§ 2.40 p.m.
§ Baroness Miller of Chilthorne Domer asked Her Majesty's Government:
§ Whether they have taken sufficient action to protect both consumer and supplier interests, given the further likely consolidation of the supermarket sector.
§ Lord McIntosh of HaringeyMy Lords, the current legislation enables the competition authorities to protect both consumer and supplier interests. As far as any imminent further consolidation is concerned, the Office of Fair Trading investigates and then advises Ministers whether any proposed merger raises competition concerns that would merit examination by the Competition Commission. Until the Enterprise Act provisions come into force, Ministers are accepting the advice of the OFT on whether to refer a case to the Competition Commission in all but exceptional circumstances. There have been no exceptional circumstances since the policy was announced more than two years ago.
§ Baroness Miller of Chilthorne DomerMy Lords, I thank the Minister for his reply. But does he accept that the Enterprise Act, when it comes into force, will still not answer all the concerns of British farmers and growers? Will the Government now take on board the recommendations of the Curry commission that the code of practice should be much strengthened so that it can address those concerns? As a great Francophile, will the noble Lord accept that the retail sector in towns and villages is much more vibrant in France? Does he think that the reason for that greater vibrancy is that French local authorities have, for some years, been empowered to refuse planning permission to superstores of over 1000 square metres? Does he further accept—
§ Baroness Miller of Chilthorne DomerMy Lords, I am sure that the House will be interested to hear that the Competition Commission reflected that the lack of planning safeguards was an issue.
§ Lord McIntosh of HaringeyMy Lords, I do not know whether being called a Francophile is accusation or praise, in view of yesterday's meetings in Le Touquet.
I am aware of the additional planning controls that are available in France, but I am not sure that such planning issues arise from the potential consolidation of the supermarket sector. They happen whether there are four, six or 10 major groups.
We have agreed, following publication of the strategy on sustainable farming and food, that there should be review of the code of practice. We expect that review to take place at six-monthly intervals.
§ Lord BorrieMy Lords, does my noble friend agree that the ambitions of supermarkets to dispense prescriptions may have a seriously adverse effect on local pharmacies, to the detriment of the sick, in general, and the elderly sick, in particular, who find it difficult to get to out-of-town supermarkets?
§ Lord McIntosh of HaringeyMy Lords, that question does not arise from the potential merger of supermarkets. Supermarkets could have ambitions to incorporate pharmacies, whether there are four, six or 10 major groups in the country. It is a controversial question. I understand the concerns that my noble friend Lord Borrie expresses, but it is not for me to answer them in the context of this Question.
§ Lord Hodgson of Astley AbbottsMy Lords, in view of the increasing use by UK supermarkets of global supply chains, do the Government remain satisfied that meat produced overseas and sold in UK supermarkets is raised according to standards of animal welfare comparable to those imposed on British farmers and producers?
§ Lord McIntosh of HaringeyMy Lords, this is becoming difficult. The Question was about mergers, the likely consolidation of the supermarket sector. It is difficult to discern where the noble Lord's question comes from.