I would like to thank the All Party Group for inviting me to this
meeting. Let me say at the outset that, up to now, my responsibilities
as Ministers for Competition and Consumers have allowed me little
opportunity to be involved with the markets industry. So I welcome this
meeting, as much as an opportunity for me to learn more and to hear what
you have to say as to express any views of my own. I can assure you that
I will listen to your views very carefully. But, with your permission, I
will also be posing a few questions of my own.
Markets have occupied an important place in the day-to-day life of
our society, both socially and economically, for a very long time. They
have provided a very real focal point for local communities. In a
country where "street life" is perhaps more limited than other
parts of the world, and our climate probably has something to do with
that, markets have been a widespread and often colourful exception. Some
major retailers have their origins in markets. In some areas, markets
have even contributed to the rich cultural mix, which has long been a
feature of this country. I for one would be sorry to see all this
change. I believe our society would be poorer without our markets.
Markets have inevitably had to evolve over time in response to new
competition, in the same way as other forms of retailing. But the change
in retailing during the second half of the 20th century was particularly
dramatic. The spread of first supermarkets and then large shopping
malls, alongside the growth of personal transport, have changed our
traditional high street shopping habits forever. In the 21st century,
the nature of retailing is continuing to change, and even more quickly,
due to new technology and a new form of retailing. For example, recent
figures show that 45% of UK households now have Internet access and 46%
of Internet users now buy goods and services on-line. There is every
reason to believe that these figures will increase significantly over
the next few years. The obvious result is an even wider choice of
products and sources on offer to consumers when buying goods and
services. This inevitably creates new challenges for markets as much as
for other retailers, and perhaps more so.
I believe the market industry must acknowledge and address the new
challenges. It must secure its place in an increasingly competitive, and
international, retail sector. It must cater to the needs of increasingly
knowledgeable and demanding consumers.
I look at the market industry from the perspective of the Minister
responsible for both competition and consumers. I can only talk about it
authoritatively in those contexts. I can see very well how the industry
can contribute to competition and choice in the retail sector. But I can
also see that it must respond to the needs and interests of consumers.
In an increasingly competitive retail environment, it seems to me
that the market industry needs to increasingly adopt the practices of
other retailers and actively engage with consumers, in order to be
confident that it is providing what consumers want and expect from
markets today. I cannot help but be aware that more specialised or
"themed" markets seem to be enjoying increasing popularity. I
know that the All Party Group has definite views about the types of
market that appear to represent unfair competition and I can understand
such concerns. But I have to ask myself, if the popularity of new kinds
of market is evidence of changing consumer demand and interests, and
whether there are lessons here for the market industry as a whole.
One of the core objectives for my part of the Department is the
creation of "empowered" consumers, to drive forward
competitiveness. Empowered consumers will be demanding of the goods and
services on offer, knowledgeable about their rights and protective of
their interests.
In order to retain its position in the retail sector in the 21st
Century, I believe the market industry must increasingly ask itself:
- Is it providing the products consumers want?
- Are the products of the quality, as well as prices, consumers
want?
- Are consumers confident, their rights and interests are protected
when shopping in markets?
Last year, the Enterprise Act introduced specific new measures to
protect and empower consumers. At the end of this month, the new Sale
and Supply of Goods to Consumers Regulations come into effect,
transposing the Sale of Goods and Guarantees Directive and providing
consumers with additional rights and redress if purchased goods prove to
be faulty.
Empowered consumers will increasingly expect to be able to enforce
their rights in exactly the same way, whether they are shopping at a
market stall or at a large retail store. If they experience
difficulties, I would expect them to withdraw their custom from that
retailer. In fact my Department will be failing in its objective if they
don't. The market industry need to be as prepared to deal with the
empowered consumer as other retailers.
The Government believes that self-regulation by business is an
important way in which consumers can be empowered. Legislation can be
inflexible and imposes burdens on business. Self-regulation is more
easily adapted to changing circumstances and often quicker to resolve
problems for consumers when they arise.
You will not be surprised, therefore, that I welcome the introduction
of The Market Shoppers National Charter. This is a positive step in
response to the widespread belief that shopping in markets carries
additional risk, when in fact the same protection applies as for all
other retail outlets. The number of operators who have signed up to date
is encouraging. I assume the aim is for all operators to sign up to the
Charter in order to raise consumer confidence. But I wonder, how many
potential customers currently know about the Charter? I admit that I
have only recently become aware of it. Is there is a need to give it
more publicity, in order to both reassure consumers and encourage more
market operators to sign. I would like to think the Charter represents a
basis for an eventual effective Code of Practice that, in the longer
term, could be approved by the Office of Fair Trading under the powers
provided by the Enterprise Act. Is this what you also have in mind?
I said at the beginning that I wanted to hear what you have to say.
With that in mind, I will bring my speech to an end. Let me just sum up
by saying that:
- I believe the market industry does have a place in our social and
economic life
- I believe it must address the challenge of a rapidly changing
and increasingly competitive retail sector
- I believe it must be ready to meet the demands and
acknowledge the interests of the 'empowered consumer'
By rising to the challenges, the industry can expect to continue
contribute to competition and choice and ensure that its place in the
retail sector is secure.
Thank you all for your attention.
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