Scottish Government consultation rubbished by industry
RETAIL and food and drink industry leaders have blasted the Scottish Government’s food price cap plans and slated the consultation over the proposals.
The Scottish Grocers’ Federation (SGF) warned that the suggested measures could put many small stores out of business. It said that while Holyrood ministers claimed to be targeting large supermarkets, the criteria meant convenience outlets operating under a symbol or franchise would also be in scope.
SGF chief exec Pete Cheema warned: “It would be deeply damaging and entirely perverse if a policy intended to help consumers instead contributed to the closure of the very businesses their communities rely upon.
“Even for out-of-scope retailers, price caps on selected products will inevitably distort competition and have serious consequences for independent local businesses – risking pulling customers away from local shops and encouraging them to travel further to out-of-town supermarkets for everyday essentials.”
He said that local stores were the backbone of many communities and local economies, adding that under-pressure independent retailers should not become collateral damage in a policy intended to target large businesses.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, was equally scathing: “It’s five months since the proposal to cap grocery prices was unveiled and there seems little evidence ministers have the first idea how to deliver the policy. We don’t know which products will be affected, what the prices will be, for how long, how the scheme will be delivered, let alone who will enforce it.”
He added that the lengthy consultation paper failed to address the onerous complexity and costs of such a scheme and warned the rules on product substitution would lead to items being pulled and shortages on the shelves.
MacDonald-Russell concluded: “Ministers have fluffed the chance to provide the clarity retailers’ and the supply chain have repeatedly asked for. They should scrap the cap and work with industry to get on top of inflation – including public policy costs.”
David Thomson, chief exec of the Food and Drink Federation Scotland also slammed the Scottish Government for failing to answer some of the most basic questions about the plans, which he said would not address the underlying cause of food inflation.
He said: “These proposals are causing major concern across Scotland’s food and drink supply chain. Businesses that make food and drink in Scotland are increasingly questioning whether the Scottish Government understands, or cares, about the pressures they face and the contribution they make to Scotland’s economy.
“The Scottish Government must listen to the evidence, recognise the risks and drop its plans for food price caps. Instead, ministers should focus on tackling the real drivers of food inflation and creating the conditions for long-term affordability, investment and growth.”
The SNP administration has pushed ahead with the consultation despite a letter to First Minister John Swinney from 23 trade bodies urging him to drop the statutory cap plans. The consultation is running from now until 24 November.
Minister for Business Tom Arthur encouraged everyone with an interest in the policy to have their say, claiming he wanted action on food affordability that worked with retailers and protected farmers and food producers.
He said: “Helping people with the cost of living is a top priority of this Government. Our aim is to make essential food items more affordable for households struggling to pay for their weekly shop, particularly those on lower incomes.”
