Infrastructure Bill [Lords]

Debate between Baroness McIntosh of Pickering and Tessa Munt

Wednesday 11th February 2015 Commons Chamber

[Tessa Munt (Wells) (LD)]

One of the details I am particularly concerned about is coal bed methane, which is exploited at depths of 150 to 400 metres—unlike high-volume hydraulic fracturing, which is done below 1,000 metres—and which is not defined in the Bill. Does my hon. Friend agree that there should be a prohibition on all gas exploitation at depths of less than 1,000 metres?

[Miss McIntosh]

I am sure the Minister will respond.

My right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley) put his finger on the issue before the House today. I would not stand in the way of fracking in Thirsk, Malton or Filey, which is a deeply rural constituency dependent on farming and tourism in precisely the area for which, I am told, the licence application is to be submitted in March, before the regulations have come before the House. There are too many unknowns in the regulatory regime. My question to the Minister—I have tabled a question in this connection—is which independent regulator will enforce the controls, the traffic light system which the Prime Minister refers to, stopping seismic activity above 0.5%? This is the big difference between drilling in every other aspect and causing an earthquake below ground, making the earth move, possibly never to return to where it had been before.

I would also like to raise with my hon. Friend the Minister the matter of ground water contamination. How can Third Energy hope to remove by pipes the waste water at a depth of less than 2 metres underground? How can it possibly hope to submit a plan for a licence application by the end of March without having a traffic movement plan or a waste disposal plan?

I leave the House and the Minister with the thought that in the present economic climate, given the fall in the price of oil, we can allow ourselves the luxury of making sure that the regulatory regime is independent and fit for purpose and that no fracking will take place until the regime has been tried and tested.

Dairy Industry

Debate between Baroness McIntosh of Pickering and Tessa Munt

Wednesday 5th November 2014 Westminster Hall

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I welcome you to the Chair, Mrs Riordan, and the Minister to his place, and I congratulate my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) on securing this timely debate. Many dairy farmers in my area are tenant farmers, and they have been acutely affected by the downturn in price. They form the social fabric of the hills and are an integral part of the uplands.

My hon. Friend referred to the groceries code and the adjudicator; it is a commonly held belief that the groceries code applies to the dairy industry, but I point out to him that it does not. The Select Committee on Environment, Food and Rural Affairs is launching an inquiry at the end of the month, and we are asking for evidence, because there are those who would like to see the remit extended and a review of the remit. It is generally accepted that the groceries code has been working well, and that the adjudicator, created under the last Government but brought in by the present Government, is a great asset, and I absolutely accept that it must apply to the dairy chain. The Government, in their defence, will probably say that a change would open the sluice gates to other products, but I believe that there is a common interest in the Chamber today in such a change.

[Tessa Munt]

Might that be something one could refer to the Competition and Markets Authority, instead of trying to use powers that are not within the remit of the groceries code adjudicator?

[Miss McIntosh]

I beg to disagree with my hon. Friend; I believe that the groceries code adjudicator should extend to dairy farmers, but I would go further: I believe that there is a role for the Office of Fair Trading in reviewing increased collaboration on pricing and marketing, and on the whole agreement between farmers.

On a Select Committee visit to Denmark—I will declare an interest: I am half-Danish and very proud of that—we were hugely impressed by the amount of exports and marketing opportunities that there have been through its co-operative movement. Arla was one of the first and most successful dairy co-operatives, and we understand that there are now 1,000 producers in this country under Arla. I yield to no one in my admiration of British and north Yorkshire farmers, particularly those who work on the land in my area. They are fiercely independent and fiercely proud of their tradition, but we must do more to help them co-operate and understand that, if state-aid rules are not deemed to be broken in Denmark, we could apply the same collaboration and co-operative movement in this country.

On exports, my hon. Friend the Member for Carmarthen West and South Pembrokeshire set the scene well. We saw a 3p increase in price about two or three years ago, which was very welcome. We have now seen at least a 1p—and potentially up to a 2p or 3p—decrease. I understand that that is partly because of the global situation, partly because of Russian sanctions and partly because of the milk powder scenario in China, but every time the price goes up, people flock to milk production. We then get a glut of milk and two or three years later, the price goes down. There is a circular situation, and if we are not careful, we will have, at some stage in the long term, a potential food security issue.

Another hon. Friend set the scene for me to say that 40% of leftover liquid milk is used for butter and cheese. We produce Shepherds Purse and Wensleydale cheese in north Yorkshire, and Cheddar cheese is world-renowned. Liquid milk and milk products generally are some of the most nutritious products available. We should be doing more not only to generate growth in this country for this market, which is very popular, but to ensure that we are exporting as much as we possibly can.

There is a role for Government. I believe that what the Committee set out in our report in 2011 still pertains today: dairy farmers should be offered written contracts by processors that specify either the raw milk price or the principles underpinning the price, the volume and timing of deliveries, and the duration of the agreement. Unless such contracts are made compulsory, we will continue to be in this circular situation. That is a very good argument for looking at the voluntary code, as mentioned by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), whom I am delighted to follow. If we have a situation where the voluntary code is not deemed to be working, let us review it and see whether it should be made compulsory. Let us look at why the groceries code and the adjudicator’s remit does not extend to the role of the dairy industry. Let us look at having greater oversight by the Office of Fair Trading. Let us work with the European Commission and our partners, crucially, to underpin the labelling. If we can get the labelling right at an EU level, that would be a great way forward. Let us encourage all consumers to buy the red tractor products.