Supermarket Dominance (Jim Hume)

Supermarket Dominance

March 14, 2008 10:17 PM
By Jim Hume MSP

Thank you deputy presiding officer. Congratulations to Chris Harvie on securing his members' debate. The subject is timely given in recent months the OFT's own inquiry into alleged price fixing.

Back in 1999 the OFT asked the Competition Commission to investigate concerns that large supermarkets were bullying suppliers. A code of conduct was then produced, but the code was not effective, but recently the Competition Commission's report into the grocery sector recommended an independent ombudsman to oversee relationships between larger retailers and their suppliers, good news. Something Lib Dems have been campaigning for, for some time.

And we have seen progress, with supplier cooperatives aided by the likes of SAOS. And some supermarkets slowly wakening up to the idea of local sustainable food on their shelves.

But we need sustainability in the supply chain - Not just buying at cheapest - we've seen Beef from Brazil - where the Beef farmers are losing money, the same can be said of NZ lamb, and also strawberries for Christmas. And few realise that Buy one get one free offers - BOGOFF DP - are paid for by the suppliers not the supermarkets.

Having spoken to local high street traders in - Hawick, Galashiels, Dunbar, Haddington, Dumfries AND Lockerbie - it's clear that there is an impact of larger retailers on their own business - their huge buying power, their ability to reduce prices to such a low that totally out-competes the smaller business.

Some people may feel that quick, convenient shopping gives them a better quality of life because they spend less time shopping and more time at home with their families; others may feel that a few hours spent shopping on the high street is more beneficial for local businesses and community.

I believe that, yes, people should be given choice and Supermarkets play an important part of that, but I cannot underestimate the importance of small, local traders economically, but perhaps more importantly in terms of keeping a town or village vibrant and full of life. I've said before in this chamber and elsewhere that the South of Scotland is made up largely of small to medium sized businesses and that's probably true of any rural area. In towns like Lockerbie you'll find committed, enthusiastic traders who work hard to keep their businesses going to the benefit of the community.

I have visited shops in Dunbar and Galashiels where the small part of businesses are devoted to selling speciality Premium Scottish drink would have to cease because they couldn't afford the new licence fee. So rules in place should be more flexible to accommodate and help smaller businesses rather than restrict them. And at the same time we have supermarkets selling cheap alcohol at knock down prices, with the excuse of competing with others - where is the social responsibility there?

Deputy presiding officer Liberal Democrats have long advocated the use of local produce. I welcome any measure which encourages that, including a study and I want to see measures being put in place by the Scottish Government to encourage the use of more local produce. 11 months ago I spoke on my member's debate on Local Food where I highlighted the use of fresh, seasonal produce in our hospitals, schools and prisons, well that goes for our Supermarkets too. I hope that the Minister will reassure me on this and the need for a fairer deal for all within the supply chain.