The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)
I congratulate the hon. Member for North Antrim (Ian Paisley) on securing this debate about the effect of UK exit from the EU on poultry production. As the hon. Member for Strangford (Jim Shannon) pointed out, the poultry industry has traditionally not been supported through the common agricultural policy. It has tended not to receive subsidies and, as a result, has tended to be more market focused, productive, innovative and efficient.
The poultry industry is a dynamic and valuable sector, contributing around £3.3 billion annually to UK GDP. It is especially important in Northern Ireland, as the hon. Member for North Antrim explained. In 2015, the value of egg production to the UK was £681 million, and the value of poultry meat production was £2.2 billion. The industry supports about 73,000 jobs in the UK. The sector is even more significant for Northern Ireland. In 2015, the value of output for the poultry and egg sector was over £300 million, and the industry provided direct employment to more than 4,800 people. Moy Park, which is based in the hon. Gentleman’s constituency, is an important contributor to the economy. It is the largest employer in Northern Ireland, a major supplier to UK supermarkets and restaurants, and the owner of a range of well-known brands. It is clear that the poultry industry is an important part of our economy. As we negotiate to exit the EU, we will work hard to get the best possible deal for the sector.
The hon. Gentleman covered the issue of trade in great detail. Our aim for the future is to get the best possible trading relationship with the EU and the rest of the world. High-quality poultry and eggs are key components of many of the UK’s most famous brands and value-added exports. We already export our world-class produce around the world, with UK exports of poultry meat totalling £250 million in 2016. Obviously, there has been a setback more recently with the outbreak of avian influenza, but we do want to build on our success. Action is under way to promote UK food and drink overseas, break down trade barriers and open up new international markets. That is set out in the joint Government and industry “UK Food and Drink - International Action Plan 2016-2020” from the Department for Environment, Food and Rural Affairs and the Department for International Trade.
On exit, we want the best possible terms of trade between the UK and the EU. That includes, as the Prime Minister said, a bold and ambitious free trade agreement that removes as many barriers to trade as possible. Leaving the EU gives us an opportunity to forge our own free trade deals around the world. We will work with the industry as we shape the priorities and interests for the UK agri-food sector, and explore global trade opportunities.
Underpinning our ability to trade will be effective disease control, which will always be a DEFRA priority. Disease outbreaks damage the livestock industry and undermine confidence. The need to protect the country from the risks to animal health associated with international trade is a key objective for the Government. The UK’s exit from the EU will not change that. In fact, we will become more vocal on the world stage through forums such as Codex Alimentarius and the OIE, which set standards in international food safety and animal welfare. The Government have a manifesto commitment to promote high standards in animal welfare in future trade deals, and we intend to promote that agenda globally.
I turn to the UK-Ireland relationship, which is obviously of great importance to the poultry sector in Northern Ireland.
Jim Shannon
Just before the Minister moves on from global trade, my hon. Friend the Member for North Antrim (Ian Paisley) mentioned Northern Ireland’s trade with China. Northern Ireland has already done massive trade deals with pigmeat, and has shown that the market can grow. The poultry sector in Northern Ireland is another potential market for growth, and that backs up what my hon. Friend said. The Chinese market, in particular, could be developed greatly.
George Eustice
The hon. Gentleman makes an important point, and I wanted to come on to some other issues on trade, one of which is China. There are opportunities in relation to what is called the fifth quarter; it never ceases to amaze me that chicken feet are apparently a delicacy in China and can attract a high value there—far higher than in the UK. However, there are real opportunities to create value from parts of the carcase for which there is no market in the UK or, indeed, Europe.
Another point I would make is that, as the hon. Member for North Antrim pointed out, there has always been quite a worldwide trade in poultry. We consume more white poultry meat than we can produce, so we traditionally import white meat, but we have also exported dark poultry meat, which is in demand in other parts of the world.
We have set up the Great British Food Unit to break down some of these barriers to get access to markets such as China. The hon. Gentleman mentioned the cost of feed and the importance of making sure that we have open markets so that we can buy competitively priced inputs. Obviously, once we have left the European Union, it will be within our gift to decide our tariffs and the access we give to feed from other parts of the world, but the vast majority of animal feeds coming into Europe already come from other parts of the world, and we would probably not want to do anything that would disrupt that flow because it is crucial to the economics of the sector.
The final thing I would mention on trade is the US, which is a major producer and exporter. I am aware that there are concerns about the standards of production in the US. It has lower standards of animal welfare and lower standards of food safety, and it allows approaches that are not currently allowed in the European Union, such as chlorine washes. It is important, as we contemplate any future trade deal, that we do not put our industry at an unfair disadvantage, as the hon. Gentleman pointed out, and we will clearly take very earnest account of that as we consider future trade deals.
Let me turn to the UK-Ireland relationship. I begin by reiterating the reassurances provided by the Government’s White Paper on the UK-Ireland relationship. The UK and Irish economies are deeply integrated, particularly so in the case of food, farming and agriculture. The Irish Republic is the UK’s top destination for poultry meat, with £68 million of exports in 2016. Over 14,000 people regularly commute between Northern Ireland and the Irish Republic, and we recognise that for them the ability to move freely across the border is an essential part of daily life. Therefore, as the Prime Minister stated in her speech in January, we will work to deliver a practical solution that allows the maintenance of the common travel area with the Republic of Ireland, while protecting the integrity of the United Kingdom’s immigration system.
There are, of course, many specific issues related to the border between Northern Ireland and the Irish Republic, and we are working across Government and with the devolved Administrations to identify a potential solution to them. That includes looking at precedents in other agreements, and colleagues in the Government are considering the extent to which digital solutions could help to make sure that we have a frictionless border. They are keen to learn from free trade agreements in parts of the world that are not part of a customs union but that are nevertheless able to accommodate quite complex integrated supply chains, to see what lessons we can learn as we develop solutions to this particular challenge.
The hon. Gentleman mentioned labour, and I recognise that it is an important issue for the poultry industry. Last year, I spoke at the egg and poultry industry conference, where these concerns were very vocally laid at my door. I recognise that, particularly in the last 12 years or so, the sector has become quite dependent on migrant labour. The important thing is this: just because we are leaving the European Union and ending the presumption of the free movement of people, that does not mean that we are pulling up the drawbridge and ending all immigration. In fact, it is incredibly important that we put in place a new type of partnership with the European Union that enables us to control immigration, but that, crucially, allows us to enable some people to come here and work, be that on temporary work permits—that could be for some low-skilled people—or on longer-term permits, for some of the more skilled positions. The crucial thing is that it will be, in effect, in our gift to decide what those future policies would be and what arrangements we put in place. We do recognise that this is an important issue for the poultry industry, and we will take care to ensure that it and other sectors of the farming industry have access to the labour that they need.
The hon. Member for Strangford mentioned support for the industry. As we design a replacement for the common agricultural policy, we have been clear that we would like to look at the opportunities to promote higher standards of animal welfare and to see how we could incentivise that by rewarding livestock farmers who go above and beyond a regulatory minimum. That could involve some support for the poultry industry to enable it to invest in different approaches to animal husbandry that are better for welfare and might reduce our reliance on antibiotic use, which is another important challenge facing the sector.
The hon. Member for North Antrim mentioned encouraging new people to enter the industry and trying to inspire young people—the next generation—to get involved. I agree that this is important. We have an ambition as a Government to treble the number of apprenticeships. We have been looking at opportunities to use the apprenticeship levy in other parts of the supply chain, potentially enabling us to get more apprentices on to farms. There are projects such as Bright Crop that send young graduates into schools to encourage teenagers choosing their GCSEs to pick the subjects that might enable them to go into exciting careers in the food and farming sector. This is an important area that we are continuing to develop.
We have had a very free-ranging debate to end a rather long day here. The hon. Gentleman has made some important points. We do recognise the importance of this vital industry—a competitive industry—and we will ensure, as a Government, that as we design policies for after we leave the European Union, we get them right for our poultry sector.
Question put and agreed to.