Groceries Code Adjudicator

Debate between Derek Twigg and John McDonnell

Tuesday 25th February 2025 Westminster Hall

[John McDonnell (Hayes and Harlington) (Ind)]

The hon. Member for St Ives (Andrew George) should not be so self-deprecating. The Groceries Code Adjudicator was brought about by an excellent piece of work and a good campaign. It was possibly the only thing of any worth that the Lib Dems did in government with the Conservatives.

I just want to make a couple of brief points because my hon. Friends the Members for Salford (Rebecca Long Bailey) and for Lichfield (Dave Robertson) and others have covered the ground very well. I am a member of the bakers union group, too, and in 2013 we welcomed the introduction of the Groceries Code Adjudicator. We met a few times to talk about the individual issues that occurred then. If hon. Members can remember, we raised the issue of low-cost production, particularly of bread, which was a result of supermarket pressure.

My hon. Friend the Member for Salford raised the issue of private equity. If we thought it was bad enough when there were individual supermarkets of sizeable status, we are now in a completely different world. Private equity is sweeping them up, exercising enormous power. I feel that the Government need to get ahead of the game. It is like the residential care sector before private equity took over and leveraged those individual companies. I can remember a number of them collapsing, and I think we are in exactly the same position here. That is why the call for an inquiry, bringing in all concerned partners, is invaluable. It is important to think through the implications and what regulation we can develop. The bakers union is calling for a new regulatory authority, because that would give more status and resources, as my hon. Friend pointed out. We need to understand the significance of what is happening in the field at the moment.

I want to make a second, brief point. The Minister here today is also responsible for the Employment Rights Bill that is going through Parliament. My hon. Friend the Member for Salford mentioned low pay. The bakers union survey found that 80% of its members were struggling to get by on basics such as rent, heat and food. There is a scandal on sick pay in this sector. The survey found that 37% of workers have to rely on statutory sick pay alone when they go off sick. Staggeringly, 13% received no sick pay at all. As a result, I believe some are forced into working when they are sick, which is the last thing anyone wants in this sector. It is important that the issue of sick pay is addressed in the Employment Rights Bill, which I think most people will welcome. I know amendments on that are being tabled as we speak and, in this sector, it could have a direct impact on the wellbeing of workers.

Finally, if we are to move forward, from the bakers union perspective the establishment of a regulatory authority is critical. How it is made democratically accountable is also important. Along with the engagement of farmers and supermarkets, it is key that workers are involved and represented through the unions involved in this sector, so that we can plan a long-term strategy for food production that is not based on low pay or exploitation of farmers.

[Derek Twigg (in the Chair)]

Order. Before I call the Front-Bench spokespeople, I should say that I will call the Minister no later than 20 past. I call the Lib Dem spokesperson, Tim Farron.