Rules for Conduct and Ombudsman for the Groceries Market

Dear seminar participants, and speakers, it is a great pleasure to welcome you all to Oslo and this seminar, the title of which is “Rules for Conduct and Ombudsman for the Groceries Market.” It is timely and topical in relation to the agenda in Norway, but also in the EU and Brussels as well as in a number of European States, France, Spain, United Kingdom, Ireland and Hungary in order to name only a few. Judging by attendance at this seminar, there is no doubt that the topics to be discussed are viewed as both central and important.

When my two Government colleagues, Ministers Rigmor Aasrud and Audun Lysbakken and I appointed the Norwegian Inquiry Commission for the Power Relations in the Food Supply Chain, it was based on a realization that increased ownership and market power of the retailer chains had developed in the food supply chain. This is a relatively new phenomenon that the Government until now has not investigated, and we considered it important to undertake an in-depth examination of the effects of this development. At the same time we also felt the need to make a review of the entire food supply chain in order to analyze the power relations between the various links in this chain. 

In Norway, we decided to establish a joint committee representing all parts in the food supply chain from farmers to consumers, supplemented with legal-, economic-, and political science expertise. The Commission was given a broad mandate, where transparency, consumer interest and efficiency were key elements that should be addressed. 

The committee's mandate was limited to assess the food supply chain within the existing legal and political framework. The Commission would therefore not consider issues that fall under the Competition Act per se, and the assessments were to be kept within the framework of existing agricultural policies.

I have noticed that there has been some criticism regarding the Commission’s mandate, particularly regarding its limitations towards the agricultural policies. It is, however, still my clear opinion that it possible and important to investigate and evaluate the functioning of the food supply chain within the existing framework conditions. In my mind it does not detract from the value of the Commission’s work in any way. - I get the impression, rather, that a number of players would like to see their role in the Food Supply Chain left, not analyzed, not debated and not understood. For agricultural policy i can, with no hesitation,  say that it is analysed, debated and understood. Every year the government reports to the Norwegian Parliament, the Storting, about the administration and changes in it. This year we are even presenting the Parliament with a white paper to discuss extra thoroughly. 

13th of April this year, the Commission submitted its report. The report states that the power relations within the food supply chain is permanently changed in favour of the retailers. The Commission has conducted a thorough discussion of the impact this, in their view, will have on society, including in particular, the effect on consumers. Among the key measures proposed by the Commission, are to be debated here today: Namely to establish a law on good trade practice and an ombudsman for the grocery sector.  

Not surprisingly, the committee's report and many of the committee's proposals has created strong reactions and triggered a major debate. I consider this debate to be a very important part of the process, and I most certainly welcome it. I would rather have been very worried if the affected parties did not have strong opinions and showed significant commitment regarding the analysis that is done, the critical question asked and the measures proposed. Measures that obviously will have consequences for their own business if carried through.

The consultation period for the Commission’s report is ending 1st of December. I hope to receive many, thorough consultative inputs to the report. This is the best way to secure a good basis for the government's decisions on further work.  

I would like to commend the Norwegian Agricultural Authority that they, as part of the important public debate on these issues, have taken the initiative to this seminar. As it clearly emerges from the seminar agenda, the issues discussed is not special for or limited to Norwegian conditions. 

Yesterday I was in Brüssel, having meetings with important EU officials working with this same agenda, Vice President of the European Commission Antonio Tajani, my old friend Michel Barnier who is now Commissioner for the Internal Market of the EU. I also talked to Member of Parliament Anna Maria Corraza Bilt who is the author of important political initiatives on the EU scene, and I talked to one of the speakers today: Maired McGuinness who is also an important contributor to the European debate.

Unfortunately I am not able to follow the entire seminar today, but I look forward to get minutes afterwards! I will also have the pleasure meet some of the speakers afterwards. 

I wish you all en exciting and challenging day, with fruitful exchanges of thoughts!