The Ulster Farmers’ Union is pleased to hear that legislation has been tabled in Parliament to grant Christine Tacon, the Groceries Code Adjudicator (GCA), the power to fine UK supermarkets that breach the Groceries Code. This move follows recommendations from the House of Commons Environment, Food and Rural Affairs Committee who in their report claimed that the powers of the Adjudicator were “too restricted” to help protect farmers from falling farmgate prices.
Commenting on this development, UFU President Ian Marshall said; “The UFU’s position has always been that The Groceries Code Adjudicator should have enforcement on retailers for any unfair practices and we are encouraged to hear that Ms Tacon is to be given the ability to fine retailers for malpractices which is urgently needed to address the serious disputes happening between the large supermarkets and their direct suppliers. If agreed in Parliament Ms Tacon will have the power to impose substantial fines on retailers of up to 1% of turnover if a retailer is found to have punished a direct supplier through unfair trading practices. However, while this is encouraging news for those with a direct relationship with retailers, conversations must now begin on how the Grocery Code can be extended further up the supply chain to cover primary producers. The UFU has always believed that the GCA’s remit should be extended to cover primary producers and that the GCA should have the power to launch investigations rather than just responding to complaints made.”
It is expected that the legislation placed before Parliament if approved will come into force on 6 April 2015.
