Groceries Code Adjudicator

Lord Bishop of Wakefield Excerpts

Tuesday 20th March 2012 Lords Chamber

Asked by

[The Lord Bishop of Wakefield]

To ask Her Majesty’s Government whether they will allow trade associations to make complaints to the proposed Groceries Code Adjudicator on behalf of members who are both direct and indirect suppliers of supermarkets; and, if not, why not.

[Lord De Mauley]

My Lords, the draft Groceries Code Adjudicator Bill proposes to allow the adjudicator to consider any information once an investigation has started. The only limitation is on what information it can consider when deciding whether to start an investigation. As drafted, this is restricted to information from direct and indirect suppliers and to published evidence. The Government have agreed to consider extending this to third parties, particularly to trade bodies. Ministers are taking advice and meeting representatives of both suppliers and retailers before making a final decision.

[The Lord Bishop of Wakefield]

My Lords, I thank the Minister for his reply, but what evidence does the Department for Business, Innovation and Skills have that limiting the powers of the groceries code adjudicator to naming and shaming transgressing supermarkets will have the desired deterrent effect?

[Lord De Mauley]

My Lords, the adjudicator’s primary role will be investigating complaints and uncovering breaches of the groceries code. Once the breach is uncovered, the adjudicator will be able to use the following remedies. First, it will be able to recommend to the retailer how it should comply with the code. If that is not followed, a further investigation can be launched with a tougher remedy. It can instruct the retailer to publish information on the breach—naming and shaming, to which the right reverend Prelate referred. There is then a reserve power to impose financial penalties, which will only become available to the adjudicator once the Secretary of State has allowed it by order.