UK government rejects supermarket watchdog
Over-regulation ‘wrong’ says minister
The UK government has rejected calls for an official watchdog to police relations between supermarkets and suppliers.
Speaking in the House of Commons, Trade Secretary Alun Michael said that the Office of Fair Trading investigation earlier this year has found little proof that the supermarkets were abusing their powers.
The minister said: “It would be wrong to over-regulate without evidence of the need to do so.”
Groups representing suppliers and small retailers, as well as environmental groups such as Friends of the Earth have lobbied for greater regulation of supermarkets.
A government appointed ombudsman to rule on disputes with suppliers and alleged abuses of buying power had been proposed by several campaigning groups.
Responding to the minister’s statement, Leicester East MP Keith Vaz said: “Tesco controls the market, has done huge damage to our high streets, and is forcing suppliers to reduce their margins.”
