SUPERMARKETS 'ABUSE OF POWER' MUST BE TACKLED

2.18.47pm GMT Wed 16th Jan 2008

Large supermarkets may be squeezing their suppliers to such as extent that quality of people's jobs and environmental protection are being endangered, according to a local Liberal Democrat MEP.

Liz Lynne MEP, Vice President of the Employment and Social Affairs Committee, has signed a Written Declaration (similar to an Early Day Motion at Westminster) calling for the EU to investigate the power of supermarkets across the 27 Member States including the UK. If signed by over half of MEPs before it lapses later this month the subject will be debated in the European Parliament.

Speaking today Liz Lynne said:

"There is evidence from various countries that suggests big supermarkets are abusing their power, choking competition and forcing prices paid to producers down. Prices paid must be sustainable; if prices paid are below the cost of production, local businesses will be harmed.

"This could then have a knock-on effect in terms of job quality and employees' pay, and even cause redundancy, something which must be stopped.

"While the UK has an ongoing Competition Commission investigation, an EU-wide study would enable sharing of data and later of best practice between Member-States on how to jointly tackle the issues raised with the large international businesses concerned.

"I strongly encourage more of my colleagues to sign this written declaration before it lapses later this month. Getting a formal parliamentary debate on this subject would be a major step towards getting a Europe-wide investigation which could lead to better protection for workers and consumers alike."