I do not agree with that characterisation. I think the adjudicator will be able to make a real difference. We have put a range of tools at its disposal, which, particularly given the importance that supermarkets attach to their brand reputation, I believe will have a real effect. I will discuss this issue in more detail later, but it is worth bearing in mind that the Business, Innovation and Skills Committee looked at this and recognised that the arguments are finely balanced. I acknowledge that Members will, perhaps, come at the issue from different sides of the argument, but I am confident that the Government’s position is the right one. I intend to give a brief overview of the Bill and the role of the adjudicator, and I will then set out in detail why we believe financial penalties should initially be a reserve power.
The Bill is important on two counts. It promotes growth and a competitive food and groceries sector, and it helps to ensure a fair deal for suppliers. In the current economic climate, it is more essential than ever that our groceries sector is allowed to grow and thrive. Therefore, Government, suppliers and retailers need to work together to ensure that the marketplace between supermarkets and suppliers is fair, open and competitive.