MPs call for ombudsman to police supermarkets

More than 60 MPs have signed an early day motion calling on the government to enforce legislation to establish an ombudsman to police supermarkets' dealings with suppliers.

The motion, tabled by Liberal Democrat MP Andrew George, urges ministers to "respect the considered recommendations of the Competition Commission and confirm that they are prepared to introduce legislation to establish the proposed ombudsman if a voluntary agreement cannot be achieved".

It also reminds them that the Commission's 2008 report into the sector uncovered "practices that transfer excessive risk to suppliers, such as retrospective unilateral changes to the terms of supply agreements, charges for loss or damage to goods after delivery and withholding payment without cause".

Given that the supermarkets remain resolutely opposed to an ombudsman and the Commission has no powers to force one into existence, the government should issue a clear ultimatum, added George's office: "Set one up by this date or we will set one up for you." However, a spokesman for the British Retail Consortium implied that it was not top of the priority list for government: "The impression we get is that the government is mindful in the current economic climate that imposing costly new burdens on business is not helpful."

Tesco boss Sir Terry Leahy said: "The ombudsman is intended to represent the interests of suppliers; it would do much better if it represented the interests of consumers." While Tesco dealt with small suppliers, it also traded with multinational consumer goods manufacturers that could look after themselves, he said.