we recently had a call for evidence on the matter. In our response on 16 February to that call for evidence, we set out a range of measures to improve fairness in the supply chain and strengthen the position of farmers and small producers.

I am the unpaid chair of the trustees of the Fairtrade organisation Traidcraft. There were high hopes across the Chamber of a stronger Groceries Code Adjudicator to protect suppliers from unfair practices, such as last-minute cancellations of orders and unexplained deductions from invoices. Ministers started consulting, I think, 18 months ago on possible changes. The farming Command Paper last month promised fairness in the supply chain, but hopes were dashed with the announcement last month that there would be no change to the adjudicator’s remit. Why are Ministers failing to take action?

I do not accept that there was no change. As I said a little earlier, we have announced a package of measures. It includes a £10 million collaboration fund to help farmers and small producers to come together, compulsory milk contracts legislation to protect dairy farmers, compulsory sheep carcase classification, a commitment to making supply chain data easier to access to improve transparency and market integrity and a commitment to reviewing whether more grocery retailers should come under the GCA’s remit.

I hear what the Minister says, but given that the vast majority of producers and consumers are very keen for the Groceries Code Adjudicator to be strengthened, why will he not do so? The Opposition are very happy to help if he says that he is prepared to strengthen the code.

When we looked at the evidence, we found that a lot of it concerned particularly vulnerable sectors, such as dairy and some of the other livestock sectors, which often end up becoming price takers because they do not have sufficient strength to deal with large processors. It was less an issue of the supermarkets and more an issue of the processors. We have decided that a better way to take this forward is to introduce other statutory codes that target the problem, rather than trying to change the GCA’s remit.