Groceries Code Adjudicator (Fines)

Oral Answers to Questions — Environment, Food and Rural Affairs – in the House of Commons at 9:30 am on 11 December 2014.

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Photo of Jim Fitzpatrick Jim Fitzpatrick Labour, Poplar and Limehouse 9:30, 11 December 2014

What recent discussions her Department has had with the Department for Business, Innovation and Skills on the groceries code adjudicator’s ability to levy fines.

Photo of George Eustice George Eustice The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

As the hon. Gentleman knows, policy responsibility for this issue rests with the Department for Business, Innovation and Skills. However, following concerns expressed by the Environment, Food and Rural Affairs Committee last week to both the Secretary of State and me, I have written to the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend Jo Swinson, who has responsibility for employment relations and consumer affairs, to bring this issue to her attention.

Photo of Jim Fitzpatrick Jim Fitzpatrick Labour, Poplar and Limehouse

I am grateful to hear that the Minister is on the case. Yesterday I received a written answer from the Department for Business, Innovation and Skills, which said that cross-ministerial discussions are taking place. When are the groceries code adjudicator’s first investigations likely to conclude? Will the statutory instrument be laid by then to allow her the necessary tools, should she need them?

Photo of George Eustice George Eustice The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

As the hon. Gentleman knows, I served on the Committee that considered the Bill that introduced the supermarket adjudicator, and I supported the introduction of fines. At the moment, this matter is subject to cross-Government discussions, and we anticipate an outcome some time in the new year.

Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee

Underlying the drop in dairy prices is the huge power imbalance between the small individual dairy farmer and the huge processor. It is not good enough that my hon. Friend is looking to beef up the voluntary code. Will he look closely at a statutory basis and extending the remit of the groceries code adjudicator to this very imbalanced relationship in dairy production?

Photo of George Eustice George Eustice The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

If we were to have statutory oversight of the dairy supply chain code, we would have to put the code itself on a statutory basis. Because of EU legislation, however, that would make the code far weaker than what we have. For instance, farmers would not have the ability to walk away from contracts with three months’ notice. The course that my hon. Friend outlines would make things worse for farmers, not better.