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Supermarket Regulator

I hope to say a more about the Competition Commission a little later. If my hon. Friend does not think that I have addressed those issues, I am sure that my hon. Friend the Under-Secretary will write to him. We need to see this debate partly in the context of the Government’s determination to achieve better regulation in Britain. There is always a tension between understandable demands from hon. Members for more regulation and a more generic concern that British business should not be over-regulated. Given that supermarkets are already subject to independent regulators in a number of areas, and given the importance, which I have just highlighted, of not over-regulating any sector of the economy, the Government do not think that there is any case for the creation of a supermarket ombudsman or regulator. I accept, however, that discussion will continue. I have been warned not to make a quip, but as Minister for Energy I deal with Ofgem, so it would be fun to establish ““Off-trolley””. Perhaps that will have to wait for another occasion, as I am arguing that the Government do not think that there is any case for an off-the-trolley regulator. We do not accept that a new supermarket regulator would add any value without duplicating regulatory processes and imposing increased burdens, not only on supermarkets but on the companies that supply them. It would wrong to regulate in that way, and the Government would set a dangerous precedent if we created a regulator to oversee contracts between businesses. Unless unfair, anti-competitive or illegal practices are taking place there is no place for interference from regulatory bodies. British businesses would lose any competitive advantage over their competitors and the country as a whole would be poorer for it. I will deal later with the current state of play.