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Business: Procurement

Question for Department for Business, Innovation and Skills

UIN 218268, tabled on 11 December 2014

To ask the Secretary of State for Business, Innovation and Skills, what assessment he has made of the prevalence of the practice of companies requiring a supplier company to make a payment in order to join or to remain on a list of suppliers.

Answered on

19 December 2014

The Department is aware that the practice of suppliers having to pay to join or remain on a supplier list is an issue in some sectors. The Government has already taken action to prohibit this practice in certain sectors. We are consulting to help us understand the wider extent of the problem and on whether Government should take any action with respect to supplier lists.

The Government has already taken action to prohibit this practice in certain sectors. This is why the statutory Grocery Supply Code prohibits payments as a condition of stocking or listing a supplier’s grocery products.

Answered by

Department for Business, Innovation and Skills