THE Competition Commission's recommendation that an ombudsman should oversee the buying and selling practices of the major supermarkets
goes nowhere near far enough, according to Nick Clegg, leader of the Liberal Democrats in the House of Commons.
Speaking in London at the annual conference of the NFU of England and Wales, Clegg said: "I am a liberal and believe that the market sh
ould set prices for goods. When that drives efficiency from farmers and benefits consumers, I welcome that. But if it is delivered by threats, blacklisting and bully-boy tactics that deliver only profits for the retailers, not lower prices on the shelves, then the market is failing. We already have substantial proof of price-fixing on milk."
Turning to the aftermath of last year's outbreak of foot-and-mouth disease (FMD) in Surrey, he said: "Some supermarkets used catastrophes like FMD and the summer floods in England to drive down farm gate prices, while keeping retail values unchanged. Turning tragedy into turnover is a disgrace. It's time to take on the trolley-garchs.
"The Competition Commission's proposals just do not go far enough. Its remit didn't allow it to look fully at the rough deal primary producers are getting, even though some damning evidence was presented."
Clegg may have been speaking to a predominately English audience, but his address could be applied with equal vigour in a Scottish context.
He said: "A couple of months ago I met a group of farmers in Westmoreland where of seven local farms only one had plans for who would carry on when he retired.
"The thought of seeing farms passed down through many generations, finally abandoned, broke their hearts. If we want a new generation of farmers we've got to make it easier to live in the countryside. Protecting our post offices, boosting rural public transport and above all making homes affordable is essential.
"Local authorities should do more to help farmers convert empty buildings in to new, affordable homes, some of which must be agriculturally tied."
Clegg's party has traditionally been popular in rural areas throughout the UK, but some of his views on the future direction of the Common Agricultural Policy (Cap) are likely to lead to some concerns among large farming businesses.
He said: "We seek an end to the distortions which mean that the richest 20 per cent of farmers get 80 per cent of the support through the Cap."
UK farmers will no doubt point out that those with the largest operations are generally the most efficient. They will ask why they should be penalised to support those who live in the countryside but contribute little in the way of food production.
Clegg is generally supportive of the 2003 reforms of the Cap, but believes there is still some way to go. He said: "The EU must move on trade barriers, import tariffs and export subsidies if we are to make progress in the ongoing World Trade Organisation negotiations.
"I was there at the inception of those talks in Doha, and I am certain failure would be devastating to the future of world trade and British prosperity."
Farmers in the EU and North America tend to take a rather cynical view of the WTO discussions, that much was acknowledged by Clegg.
He said: "I know that the lowering of trade barriers on food imports worries many of you.
"It is hard to compete with low-cost imports that fail to match the EU standards you work so hard to meet. So the EU should press the WTO to allow countries to demand some basic animal welfare and environmental standards from imports.
"That was the rationale behind our successful campaign against Brazilian beef, demand for which was driving the destruction of the rainforest."
