Contribution
I hear what the hon. Member has said, and no doubt that is something that can be put in as part of the review. When I spoke to the adjudicator, he said that his approach is about ensuring compliance and helping to prevent problems from escalating in the first place, avoiding the need for formal investigations and dispute resolution. He has said that he is satisfied that his current powers provide the necessary tools to enforce the code and change retailer behaviour. He has also been clear—and has said publicly—that if he needs to instigate an investigation he is more than ready to do so.
That leads on to some of the points Members made about the resources of the adjudicator. My information is that there are actually nine staff rather than seven, but the overall point is that that does not seem to be a great deal, given the number of supermarkets and the purchasing power that we are talking about. But it is entirely within the adjudicator’s gift to ask for more resources through the levy. If he feels he needs more, he can also talk to the CMA about secondments—that is something that is entirely up to him. If there is a question that things are not happening because of resources, I am confident that the adjudicator would come forward and discuss that with us.
My hon. Friend the Member for Salford (Rebecca Long Bailey) rightly referenced her leadership of the Bakers, Food and Allied Workers Union parliamentary group, and I am proud to associate myself with that group, having represented it on many occasions in my former legal career. I know how much it has done in this area, and how this area affects its members. My hon. Friend was right to talk about how that sector is often characterised by a race to the bottom, with insecurity and low wages. That is what we hope to tackle through the Employment Rights Bill.
My hon. Friend the Member for Salford also made a number of interesting suggestions about how we move forward, which I will not be able to respond to in detail today, but I note that the Business and Trade Committee has recently begun an investigation into pricing practices. It focuses primarily on dynamic pricing, but the evidence session I attended covered a range of areas where prices were an issue. That report is something I will look forward to reading in due course.
My right hon. Friend the Member for Hayes and Harlington (John McDonnell) also referred to the use of private equity in the supermarket sector, as did my hon. Friend the Member for Salford. He was right to reference other sectors where that has become more of an issue. The CMA has recently looked at that issue in the veterinary sector, so it may be that it has the opportunity to conduct an inquiry, should it wish to do so. My right hon. Friend mentioned a survey in which 13% of respondents had no access to sick pay. We think that that is absolutely wrong, and that is why the Employment Rights Bill will ensure that statutory sick pay becomes a day one right for everyone, regardless of their earnings.
My hon. Friend the Member for Lichfield (Dave Robertson) talked about how dairy farmers in his constituency would like the GCA to apply to their work. He may be aware that the Fair Dealing Obligations (Milk) Regulations 2024 came into force in July last year, and will apply to all existing contracts from 9 July this year. I will pass his comments to the relevant Minister in the Department for Environment, Food and Rural Affairs to see whether those regulations will assist in dealing with his constituents’ issues. DEFRA is also looking at powers in the Agriculture Act 2020 to see whether expanded regulations could improve fairness in the pig sector, as well as looking at the egg and fresh produce sectors. There are therefore a number of tools at our disposal to tackle some of the issues that Members have raised.
The dairy regulations are enforced by the Agricultural Supply Chain Adjudicator, Richard Thompson, who was appointed last summer. We expect that in future he will deal with any fair dealing regulations in the other sectors that I have mentioned. It is important to note that ASCA and GCA are in regular contact to ensure that the two regimes operate effectively alongside one another. We will conduct a review to understand the effectiveness of the fair dealing regulations.
As I have already mentioned, there will also be the triennial review of the GCA. Hon. Members have spoken with great knowledge and passion about a number of issues that they would wish to put forward, particularly about the GCA’s remit and powers. I encourage them to do so, and we will see what the review takes forward. The points made about the importance of this country’s food security and fairness to consumers and producers are absolutely right. I congratulate the hon. Member for Brecon, Radnor and Cwm Tawe on securing the debate.