UK Parliament / Open data

Agriculture Bill

My Lords, I also wish to support Amendments 197, 198, 199 and 207. The Minister will now be aware that there is strong support right across the Chamber for the role of the Groceries Code Adjudicator to be sustained and strengthened. Indeed, the evidence has shown how effective the adjudicator has been since it was established.

I make no apology for recording the fact that that Act was passed by the coalition Government and was very strongly championed by the Liberal Democrats Colin Breed, Andrew George, Ed Davey and Norman Lamb. They have been vindicated in the effectiveness that the adjudicator has demonstrated. Her latest annual report shows a refreshing drop in the proportion of suppliers who have issues with retailers, from 79% in 2014 to 41% in 2019, and 36% so far in 2020—although that suggests that there may have been an upturn, given that it is a part year, and I predict that that will intensify with Brexit and the consequences of Covid-19. It is still high, and I suspect that there is still a need for indirect representation as well.

All of us want to thank the outgoing Groceries Code Adjudicator, Christine Tacon, for what she has achieved and her vindication of the role. We appreciate that she has stayed on in the current crisis, and trust that her successor will be given the opportunity to continue and develop the good work. I suggest that, at this time, the office may be needed more than ever. The disruption we are currently facing, which will be compounded by Brexit, will put pressure on the margins of suppliers and retailers—inevitably.

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If there is a spike in the price of any home-grown food products, retailers will want a piece of it. Of course, that is normal market behaviour, but it makes the case for there to be an independent adjudicator with real strength and teeth that are stronger than ever. For example, if there is a price rise because of increases in import costs or wastage as a result of delays in transit, retailers may pressurise suppliers who could fill the gap. This is all the more reason why UK growers and suppliers should not be squeezed out of a market by an internal excessive squeeze on their margins. Over the next six months, we face unprecedented pressures on the supply chain, which mean unprecedented pressures on our home-growing capacity and on the retailers, whose margins could be under pressure from consumers who are resisting price rises.

I urge the Minister to recognise the strength of feeling across the Chamber and to recognise that the adjudicator has proved to be very effective and is absolutely the right body, and more important than ever, to be given the role of defending suppliers in this very fraught forthcoming situation. I am very pleased to support the amendments.

Type
Proceeding contribution
Reference
804 c1815 
Session
2019-21
Chamber / Committee
House of Lords chamber
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