PARLIAMENTARY EARLY DAY MOTION
SUPERMARKET POWER (21 November 2007)

That this House welcomes the provisional conclusion of the Competition Commission's Groceries Market Inquiry that the way some supermarkets treat their suppliers transfers unexpected costs and excessive risk which is likely to affect their ability to invest and innovate and which could harm product quality, innovation and ultimately choice for consumers; but is concerned that the Competition Commission proposes a further weakening of appropriate planning controls on out-of-town supermarket developments; notes, in spite of perpetual inquiries into this sector by the competition authorities over the past decade, the oligopolistic nature of the grocery retail market whereby four big supermarkets run 80 per cent. of the trade and that, at the present rate of change, this will result in fewer, perhaps two or three, having more than 90 per cent. of trade within a decade; is aware that suppliers like British farmer co-operatives often face short-notice alterations to the usually unwritten contractual terms whereby they have to fund promotionals, pay for shelf space, meet excessive costs of supermarkets' favoured packaging, haulage, complaints, underwrite the supermarkets' margins and face late payment of bills amongst other practices; and calls upon the Government to support the Competition Commission's finding in respect of suppliers and to assist in the drawing up of a new supermarket code of practice backed by a rigorous and proactive inspection regime to give suppliers and consumers the reasonable protection and reassurance they both need and deserve.

Sponsored by:
Andrew George (Liberal Democrat)