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The government has entered into a consultation over its contentious 'supermarket ombudsman' to outline the body's powers and remit.

The Competition Commission called on the government to set up a groceries market ombudsman to prevent suppliers getting a raw deal last summer.

The "big four" retailers – Asda, Morrisons, Sainsbury's and Tesco - all opposed the proposal, while Marks and Spencer and Waitrose backed the idea.

This week Iceland chief executive Malcolm Walker spoke out against the proposed supermarket ombudsman, calling the plans a "waste of time".

In an interview with the Daily Telegraph Iceland Walker said the supermarket would do the "bare minimum" to comply with a supermarket code.

The Forum of Private Business (FPB) wrote to him to express its concerns about his comments.

"Malcolm Walker's comments are extremely disappointing and reflect the common attitude supermarkets have towards their suppliers," said FPB chief executive Phil Orford.

"This bullying behaviour is simply bad practice and an abuse of their dominant market position," he said.

Packaging Federation chief executive Dick Searle questioned whether the ombudsman would impact on the retailers' approach to business.

"The problem has always been the issue of people not wanting to go public on what they see as unfair treatment because of fear of reprisals by the supermarkets," he said.

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