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Supermarkets and Regional Farming

I am grateful for my hon. Friend's kind invitation. I would be happy to take advantage of it if I get the chance to do so before the general election. The Government recognise that the marketing of regional and local food can bring benefits for producers and consumers. There are fewer middlemen, and that means farmers and small producers are able to retain a higher proportion of the end price for their produce. Local food chains increase consumer choice and raise awareness of and interest in local food by helping to improve consumers' links with and understanding of the rural economy and food production. Suppliers will flourish by providing what customers want, and there is growing public enthusiasm for locally produced food, especially food with a clear regional provenance. Consumers prefer to buy local if they can, and supermarkets are supporting that. Although I would not want to comment on Asda's recent planning application to open a new store in Chorley town centre, as mentioned by my hon. Friend, its early support of the Plumgarths regional food hub is an example of the retailer's interest in local food. As he and other hon. Friends said, that should be supported. Research suggests that UK locally sourced food retail sales will total £6.2 billion by 2013, up from £4.7 billion in 2008—a growth of some 31 per cent. over that brief period. In recognition of this, we have provided a range of assistance to local food chains, including helping regional and local food producers to overcome various barriers to market. We have funded meet-the-buyer events for retailers and the food service sector. We also support farmers markets and farm shops and encourage the use of food hubs and shared distribution facilities. We recognise, however, that there has been mounting concern over recent years among various industry and lobby groups about the power of major supermarkets, as described by my hon. Friend, and the impact that this has had, including on the ability of local producers to access markets. The Government and the Office of Fair Trading shared these concerns and so asked the Competition Commission to investigate the groceries market to see whether supermarket power was indeed detrimental to consumer interests. The Government are committed to fostering competitive markets that work in the best interests of consumers, including in the groceries market. By looking for ways to help make markets work better, we can enable businesses to compete freely and fairly, giving UK consumers more choice and better value. As such, we welcomed the commission's final report, published last year, and thank it for its work to implement its findings. The commission found that in many respects competition between supermarkets was strong and working effectively. Competition in the groceries market provides consumers with diverse choice, good value and low prices, which is reflected in the numbers of shoppers who choose to buy their groceries in supermarkets.