Appointment of Groceries Code Adjudicator

Appointment Brief August 2012

Ref: QACMC

Saxton Bampfylde 35 Old Queen Street London SW1H 9JA +44 (0)20 7227 0800 www.saxbam.com

The Groceries Code Adjudicator

Background
1. In 2000, the Competition Commission published a report which raised concerns about the relationship between large supermarket chains and their suppliers, including farmers and small-scale providers. This report led to the Supermarket Code of Practice to regulate the market.1 However, it became clear that more could be done and in April 2008 the Competition Commission published the results of a new investigation.2 The Competition Commission was concerned that some practices by big supermarkets were still having an anti-competitive effect, harming the long term interests of consumers. This led to the creation of a new Code of Practice, the Groceries Supply Code of Practice (Groceries Code). The code is designed to improve the relationship between big retailers and their suppliers by setting minimum standards of practice in certain areas and preventing certain practices from occurring. The Groceries Code is established by and is part of the Groceries (Supply Chain Practices) Market Investigation Order 2009 (Groceries Supply Order). The Groceries Supply Order and new Groceries Code came into force on 4th February 2010. However, the Competition Commission considered that the Groceries Code would be more effective with an ombudsman or adjudicator to enforce it. After failing to gain sufficient agreement from the large retailers to establish such an enforcer voluntarily, the Competition Commission recommended the Government take the necessary steps to establish an adjudicator as soon as was practically possible. A Bill to create a Groceries Code Adjudicator is currently in Parliament, having been introduced into the House of Lords on 10th May 2012. The Adjudicator will mainly be funded by a levy to be paid by large retailers, but the Secretary of State will be able to make grants or loans to the Adjudicator in limited circumstances. The Groceries Code Adjudicator will be a statutory office holder, appointed by the Secretary of State for Business, Innovation and Skills. The appointment will be regulated by the Commissioner for Public Appointments and the selection Panel will be Chaired by a Public Appointments Assessor.

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Available at: http://www.competition-commission.org.uk/rep_pub/reports/2008/fulltext/538_9_7.pdf Available at: http://www.competition-commission.org.uk/rep_pub/reports/2008/538grocery.htm

Appointment of Groceries Code Adjudicator

Function
7. The Groceries Code Adjudicator will enforce and oversee the Groceries Code to help remedy in some areas the imbalance between large retailers and direct suppliers which was reported on by the Competition Commission. The Groceries Code applies to all retailers with a turnover of more than 1 billion in groceries in the UK. There are presently ten such retailers. The Groceries Code aims to limit large retailers powers in a number of areas with respect to their direct suppliers and specifically obliges large retailers to: (i) (ii) (iii) 8.

deal fairly and lawfully with their suppliers; not vary supply agreements retrospectively, except in circumstances beyond the retailers control which are clearly set out in the supply agreement; and pay suppliers within a reasonable time.

In addition, the Groceries Code

limits large retailers power to make suppliers change their supply chain procedures; limits large retailers power to make suppliers pay marketing costs and compensation for shrinkage or wastage; requires large retailers to pay compensation for forecasting errors in certain circumstances; limits large retailers power to make suppliers obtain goods or services from third parties who pay the retailer for that arrangement; limits large retailers power to make suppliers pay them for stocking their products; limits large retailers power to make suppliers pay for promotions; requires large retailers to take due care when ordering for promotions; limits large retailers power to make suppliers pay for resolving customer complaints; and limits large retailers power to de-list suppliers in other words, to stop dealing with a supplier or make significant reductions to the volume of purchases from a supplier. The Groceries Supply Order requires large retailers to incorporate the Groceries Code into agreements for the supply of groceries for resale in the UK. In addition the Order requires large retailers to record in writing the terms of any agreement with a supplier for the supply of groceries for resale in the United Kingdom, provide certain information to suppliers in relation to the Groceries Code and Groceries Supply Order, supply information to the OFT (including reporting annually to the OFT on the large retailers compliance with the Groceries Code and Groceries Supply Order and publishing a summary of the annual report). The Groceries Code also contains a dispute resolution process. A supplier who believes that a large retailer has breached the Groceries Code may notify the retailers compliance officer. If the dispute is not resolved within 21 days, then, at any time within four months of the dispute arising, the supplier may refer the dispute to arbitration. Such arbitration must be carried out by the Groceries Code Adjudicator or another person appointed by him or her.

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Appointment of Groceries Code Adjudicator

Role
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The Adjudicator will carry out the following functions: Advise large retailers and suppliers on the Groceries Code; Publish guidance on when and how investigations will proceed and how enforcement powers will be used; Investigate possible breaches of the Groceries Code by large retailers; Where an investigation finds that a large retailer has breached the Groceries Code, decide whether to make recommendation to the retailer, require it to publish information about the investigation or (if the Secretary of State adds a power to do so) impose a financial penalty on the retailer; Arbitrate disputes between large retailers and their direct suppliers, or appoint another person to do so; Report annually on his or her work; and Recommend changes to the Groceries Code. The Adjudicator will be responsible for leading and managing a small office of around 3-4 staff. At the end of every year, the Adjudicator must publish an annual report and send it to the Secretary of State for Business, Innovation and Skills and the Office of Fair Trading or any successor body, as well as laying it before Parliament.

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Appointment of Groceries Code Adjudicator

Person specification
Essential skills and knowledge: Skills Track record of resolving disputes, acting as a mediator and overseeing investigations in a commercial environment, having strong negotiation and arbitration skills. Ability to act independently, having sound judgement and be seen to be impartial. Strong ambassadorial and advocacy skills that inspire key stakeholders.

Stakeholder Engagement Evidence of having the gravitas that ensures effective stakeholder engagement, involving the media, government, business sectors, suppliers and consumers.

Leadership and Management Demonstrable ability to provide sound strategic direction and a compelling vision that inspires confidence amongst stakeholders. Ability to make decisions whilst taking into account budgetary and resource considerations.

Desirable experience and knowledge: Knowledge of the competition and regulatory framework and the Groceries Code in particular. Previous experience of the retail sector. Knowledge of UK contract and commercial law.

Appointment of Groceries Code Adjudicator

Terms of appointment
Term 13. The appointment is for a period of up to four years, which may be extended up to a maximum of ten years, subject to satisfactory performance appraisal.

Time commitment 14. The Groceries Code Adjudicators role is a part time role for three days a week.

Remuneration 15. Remuneration for the post will be in the range of 98,000 to 120,000 per annum, paid on a pro-rata basis given the part-time nature of the role.

Start date 16. It is intended that the the Groceries Code Adjudicator will take up their post in the first quarter of 2013.

Location 17. The Adudicator will be based in London. It is intended that they will initially be housed with the Office of Fair Trading and any successor body.

Conflicts of Interest 18. Consistent with the Commissioners Code of Practice, candidates will be assessed on merit, and all candidates for public appointment will need to uphold the standards of conduct set out in the Seven Principles of Public Life, set out below. These will be tested as part of the appointment process and the selection Panel must satisfy itself that all candidates for appointments can meet these standards and have no conflicts of interest that would call into question their ability to perform their role.

Equal opportunities 19. Part of the Commissioners remit is responsibility for promoting equal opportunities and diversity and all applicants are asked to provide equal opportunities monitoring data. In addition, applicants are asked to provide details of any significant political activity that they have undertaken within the past five years. Neither monitoring form will be used as part of the selection process. Under the Data Protection Act the information that you provide will be held confidentially and consent must be obtained for individuals details to be made publically available.

Appointment of Groceries Code Adjudicator

Role as shadow Adjudicator 20. The Bill is expected to receive Royal Assent at some point before this session of Parliament finishes in April. If the Adjudicator is appointed before Royal Assent, he or she will initially take up the post as a shadow Adjudicator, working only one day a week and located in the Department for Business, Innovation and Skills. Continuation of the role beyond the shadow Adjudicator stage is dependent upon the Bill receiving Royal Assent. The shadow Adjudicator will not have the powers set out in the Bill. He or she will prepare for taking on the full Adjudicator role by meeting key retailer and supplier groups and considering the guidance that will be needed once the powers are granted.

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Appointment process key dates

Closing date: noon on Monday 10 September 2012. Preliminary interviews for long listed candidates with Saxton Bampfylde will take place in late September and early October. A shortlist meeting will be held in early-mid October. Informal one to one briefings with senior competition policy officials in BIS are planned to take place in mid October. Final panel interviews will take place in late October. The appointment will be announced in Parliament in November.

Appointment of Groceries Code Adjudicator

How to apply
Saxton Bampfylde has been engaged as BISs employment agency advisor on this appointment. Applications should be sent by email to QACMC@saxbam.com Alternatively they may be sent by fax to +44 (0)1483 531882 or by post to: Jonathan Morgan Saxton Bampfylde (ref: QACMC) PO Box 198 Guildford Surrey GU1 4FH

The closing date for applications is noon on Monday 10 September.

You are asked to submit; 1. a full CV; 2. a covering note of not more than two pages (total) summarising your proven ability related to the criteria covered in the person and job specification; 3. a completed copy of the candidate summary form, below, including details of references and any conflicts of interest; 4. a completed copy of the detachable equal opportunities form, below; and 5. a completed political activity form, below. The appointment brief can be made available in an alternative format e.g. Braille or large font, on request, please contact Saxton Bampfylde on 020 7227 0890.

The Appointment Process and Making a Complaint

The Department's public appointments processes are conducted in accordance with the Commissioner for Public Appointments Code of Practice, which can be found at (link to the Code http://www.publicappointmentscommissioner.org If you feel your application has not been treated in accordance with the Commissioner's Code of Practice and you wish to make a complaint, you should contact Iain Mansfield in the first instance, by emailing to iain.mansfield@bis.gsi.gov.uk. If you are not satisfied with the response that you receive from the Department, you can contact the Commissioner for Public Appointments. Further details on the Commissioner's complaints procedure can be found at http://publicappointmentscommissioner.independent.gov.uk/what-we-do/complaintsand-investigations/ BIS is committed to the principle of public appointments on merit with independent assessment, openness and fairness of process and to providing equal opportunities for all.

Appointment of Groceries Code Adjudicator

The Seven Principles Underpinning Public Life

In 1995, the Committee on Standards in Public Life defined seven principles, which should underpin the actions of all who serve the public in any way. These are: Selflessness Holders of Public Office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or other friends. Integrity Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties. Objectivity Carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit. Accountability Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office. Openness Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands. Honesty Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest. Leadership Holders of public office should promote and support these principles by leadership and example.

Appointment of Groceries Code Adjudicator

Candidate Summary Form

POSITION APPLIED FOR Groceries Code Adjudicator SURNAME FIRST NAME Job code: QACMC INITIAL(S) TITLE

ADDRESS FOR CORRESPONDENCE

CONTACT TELEPHONE NUMBER(S)

EMAIL ADDRESS

LATEST EMPLOYER (ORGANISATION)

LATEST JOB TITLE

Appointment of Groceries Code Adjudicator

REFERENCES Please give below the name and contact details of two people who may be asked to act as referees for you. They will be expected to have authoritative and personal knowledge of your achievements / competencies. The referees will be approached only if you are invited for interview. Referee 1 Name: In what capacity, and over what period of time, has this individual known you?

Phone: Email address: --------------------------------------------------------------------------------------------------------------Referee 2 Name: In what capacity, and over what period of time, has this individual known you?

Phone: Email address:

Appointment of Groceries Code Adjudicator

POTENTIAL OR ACTUAL CONFLICTS OF INTEREST

Please give details of any business or other interests or any personal connections which, if you are appointed, could present a conflict of interest with the role of the Groceries Code Adjudicator. These could include financial interests or share ownership, membership of societies, activities, associations or employment of a partner or friend in the particular field in which the public body operates. Any potential or actual conflicts of interest detailed here will not prevent you going forward to interview but may, if appropriate, be explored with you during your interview to establish how you would address the issue(s) should you be successful in your application. If there are no potential conflicts of interest, please write "none".

Appointment of Groceries Code Adjudicator

Equal Opportunities Monitoring Form

Please tick or complete the appropriate boxes. The following information is required for monitoring purposes only and will not form part of the sifting or shortlisting process.

Date of birth Gender Ethnic origin

Please show which group best describes your ethnic origin or descent by ticking only one of the boxes in the right hand column below. WHITE BLACK of Caribbean origin of African origin of other origin (please describe) ASIAN of Indian origin of Pakistani origin of Bangladeshi origin of East African origin of Chinese origin of other origin (please describe) If you belong to some other group or groups (please describe)

Disability
Do you consider yourself to have a disability as defined by the Disability Discrimination Act 1995: a physical or mental impairment which has a substantial and long-term adverse effect on the persons ability to carry out normal day-to-day duties? If YES, please tell us separately about any adaptations which you may require either to carry out the role or to participate in the selection process. YES NO

Appointment of Groceries Code Adjudicator

Political activity
All applicants for a public appointment should complete the question below. This question is asked as it enables the monitoring of political activity of candidates for a public appointment in so far as it is already in the public domain. Neither activity nor affiliation is a criterion for appointment (except where statute dictates specific representation). And political activity in itself is no bar to appointment. If you are successful, the information provided will be published with the announcement of your appointment. Please indicate which of the following activities you have undertaken during the past five years by ticking the appropriate box and by providing details of your involvement. Name the party or body for which you have been active. If you have been or are an Independent or have sought or obtained office as a representative of a particular interest group, you should state this. You should tick all relevant categories. a. Obtained office as a Local Councillor, MP, MEP etc. Stood as a candidate for one of the above offices Spoken on behalf of a party or candidate Acted as a political agent Held office such as Chair, Treasurer or Secretary of a local branch of a party Canvassed on behalf of a party or helped at elections Undertaken any other political activity which you consider relevant Made a recordable donation to a political party3 None of the above activities apply

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Name of Party for which activity was undertaken

Details of involvement

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Candidate name

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The Political Parties, Elections and Referendums Act 2000 requires the Electoral Commission to publish a register of recordable donations (donations from any individual totalling more than 5,000 in any calendar year, or more than 1,000 if made to a subsidiary accounting unit such as a constituency association, local branch, womens or youth organisation). These provisions became effective from 16 February 2001.

Appointment of Groceries Code Adjudicator