On 23 January 2007, the Competition Commission issued its 'emerging thinking' document. On that day, shares in the supermarket giants – Tesco, Sainsbury's, Asda, Morrisons – increased in value. This really says it all.

Commission's remit

Have the OFT and the Competition Commission failed – yet again – to hold the supermarket giants to account? Yes and no. There is evidence, in retra's view, that these regulators are failing to grasp the full impact of the growing dominance of the supermarket giants. The remit given by the OFT to the Competition Commission was absurdly narrow and this was unnecessary. The Competition Commission was charged with looking at the groceries market only. This excluded, for example, petrol, electrical appliances, DIY products and clothing from the remit. But – and this is an important 'but' – any regulatory authority can only investigate according to the powers it has in law. The Competition Commission is the best-equipped regulatory body in the UK to hold the supermarket giants up for scrutiny, but it is still ill equipped to do so. It can only investigate competition issues. Unless they affect competition, issues such as the environmental impact of the supermarket giants or the composition of the high street, are not matters that the Competition Commission can decide upon.

Declining communities

The decline of independent businesses across key sectors of the UK retail economy is gathering pace. There are many sources that attest to this. To give some examples:

• In the period 2000-2005, 8,600 independent grocery stores were closed – 25% of the total (Institute of Grocery Distribution);

• In the period 1995-2004, 13,000 independent newsagents closed (National Federation of Retail Agents);

• In the period 1996-2006, the number of independent electrical retailers declined from over 8,000 to no more than 3,600 (GfK).

If the OFT and the Competition Commission will not (or cannot) get to grips with the range and complexity of the issues affecting the UK retail economy and, specifically, the decline of the independent, then who can? How are the wide-ranging issues surrounding the sustainability of our communities to be addressed? retra believes that through its own initiatives and by building coalitions with other interested parties the best way forward is to focus upon attracting the direct attention of Members of Parliament and the political parties they represent. This is why retra has, in recent weeks, given its support and backing to the Sustainable Communities Bill.

Sustainable local communities

The Sustainable Communities Bill, a private members bill introduced into the House of Commons on 13 December 2006 by Nick Hurd MP ((C) – Ruislip-Northwood), aims to empower local people to make their own decisions on how to reverse on-going community decline in Britain. The Bill makes provision for the Secretary of State to publish action plans to promote the sustainability of local communities and to enable local authorities and communities to participate in the formulation and implementation of these plans. The Bill secured its second reading on 19 January 2007 with overwhelming support by backbench MPs from all political parties. It now passes to its Committee stage (line by line discussion by a small committee of MPs). The Report and 3rd Reading are expected, at present, in April 2007.

The Government is, at best, lukewarm about the Sustainable Communities Bill, and it is not likely that this Bill can reach the statute book without at least its tacit support. The Bill may, therefore, 'fall'. The effort by retra will, however, continue. We are not going to wait for the OFT or the Competition Commission to help independent electrical retailers.

mark.hayward@retra.co.uk

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