Sainsbury and Asda Merger

Debate between Andrew Griffiths and Anne Main

Monday 30th April 2018 Commons Chamber

[Andrew Griffiths]

I thank the hon. Lady for her important points. I share many of the concerns that she voices, but she says that the CMA’s remit does not extend to the substantial lessening of competition—[Interruption.] That is exactly what the CMA does. Its role is to examine competition matters—[Interruption.] If I misheard the hon. Lady, I apologise.

The CMA’s role is to consider the impact of this merger on not just competition in the marketplace, but suppliers. The hon. Lady rightly raised the impact that the merger could have on farmers and suppliers, and that was why the Secretary of State and I reiterated to Asda and Sainsbury’s when we spoke to them this morning the importance of their engaging with not just the CMA, but bodies such as the National Farmers Union and other unions to ensure that this is a proper process that we understand. The hon. Lady will know that section 172 of the Companies Act 2006 puts a duty on directors of the new company to have regard to the impact that their decisions would have on their suppliers, and we will be monitoring that very closely in the months to come.

We must also recognise, as the hon. Lady said at the very beginning of her contribution, that the retail sector is in a huge state of flux. We must all understand that the way in which consumers purchase these days is changing dramatically. There has been a 9% increase in sales through online vehicles in the last 12 months alone. That, by necessity, means that the retail sector has to change and adapt. One of the things that the merger will offer is reduced costs for the consumer, which I hope she will welcome. We all want to protect consumers and make sure they are getting great value for money, and that is one of the things that the merger promises. I can assure her, from the discussions I have had with the CMA, the Groceries Code Adjudicator and both parties, that ensuring the supply chain is properly protected is one of the priorities and something that I guarantee we will keep a close eye on.

[Mrs Anne Main (St Albans) (Con)]

The Minister said that he had a conversation with Mike Coupe about store closures this morning. Given that the CMA insisted that 53 stores were offloaded when the Safeway-Morrisons merger occurred in 2003, how can Mr Coupe give the Minister such an assurance, and what does the Minister have to say about that?

[Andrew Griffiths]

I thank my hon. Friend for that very important question. The reassurances I was given this morning were first that there would be no store closures and secondly that the head offices of both Sainsbury’s and Asda would remain open. Those are both very positive things. My hon. Friend mentions the forced sale of particular branches, and that is clearly a matter for the Competition and Markets Authority. When Sainsbury’s and Asda move on to the phase 2 investigation, they will get down to the granularity of the merger’s impact on particular villages, towns and cities. If there is a feeling that it will cause a lack of competition in the marketplace, the CMA has the power, when making a decision, to force the sale of stores to competitors to ensure that there is greater competition for the consumer.

Infrastructure Bill [Lords]

Debate between Andrew Griffiths and Anne Main

Monday 26th January 2015 Commons Chamber

[Andrew Griffiths]

I shall take a minute to tell hon. Members that we all need to see pubs protected and to see them thrive. What the Minister has done today is to say that if 21 people in a community want to protect their pub, they can do so and they can afford it protection under the planning laws. If a pub cannot get 21 people to support it, it is not financially viable. There is no need to have extra red tape and regulation as proposed in new clause 16. The Minister has, simply and succinctly, put the power back in the hands of pub goers, pub lovers and beer drinkers, and I commend him for doing so.

[Mrs Main]

My plea to the Minister is to consider issuing new guidance that will put an obligation on commercial buildings to have zero-carbon or low-carbon emissions. In my constituency, it is possible to have 3.5 million square feet of rail freight interchange, and not one single green initiative is necessary. We are considering such an obligation for homes, and we should be considering it for commercial premises too. Will the Minister please issue some guidance to be used during the planning process?