Minister concedes “parts of the system are broken” as Carmichael leads Groceries Code Adjudicator debate

Orkney and Shetland MP, Alistair Carmichael, has today called for stronger action from ministers to rebalance the relationship between food producers and the major supermarkets. Mr Carmichael led a debate in Parliament on the Groceries Code Adjudicator, and highlighted a range of issues facing farmers, crofters and other food producers in maintaining a viable income under pressure from supermarkets over prices.

Responding for the government, Parliamentary Under-Secretary of State for Enterprise, Markets and Small Business Kevin Hollinrake MP conceded that “parts of the system are broken” and “despite the GCA’s effectiveness and successful interventionist approach, we have not yet stamped out all unfair practices” but said that:

“The Government have no plans to extend the adjudicator’s remit, but instead seek to learn from and emulate the GCA’s approach and effectiveness, so that it can be replicated for the sector-specific codes.”

Speaking after the debate, Mr Carmichael said:

“I have been encouraged by discussions with colleagues in Parliament over recent days on improving farmgate prices. There is clearly a consensus across the parties that the relationship between farmers and food producers and the major supermarket chains has to be rebalanced. It is now for ministers to act on that consensus.

“It has been a long and slow process to get where we are today and I am realistic about how quickly we can make change in the outcomes for farming incomes. The Groceries Code Adjudicator was a welcome step when we delivered it but now we must go further. I hope that by holding a debate such as the one today we can get a little more haste from the government because the situation is not going to get any better without their action. The minister is right when he says that parts of the system are broken and the market alone is clearly not going to solve this issue.

“Farming and crofting are at the heart of rural and island communities but we cannot take that for granted. If we want to maintain that link to the land for decades to come then we need to recognise that they are not just another industry but a public good that is in all our interest to support. For both local food security and the diversity of our economy, we must rebuild the perception of farming as a viable, attractive proposition for future generations. Whether that comes about by beefing up the Groceries Code Adjudicator or through other means, the goal remains the same.”