Supermarkets ombudsman 'no use to shoppers'

GOVERNMENT plans for a new supermarket watchdog would protect suppliers but not consumers, Tesco boss Sir Terry Leahy claimed yesterday.

The chief executive of Britain's biggest supermarket chain hit out at proposals for an incoming ombudsman. He said the move – given the go-ahead by the UK government last month – would work in the interests of suppliers, not consumers.

"I'm not in favour of an ombudsman – everyone knows supermarkets are one of the most competitive industries around," he said. "That competition puts power in the hands of the consumer. In a free society, why would you want an ombudsman if there are no problems now as far as consumers are concerned?

"An ombudsman would be there to protect suppliers but should be there to protect consumers."

The government announced a consultation last week on the scope and power of the ombudsman. Billed to ensure "the grocery supply market continues to work in the long-term best interest of consumers", he would oversee compliance with the new supplier code.