The government has published its draft Grocery Code Adjudicator Bill, outlining how the ombudsman will oversee the Grocery Supply Code of Practice (GSCOP).
The GCA will investigate complaints from suppliers, arbitrate in disputes between suppliers and large retailers and produce an annual report on compliance.
The Bill is being published for the purpose of ‘pre-legislative scrutiny’ by the business select committee. But some estimate the post may not be filled until 2014.
James Lowman of the Association of Convenience Stores urged the government to move the Bill swiftly through Parliament.
“The implementation of a regulator was recommended by the Commission more than three years ago already,” he said.
“Publishing the Bill today is the start of another long process. We urge ministers to do all they can to speed up the implementation of a measure that is designed to protect consumer interests.”
He called for the office to have “maximum flexibility to gather information” and te ability to “impose meaningful penalties” including fines.
But the British Retail Consortium said the Bill would “add costs to retailers and push up shop prices for customers”.
“The extra costs of dealing with a new administrative body will make it even harder to keep price rises away from shop shelves,” said food director Andrew Opie.
“The Bill says the adjudicator will cost only £800,000 a year to run, to be paid for by the 10 biggest food retailers. If the Government really believes a public body can be run that cheaply it should cap the charges imposed on them at that level and commit to funding any extra costs itself.”
Farming minister Jim Paice said: “I think the BRC are struggling to find a criticism frankly. The Adjudicator’s role is to ensure that supermarkets and retailers comply with GSCOP. If they do, they won’t have a lot to do. But we all hear anecdotal stories suggesting that is not quite what is going on.”
Paice claimed there was “still hope” that the full bill could be introduced earlier than 2014.
Read more
A solid start for the coalition, but time to deliver on ‘good intentions’ (analysis; 14 May 2011)
Adjudicator delay frustrates small shops (Convenience Store; 11 May 2011)
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