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Peers call for further strengthening of adjudicator bill - Plastic Masterbatches Manufacturer by icdenta icdenta





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Peers call for further strengthening of adjudicator bill - Plastic Masterbatches Manufacturer by
Article Posted: 05/01/2013
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Peers call for further strengthening of adjudicator bill - Plastic Masterbatches Manufacturer


 
Business,Business News,Business Opportunities
The GCA Bill continued its legislative path through Parliament withits Second reading in the House of Lords on Tuesday . Peers from all Parties overwhelmingly backed the Bill and welcomedthe decision by Ministers to toughen the Bill from the draftversion by allowing the Adjudicator to act on complaints by thirdparties and whistleblowers, as well as direct and indirectsuppliers. But some peers criticised the decision not to give the Adjudicatorpowers to fine retailers from the start. Lord Grantchester, a Labour peer who runs a dairy farm in Crewe,accused the Government of losing their nerve when it came tointroducing the most effective deterrent in the Bill? He pointed out BIS Select Committee of MPs had stated in a reportthat powers to fine should be on the face of the bill withextra power to escalate from a lower to a higher-level penalty ifCode breaches continue . He said the Bill, as it stands, would only allow retailersfollowing a lengthy process of extensive warnings, publication ofguidance by the Adjudicator and widespread consultation byMinisters.

This is regulation at its most bureaucratic Surely we needsomething more agile, he said. Other peers, including Liberal Democrat Lord Razzal, echoed hisconcerns on penalties. Junior Business Minister Baroness Wilcox defended the move. Shesaid Ministers believed that in a highly competitive marketretailers will not risk reputational damage , so powersincluding publishing information on breaches of the grocery code will be sufficient to have a significant effect on behaviour . If not, the Bill contains a reserve power for the adjudicator toimpose financial penalties , she said.

She added the Government had acted on concerns raised duringpre-legislative scrutiny to remove restrictions on who can complainto the Adjudicator. She added that the Government have, however,included a three-yearly review of whether third part complaints are helping or hindering the Adjudicator . She said the speed with which the Bill had been introducedfollowing the Queen s Speech on May 9 reflects the high degreeof importance that the Government place on this measure and ourdesire to establish the adjudicator as soon as possible . The adjudicator s powers must be both adequate andproportionate, ensuring that he or she can uphold the groceriescode while avoiding excessive burdens on retailers, she said. The Bill will now move to the Committee Stage for more detailedscrutiny.

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