SUPERMARKETS 'ABUSE OF POWER' MUST BE TACKLED
January 16, 2008 12:00 AM
Large supermarkets may be squeezing their suppliers to such as extent that quality of people's jobs and environmental protection are being endangered, according to a local Liberal Democrat MEP.
Liz Lynne MEP, Vice President of the Employment and Social Affairs Committee, has signed a Written Declaration (similar to an Early Day Motion at Westminster) calling for the EU to investigate the power of supermarkets across the 27 Member States including the UK. If signed by over half of MEPs before it lapses later this month the subject will be debated in the European Parliament.
Speaking today Liz Lynne said:
"There is evidence from various countries that suggests big supermarkets are abusing their power, choking competition and forcing prices paid to producers down. Prices paid must be sustainable; if prices paid are below the cost of production, local businesses will be harmed.
"This could then have a knock-on effect in terms of job quality and employees' pay, and even cause redundancy, something which must be stopped.
"While the UK has an ongoing Competition Commission investigation, an EU-wide study would enable sharing of data and later of best practice between Member-States on how to jointly tackle the issues raised with the large international businesses concerned.
"I strongly encourage more of my colleagues to sign this written declaration before it lapses later this month. Getting a formal parliamentary debate on this subject would be a major step towards getting a Europe-wide investigation which could lead to better protection for workers and consumers alike."
ENDS
Notes to Editors:
The written declaration signed by Liz Lynne (text below), if signed by over half of the 785 Members before the 24th of January 2008, will prompt a debate on the subject in the European Parliament. 140 Members have so far signed.
Written declaration on investigating and remedying the abuse of power by large supermarkets operating in the European Union
The European Parliament,
A. whereas, throughout the EU, retailing is increasingly dominated by a small number of supermarket chains,
B. whereas these retailers are fast-becoming 'gatekeepers', controlling farmers' and other suppliers' only real access to EU consumers,
C. whereas evidence from across the EU suggests big supermarkets are abusing their buying power to force down prices paid to suppliers (based both within the EU and overseas) to unsustainable levels and impose unfair conditions upon them,
D. whereas such squeezes on suppliers have negative knock-on effects on both quality of employment and environmental protection,
E. whereas consumers potentially face a loss in diversity of products, cultural heritage and retail outlets,
F. whereas some EU countries have introduced national legislation attempting to limit such abuse, yet large supermarkets increasingly operate across national boundaries, making harmonised EU legislation desirable,
1. Calls upon DG Competition to investigate the impacts that concentration of the EU supermarket sector is having on small businesses, suppliers, workers and consumers and, in particular, to assess any abuses of buying power which may follow from such concentration;
2. Requests the Commission to propose appropriate measures, including regulation, to protect consumers, workers and producers from any abuse of dominant position or negative impacts identified in the course of this investigation;
3. Instructs its President to forward this declaration, together with the names of the signatories, to the Commission, the Council and the parliaments of the Member States.
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