That is a form of advertising that could, in certain situations, benefit a retailer.
It is simplistic to believe that the possibility that the Secretary of State will implement fines will be a sufficient deterrent. Even if the Secretary of State feels that it is appropriate to levy fines, the process for arriving at that
point is slow and cumbersome. Under schedule 3, before the Secretary of State can make such an order, he must consult six bodies, plus any other body that he feels it appropriate to consult. That is a time-consuming and possibly self-defeating process. It is a slow and ineffective way to implement the deterrent on the retailer, which could be exploited considerably.
I also find the Government’s approach rather strange in respect of the escalation of penalties. The adjudicator can take notice of the failure of a supermarket to respond to highlighted breaches of the code, but seems to have no enforcement powers to do anything about it. There is no express sanction for non-compliance with a recommendation, but it may be taken into account when further arbitration is carried out. That is hugely time consuming and amounts to an invitation to ignore the adjudicator. I cannot help but reflect on the danger identified by Murray Worthy of War on Want:
“A watchdog that is all bark and no bite won’t be able to stop supermarkets bullying their suppliers.”
I will move on briefly to a couple of other issues. The Business, Innovation and Skills Committee reflected on intermediaries at some length. We said that third parties, such as trade associations, should be able to give evidence to initiate an inquiry. The Ministers seem to have accepted that point and my intervention earlier elicited the sort of response that I wanted. I emphasise that this issue is extremely important and that there should be no delay in the adjudicator being able to implement such provisions.
Lastly, I have a request. Given the importance of the adjudicator, I hope that the Government will allow the Business, Innovation and Skills Committee to hold a pre-appointment hearing with the proposed adjudicator. Given that the Select Committee was entrusted with the pre-legislative scrutiny and given the concerns that have been echoed in all parts of the House, I feel that it is important for the Select Committee to have the chance to question the adjudicator to ascertain whether we feel that they will apply the rigour and forensic examination that are needed to deliver what everybody in the House wants.
There is a huge groundswell of support from all parties for the Government to consider fines. Although I recognise that the Bill is very significant as it stands, I hope that the Government will listen to the voices from all parts of the House and table an amendment at a subsequent stage to ensure that there is a power to levy fines. That would make a good Bill into a very good Bill indeed.
6.27 pm