MULHOLLAND WELCOMES SUPERMARKET COMPETITION PROBE

12.00.00am UTC (GMT +0000) Tue 9th May 2006

Leeds North West MP, and Member of the All Party Parliamentary Group on Small Shops, Greg Mulholland, has today welcomed the news that the Office of Fair Trading has referred the supermarket giants, Tesco, Asda, Sainsbury's and Morrisons to the Competition Commission.

The Commission will be investigating pricing behaviour, planning rules and land holdings of the supermarket chains. Supermarkets control almost 75% of the UK grocery market and unfair practices are widely alleged by Independent retailers including selling below price and 'land-banking' to stop development of land by competitors.

Commenting on today's news Mr Mulholland said;

"I am delighted that the Office of Fair Trading has decided that the power of the supermarkets needs looking into.

"It is clear that there is not currently a level playing field in British retailing and that supermarkets have too much power both nationally and locally. As the OFT has said, there is evidence that big land-banks and the purchasing power of the big supermarket groups are holding back competition in the sector.

"This leads to small independent retailers being forced out of business resulting in less choice for shoppers and a negative effect on the character as well as the economies of our towns.

"There must be a place for small retailers and supermarkets to exist together, what we need is a level playing field and I hope that the Competition Commission agrees that action needs to be taken to achieve this."