Proposed Merger of Sainsbury’s and Asda

Baroness McIntosh of Pickering Excerpts

Tuesday 1st May 2018 Lords Chamber

[Lord Henley]

My Lords, we hoped that the first matter that noble Lords would want to address was savings for the consumer, and that is something that the supermarkets are looking for. The noble Lord said that they have stated that their headquarters will stay and all their stores will stay, and therefore savings can come only through squeezing the supply chain. I do not accept that, but that is a matter for the supermarkets to address. It is something that the CMA will look at when it addresses this matter properly, as was discussed when my honourable friend made his Statement yesterday in another place. Obviously, the CMA might want to look at individual stores and whether it is right and proper that some are kept. That is a matter for the CMA. As I have made clear, my honourable friend has already had discussions with the Groceries Codes Adjudicator and, to the extent that we can play a part in that, my honourable friend will continue to do so.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend give the House an assurance that small growers of fruits and vegetables in particular will not be severely disadvantaged in this regard? There is real concern that when the Grocery Code Adjudicator’s powers were reviewed the opportunity was not taken to permit her to take up an investigation on her own initiative. I am sure my noble friend will agree that we all appreciate that there is no way that a small grower or farmer who has a contract with Sainsbury’s or Asda, or the bigger merged body, will put that contract at risk. It is very difficult to make a confidential complaint because they will be so easily identified and they will lose their part in the supply chain. Will my noble friend take this opportunity to review the powers of the Grocery Code Adjudicator to take up investigations on her own initiative if there is any proof at all, and will she be able to receive evidence in this regard from third parties such as any farm organisations like the NFU, the TFA or the CLA?