13 January 2010
The announcement that the Department for Business Innovation and Skills has accepted the Competition Commission’s recommendation for a body to enforce the Groceries Supply Code of Practice (GSCOP) has been warmly welcomed by the Bishop of Exeter, the Rt Revd Michael Langrish, and the Chairman of the Church of England's Ethical Investment Advisory Group (EIAG), John Reynolds.
The EIAG published Fair Trade Begins at Home: Supermarkets and the Effect on British Farming Livelihoods in 2007, which documented the harm inflicted on farmers and agricultural businesses by supermarkets' buying practices. The EIAG's findings were submitted to the Competition Commission enquiry that reported in 2008 and directly contributed to three of its final recommendations.
Bishop Michael Langrish said: "I very much welcome the fact that the government have finally indicated that they will take steps to enforce the Groceries Supply Code of Practice. The forthcoming consultation will be key to ensuring the creation of an ombudsman. The need for effective enforcement of the Groceries Supply Code of Practice remains as urgent and necessary now as when the recommendation was made by the Church's Ethical Investment Advisory Group in 2007. I very much hope that this indication of support will be translated into action to create an ombudsman post as quickly as is practically possible."
John Reynolds said: "The Ethical Investment Advisory Group has long been concerned about supermarket practices around the areas of labelling, promotions, payments and contracts, all of which have caused real harm to farming livelihoods. We have raised the issues with the government, opposition and the supermarkets whose shares the Church investing bodies hold. We are delighted that the creation of an ombudsman at last seems a real possibility. The post must now be established as soon as possible and we hope that the supermarkets will engage constructively with government in the light of the BIS announcement."