On the one hand the summer has seen a slew of local planning officers' decisions against supermarket planning applications.

On the other hand, at the beginning of this month, against the trend, the government announced a new quango designed to put an end to supermarkets' strong-arm tactics in their supply chains.

Planning defeats

Of all the supermarkets, Tesco is the most successful, and partly because it almost always appeals against planning decisions, often taking them to the High Court, because it can afford to, whereas its opponents often can't.

However, several appeals have recently themselves been rejected. These include:

  • Walkley, Sheffield: Sheffield City Council rejected Tesco's plan to erect a two-storey building on the site of a former filling station.
  • Halesworth, Suffolk: A Planning Inspector dismissed an appeal by Tesco and refused permission for a Tesco store in Halesworth.
  • Alton, Hampshire: Tesco wanted to build a 3,500 sqm store 1.5 miles from Alton town centre. Its plans were turned down three times by the Council. Tesco appealed against the second refusal and a public inquiry was held. In July the Planning Inspector dismissed Tesco's appeal.
  • Isle of Man: The Council of Ministers threw out Tesco's plans to double the size of its store in Lake Road.

The following planning decisions have also gone against supermarkets:

  • Whitby: On 29th July 2010 - rejection of a Tesco plan but approval of a Co-op extension and Sainsbury's application, subject to 25 conditions.
  • Tenbury Wells: Tesco withdrew plans for a 1,440 sqm store after Malvern District Council turned down its application to demolish a building.
  • Ashton Gate, Bristol: Councillors refused Sainsbury's permission to relocate its Winterstoke Road store to a former football ground on the grounds of sustainability and concerns about traffic generation.
  • Abingdon Road, Oxford: Tesco had two applications turned down by planning officers on the 12th August.

New supermarket quango
 
Meanwhile, a Groceries Code Adjudicator (GCA) is to be set up to enforce the Groceries Supply Code of Practice, which was launched in February, Consumer Minister Edward Davey has said.

It will be funded by supermarkets themselves, who will pay a levy based on turnover and compliance with the GSCOP.

"The Adjudicator will be able to step in to prevent unfair practices continuing - ensuring a fair deal for producers and safeguarding the consumer interest," Davey announced.

"We want to make sure that large retailers can't abuse their power by transferring excessive risks or unexpected costs onto their suppliers," he said.

"These sorts of pressures are bad for producers and bad for consumers - ultimately they can lead to lower quality goods, less choice and less innovation."

He made the announcement in the same week that Vince Cable announced a bonfire of government quangos. Many of the stakeholders affected by this new body will be the same ones voluntarily taking part in the Courtauld Commitment.

So why do they need to be cajoled in this case but not the other? The reason for this striking disparity in government policy it is not clear, but a clue might be found in the lobbying group which is rejoicing over its creation.

The National Farmers Union (NFU) has welcomed the announcement, calling it a crucial step towards rooting out unfair practice in the supply chain.

"I'm firmly convinced an adjudicator will benefit the whole chain - suppliers, retailers and most importantly consumers," said NFU president Peter Kendall.

Farmers have been complaining for years that the supermarkets have been squeezing their margins and jeopardising their livelihoods.

"Once in place, I do believe we will see fewer instances of flagrant bully-boy tactics used by the supermarkets over the years and reported to us by our members."

But the supermarkets don't like it. The British Retail Consortium said it was unjustified and would add unnecessary costs. "We already have the most regulated grocery sector in the world," said Stephen Robertson, BRC director general.

The Groceries Supply Code of Practice has been in place since 4 February 2010 and was introduced by the Competition Commission (CC).

Minister for Food and Farming, Jim Paice described the work of the new body as follows: “The new adjudicator will help to strike the right balance between farmers and food producers getting a fair deal, and supermarkets ensuring their customers can get high-quality British food."

The GCA will be based within the Office of Fair Trading, but Davey said it will remain independent of and separate to its Executive.

The Government denies that it is an “Ombudsman”. "An Ombudsman normally provides effective redress mechanisms for individual consumers and citizens but this body is concerned with business-to-business relationships within the groceries supply chain.”

A draft Bill will be published later this year to allow the setting up of the body.

The consultation document on which the announcement is based can be found here: http://tinyurl.com/33z54fa