Supermarket watchdog plan wins two cheers
13 January 2010
NEWS PEG - Wednesday, 13 January 2010 Government accepts the need for a supermarket ombudsman
Charity presses Mandelson for urgent appointment
The anti-poverty charity War on Want today welcomed the British government's announcement after long delay that ministers have accepted the need for a supermarket ombudsman to police retailers' behaviour towards suppliers.
The charity hailed the statement after its four years of campaigning for government regulation on supermarkets, but sought evidence that ministers will introduce tough curbs to halt supermarkets' abuse of suppliers.
War on Want expressed concern that the government's announcement of further consultation will delay the urgent need for a watchdog.
The charity asked for government assurance that the ombudsman would not let supermarkets off the hook over abuse.
It urged ministers to indicate the length of the consultation, whether the ombudsman would have independence, as well as its structure, operation and powers, including whether the body will cover overseas and non-food suppliers.
War on Want stressed the Competition Commission had already taken long and wide soundings before its proposal for a body to control supermarkets' relationship with suppliers.
Simon McRae, the charity's senior campaigns officer, said: "At last the government has acknowledged the need for a supermarket ombudsman amid many suppliers' complaints of abuse. But Mandelson must now minimise its delay and ensure the watchdog is independent, robust and has the authority to prevent stores exploiting overseas workers."
Over 200 cross-party MPs signed a parliamentary early day motion calling for an independent ombudsman.
The Conservatives have promised to establish a watchdog if they win the coming election.
It would, however, lie within the Office of Fair Trading, which War on Want says has failed to stand up to supermarkets.
According to War on Want, many South Africans earn well below a living wage on farms supplying fruit and wine to UK supermarkets.
The charity's research has also revealed that Kenyan and Colombian workers face poverty pay supplying flowers to British supermarkets.
War on Want is demanding that a watchdog should extend beyond agriculture to all sectors, including clothes suppliers.
The charity has revealed workers making garments for Tesco and Asda in Bangladesh receive only half a living wage.
Yesterday Tesco announced its best Christmas sales in three years, with strong non-food sales, especially clothes.
NOTE TO EDITORS: War on Want also welcomed the government's recognition that a watchdog would not affect consumer prices. The charity has cited research by economist Roger Clarke which found the ombudsman would not only protect suppliers, but would cost supermarkets just 0.005% of turnover, improve products, and, in some cases like agricultural products, lower prices.
CONTACT: Paul Collins, War on Want media officer (+44) (0)20 7549 0584 or (+44) (0)7983 550728
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