14 Jan 2008

Competition Commission Inquiry into Supermarkets

The Competition Commission (CC) launched a major investigation into the grocery market in May 2006. This blog invited folk to participate in that and also noted the 'Provisional Findings' that came out at the end of October 2007 - see my letter to press then.

The Commission has acknowledged problems with the way supermarkets treat farmers and is considering strengthening the Supermarket Code of Practice and introducing a watchdog. The campaign group Tescopoly which was set up by various groups (including Friends of the Earth) have just launched a new on-line petition to the CC to support these measures - to sign the petition please click here.

The CC also found that single retailers dominate some local areas. But it also thinks we need weaker planning rules and more big supermarkets to increase choice and competition. This would be a disaster for high streets and independent shops. The Commission cannot change planning policy - but the Government will take note of their report when they propose changes to planning rules in 2008.

Urgent action is required to ensure that the Government does not take the Commission's advice. Instead they must strengthen the rules so that we have a real choice of where to shop.
Please email your MP asking them to sign Early Day Motion 550 and write to Hazel Blears MP, the Secretary of State for Communities and Local Government. David Drew and 62 others have already signed.

I have just seen the Channel 4 Dispatches programmes from over a year ago on Supermarket Secrets - if like me you missed them they are a good reminder of the horrors of supermarkets - see them on You Tube here - they include astonishing facts like each supermarket apple is photographed 72 times.

1 comment:

Philip said...

January 16th,
2008

LAST CALL FOR MEPs TO BACK GREEN BID FOR SUPERMARKET INVESTIGATION

Sussex Euro-MP Caroline Lucas has called on the EU to investigate the impact
of the supermarket sector on farmers, small shops, jobs, communities - and
the environment.

But with just a few days left to gather enough support from fellow MEPs to
launch the investigation Dr Lucas, and colleagues dressed as fruit, have
been raising awareness by with a whistle-stop tour of the European
Parliament.

The MEP, who hopes to represent Brighton Pavilion as MP after the next
election, said: "There is increasing evidence from across the EU that
suggests big supermarkets abuse their buying power to force down prices paid
to farmers and suppliers - both within the EU and in the developing world -
to an unsustainable level and impose unfair conditions on them.

"The European Commission must investigate the sector further and propose
appropriate measures to deal with any such abuses it finds - protecting our
already beleaguered and usually under-rewarded farmers, the environment and
rural communities."

The four largest supermarkets in the UK - Asda, Morrisons, Sainsbury's and
Tesco - together now account for nearly three-quarters of all grocery sales
at supermarkets and convenience stores. Three UK supermarkets control almost
a quarter of the UK's clothing market between them - and this is growing
rapidly, forcing smaller retailers out of business.

Grocery markets across the EU are dominated by a handful of large
supermarkets, which can lead to higher prices and less consumer choice.
Finland is worst affected, with just five companies enjoying more than 90
per cent of the country's grocery sector.

Dr Lucas has launched a Written Declaration - the Brussels' Parliament's
equivalent of an Early Day Motion in the House of Commons - demanding the EU
Commission examine whether supermarkets abuse their dominance, and propose
tough new rules to protect rural economies and the environment.

If it attracts the support of half the EU's 785 MEPs it becomes the official
policy of the European Parliament - and will be formally passed to the
European Commission for action. But if that it to happen more signatures are
required before the deadline next Thursday.

Dr Lucas added: “It is clear that people want us to look into the impact of
supermarkets on agriculture, the environment, the retail sector and consumer
choice, but not enough MEPs have signed up yet to make it happen.

“I urge any of your readers who would like to see these questions are
addressed to contact all the South-East’s ten MEPs asking them to sign the
declaration. All their details are available at www.europarl.europa.eu”

The Written Declaration is sponsored by four other MEPs: Hungarian Socialist
Gyula Hegyi, Polish Nationalist Junusz Wojciechowski, French Socialist
Harlem Desir and French Green Helene Flautre.