Iceland chief: Cheap food is driven by local authorities

Malcolm Walker, chief executive of Iceland, said retailers are not to blame for the horsemeat scandal, as food prices are being driven down by local authorities who operate an "invisible market" catering to schools, care homes and hospitals.

He said the horsemeat scandal has been "hyped out of all proportion."

"Cheap food doesn't come from supermarkets it is driven by local authorities trying to get their prices down. "

More: Local authorities hit back at Iceland horsemeat attack

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Asda boss' horsemeat shock

The boss of Asda today described his "shock" as revelations of the horsemeat contamination scandal broke, vowing to leave "no stone unturned" to address problems in the supply chain.