Poultry Industry

Debate between Baroness Ritchie of Downpatrick and Roger Williams

Tuesday 20th January 2015 Commons Chamber

[Roger Williams (Brecon and Radnorshire) (LD)]

I am pleased to have been given the opportunity to raise an issue of importance to many of my constituents and to the UK as a whole. I refer to the Transatlantic Trade and Investment Partnership negotiations between the EU and US and the risks they bring for the UK poultry industry.

Britain is and always has been a great trading nation, and the TTIP negotiations represent a significant opportunity to expand our trade relations with the US. The Government estimate that a successful TTIP treaty could boost the UK economy by as much as £10 billion a year. Some £1.5 billion in goods and services is already exchanged between the US and Europe every day, and 13 million jobs rely on that trade. A major point of discussion in TTIP is the trade in food and food products—the biggest manufacturing sector in the UK. TTIP could bring huge opportunities for the food sector, but I hope the whole House will agree with me in urging caution before we get carried away, as these opportunities should not come at the expense of the great efforts that UK food businesses, particularly poultry meat producers, have made in the improvement of the sustainability, quality and standards of production here in the UK.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Gentleman on obtaining the debate. He is making a compelling point. Does he agree that we need a robust presence in the international negotiations to ensure that the interests of the poultry industry in Britain and Northern Ireland, where Moy Park employs more than 5,000 people, are totally protected, and that export markets are fully opened in places such as China and the US?

[Roger Williams]

The hon. Lady makes a very good point, and I will set out later how I believe the standards of production in the UK are far in advance of those in the US—a factor which should be taken into account in negotiations. I will also be talking about egg producers.

According to the British Poultry Council, the UK poultry meat industry produced more than 900 million chickens in 2013—up from about 780 million in 2001. Based on sales of £6.1 billion in 2012, the poultry meat industry made a £3.3 billion gross value added contribution to UK GDP. The industry supports 73,000 jobs in the UK—35,000 directly, 25,000 in the supply chain and nearly 13,000 in wage consumption. The industry pays about £1 billion in tax to the Exchequer, and so funds many of our public services.

Virtually half the meat eaten in Britain is poultry meat and it is enjoyed by millions of people every day. The UK is at least 80% self-sufficient in poultry meat and as such it is an important contributor to UK food security. There may be some concerns about the intensive nature of poultry production, but animal welfare is higher in the UK than in the rest of Europe.

Tourism (VAT)

Debate between Baroness Ritchie of Downpatrick and Roger Williams

Tuesday 11th February 2014 Westminster Hall

[Ms Margaret Ritchie (South Down) (SDLP)]

I am pleased not only to have secured the debate but to serve under your chairmanship, Mr Hollobone. I am pleased that the Minister is here to listen and to respond. I thank my co-signatories to the debate, my friends the hon. Members for Brighton, Pavilion (Caroline Lucas), and for Strangford (Jim Shannon). I am pleased to see an excellent turnout from MPs across the UK and across the House, which reflects the importance of the debate. I offer an apology from my hon. Friend the Member for Foyle (Mark Durkan), who is on a Public Bill Committee on consumer rights this morning. During the past couple of years, he has submitted an early-day motion on the subject, and tabled an amendment to a Finance Bill on the issue.

A reduction in VAT is important for tourism, which is a vital industry across these islands; it provides 10% of GDP and supports more than 2 million jobs in the UK. In Ireland, the industry employs some 180,000 people and generates an estimated €5 billion a year. There is potential for significant growth in the sector, especially in Northern Ireland, and that growth would boost associated industries and the wider economy.

Those who come to the UK as tourists spend money in our hotels, pubs, restaurants and shops. They bring economic life to areas that have struggled in the recent economic climate. However, the tourism industry was hit particularly hard by the higher rate of VAT introduced by the Government, and no alleviation has been offered. It is common practice across the EU for member states to introduce sector-specific cuts for the tourism industry, which some offer for accommodation rates, some for tourist and cultural attractions and some for restaurant charges. The UK is one of only four states that ignore all those options. As a result, the industry in Britain and Northern Ireland confronts one of the worst policy regimes possible.

[Roger Williams (Brecon and Radnorshire) (LD)]

I congratulate the hon. Lady on securing the debate. Small hospitality businesses in my constituency are afraid to go above the threshold for VAT registration for fear of having to pay a rate of 20% on their income. Does she agree that reducing the VAT rate would encourage such small businesses to expand?

[Ms Ritchie]

I thank the hon. Gentleman for his helpful intervention, and I completely agree with him. In our nearest neighbour, the Republic of Ireland, VAT on tourism products is now 9%. Even in the difficult economic climate that the Republic has experienced—it has just come out of the bail-out situation—the VAT rate reduction has underpinned businesses in the tourism sector and encouraged new ones to emerge.

Dairy Industry

Debate between Baroness Ritchie of Downpatrick and Roger Williams

Thursday 13th September 2012 Westminster Hall

[Ms Margaret Ritchie (South Down) (SDLP)]

I am pleased to serve under your chairmanship, Mr Walker. I thank my hon. Friend the Member for Dunfermline and West Fife (Thomas Docherty) for securing the debate.

It has been a difficult summer for the farming industry, and for farmers in general. It has been a challenging number of months for dairy farmers, and I welcome this parliamentary time to debate the issue. The dairy industry is critical to the farming community and the broader agricultural industry in my constituency of South Down, where different conditions appertain to how prices are set for the dairy industry.

I am more than aware of the problems that exist for English producers. I attended the recent rally in Methodist central hall where that case was put strongly. In fact, we took evidence in the Environment, Food and Rural Affairs Committee, under the chairmanship of the hon. Member for Thirsk and Malton (Miss McIntosh), on the issue. From that evidence session, it was quite clear that dairy farmers here were financially challenged and looking for a better deal.

However, I would like to take this opportunity to concentrate on issues encountered by dairy farmers in Northern Ireland, who face similar problems combined with other potentially more pressing difficulties and, as the Minister will know, a different operating regime whereby prices for milk are set by the auction system. Raw milk prices are more volatile in Northern Ireland when compared with prices for the same commodity here owing to the exposure of the Northern Ireland dairy industry to world commodity markets. Approximately 80% of milk production in Northern Ireland is exported in one form or another, the majority of which is sent outside the European Union. The price volatility of global commodity markets has contributed to milk prices that are still 3p per litre behind last year’s higher figure.

Like producers in England and Wales, the industry in Northern Ireland has suffered from the drought in America and Russia, combined with an extremely wet summer, all of which has had a decisive impact on silage-concentrate prices across the market, and the resulting milk production rise has been calculated at approximately 4p per pint. The extremely wet summer has further increased the reliance on more expensive imported food concentrates as local silage and hay supplies become depleted. This is likely to continue into autumn and winter. Such conditions have largely negated the recovery in prices witnessed in the last few weeks at the most recent milk auction in Northern Ireland. The milk price at the latest milk auction in Northern Ireland was between 25p and 26p, with the price falling as low as 22p back in June. Notably, despite the slight rally, this remains markedly lower than the cost of production, which can run 4p to 5p higher, and is 3p lower than the price this time last year.

That cost of production has risen because of the wet summer and rising feed prices, and the situation is exacerbated in Northern Ireland as so much of our milk is exported, which makes our industry particularly prone to outside pressures and volatility that are quickly reflected in the auction system. In fact, I understand that price volatility is likely to remain a feature of the dairy industry in Northern Ireland. New ways will have to be found to minimise its impact on the industry.

A parallel issue is the price reductions in milk offered by some small independent retailers, which can also leave farmers vulnerable to market conditions. Milk is often used as a loss leader, with prices being dropped to a level that is not sustainable for the industry. They can be significantly lower than the price of production. It is also notable that market research has shown that customers are willing to pay up to an additional 5p per litre to ensure that farmers get a fair deal, especially when that is explained in terms of the sustainability of the dairy industry.

[Roger Williams (Brecon and Radnorshire) (LD)]

The hon. Lady is making a powerful case. Is she as confused as I sometimes am by people insisting on fair trade coffee and tea, but not fair trade milk?

[Ms Ritchie]

I am with the dairy industry and with the hon. Gentleman on that issue. I live in the countryside and am well aware of how the situation affects not only dairy farmers, but those involved in beef and sheep production. They feel that they do not get a fair price at the farm gate. Farmers in Northern Ireland feel that they get a lower price than those in Britain.

In the light of all that, I note with interest the recent voluntary code of practice agreed between processors and non-aligned producers in England and Wales. In such a context, there is a need for a commitment by all sides to reach a similar agreement in Northern Ireland, where no such voluntary code of practice currently exists. I understand that the dairy industry in Northern Ireland decided to wait on the outcome of discussions in Britain before deciding whether the code would be appropriate to its circumstances, and that different industry groups will meet later this month to consider their position. However, I am in no doubt that the achievement of a resolution in Northern Ireland is particularly pressing, as farmers there are less likely to be aligned with large supermarkets.

All sides and interests in the situation must recognise that their relationship is symbiotic and we must find a path that ensures a fair settlement to guarantee the success of a staple native industry. In that respect, I hope for some collaborative governance in advance of the Groceries Code Adjudicator Bill, which I hope will have teeth. I hope it will have the regulatory power to deal with the issues in question. I urge the Minister, whom I welcome to his new post, to talk to the appropriate Minister in the devolved Administration in Northern Ireland about the need to give the Northern Ireland dairy industry a fair wind.