Sainsbury and Asda Merger

Debate between Baroness Chapman of Darlington and Andrew Griffiths

Monday 30th April 2018 Commons Chamber

[Andrew Griffiths]

My hon. Friend is absolutely right: we want these businesses to grow and thrive. We want a dynamic retail sector. That is why, just last month, I established the Retail Sector Council to bring together the major players in the retail industry to ensure that the Government are creating exactly the conditions that he highlights, to allow these businesses to grow and prosper. But as I said, look at the facts: the combined company will employ some 330,000 people. We as a Government want to encourage those jobs—not to get in the way and prevent them.

[Jenny Chapman (Darlington) (Lab)]

Although I am encouraged to hear the assurances about store closures and store jobs—I am also a former colleague at Asda—I encourage the Minister to be very careful about making assurances, particularly about Asda House, but also about jobs in distribution centres. Forces are at play that are far wider than just this merger—worrying though this is—and that will not be examined by the CMA. Specifically for me, the issue is automation in the logistics and warehousing sector, where I can imagine about 80% of jobs no longer existing in the future. That would particularly hit the north-east of England, south Wales and other areas that have become dependent on these jobs. As well as looking at this issue, the Government need to look more widely at those broader trends. Is the Minister going to do that?

[Andrew Griffiths]

I knew that the UK was a country of shopkeepers, but I had not realised that so many Members had retail experience in our supermarkets; it is encouraging to have such a well-informed debate. The hon. Lady raises issues about the supply chain and distribution sector. Clearly, that is not within the scope of the CMA investigation. The Enterprise Act 2002 clearly sets out the role that the Government and Ministers can play in relation to takeovers and mergers, and it is important that we stick to those established rules. That is what we will be doing in this case.

Alcohol (Minimum Pricing)

Debate between Baroness Chapman of Darlington and Andrew Griffiths

Wednesday 2nd February 2011 Westminster Hall

[Andrew Griffiths (Burton) (Con)]

I congratulate the hon. Member for Blaenau Gwent (Nick Smith) on securing this hugely important debate. We all see the consequences of drinks pricing in our high streets and A and E departments, so I pay tribute to him for recognising the importance of this issue.

I am the vice-chairman of the all-party parliamentary beer group and the MP for Burton. I am proud to say that Burton is the home of British beer. We have Carling Black Label, Marston’s Pedigree and Punch Taverns, which is the biggest pub company in the country. The Minister has been incredibly generous with his time. He has met members of the all-party parliamentary beer group, the Save the Pub group and the Campaign for Real Ale group. He has met the brewers and the pub owners and taken time to listen to the concerns and issues that so many of them face, and I thank him for that. I also thank him for recognising that pricing in the supermarkets is dangerous and is having an impact on our young people and on society. As a Government, it is important that we take action to tackle the problem. I doubt whether there is anybody in this Chamber who finds it acceptable for supermarkets to use alcohol as a loss-leader or as a giveaway to get people through the supermarket tills, yet that is what we are seeing daily.

I am glad that this Government have had the determination and confidence to produce legislation that, for the first time, not only recognises that cheap booze is a problem for society but sets out to do something about it. Sadly, though, like Oliver in “Oliver Twist”, I have to say, “Please, Sir, can I have some more?” None of us here believes that the price level that has been set, although well intentioned, will have a massive effect on drinking behaviour, particularly among young people.

It is interesting to put the whole matter into context. In 1987, the price of a pint of lager in the pub was £1, and in an off-licence 70p. By 2010, the pub figure had gone up to £3 and the off-licence figure had stayed pretty much the same at about £1. We have seen prices in pubs increase by more than prices in off-licences over that period.

[Mrs Jenny Chapman (Darlington) (Lab)]

I recently met the chair of one of the local working men’s clubs in my constituency. After a debate about whether or not the club should allow in women, about which we did not agree, we spoke about the pricing of alcohol. The club is concerned about the pricing issue. It believes that aggressive, cheap offers from supermarkets and corner shops are a big attack on its very survival. Historically, working men’s clubs are a key part of social life, particularly in the north-east, and we need to have that at the front of our minds when we consider minimum pricing levels.

[Andrew Griffiths]

If the hon. Lady would like to come to Rolleston working men’s club in my constituency, she will be welcomed with open arms and provided with alcohol in a safe and regulated environment. We all recognise that the pub and the working men’s club provide a safe, regulated environment in which people can enjoy a pint or a glass of wine and interact socially. They are the social hub of our communities. Unfortunately, supermarkets’ pricing and their use of alcohol as a loss- leader is making it almost impossible for our pubs and clubs to compete. As a result, we have seen the shift in drinking behaviour. As I am sure that the Minister is aware, 70% of all alcohol is sold through the supermarkets. If we go back 20 years, the difference in the sale of beer between pubs and off-licences was 80:20; now, it is 50:50. We are seeing supermarkets constantly eroding pub sales.