Andrew George MP asked:
"The Competition Commission reported last year that the large supermarkets - and I quote - 'transfer an excessive risk and unexpected cost… to their suppliers', damaging consumer interest and to the detriment of farmers and growers both here and in the developing world.
"Does the Prime Minister agree that the Competition Commission’s proposed remedies to tackle this particular problem, should be implemented now without any further delay?"
The Prime Minister replied, "He is absolutely right to highlight this problem. First of all, we are asking supermarkets to change their practice and introduce early payment to their suppliers. Secondly, in relation to developing countries, we have been in talks with supermarkets like Asda about how they can source their produce from these countries at a fair price. We will continue to push for this as quickly as possible."
Commenting on the Prime Minister's response, Mr George said:
"The tone of the Prime Minister's response was encouraging. But every day the Government fails to commit itself to implementing the recommendations, more farmers and grocers are being pushed closer to insolvency.
"The supermarkets continue to prosper and profit during the recession. They will plead that they're offering more discounts. But who pays for this? It's not the supermarkets. Suppliers are given little choice, whether they can afford it or not.
"It's time to act. The Government must be decisive. Delay will only deepen the recession for thousands of smaller businesses which now depend on an early return to fair dealing."
