At a major conference today debating the Competition Commission's proposal for a supermarket ombudsman, ActionAid's Dominic Eagleton will argue that a new watchdog is an absolute necessity.

He will urge the Commission to stand firm against industry lobbying and introduce what ActionAid says is a sensible and necessary measure.

Lobbying from supermarkets and industry pressure groups for the proposal to be dropped has been vociferous, but this is strongly challenged by a wide range of groups supporting the ombudsman.

Eagleton will challenge British Retail Consortium’s claims that the Competition Commission has found no evidence for problems in the supply chain and will penalise consumers with higher prices.

He says: "Faced with an ever deepening financial crisis it is more important than ever to ensure that supermarkets play fair by both consumers and suppliers.

"Skyrocketing food prices in developing countries have increased the cost of living, particularly for the poorest, and make a living wage for the workers who produce our food even more crucial.

"An ombudsman would not push up prices for consumers in the UK. In reality, it will ensure our food supply chain is stable and resilient for the long term; an issue of increasing national importance.

"We must not let this opportunity slip away."

Supermarkets source £7 million worth of goods from developing countries every day and ActionAid’s experience shows that women workers in developing countries too often bear the cost of the supermarkets drive for low prices and high profits in the form of poverty wages, long hours and dangerous working conditions.

The charity argues that a supermarket watchdog would reduce those pressures and give workers a chance to get a fair deal.