Fair Trade?

6.00.00pm UTC (GMT +0000) Fri 15th Feb 2008

Andrew Duffield

Domination by the big UK supermarket companies of the retail food market has long been a thorn in the side of farmers and local shops. Once again, the Competition Commission has been looking at the matter - its 3rd report in 7 years - and once again it has issued some draft recommendations which are intended to help level the playing field for consumers and suppliers. The proposals include:

A tougher supermarket code of practice, with supermarkets employing enforcement officers to ensure implementation

An ombudsman to ensure fair play

Changes in the planning law to give shoppers a wider choice in their area (More supermarkets?!)

Measures to stop retailers imposing restrictions on who can build on the land they sell off

A five year time limit on agreements between supermarkets and local authorities which prevent rivals coming into the local area

Measures to prevent supermarkets lowering their price agreements once they have agreed a contract.

The last of these is clearly good news for farmers. However, the rest of the Commission's recommendations just add further complexity to the current situation and fall well short of the one simple reform that Liberal Democrats advocate - charging supermarkets a business rate based on the full permitted value of their vast car-parks and speculative land holdings. The additional revenue raised on these (and other under-utilised or derelict commercial sites) could then be used to reduce rates for other local businesses - levelling the playing field in a fair and sustainable way.

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