My Lords, I shall speak to Amendment 197 in the name of the noble Lord, Lord Grantchester, and the noble Baroness, Lady Jones of Whitchurch, and Amendment 207 in my name and those of the noble Baronesses, Lady Jones of Moulsecoomb, Lady Ritchie of Downpatrick and Lady Bakewell of Hardington Mandeville, and I thank them for their support.
Amendments 197 and 207 seek to achieve the same aim, which is to ensure proper scrutiny of the new supply chain measures being introduced under the Bill, which are to be greatly welcomed. I too congratulate and pay tribute to the Groceries Code Adjudicator, Christine Tacon, and her team for all that they have achieved under the code. The adjudicator has done a very good job in regulating the relationships between the major retailers and their direct suppliers.
However, I believe there has been a major regulatory gap in respect of relationships further upstream in the supply chain involving primary producers, the first purchasers and processors—what I refer to as the indirect supply chain. While it is good news that the Bill attempts to plug that gap, it is disappointing that seemingly little thought has been given to how the new arrangements contained in the Bill are to be governed. I understand that there have been discussions between officials and interested parties, and within those it has been suggested that for some reason the Rural Payments Agency could provide the oversight for these aspects of the Bill. I beg to differ. The RPA is not the appropriate body. It lacks the necessary skills, capacity and gravitas to be able to adequately deal with these aspects of the Bill, and is in any event sufficiently employed with its daily work.
Although the Bill is sponsored by Defra, it would be good to see a little joined-up thinking within the Government so that Defra and BEIS were on the same page in their approach to this. BEIS would like to expand the remit of the Groceries Code Adjudicator to cover these new and important provisions, thus creating one single regulator from farm to fork. I hope that Defra will hold the upper hand and ensure that supply chains are functioning well for the long-term benefit of UK citizens, and the Groceries Code Adjudicator is the right body and team to do that.
These matters were considered in a recent review of the role and remit of the Groceries Code Adjudicator, and it is disappointing that at that stage BEIS decided against an expansion of the adjudicator’s remit. However, now that Defra has identified the need in the Bill for further supply chain provisions, with which I wholeheartedly agree, it seems perfectly sensible to give responsibility for the oversight of those arrangements to a body that is tried and tested and already has skills and expertise in this area. Without an adequate regulator identified in the Bill, we run the risk that the provisions on supply chains will simply not be adequately administered or enforced. As the noble Lord, Lord Grantchester, the noble Baroness, Lady Jones of Whitchurch, those who have co-signed Amendment 207 and I have identified, the Groceries Code Adjudicator is the right place for this work to be conducted.
With regard to the wider remit, there are many reasons to include the indirect supply chain. More often than not, they are small growers or producers. It is very difficult for them to bring a complaint. I would like to see an own-initiative investigation started by the Groceries Code Adjudicator because it is difficult to rely completely on complaints from small producers and growers, which can so easily be identified with those with whom they have the contract and so fear losing the contract. With those few words, I commend Amendment 207 and support Amendment 197.
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