Tesco Chief Blasts Government Proposal To Create Supermarket Ombudsman
Tesco chief executive, Sir Terry Leahy has slammed the government’s plans to introduce a supermarket ombudsman.
Last month, the government announced its intention to create an ombudsman that would have oversight of grocery retailer’s dealings with their suppliers. The measure was proposed after a long investigation into the industry by the UK’s retail regulator, the Competition Commission.
The ombudsman has been billed to ensure “the grocery supply market continues to work in the long-term best interest of consumers”.
The ombudsman would also seek to enforce a code of practice for grocery supplies, which came into effect at the start of this month.
The Tesco chief however blasted the proposal, saying an ombudsman would have a negative impact on shoppers, because it would seek to protect the interest of suppliers rather than consumers.
Speaking to the Financial Times, Sir Leahy said:”I’m not in favour of an ombudsman. Everyone knows supermarkets are one of the most competitive industries around. That competition puts power in the hands of the consumer. In a free society, why would you want an ombudsman if there are no problems now as far as consumers are concerned? An ombudsman would be there to protect suppliers but should be there to protect consumers.”
He added that Tesco enjoyed a very good relationship with its suppliers, which were “unlikely to be helped by bureaucratic intervention”.
Please Note - All Prices Quoted Are Correct at Time of Posting
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