🚜 Groceries Code Adjudicator

• The session focused on discussing the role and effectiveness of the Groceries Code Adjudicator (GCA), which was established to ensure fairness in the food supply chain between producers and large retailers.

• David Chadwick highlighted the imbalance of power in the food system, noting that while supermarkets like Tesco, Asda, and Sainsbury’s have seen significant profit increases, Welsh farming incomes are declining. This disparity was attributed to unfair practices by retailers.

• Liberal Democrats emphasized their role in establishing the GCA and called for its strengthening, arguing that it needs more resources and an expanded remit to better serve farmers and address the current challenges in the food market.

• Concerns were raised about the treatment of farmers by supermarkets, including late payments, sudden order changes, and the fear of reprisals for reporting code breaches. The GCA’s effectiveness was debated, with suggestions to increase its investigative powers and coverage to include more suppliers and processors.

• MPs from various parties, including Labour and the DUP, supported the need for fairness in the food supply chain. They stressed the importance of ensuring local suppliers receive fair payment and commission terms.

• Labour MPs suggested creating a new groceries regulatory authority with broader powers, including setting price floors and ceilings, and addressing issues like low pay and worker exploitation within the supply chain.

• The issue of private equity acquisitions in the supermarket sector was raised, with concerns about their impact on long-term market stability and calls for a governmental inquiry into this matter.

• The Minister acknowledged the effectiveness of the GCA but encouraged ongoing reviews to enhance its capabilities and ensure it meets the needs of the food supply chain. He highlighted existing measures like the Fair Dealing Obligations (Milk) Regulations and noted upcoming reviews of the GCA and other related regulations.

• The session concluded with a call for continued efforts to support farmers and create a more equitable and sustainable food system, emphasizing the need for stronger regulations and better resources for the GCA.

The parliamentary session regarding the Groceries Code Adjudicator (GCA) shows a notable level of consensus and agreement among the participating members. The key points of the session contribute to the low disagreement rating as follows:

1. Cross-party Support: There was broad acknowledgment and support for the existence and continuation of the GCA from members across different parties, including the Liberal Democrats, Labour, and even the Conservative party. For example, Dame Harriett Baldwin (Conservative) mentioned voting for the GCA and reiterated its importance to fairness in the market. Similarly, Labour MP Rebecca Long Bailey praised the GCA’s role but suggested enhancements.

2. Suggestions for Improvement, Not Opposition: The disagreements that were present mainly revolved around suggestions for how the GCA could be improved or extended, rather than opposing its existence or current operations. David Chadwick (Liberal Democrats) and others pressed for expanded powers and better resourcing for the GCA, which were echoed by other members across the board, indicating an agreement on the need for improvement rather than a fundamental disagreement with the GCA’s core functions.

3. Acknowledgment of Achievements: Many MPs, including Rachel Gilmour and Andrew George, highlighted the achievements of the GCA since its introduction, showing a consensus on its positive impact. This was supplemented by positive statistics shared by Justin Madders about increased compliance rates among supermarkets.

4. Specific Calls for Action: While different members highlighted different areas of needed improvement, these were not conflicting calls but rather complementary requests to enhance the effectiveness of the GCA. For example, Tim Farron suggested improving resource allocation and extending the GCA’s reach, while Rebecca Long Bailey proposed broader regulatory changes. These suggestions were more additive than oppositional.

Examples of the minor disagreements included:

• Resource Discussion: There was a minor disagreement on the number of staff supporting the GCA, with Justin Madders noting nine staff rather than the seven mentioned by others. However, this centered more around clarification than contention.
• Remit and Powers: Some members, like Andrew George, suggested the GCA should have a wider remit to include third-country suppliers and the ability to launch investigations without needing prior complaints, while the Minister indicated the current setup was adequate but open to review.

Overall, the session demonstrated a unified front on the need for fairness in the grocery supply chain and support for the GCA, with disagreements focused on operational details and enhancements rather than opposition to the fundamental purpose or existence of the GCA.