Competition test 'won't help small businesses'

New Competition Commission plans for an anti-monopoly test aimed at curbing local supermarket dominance have come under fire from the Forum of Private Business (FPB).

The group has criticised the proposed competition test, which aims to prevent further development by a supermarket chain in an area where it already has a dominant position - in order to increase choice for consumers.

The test would be used before planning permission is granted to any new stores.

However, the FPB says that the test misses the point and will do little to change the fortunes of independent retailers already struggling to compete with the giants.

FPB chief executive Phil Orford said: "It's all well and good increasing competition between the multi-billion pound supermarket chains but we would like to see more consideration given to ordinary shop owners desperately trying to survive.

"I think it is fair to say that the major supermarkets are in a very secure position, despite the recession, and need little help from the Competition Commission.

"Instead, I would urge the Competition Commission to focus its efforts on helping independent retailers, which are the lifeblood of the British high street, to remain viable against the competition from the supermarkets."

Groups protecting smaller retailers hit out in April 2008 against the findings of the Competition Commission's investigation into the dominance of the supermarket chains.

The Groceries Market Inquiry found that smaller shops could still compete with the supermarket giants - something the FPB disputes, claiming the future of independent retailers is under threat.

IMAGE AP Photo/Daniel Ochoa de Olza