THE Consumer Group has offered more backing to doorstep milk deliveries. It is has proposed exclusive contracts for roundsmen for a fixed term - perhaps five years - before the milk distribution market is liberated, as proposed by the Commerce and Employment Department.
Group chairman Roy Bisson said that the support was grudging, as it did not agree with the sole distribution arrangements for roundsmen.
He has called for the States to phase changes to the distribution system because of ‘poor handling’ of roundsmen by the Dairy in the past.
‘Members are particularly concerned at the restriction of choice for consumers and shopkeepers, neither of which acts in the public interest,’ he said.
‘However, various dairy industry authorities over the years did come to arrangements and make promises or undertakings and lead individuals to wrongly believe that they had security in the businesses they were buying.’
Mr Bisson said that many have borrowed to buy rounds they now consider to be worthless under the new proposals, which allow limited competition and do not give roundsmen legal certainty for their rounds.
‘As much as it will act against the public interest, we believe the Dairy has no option but to issue five-year - or whatever period can best be negotiated - exclusive distribution licences or contracts, so as to allow roundsmen to pay off such loans that they have made, after which the practice of sole distribution can cease.’
The group has long been against fixing the price of fresh milk because it is anti-consumer and has rejected any kind of cartel for milk distribution.
Although it supported the introduction of milk quotas and farming contracts - with the States subsidising farmers by £2m. a year instead of paying them more for milk, which was being passed on to the consumer - it feared that a fixed price for milk would defeat the price gains achieved by the subsidy.
Mr Bisson said that his group rejected even a minimum price for milk. He said that the dairy should have a set price for its products with normal commercial discounts for bulk sales and prompt payment.
Article posted on 21st April, 2007 - 12.00am
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