Competition Commission defends food ombudsman
The Competition Commission (CC) has dismissed retailers’ concerns that an ombudsman would hinder the food industry.
“We’re disappointed by some of the [Grocery Inquiry’s] findings because they’ll add more red tape,” said Lucy Neville-Rolfe, executive director, corporate and legal affairs, Tesco. “Obviously, having good suppliers is essential, but my worry about the ombudsman is that it will add bureaucracy,” she told delegates at the Westminster Food & Nutrition Forum’s latest seminar.
She claimed that consumers were better judges of successful systems than regulators and that the CC’s approach to the Grocery Inquiry was unsatisfactory. “We found some frustration. The panel members were part-time and when we did meet, their questions reflected what was in the newspapers, rather than economic issues.”She also cast doubt on the effectiveness of ombudsmen already in place outside of food and drink. “Do industries with ombudsmen work?” she asked.
However, Andrew Taylor, senior director of inquiries at the CC, was confident that the introduction of an ombudsman was a positive step. “There was a lot of concern about the effectiveness of SCOP [the Supermarkets Code Of Practice]. Under the existing system, the OFT [Office of Fair Trading] looks after any issues, but we need someone with industry expertise - someone people will have confidence in.”
He parried Neville-Rolfe’s question, claiming ombudsmen in other industries were not comparable. “We should be careful with drawing parallels. This is not an ombudsman in the classic sense where you’re looking after consumer-related issues, this is business to business.” The ombudsman would be responding to general disputes and complaints, he added.
He said the introduction of an ombudsman had been approved by most manufacturers. “Most people have been supportive of the recommendations we’re proposing and keen to see them implemented.”
James Lowman, chief executive, Association of Convenience Stores, welcomed the decision: “I believe there is a need for an independent ombudsman,” he said. “There’s a clear consensus that the current position hasn’t worked because suppliers wouldn’t come forward.”
However, he feared that the ombudsman might not materialise. “I’m concerned that retailers will make it difficult to create an ombudsman. We need to make sure that, unlike the existing code, the Grocery Suppliers Code Of Practice isn’t watered down through supermarket lobbying.”
