The Groceries Code Adjudicator Bill is currently going through its Parliamentary process. On November 19th 2012, it passed its Second Reading in the Commons when Members of the House on all sides were in favour of the Adjudicator having the ability to impose financial penalties on the face of the Bill, rather than a reserve power.
The Bill will establish an Adjudicator to ensure large retailers treat their suppliers lawfully and fairly in accordance with the Groceries Code. The Adjudicator will be able to impose fines on supermarkets and will encourage a culture of openness and mediation.
Commenting, Caroline Spelman, MP for Meriden, said: “I am very much in favour of this Bill and the amendment. During my time as Environment Secretary I became aware of the problems faced by suppliers when dealing with the giants of the retail trade. It’s no surprise to me that the ability of the Adjudicator to impose penalties has the backing of many groups such as the National Farmers’ Union, the Federation of Small Businesses and the Food and Drink Federation.
“My constituency of Meriden includes farmers and other suppliers who should now feel more confident that their hard work, often conducted in appalling weather, will be rewarded with a fair return. This is important if farms and other small rural businesses are to survive.”