§ Dr. CableTo ask the Secretary of State for Trade and Industry what steps the Director General of Fair Trading has taken, and what arrangements the Director General has in place, to monitor the compliance with and effectiveness of the Supermarket Code of Practice; whether the arrangements for monitoring have changed since the publication of the Government's strategy for Sustainable Farming and Food; and if she will make a statement. [97588]
§ Ms Hewitt[holding answer 12 February 2003]: The Office of Fair Trading (OFT) visited relevant trade bodies to explain how the Code of Practice would work, 75W and to encourage them to bring any problems to the attention of the OFT. The Code also provides for the independent dispute mediator to report annually to the Director General of Fair Trading (DGFT) on his or her activities, and to supply information requested by the DGFT concerning individual cases where he or she is considering taking action.
In the context of the Government's strategy on Sustainable Farming and Food, the Office of Fair Trading (OFT) has proposed that relevant trade bodies advise it at six-monthly intervals on the operation of the Code. The OFT will publish an annual report on how the Code has been working, particularly in relation to dispute resolution. The OFT will soon be beginning a review of the Code in preparation for its first annual report and will be contacting all interested trade bodies and the supermarkets to obtain views on the Code's operation.
§ Dr. CableTo ask the Secretary of State for Trade and Industry whether the Supermarket Code of Practice on Supermarkets' Dealings with Suppliers applies to the supermarkets' trading relationships with farmers and others who supply the supermarkets indirectly through an intermediary; and if she will make a statement. [97589]
§ Ms Hewitt[holding answer 12 February 2003]: The Code defines a supplier as any person actually or potentially carrying on business in the supply of groceries to any of the four supermarkets which have given statutory undertakings to abide by the Code, namely Asda, Tesco, Sainsburys and Safeway. This includes any supplier who acts as principal in providing groceries to supermarkets either direct or through an agent. However, this does not include suppliers that sell goods to an intermediary which then sells on to a supermarket.
§ Dr. CableTo ask the Secretary of State for Trade and Industry (1) how many times the services of a mediator have been offered by supermarkets under paragraph 27 of the Code of Practice on Supermarkets' Dealings with Suppliers; and if she will make a statement; [97590]
(2) how many disputes the Director General of Fair Trading has been notified of under paragraph 28 of the Code of Practice on Supermarkets' Dealings with Suppliers; if she will place a copy of information that has been supplied to the Director General of Fair Trading in accordance with provisions of paragraphs 30(a) and 30(b) of the Code of Practice in the Library; and if she will make a statement. [97591]
§ Ms Hewitt[holding answers 12 February 2003]: The dispute resolution procedures, under paragraph 28 of the Code of Practice, have so far not been invoked. To date, the supermarkets have not been called upon to offer the services of a independent mediator.
§ Dr. CableTo ask the Secretary of State for Trade and Industry how many submissions were received by the Office of Fair Trading in connection with the Tesco acquisition of T&S; how many of these were from third parties raising concerns about the impact on their business as a result of the proposed acquisition; if she will place a copy of the submissions in the Library; and if she will make a statement. [97587]
76W
§ Ms Hewitt[holding answer 12 February 2003]: The Office of Fair Trading (OFT) received 83 submissions in connection with the proposed acquisition by Tesco PLC of T&S Stores PLC, of which 72 were from third parties raising concerns about possible impacts on their business. It is strict OFT policy to observe confidentiality in all aspects of its operation and, as part of this, the identity of those third parties making representations is not made public. It would not, therefore, be appropriate to place a copy of the submissions in the Library.
The OFT, as an independent competition authority, conducted an inquiry into the proposed merger, focusing on the effects of the merger on competition. It recommended that the merger should not he referred to the Competition Commission for an in-depth inquiry. In line with the Government's policy of accepting the advice of the OFT on merger references in all bar exceptional circumstances, on 17 December 2002 I announced that I would not make a reference in this case.