Spokespeople for Asda, the Co-operative, Sainsbury’s and the British Retail Consortium said that there should be a review of the code that was set up last year to oversee the supermarkets relationships with their suppliers. They dismissed the need for the body at all claiming that the Adjudicator was an ‘unnecessary tier of regulation’.
Traidcraft couldn’t disagree more! It has been over three years since the Competition Commission found that supermarkets pass on ‘excessive risks and unexpected costs’ to their suppliers in developing countries and the UK. The Groceries Supply code was set up well over a year ago – but until an Adjudicator is in place, the code is effectively futile.
Every day that passes without a GCA is another day when suppliers in developing countries are squeezed by retailers, with no route to recourse. These farmers and producers deserve a fair deal for their goods.
The Adjudicator has a huge, diverse movement of support behind it – from NGOs like Traidcraft, to farmers groups, to small retailers – and the supermarkets own customers! All three main political parties are in favour of the Adjudicator. There is no excuse for further delays.
Traidcraft has also given evidence to the Business, Innovation and Skills Select Committee to raise our concerns about the draft Bill to set up an Adjudicator. We are urging the government to promptly establish an effective, independent Adjudicator that has all the powers it needs to hold the supermarkets to account and protect the rights of their suppliers in poor countries.
We will be tracking progress of the Bill as it makes its way through Parliament. Watch this space for more info on how you can take action too!
