New Supermarkets Watchdog Established

The government has announced a new watchdog established to fine supermarkets that mistreat their suppliers.

The newly set-up groceries adjudicator will rule on disputes between retailers and suppliers and will have the power to name and shame offenders or impose fines.

The adjudicator will only rule on complaints about the 10 biggest supermarket chains.

"Supermarkets will still be able to secure the best deals and to pass the benefits on to consumers, but they should also treat farmers and suppliers fairly and lawfully," said Business Minister Norman Lamb.

"This means paying them on time or not being able to scrap arrangements with farmers and suppliers at the drop of a hat."

The government stressed that fines would be a last resort.

(H)