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Pressure Builds for Fair Trade and Supermarket Regulation

A CROSS PARTY GROUP of MPs has called for an independent regulator and a beefed up code of practice to bring the monopoly held by the big four supermarkets under control. In their 'High Street Britain: 2015' report published today, the MPs warn of the likely collapse of the small shop by 2015 and the creation of 'clone towns' - a process already well underway throughout the country (see below).

Green MSPs have repeatedly made the same call for an independent trade regulator. This is a key aim in the Greens' 'food revolution' campaign and was the subject of a Green parliamentary debate in 2004. Public opinion polls also indicate that up to 89% of Scots want supermarkets to be better regulated to operate more in the public interest. (ICM research - 89% of Scots respondents (and 82% UK respondents) answered yes when asked "Do you think the government should impose rules and regulations on how the large supermarkets operate to ensure that they always act in the best public interest?" (Supermarket Survey, January 2005)

 

Social Erosion

The All Party Group on Small Shops says that if smaller stores continue to be squeezed out there will be severe social, economic and environmental consequences felt by local communities. Convenience stores and grocers are "unlikely to survive" the growth of the larger chains, and that "the erosion of small shops is viewed as the erosion of the social glue that binds communities together."

Green MSP and co-convener Shona Baird said: "There is little doubt that the big four supermarkets are out of control and the need to regulate them properly and fairly is a responsibility of government. They put profit above all else to the detriment of other retailers and suppliers right through the supply chain. The British Retail Consortium response that independent regulation would mean 'turning the clock back' is a rather poor attempt to hide their greed. It is unfair trade that belongs to the past. Fair trade is the only sustainable way forward for everyone in the food supply chain from farmers to small shopkeepers.

"This report will put further pressure on the Scottish Minister Ross Finnie. His Libdem colleagues in Westminster are making strong calls for an independent regulator and he needs to come off the fence and show he cares what happens to farmers in Scotland."

A parliamentary inquiry into the state of Scotland's dairy industry, which Greens called for, has just completed taking evidence and will seek to find answers to the problems of dairy farmers, who are often paid less than the costs of production of milk. The squeeze on milk suppliers has resulted on the loss of 700 dairy farms in Scotland over the last five years.

Halt Supermarket Expansion

Greens have joined local communities campaigning against unnecessary expansion of yet more supermarkets across Scotland, including areas like Crieff, Dundee, Inverness, Edinburgh, and Castle Douglas.

The report makes the following recommendations:

- Suspend takeovers until plans to secure the diversity of the sector are brought forward
- Establish a regulator
- Bring in comprehensive code of practice
- Revise retail property market
- Encourage transformation of Post Office network
- Tax system review
- Give local people greater say in decision-making process
- Develop regeneration units in all local authorities

The report backs up previous work by the New Economics Foundation in their 'Ghost Town Britain' report published in 2004 which showed that for every £1 spent in a supermarket, 90p leaves the local area (see below).

For more information about the cross party group go to http://www.publications.parliament.uk/pa/cm/cmparty/051221/memi353.htm

The food campaign has four themes:

* safe food (control pesticide use, campaign against GM and encourage organic farming)
* fair food (to ensure farmers receive a fair price for their goods, and to help low income households source healthy food)
* good food (promote access to fresh, high quality food, especially in schools and hospitals) local food (to cut down on food miles and boost farmers’ markets and independent shops thereby preserving jobs in the area)

 
 
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