FRUSTRATED at the supermarkets' stranglehold on food suppliers, the Country Land & Business Association (CLA) has written to the Secretary of State for Trade and Industry with proposals for an independent ombudsman.
"It really is high time the Government appointed an independent ombudsman to pull into line these grocery goliaths who maximize their profits whilst forcing small suppliers to cut their margins until it is almost pointless being in business," said CLA president Mark Hudson.
"After many discussions with the food supply and packing industry, we have proposed to Patricia Hewitt a workable plan to establish an independent statutory watchdog."
Supermarkets with more than eight per cent of the market share currently subscribe to a Code of Practice which is meant to offer ways for suppliers to seek redress if they feel they are being unfairly pressured.
In reality, the CLA claims, suppliers are too scared to use the code to bring complaints against the big chains for fear of being de-listed.
"We acknowledge that a supermarket subject to a complaint has the right to know the identity of the complainant but to counter the 'fear-factor' of being de-listed, we recommend that successful complainants are offered protection from de-listing for a set period of time - in effect, 'post complaint protection'," Mr Hudson said.
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