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Competition commission 'must consider SMEs'

Published On 24 January 2007 at 16:54:52

There are fresh calls for the Competition Commission to consider the needs of small to medium sized enterprises (SMEs) in its investigation in to the groceries sector.

The Conservative party has said that the investigation must consider the negative impact of supermarkets on smaller, independent stores, particularly in rural areas.

"The inquiry must include the effect on small businesses and on sustainable communities. Consumers deserve a fair deal wherever they live," said the shadow industry secretary, Alan Duncan, adding that he welcomed plans by the commission to focus on the impact of competition on the local market.

"The commission's emerging thinking shows little evidence of market failure at a national level," he said.

"The commission is right to focus now on local markets; ensuring that there is adequate competition to help reduce the cost of living for families."

A survey released by the commission showed that 40 per cent of suppliers claim that if a large store increases demand, they are unable to adequately supply goods to smaller outlets.

 

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