John Stevenson (Carlisle) (Con) I beg to move, That this House has
considered the contribution of food and drink to the UK economy. It
is a pleasure to serve under your chairmanship, Mr Davies. I am
delighted that we have the opportunity to debate the importance of
the food and drink sector for the UK economy. I also mention that I
am the chair of the all-party parliamentary group for food and
drink manufacturing. During the pandemic, we rightly clapped
and...Request free trial
(Carlisle) (Con)
I beg to move,
That this House has considered the contribution of food and drink
to the UK economy.
It is a pleasure to serve under your chairmanship, Mr Davies. I
am delighted that we have the opportunity to debate the
importance of the food and drink sector for the UK economy. I
also mention that I am the chair of the all-party parliamentary
group for food and drink manufacturing.
During the pandemic, we rightly clapped and acknowledged the work
and dedication of the medical staff, who did so much for the many
people affected by covid. We rightly recognised the commitment of
those who continued to work in supermarkets and the many drivers
who ensured that the deliveries actually got through. However,
there were many other unsung heroes in many different industries
and sectors who also helped to ensure that our society continued
to function and that life continued in a manageable way.
One such group was the food and drink manufacturing sector. Hon.
Members may recall that, at the beginning of the crisis, there
was some concern that our food shelves could become empty or the
supply of food would be greatly reduced. The adage is that if
there was no food available, it would not be long before there
was a major crisis, panic buying and potentially something rather
worse. That did not happen. Indeed, the factories, sometimes in
very difficult circumstances, continued to produce the food and
drink that we as a country needed. The deliveries continued to be
made, the supermarkets were supplied, the shelves remained full
and families continued to shop in the knowledge that there would
be food to buy.
There was no panic buying, except—interestingly enough—of toilet
roll and pasta, which to this day I do not understand.
Nevertheless, that did seem to be something that exercised many
people up and down the country, but even that was short-lived. We
therefore have a lot to thank the food and drink sector for and,
very importantly, all those who work in it. At the time, there
was some recognition of their work, and clearly there was a
greater awareness of the importance of the food and drink sector,
of the vital need to ensure the supply of foods to shops, and of
the overall significance of the sector to our society. In many
respects, that awareness has sadly disappeared. I believe this is
extremely unfortunate. We should be far more aware of the nature
of the sector, how important it is, its many strengths, and also
its weaknesses. This is about not just the basics in life, such
as the supply of food, although that is extremely important, but
the real and substantial contribution that the sector makes to
our economy, both nationally and locally.
I have a few statistics and facts about the sector. The food and
drink sector is the largest manufacturing sector in the United
Kingdom. I am amazed at the number of people who are surprised by
that. They often think that pharmaceutical, automobile or
aerospace would be the largest manufacturing sector, but in
reality the food and drink sector is our leading
manufacturer.
It has a turnover of more than £104 billion, representing 20% of
all UK manufacturing. It contributes over £29 billion to the
economy, and directly employs over 440,000 people and thousands
more indirectly. Think of the many brands, a large number of
which are iconic and international—the very best of British
products. Exports exceed £23 billion, going to more than 220
countries and territories, with a huge potential for much
more.
We should also be aware of the contribution the sector makes to
the local economy. It is often a substantial local employer,
which has a significant impact on the performance and growth of
local economies, and offers employment and training opportunities
to local people.
My constituency of Carlisle is a prime example. Nestlé employs
400 people. It is the largest food and drink company in the
world, a significant exporter and a purchaser of much of the milk
that is produced by local farmers. The 2 Sisters Food Group
employs nearly 1,400 people, and if I were to have a ready-made
meal from Marks & Spencer, it would probably have been
produced in the factory in Carlisle. McVitie’s, part of Pladis
Global, employs nearly 800 people. Talking of brands, Carlisle
produces the iconic Carr’s water biscuits and, of course, 6
million custard creams every single day.
These businesses make a huge contribution to the Carlisle economy
and the wider regional economy. Think of the spending impact that
2,500 directly employed staff have on the local economy, and
those are just the larger employers, as these figures do not
include the many smaller businesses.
Indeed, the sector as a whole is incredibly diverse, with over
10,000 manufacturing businesses, most of which are small and
medium-sized enterprises. In reality, there are very few large
players, which can be both a strength and a weakness for the
sector. It means it is a dynamic sector, with much innovation,
but at times it also means that the voice of the sector is not
heard as much as it should be.
(East Yorkshire) (Con)
I congratulate my hon. Friend on securing this important debate.
He is making some very interesting points, but does he agree that
one of the problems the sector has had in recent times is labour
shortages? They do not just affect the retail end of the sector,
but the farm gate, with many pig farmers, for example, suffering
from a lack of qualified abattoir workmen. Is this not something
that needs to be addressed?
My right hon. Friend is absolutely right. Indeed, I will come to
that later in my speech, but he has picked up one of the key
issues that relates to the sector at the moment, and that extends
beyond the food and drink sector, which I fully acknowledge.
The sector can be dynamic, but sometimes the voice of the sector
is not heard as much as it should be. This can be a drawback, and
something of which the Government should be acutely aware. Just
because it does not have the loudest voice, is not the most
glamorous sector and does not have a few substantial players with
easy access to Government, it is still vital that the industry’s
concerns are heard at the very highest level of Government.
I have talked about the economic importance, but I am fully aware
of the health issues surrounding this sector as well. I
appreciate that we, as a society, have become concerned about
obesity and health, and rightly so. To be fair, the industry gets
this and is aware of the criticism that is often directed,
rightly or wrongly, at them, partly because of their products.
However, the issues do not wholly lie with the industry. Indeed,
the industry has made huge strides in producing many new products
that are healthier and reformulating existing products, and
substantial reductions in salt and sugar have helped to improve
many of the products.
New products that have been brought to the market often reflect
consumers’ interest in these healthier products. I must,
therefore, question just how useful schedule 17 to the recent
Health and Care Bill will be. The industry is already working
hard to improve its products, it co-operates fully with the
Government and is receptive to change. However, as a society, we
must be realistic and look for other solutions to obesity
concerns. We cannot and should not overlook our personal and
parental responsibilities. I suspect that the provisions of
schedule 17 are unlikely to produce any real improvement, as some
people anticipate.
The purpose of this debate is primarily to raise awareness of and
the success of the food and drink manufacturing sector, its
contribution to our country, what the Government can do to
support it, and the challenges it faces in future.
(South Holland and The Deepings)
(Con)
I congratulate my hon. Friend, as has already been said. I know
he is a great champion of the British food industry. There is
something very straightforward that Government could do: they
could ensure that public sector purchasing—the procurement of
food—prioritised and favoured domestic produce. We make some
wonderful things in this country, yet we continue to import far
too much food. That would add to traceability, food security and,
frankly, simply back Britain. The Government should buy British,
and I hope the Minister will confirm that that is exactly what
they intend to do.
I very much agree. The two key parts of Government policy in
terms of security are energy security and food security. At
present, we probably import more food than we should.
I want gently to challenge the Government on some of their
attitudes and thinking towards this sector. First, what will the
Government do to help promote the sector domestically and
internationally?
(Bury North) (Con)
I am sorry to interrupt my hon. Friend, who is making an
excellent speech. One of the sectors in the food economy that
concerns me is fishing. As my right hon. Friend the Member for
South Holland and The Deepings ( ) said, in this country we do not
buy our own produce. How can we encourage people in this country
to buy the brilliant seafood we produce all round the coastline,
so that it is not reliant on a foreign market?
I am interested to hear what the Minister has to say on that
point. How can the Government help our industry both domestically
and by creating greater opportunities in the export market? We
need to continue to see the success of the industry and exploit
the opportunities in both our domestic market, as my hon. Friend
the Member for Bury North () just said, and in exports.
The development of new products, the competitiveness of the
sector and the opportunity to export are vital to our country.
However, there is sometimes a feeling that other countries
promote this sector far better than we do. I am interested to
hear what plans the Minister has to improve that.
The Minister knows that hers is a sponsoring Department for the
food and drink sector. Therefore, will the Department with such
responsibility challenge in a more constructive way some of the
unreasonable pressures that sometimes emerge from the health
lobby? As I said, the sector has made great strides on the health
issue and does work with Government. Everybody accepts that more
needs to be done, but a realistic approach is fundamental.
The supply chain is critical to all industries and the food and
drink sector is no different. The appointment of Sir David Lewis
as the new supply chain adviser is welcome. I know that the Food
and Drink Federation will fully engage with the new supply chain
advisory group. It is an outstanding advocate for the industry
that works well with Ministers. I am sure the Minister will
comment on that in her remarks.
None the less, there are concerns about the supply of food and
the inflationary pressures in the supply chain. Those will
undoubtedly have an impact on the consumer in due course. That
leads on to issues surrounding our trading relationship with the
EU. There are concerns about the border controls on exports, but
also the very real issue of shortage of appropriate labour. As we
know, there is a shortage of HGV drivers, farm workers and
factory workers. I can easily give local examples of the firms I
have already mentioned and the issues they have with securing
employment. We also have pressures in the tourist industry, which
compounds the problem in places such as Cumbria.
(Amber Valley) (Con)
I agree with my hon. Friend on this point: the shortage of labour
is a real problem for employers in my constituency at this time
of year, as they are quite busy in the run-up to Christmas. Does
he agree that the industry needs help to increase its
productivity and invest in the new machinery that it needs, and
that in the short term it probably needs some access to
additional labour to help it produce the products that we all
want to see in the shops?
I very much agree with my hon. Friend; it is about striking a
balance between the two. Clearly, at this moment in time there is
a shortage of labour, and the industry needs to secure that
labour if at all possible. However, I think the industry itself
would accept that driving productivity is equally important, and
that through productivity it can quite often end up needing fewer
employees while being a much more productive sector. My hon.
Friend will know from our visits to factories that the food and
drink sector is an incredibly innovative and productive sector
overall. It is therefore vital that industry and Government work
together, so I would be interested to know what actions the
Government are taking on the issues I have already mentioned.
As I have already said, the food and drink sector is a hugely
important part of our economy. It employs a large number of
people and contributes significantly to our economy, but there is
the danger that the Government add more and more cost and
regulation, which endangers its success. A small but significant
example is the definition of “small and medium-sized enterprise”
in the Health and Social Care Bill, which could have a huge
impact on UK businesses and give a competitive advantage to
foreign competition.
(Central Suffolk and North Ipswich) (Con)
I congratulate my hon. Friend on securing the debate. One area in
which I am sure much of the UK food and drink industry would
welcome greater support from Government is that of honest food
labelling. As it stands, food could be farmed in Argentina or
elsewhere overseas, but packaged in the UK and still labelled as
UK produce. Does he agree that the Government need to look at
that area, so that we can back British farmers and British food
producers more effectively and make sure we have informed
consumers who can back our food producers in the shops?
My hon. Friend makes a valid point. Interestingly, food labelling
could potentially give us an advantage as a country when selling
those products: the UK label, the Union Jack, has great resonance
with many overseas consumers as well as our own domestic
consumers.
On the cost and regulatory side, we also have the prospect of the
extended producer responsibility. The sentiment behind it may be
sensible, but the additional cost to the industry will
potentially have serious consequences. Have the Government fully
thought through the very real cost implications? I appreciate
that the relevant primary legislation, the Environment Act 2021,
has already passed, but it is the secondary legislation that will
determine the detail. As the Minister will know, the industry is
concerned about the scope, timescale and implementation of those
regulations. It believes that the costs have already risen and
could reach £2.7 billion for the industry, which will inevitably
be passed on to the consumer. Indeed, it is estimated that each
household will face a £75 increase in its annual food bill. Is
that something that the Government are happy with? If not, will
they work with the industry—particularly, as I have already
mentioned, the FDF—to ensure that the regulation and costs are
proportionate, and that the industry can absorb them without
losing its competitiveness? If it cannot, there is a real danger
that the regulations could backfire and be detrimental to an
important sector of our economy.
In conclusion, I look forward to hearing from the Minister on the
specific points I have raised. I look forward to her comments on
how she intends to properly and fully support what is one of the
unsung successful sectors of our country, but also one of the
most important, as has been conclusively demonstrated during the
pandemic through the industry’s performance in making sure that
we continue to be fed at a very difficult time. I also hope that
the Minister and her Department will fully recognise the
importance of this sector, celebrate its successes, and truly be
a champion of the industry.
(in the Chair)
Order. I call first, as not everybody had
previously indicated that they wished to speak, but we will make
a note.
16:54:00
(Bury North) (Con)
I congratulate my hon. Friend the Member for Carlisle () on securing this debate on
what is a very important issue. The debate has a very wide scope,
and we could talk for many hours on the subject, but I want to
talk about the interconnectivity between the food and drink
industry and the market in this country—how we can ensure that
suppliers of food and drink, big or small, local or national,
have the best possible conditions for people to buy what they
produce. I am meeting a little business on Friday that works in
the production of gin. How are we going to ensure that it is
competitive—that the markets are there for people to buy that
product?
I am passionate—I do not think this is a secret—about pubs.
Perhaps I should not frame it in that way. I have set up an
all-party parliamentary group on tenanted pubs. One of the points
that is directly linked to the argument put forward by my hon.
Friend the Member for Carlisle, is that we cannot see the food
and drink industry on its own; it is interconnected with so many
different markets. Tenanted pubs are going through a very
difficult period. They are the buyers of the meat from local
farmers, the drinks from the suppliers I just mentioned. To allow
the industry to flourish, as we all want it to, we have to
support the market for it. That is pubs and restaurants—pubs in
my constituency such as the Waggonmakers, the Dungeon and The Two
Tubs, which just won my pub of the year competition.
Until we as a country consume the shellfish from the coast of
Cornwall or the east coast around Bridlington, until we have
those markets and create the campaign and market conditions
where, as a matter of course, we are buying and making best use
of the fantastic products we have throughout the country, then we
will have failed. There is much to be done as a Parliament in
championing British food. We have some real champions in this
room. The small producers of quality produce and drinks require
this Government to support them in any way possible. The Hearth
of the Ram, a great pub in Ramsbottom, buys everything local. If
we did not have it, there would be no market for local producers
in my area.
Local, small producers are part of this debate, but I fully
accept that the scale of the contribution that the food and drink
sector makes to our economy should not be underestimated. As a
native of Carlisle, I recognise a lot of what my hon. Friend the
Member for Carlisle said. Two of my favourite places on earth,
Carlisle and Bridlington, are represented in this room today. I
am delighted to have taken part in this debate.
(in the Chair)
I will take the Front-Bench speakers at around a quarter past 5.
I invite to contribute.
16:57:00
(Stockport) (Lab)
It is a pleasure to serve under your chairship, Mr Davies. I
start by congratulating the hon. Member for Carlisle () and thanking him for
securing this important debate.
Although I am sure that Members from all parties will be keen to
share details of the great local businesses in their own
constituencies, I can truly assure everyone that none of them can
quite compete with Stockport. We have a massive range of food and
drink businesses in the constituency. From the vegan Hillgate
Cakery in the heart of my town centre, run by Simon and Sarah, to
Robinsons pubs, which stock some of the best beer in the country,
Stockport boasts some of the best food and drink venues that the
UK has to offer. Like the hon. Member for Carlisle, I also have a
McVitie’s biscuit factory in my constituency. It is part of the
Pladis Group, which is one of the largest employers in my
constituency.
The pandemic has put a significant strain on the hospitality
industry, with the sector seeing one of the biggest economic
declines of all sectors of the economy since the start of the
pandemic, but the industry is resilient. Businesses have
re-opened, adapted and transformed. However, the effects of
covid-19 have exposed some shameful pre-pandemic trends.
The pub economy, part of the lifeblood of our country, has been
particularly damaged. Between 2010 and 2020, Stockport lost 31%
of its pubs. In the year 2019-20 alone, Stockport saw a reduction
of 8%. That is in spite of the fact that it has been reported
that the brewing and pub sector contributes £28 million to wages
locally, employs over 1,400 people and contributes £26 million in
taxes.
In today’s debate, we celebrate the contribution of food and
drink to our economy, but it also gives us an opportunity to
reflect on and push for what needs to be done to protect and grow
this important industry. Independent businesses need to be given
assurances that they will be protected in the depressing
situation that there may be another lockdown. Far more needs to
be done to support local retailers in the face of a growing
online multinational markets. Equally, the Government need to
legislate to ensure that all those working in the sector—all of
them—earn the Living Wage Foundation’s living wage, so that their
work pays.
Any discussion about the contribution of food and drink to the UK
economy must include the workers in the sector, who are sadly
often overlooked. Workers in the food and drink industry, from
those in manufacturing and production to those in the service
sector, often work long and unsociable hours so that we can all
enjoy ourselves. Since the pandemic, there has been a crisis in
hospitality staff numbers. This is often attributed to a culture
of harassment, burnout and poor pay. Research by the Union of
Shop, Distributive and Allied Workers revealed than nine in 10
retail staff has been victims of abuse, threats or violence. That
of course includes those working in the food and drink
distribution sector. That is why I am backing the campaign to
legislate to protect retail workers in the face of abuse.
Although the picture seems wholly bleak, sharing food and drink
unites us and our communities. I was so proud the day Stockport
gained the Purple Flag award in recognition of the excellent
management of our town centre at night back in 2019. So much of
that is due to our independent food and drink retailers. Their
passion and drive to provide for the people of Stockport and all
those who visit is truly inspiring. I encourage all Members to
come and visit Stockport to see what our excellent food and drink
businesses have to offer.
17:01:00
(South Holland and The Deepings)
(Con)
I have only two points to make, and given that other Members want
to contribute, I shall make them briefly.
First, I want to amplify the point I made about procurement. In
my various roles as Government Minister —during which time, by
the way, the Minister served as my Parliamentary Private
Secretary—I attempted to persuade the six Government Departments
that I served to buy British. It was a struggle throughout. I was
usually told that it was because of some regulation—state aid
rules were often cited. There was a reluctance on the part of the
administration to even entertain the prospect of prioritising
British products and services. This has to change. It is
disadvantageous to our economy. It is, frankly, out of keeping
with the expectations of our constituents. It is intolerable, as
it lengthens the supply chain, with all the consequences that
brings.
My hon. Friend the Member for Carlisle (), who very sensibly brought
the debate to this Chamber, emphasised the issue of food
security. He is right to say that there are other factors—air
miles being one of them, as well as traceability and similar
matters. Again, I urge the Minister to look at this matter
closely. I have no doubt that she will face a struggle, but I
know what her perspicacity, determination and assiduity look like
from the time we spent together in government. I am confident
that if any Minister can do this, it is her. I know that her
heart is in the right place, as it is in respect of my second
point—I promised to make only two point and am sure that people
will be counting, so I had better stick to my promise.
Secondly, we must shorten the food chain. We have far too much
food travelling immense distances across the country, with all
kinds of consequences, not least those that I have just
described: travel miles and traceability problems. We have got to
get back to purchasing what is grown locally. I represent an area
that might be described as the food basket of Britain. We produce
immense amounts of foodstuffs in South Holland and the Deepings,
both through the good work of primary producers—farmers and
growers—and through the food sector itself. I have a number of
food businesses located there.
Imagine the nonsense of growing a cauliflower in Holbeach, in my
constituency, transporting it to some distant distribution centre
miles away for it to be processed, whatever that means—it usually
means being stuck on a piece of polystyrene and covered in
plastic. It would then be sent back by truck to Holbeach to be
sold in a supermarket yards from where it was grown. My parents
would have regarded that as some sort of dystopian nightmare 50
years ago. It would have been the stuff of fiction, but fiction
has become fact in our lifetimes. Are we prepared to sustain
this? We certainly should not be if we have any sense.
Local production and shortening supply chains helps our own food
sector and is also the right thing for local communities, because
it sustains communities. We must build a kind of fraternal
economics, if I can call it that— this will be dear to the heart
of the shadow Minister, who agrees with me on so many things, to
his great embarrassment, I suspect—that sustains a strong degree
of social solidarity, because what we do economically has a huge
effect on our sense of local purpose and pride and the
connections between people.
We have to ask: what kind of future do we want? In asking that
question, we must face these huge challenges of changing trends
that have prevailed for the whole of my lifetime. There is no
such thing as a predetermined course of history—that is a
Whiggish nonsense. We must create a future better than the
present. We can do that by ensuring that more food is consumed in
the locality and country in which it is grown.
17:06:00
(Orkney and Shetland)
(LD)
I have a lot of sympathy for the argument of the right hon.
Member for South Holland and The Deepings ( ) about the shortening of the
supply chain, as he called it, but I do not think that any of us
should be in any doubt about the complexity of that task. This is
essentially about the transport around the country of goods. He
mentioned cauliflower. From my family perspective, I come from
and was raised in a meat-producing community. The consolidation
of abattoirs into large central points is part of that whole
process. That did not happen by accident; it was a consequence of
the dominance of the supermarkets as the customers for food
production in this country. Until we tackle that and level the
playing field between the producers and the supermarkets—in that
regard, we need to get a serious grip and give proper powers to
the Groceries Code Adjudicator—nothing in that respect will
change.
I will be very brief. The right hon. Gentleman makes an excellent
point. I served with him in Government when he was a member of
the Cabinet and I attended it. He was a very good Secretary of
State, by the way. Is one allowed to say that? I suppose one is.
He is absolutely right. We need to back small retailers and face
down the huge power of the supermarkets, which frankly sell short
their suppliers and bemuse, befuddle and make immense profits out
of the people who shop in them.
Mr Carmichael
I am grateful to the right hon. Gentleman. I essentially agree
with his analysis. Since I am talking about producers, I should
perhaps have reminded the House at the start of my contribution
of my entry in the Register of Members’ Financial Interests. I am
an unremunerated partner in my family firm in Islay—I am one of
the few people who seem to have found a second job that actually
costs them money, rather than bringing it in.
To our local economies in Orkney and Shetland, food and drink
production is absolutely critical and essential. Orkney has
Orkney beef and Orkney lamb, and Shetland has Shetland lamb.
Shetland is one of the largest and finest seafood-producing ports
in the country, producing Shetland shellfish, as well as our
substantial and very valuable aquaculture industry, which
produces salmon in particular. It has been fascinating to see
that grow over the years. When I was first elected in 2001, we
had one and a half whisky distilleries—one full time, one part
time—and two breweries. Twenty years later, we have two full-time
distilleries, four breweries and four gin distilleries. Lest
there be any doubt, I do not take single-handed credit for that
growth, contrary to popular belief. We also see the way in which
that growth brings with it myriad small artisan producers—people
adding value to local produce, which is critical to the success
of our local economy.
Indeed, it does not stand on its own; as a consequence of the
quality of local food produce in Orkney and Shetland, we have
seen a significant growth in the visitor economy, because being
able to offer good-quality local produce is enormously attractive
to those who wish to visit the isles. I often feel, however, that
somehow or other that growth has been achieved despite rather
than because of Government intervention. Orkney, which is one of
the best suckler beef-producing counties in the country, has seen
its abattoir regulated out of existence.
At the moment, we have a consultation from the Scottish
Government about the transportation of live animals by sea. If
the proposals under consultation were to go ahead, we would see a
massive reduction in the number of days on which we could ship
cattle off the islands. The way in which cattle are shipped from
Orkney and Shetland is in cassettes. It was designed by local
farmers along with Ministry vets and the shipping companies some
20 years ago, and is there as the gold standard in animal
transportation for all to see, but that consultation, were it to
be followed through by the SNP-Green Administration in Edinburgh,
would be an existential threat to agriculture in the northern
isles.
I will touch briefly on protected geographical indications. The
conclusion recently of the Norway, Iceland and Liechtenstein
deals—an interesting triumvirate—is causing concern among many
food producers. The absence of protection for PGIs, which are
very important to us in the northern isles, for our export
markets is causing concern. It may not be massively important in
those three deals, but the danger is always that, if we allow a
provision in one deal, those who come along the line later on
will want to follow.
Time is against me. I am grateful for the opportunity to
contribute to the debate. This is, for us all, an enormously
important industry. For communities such as mine, however, it
goes beyond important; it is vital to our future.
17:12:00
(Strangford) (DUP)
Thank you, Mr Davies, for letting me speak. I too thank the hon.
Member for Carlisle () for setting the scene on a
subject that every one of us takes a great interest in. I am
pleased to see the shadow Minister, the hon. Member for Cambridge
(), in his place. I am also
pleased to see the Minister back in Westminster Hall; we seem to
be here quite often—this is two days in a row—but, again, this is
something we are both interested in. I was intrigued by the
introduction from the hon. Member for Carlisle. He mentioned some
of the products. I have to say that, in my house, not just for me
but for my grandchildren, custard creams are top of the tree when
it comes to biscuits. I usually dunk them in tea, but the
children just eat them by the score. The more packets I bring in,
the more they eat, so I think we are keeping the custard cream
sector going in my constituency.
There has been much emphasis today on the creation of a more
resilient food and drink system across the United Kingdom,
especially after the consequences of the pandemic. The
hospitality in particular sector has suffered incredible
financial and personal losses. I know that that is nobody’s
fault, by the way. It is not the Government’s fault; it was the
pandemic, and the changes that it made, but it has affected the
food and drink sector, especially the EU-UK economy.
In addition to the pandemic, other factors have had a negative
impact on the food and drink industry, such as Brexit. The
Northern Ireland protocol has had an horrendous impact on us in
trying to get our products out and back in again. Our biggest
trading partner is the UK mainland. The UK Food and Drink
Federation says that the UK has lost over £2 billion in sales. We
have been proven to be heavily reliant on the EU in the past in
relation to food and drink; 28% of our food supplies come from
the EU, and the UK’s ratio of food production to supply has
dropped by 10% since the 1990s.
Northern Ireland food and drink is worth £5 billion per year. In
2019, just before the pandemic came in at the end of the year, we
had an increase in Northern Ireland of 4% on the year before, to
£5.77 billion, and some 25,000 jobs. Therefore, when it comes to
the Northern Ireland economy, and particularly that of my
constituency, the food and drink sector is massively
important.
The UK food and drink sector involves 440,000 people, has a
turnover of £104 billion and accounts for 20% of total UK
manufacturing. I know that the Minister is well aware of the Red
Tractor labelling, which was a proactive move by the Government
that I was happy to support. I always like to see the Union flag
on labels, not just because I am a Unionist but because it is my
country and I am proud of it. I am proud of my Union flag and
want to see it shown wherever it can be. We must, however, set
some goals for the hospitality sector to regain what has been
lost in the past year.
In 2019, UK food and drink exports exceeded all expectations,
going to 220 countries worldwide. That was truly brilliant in
trade. We should be proud of what we have done and, now that we
are out of the EU, look to where that extra business is going to
happen. In Northern Ireland, Brexit and the pandemic have led to
a greater focus in the industry to ensure that, if something
similar happened, we would be in a better position to respond. I
believe that we can do so.
Does the hon. Member agree that, now that we are out of the EU,
we can properly address issues such as deficiencies in food
labelling?
I absolutely agree with the right hon. Gentleman. We are in a
better position for that to happen.
A more localised approach to food production would be beneficial
to our systems. On how we can do it better together here and in
Northern Ireland, Scotland and Wales, Mash Direct, a company in
my constituency, does significant work in the Strangford
community and beyond, delivering to the UK mainland, the EU and
the middle east.
I want to give right hon. and hon. Members a culinary experience
of Strangford. We are lucky to have Lakeland Dairies, which
produces some of the best milk in the world because the grass is
sweeter—the Park Plaza hotel just across the way has its wee milk
sachets to go in a coffee, so they have made it here. For the
main course, there is the beef, lamb, pork or chicken from my
constituency. It is not just that—alongside, you can have Mash
Direct’s products, Willowbrook Foods’ products and Rich Sauces.
You can have Portavogie prawns and Comber potatoes, which are
both protected under the EU, and you can finish the meal with
Glastry Farm ice cream. That is another company in my
constituency that has done extremely well in food and drink. Then
there is Rademon gin and Echlinville whiskey, local beers and all
the cheeses you can have to finish up. Right hon. and hon.
Members who want a culinary experience should come to Strangford
because it has got everything. They could not go to any better
place for a restaurant or a menu. All those things are in my
constituency.
The importance of the hospitality sector goes beyond turnover.
Our exports make a key contribution to overall industry growth.
Greater understanding of industry performance often depends on
Government reporting. I am confident that the Minister well
understands the importance of that for us in Strangford and
indeed for the whole of the United Kingdom.
Let us see all regions of the United Kingdom of Great Britain and
Northern Ireland work and sell together across the world. I
believe that the world is our oyster for selling things now that
Brexit has been undertaken. Perhaps it is not entirely the same
for us in Northern Ireland as it is for the rest of the UK, but
we hope that we will shortly overcome that. We should grasp the
opportunities for food and drink sales with both hands.
17:19:00
(Angus) (SNP)
It is a pleasure to serve under your chairmanship, Mr Davies. I
thank the hon. Member for Carlisle () for calling the debate.
Going to Strangford for the ultimate British Isles culinary
experience? Well, we will see about that in the course of the
next five minutes.
It is a pleasure to sum up the debate. We sometimes get those
calls from the Whips where they rhetorically ask whether we would
mind going to Westminster Hall to sum up a debate on anything
from synthetic fuels to the shape of clouds, but this one is a
shootie-in for a Scottish MP, much less the MP for Angus. I like
to explain to English colleagues that if Kent is the garden of
England, Angus is very much the garden of Scotland, and it is in
that context that I will sum up.
Food and drink manufacturing is the largest manufacturing sector
in the UK. I am grateful to the hon. Member for Carlisle, who
secured the debate, for highlighting that point, because it is
often lost in the noise of other, more prominent industries.
There is a footprint of food manufacturing and production in
every single constituency across these islands, and the sector
contributes more than £120 billion to the UK economy. If that
sounds good for the UK, we have bells on it in Scotland, because
exports of Scottish food and drink make a vital contribution not
only of many billions to the Scottish economy but therefore, for
the time being, to the UK economy.
We export to countries worldwide: Scotland, with 8.2% of the UK
population, delivers almost 20% of the food and drink
exports—doing the heavy lifting once again. It is little wonder,
with iconic produce such as Scotch lamb, Aberdeen Angus beef and
Scotch whisky. I could go on—[Interruption.] You want me to go
on, Mr Davies? Okay. I will add to that list Irn-Bru, haggis,
shortbread, smoked salmon, porridge, Scotch broth and steak pie,
and let us not forget that the iconic Skull Crushers sweets were
invented in Scotland.
That is just Scotland’s produce, and I have not started on
Angus—specifically our world-famous Arbroath smokies, of which I
know the Minister is a fan, and the supreme champion of savoury
pastries, the Forfar bridie. Looking around Westminster Hall this
afternoon, I see a lot of potential Marks & Spencer
customers, so let me assure them that their summertime Red
Diamond strawberries from Markies come from Angus too, because
Angus is the leading soft fruit producer across these
islands—[Laughter.] That is uncontroversial.
Scotland delivers 80% of the valuable seed potato sector, and
Angus is at the forefront of that, which is why McCain has its
Pugeston facility in Angus. On the drinks side, to name just a
few, we have Ogilvy vodka, made from potatoes in Charleston; the
Gin Bothy up the road in Glamis; the Glencadam distillery in
Brechin; and the Arbikie Highland Estate distillery at Lunan, not
far from Lunan Bay Farm, which produces Scottish asparagus and
pasture-fed goat meat just down the road from the lobsters landed
at Ferryden. If anybody is looking for directions to Angus, I can
provide them after the debate.
So it is all well and good, then? No, I am afraid it is not.
Remember that seed potato sector? Thanks to the UK’s hard Brexit,
the sector has lost not only its European Union market access,
but its Northern Ireland market access. The hon. Member for
Strangford () can no longer buy seed potatoes from Angus, and that
is much to be regretted at both ends of the transaction. Neither
can his farmers take their bulls to Stirling to be sold any more,
because if they do not sell, farmers will have to pay to keep
them there because they cannot take them home as they used
to.
The jute sacks that seed potatoes need, which are imported from
India and Bangladesh, were tariff-free while we were in the EU,
but now they come with tariffs. That is a matter for the
Department for International Trade to intervene on, but it seems
unable or unwilling to do so. Similarly, I have asked the
Foreign, Commonwealth and Development Office to intervene, along
with Department for Environment, Food and Rural Affairs and the
Department for International Trade, on the proscription of pork
exports to China—I know the Minister is aware of this—from the
Brechin pork processing plant in Angus, and they are unable to
help with that either.
It is interesting listening to right hon. and hon. Members today.
If Hansard were to do a Wordle of today’s debate, the big word in
the middle would be “labour”. There can be no doubt about the
crippling labour shortages and how they threaten to undermine the
great strides made in market development—[Interruption.]
(in the Chair)
Order. We need to suspend for Divisions.
17:23:00
Sitting suspended for Divisions in the House.
17:48:00
On resuming—
(in the Chair)
Right—I have had my Angus steak. , to finish off.
Thank you, Mr Davies. Before we were interrupted, I was talking
about the crippling labour shortages that threaten to undermine
the great strides made in the market development and process
efficiencies of the food production sectors.
Industry experts are being undone by Whitehall Departments and
Ministers with little knowledge of, much less regard for, this
industry, although I would not apply that to the current
Minister, who will be answering today and—in my estimation, at
least—gets the industry and has its best interests at heart.
However, she is part of an Executive who are putting substantial
problems in front of the industry.
In closing, I will mention the Home Office, with its arbitrary
£30,000 figure, which has deliberately made it as difficult as
possible for the industry to access those figures. The United
Kingdom Internal Market Act 2020 is an extremely problematic
piece of legislation, which does nothing to enhance the
devolution settlement or relationships between the industries
north and south of the border. I met with the National Farmers
Union of Scotland this morning, which described a perfect storm
coming down the road, and we need to protect this valuable
industry at all costs.
17:49:00
(Cambridge) (Lab)
It is a pleasure to serve with you in the Chair, Mr Davies. I
congratulate the hon. Member for Carlisle () not just on bringing the
debate but on introducing it in a very informative way. I will
not repeat the good points he made about the success of the
sector. It has been a remarkably wide-ranging debate, from
tenanted pubs, to Strangford, to whisky in Scotland—and who could
forget the invitation to Angus, which I am sure we will all be
taking up?
It has been a remarkable achievement of the sector to maintain
the reliable availability of food and drink at prices that most
can afford 24/7, 365 days a year. There is much to be proud of,
but it has been a tough time. I am grateful to many in the supply
chain who speak to me regularly, particularly the Food and Drink
Federation in the context of today, but the story over the last
18 months is a mixed bag. I want to particularly focus my
comments on those who work in the sector and pick up some of the
points made by my hon. Friend the Member for Stockport ().
At the retail end, the violence and abuse that shopworkers face
has been highlighted by the Union of Shop, Distributive and
Allied Workers. Sadly, I see it in my own city. I pay tribute to
the Co-op stores in my city and particularly to PC Matthews—or
EJ, as she is known—because they have made a huge difference in
cracking down on some of this abuse. People should not face abuse
when they are at work.
It is not just the retail sector; as we go down the chain, there
is the processing sector. Far too many people are working on
contract and too many are on poor wages in shared
accommodation—frankly, there is a real covid risk there. Sadly, I
am told by the GMB that some employers that introduced more
flexible approaches during the pandemic have been pulling back
from some of those. That is really dangerous for all of us. We
cannot have people going to work because they cannot afford to
isolate. With omicron upon us, may I ask the Minister what plans
she and her colleagues have to tackle the sick pay issue once and
for all? Some employers have behaved well, but others have not
and we need the Government to act on that.
I am also grateful to the Bakers, Food and Allied Workers’ Union
for highlighting the sad issue of low pay in the sector, which
means that some are not able to afford the very products that
they produce, because of their low wages. In a survey, it found
that 40% had reported not being able to afford food on some
occasions, which is shocking.
I pay tribute to my hon. Friend the Member for Liverpool, West
Derby (), who has been highlighting this
scandal through the Right to Food campaign. The campaign has
launched a study to look at the impact of food poverty within the
food sector, and I commend my hon. Friend for that, but what are
the Government doing? Can the Minister tell me what she is doing
to tackle low pay and insecurity within the sector? What analysis
has her Department done?
That leads me to the point made by a number of hon. Members about
labour shortages in the sector. We all know the problems, but I
ask the Minister on behalf of many: when are we going to have
some clarity on the seasonal worker pilot scheme for next year?
Producers really need to know. One operator told me recently that
in some farms up to 35% of edible crops were wasted last year, as
a direct result of these shortages. These points were raised
effectively earlier in the debate.
What about ornamentals? Does the Minister really want almost 300
million daffodils wasted again next year? There are also the
points made about the pig sector. The figures that I heard,
yesterday, were an on-farm cull of 16,000, but we know that
actually the figure is sadly likely to be much higher. How many
of the pork butchers that were promised have arrived? How much
has gone into private storage so far? I fear that the answer may
well be none and none.
We also need to look at the wider supply chain issues. Lots of
points have been made about the resilience of our food supply.
The right hon. Member for South Holland and The Deepings ( ), who is no longer present, made
a point about shorter supply chains being necessary. We know that
under the Agriculture Act 2020, the Government are bound to
produce a report on food security by the end of the Session. That
is within two weeks.
indicated assent.
I see the Minister nodding. I wonder whether she could tip us off
about when we might expect that.
We also need fairness within the supply chain. We have heard
about the power of the retailers, and the imbalance of power.
What we are seeing at the moment, I fear, is that although
consumers may be benefiting from the price competition between
retailers, they are just pushing the pressure down the supply
chain harder and harder, which is not sustainable. Perhaps she
could tell us something about where the Government have got to on
those supply chain contracts, and on dairy contracts, the
consultation on which was, of course, a while ago. She may need
the opportunity to once again comment on competition laws, and
suspension and relaxation, which has happened a number of
times.
In the interest of time, I will not make any further points on
farming and environmental land management, but we are hoping for
some more information soon. Finally, I praise and thank all those
in the British food and drink sector. We are fortunate to have a
sector that can produce food to such good standards and to such
excellent quality, and we cherish it. That is why we want a plan
from the Government. We have repeatedly called on the Government
to produce a plan for the sector: a plan for food, a plan to get
to net zero and a plan to buy British. If the right hon. Member
for South Holland and The Deepings were here now, I would tell
him, “There is a party that will do that!”, if he is dissatisfied
with his own side. We want to get to a situation where people can
buy our food with confidence as part of that strategy, but that
strategy must also improve conditions for the workers throughout
the sector who have given so much. There is plenty to celebrate,
but much to be done.
(in the Chair)
Over to you, . We need to end at 6.5
pm.
17:55:00
The Minister of State, Department for Environment, Food and Rural
Affairs ()
Thank you very much, Mr Davies. I am sorry you have had to cope
with so many interruptions for votes during the debate. I join
everyone in thanking my hon. Friend the Member for Carlisle
() for organising such a
fantastic opportunity to talk about food and drink, which is
obviously my favourite subject. I will now refer to him as the
hon. Member for custard creams, which is how I will forever think
of him. He made a thoughtful and serious contribution, and I will
do my best to answer as many of his points as I can.
We have had a bit of a pub crawl around the nation, and I look
forward to being bought a drink in The Two Tubs. However, my hon.
Friend the Member for Bury North () also made some serious points
about the consumption of British fish, which is something we are
working very hard on with Seafish. I will definitely discuss that
matter with him outside this debate, because it is something I
feel passionately about.
From Stockport, we heard more about beer, but also a serious
point about the unsocial hours and sometimes difficult conditions
in which hospitality workers, in particular, have to work—a
useful contribution from the hon. Member for Stockport (). We heard from Shetland,
where we can get our chaser of whisky and gin, and where there
are many small artisan producers. I have enjoyed working with the
right hon. Member for Orkney and Shetland (Mr Carmichael) on some
of the difficulties that we have been able to overcome, by and
large, for his fish exporters; we will continue to do so. We also
had a culinary experience of Strangford, which was an extension
of the experience of the fish of Strangford that we had
yesterday—although very little can beat a smokie from Angus.
The food and drink sector is a vital part of our economy; it is
our largest manufacturing sector, and I certainly think about it
many more than three times a day. This is a very exciting time
for food. We are preparing for the publication of the
Government’s food strategy early next year. However, in the
meantime, before the end of this Session—on or before 16
December—we will publish our analysis of statistical data. That
may not sound exciting, but it is a large and serious piece of
work that will be used to inform the Government’s food strategy
going forward. There is a plan and it is being developed; I will
not pretend in any way that the strategy we publish next year
will be the end of the plan, but it will include many of the
solutions that we need for this important sector.
I pay tribute to Ian Wright, whose retirement do is later
tonight, for all the Food and Drink Federation’s superb
collaborative work with Government. Ian took the helm of the Food
and Drink Federation in 2015; he has represented the industry
with knowledge, passion and enthusiasm through Brexit and covid.
He has also overseen a major overhaul of that organisation, and I
salute him.
Many Members have commented on food supply chains. We have all
thought a great deal about food supply chains in the last 18
months. We know that the most effective response to food supply
disruption is industry led, but I firmly believe that Government
also need to provide appropriate support and relaxation of rules,
as the hon. Member for Cambridge () mentioned, when
appropriate. One of the most helpful things we did early on
during the pandemic was to relax drivers’ hours and extend
supermarket delivery hours.
We all know that labour is a major challenge across the industry
as we have a very tight labour market. We are working closely
with the Home Office to introduce temporary visa solutions: for
example, for poultry workers before Christmas, ensuring that
turkeys will be on the table; and for butchers, as my right hon.
Friend the Member for East Yorkshire ( ) alluded to. Other mitigations
for the pig sector include the slaughter incentive payment scheme
and the private storage aid scheme.
On dairy, yes, we consulted, and one of my first acts when I
joined DEFRA was to ensure that we did that work on the dairy
supply chain. That is coming to fruition, and I thank all dairy
farmers involved in that work. It has been a difficult and
sensitive piece of work. I hope that we will be in a position to
regulate next year, and pigs are definitely next on the list in
terms of supply chains. Sir David Lewis has been mentioned, and I
thank him for his work on the new supply chain advisory group and
the new industry taskforce, which will look to pre-empt future
issues. There will be clarity on the seasonal agricultural
workers scheme very shortly.
Tackling obesity is a priority for the Government. Some 64% of
adults are classed as obese and for children in year 6, the
figure is 40%. The strategy was set out in July by the Department
of Health and Social Care. We have ensured that some of the more
stringent requirements do not apply to smaller retailers, and it
is important that we continue to bring industry with us when
making these changes—some useful points were made on that.
Every area of the UK has drawn on the local ingredients they
produce, often because of a particular place, climatic conditions
or type of ground, to make distinctive drinks and dishes. We are
working hard to expand abroad. We aim to secure free trade
agreements with countries, covering 80% of our trade within the
next three years. We are very ambitious for this sector. We have
heard figures of £23.6 billion in 2019. We have taken some recent
action, including setting up the food export council and the new
agri-food councillors. There were announcements on that
yesterday, and I had a meeting with the Paymaster General at
lunch today to discuss the issue with people in the industry. It
is very exciting.
My right hon. Friend the Member for South Holland and The
Deepings ( ) mentioned Government
procurement. I agree that it is very important. We have not
refreshed the Government buying standards on food since 2014; now
is definitely the time to do so. We are consulting on that at the
moment. I hope that I can repay his faith in me as his willing
PPS for doing this. We will definitely place a greater emphasis
on local, seasonal and sustainable produce in the new procurement
rules.
On extended producer responsibility, our proposals are trying to
shift the payment for excess packaging waste from local taxpayers
to businesses. The analysis indicates that that will not push up
consumer prices, but I accept that further work needs to be done
to ensure that that really is the case, and it is important that
we continue to work on this issue as we prepare the statutory
instruments.
In short, the Government are totally committed to maximising real
opportunities for our vital food and drink sector across all
parts of our nations. And I don’t know about you, Mr Davies, but
I am getting hungry.
(in the Chair)
Hungry for to wind up—we need to end by
6.5 pm.
18:03:00
I thank hon. Members for participating in this debate. I have
often said that this industry affects us nationally, but equally
importantly it affects us at the local level. As individual
constituency MPs, we all know that the food and drink sector has
an impact in virtually every constituency up and down the
country, which was demonstrated by the contributions that people
have made today.
I am grateful to the Minister for her speech at the end of the
debate and for the comments that she made. I look forward to
challenging her on some of the issues that we touched on and to
maybe having further conversations with her. But as I say, I
thank her for her contribution to the debate and I will pass on
her good wishes to Ian Wright, who I will hopefully see very
shortly as he departs from the FDF. I think he has been a great
advocate for the food and drink sector, and I am sure that his
successor will continue the good work that he has done.
Question put and agreed to.
Resolved,
That this House has considered the contribution of food and drink
to the UK economy.
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