Groceries Code Adjudicator Bill [Lords]

James Paice Excerpts

Tuesday 16th April 2013 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

It is strange that an hour has been allocated for this debate when it is obvious that it will take only a few moments. Given that the Agricultural Wages Board has been abolished by the unelected House of Lords and this House was not able to have a debate on that, the timetable today is a bit disappointing.

For my sins, I have often said in Delegated Legislation Committees in the past few weeks that I agree with the Minister, and this is another demonstration of the fact that when the Government do the right thing, we will agree with them. In this case, the Minister is certainly doing the right thing.

It is worth returning to the introduction of this Bill. It was a fairly ordinary Bill to start with, but it was strengthened substantially in the other place with the addition that trade associations and third parties could seek redress from the adjudicator. Importantly, on Second Reading in this House, we had a robust debate on whether fines should be included in the Bill. We disagreed on that point, and the Minister vehemently and robustly defended their omission. We are delighted that provisions on fines were added in Committee, which made the Bill all the better.

The amendment we are considering is significant because it shows the power of this House. The Select Committee has had a pre-appointment hearing for the adjudicator, and we congratulate her on her appointment. She will be a very good adjudicator and we look forward to her getting stuck into some of the important work that has to be done on this issue. We have also had a lot of cross-party consensus on the Bill on the Floor of the House and in Committee. It is a testament to the power of the Select Committees and the Committee system—not to mention the other place—that we started with a fairly weak Bill, but it will leave this House today much stronger.

Many people deserve credit for that improvement. As well as the Minister, they include the hon. Member for St Ives (Andrew George) who is in his place, my hon. Friend the Member for Ynys Môn (Albert Owen) who I do not see in his place, and my hon. Friend the Member for Ogmore (Huw Irranca-Davies), who was my wing person in Committee.

We do not disagree with the Lords and will be agreeing with the Minister in this particular case, but I will just make this point. We had arguments in Committee about ensuring that the Select Committee on Business, Innovation and Skills and the Select Committee on Environment, Food and Rural Affairs in particular had time to look at these issues, and the Minister defended robustly the other Committees of this House. Now that provisions on fines are in the Bill, and the Secretary of State will be putting forward an order to determine their amount, it is right that that statutory instrument should be before the House for affirmative resolution. We can then debate it to ensure that it is in the interests not just of the suppliers covered by the groceries code adjudicator, but businesses and supermarkets too.

[Sir James Paice (South East Cambridgeshire) (Con)]

I will make a brief contribution because, like the Minister, I am happy to support the Lords amendment. I just wanted to make the point that, in considering the fines structure and the levels at which they will need to be set, I hope that my hon. Friend the Minister and the Secretary of State will consider the magnitude of the businesses involved. A fine that to most people would seem substantial of perhaps a few thousand pounds, would be totally insignificant—a few minutes’ trading—to a major supermarket.

I do not pretend to have the answers. This is a subject on which I have wrestled in my own mind and discussed with the adjudicator, because it will be extremely difficult. That is one reason I was always a bit dubious about the need for fines—the reputational issue will be far more valuable. It is clear to me that if a fine is to be levied, it will have to be at a level that is likely to lead to the behavioural change of the relevant supermarket that all of us who support the Bill desire to see. That means it will be very significant. I am sure that if my hon. Friend the Minister comes forward with figures, there will be accusations that they are completely disproportionate to the issues. The proportion, however, is to do not just with the issue, but with the scale of the business and the behavioural change we want to see—clearly, that is not going to happen unless the business has been in serious breach of the code.

I am grateful for the opportunity to make the point to my hon. Friend, and to hon. Members in all parts of the House, that when the statutory instrument comes back to the House we will have to consider this wider issue. It is not simply a penalty for a small offence, but something we need to ensure is a genuine penalty for breach of the code and a deterrent. It will therefore have to be of a very large magnitude indeed.

[Andrew George (St Ives) (LD)]

It is a pleasure to follow the right hon. Member for South East Cambridgeshire (Sir James Paice). I welcome the Lords amendment and do not oppose it. I am sure that that will be a great relief to my hon. Friend the Minister, whom I congratulate on all the work she has done on the Bill.

The key point addressed by the right hon. Member for South East Cambridgeshire is that the order, when it is brought forward, is couched in a manner that has the impact we all want. Whether fines will be a set figure or a proportion of turnover was debated at some length in Committee. A proportion of turnover for Tesco as opposed to, say, Waitrose, is significant. Certainly, in other areas of competition law this appears to be the case. I urge my hon. Friend the Minister to look at a proportion of turnover as an alternative to setting an absolute amount in the order. I congratulate the Government on accepting the need to provide for fines in the Bill. The fact that significant changes have been made shows the benefit of debate and scrutiny in this place. Without question, the Bill improved over time.

I echo the words of the hon. Member for Edinburgh South (Ian Murray). I sat through the previous debate on the Enterprise and Regulatory Reform Bill and made a point of order about how we had not had an opportunity to debate the abolition of the Agricultural Wages Board. The groceries code adjudicator is being put in place to address some of the pressures on primary producers. It is a great pity, however, that we were not given the acres of time we have now—to debate this relatively minor issue—in order to debate an issue that will have a significant impact on the future of agriculture and agricultural workers in this country. The risk that this might become a race to the bottom or that the Gangmasters Licensing Authority might be the only body able effectively to regulate and protect workers in the agricultural sector is one that the House ought not to take. I hope that the House will reflect on the fact that the undemocratic House has introduced a measure without the democratic Chamber having an opportunity to debate it. We must ensure that such a thing never happens again. There has been no debate or vote in this House on an issue of great significance.

I shall return to the primary purpose of the amendment. I congratulate my hon. Friend the Minister. This is a welcome change and we look forward to the order being brought forward as quickly as possible, so that when the adjudicator begins her job, in the coming few weeks I hope, we will see this measure introduced effectively and a proactive adjudicator seeking vigorously to enforce the groceries code.