PRICE-SLASHING SUPERMARKETS NEED INVESTIGATION

1.15.00pm GMT Tue 12th Feb 2008

The UK's largest supermarket chain's further slashing of poultry prices stresses the need for an EU-wide investigation into the rising power of big retailers, according to a local Liberal Democrat MEP.

Liz Lynne MEP, Vice President of the European Parliament's Employment and Social Affairs Committee, recently signed a petition calling for such an investigation, which gained enough MEPs' signatures to trigger a debate in the legislature.

Speaking today Liz Lynne, who is also the LibDem agriculture spokesperson in the European Parliament, said:

"I think we do need to look into whether supermarkets today have too much power, particularly in the prices paid to suppliers for agricultural products.

"Of course it is important that consumers have choice and we are not calling for regulation, but such low prices raise questions about sustainability and whether farmers and other producers are receiving a fair price for their products.

"There is an ongoing UK investigation into supermarket power, but an EU-wide study would enable sharing of data, and later of best practice, between Member-States on how to jointly tackle these issues.

"I was delighted that so many of my colleagues felt as strongly about this issue as I do. The formal parliamentary debate will be a major step towards getting a Europe-wide investigation which could lead to better prices for farmers and better quality produce for consumers."