Genetic Technology (Precision Breeding) Bill

George Eustice Excerpts

2nd reading
Wednesday 15th June 2022 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

I beg to move, that the Bill be now read a Second time.

The UK is home to some of the world’s best agricultural research facilities. For some 70 years, plant breeders have used chemical and radiation treatments to generate random mutations in genes, in the hope that these might provide traits that are useful for plant breeding. For decades we have had F1—filial 1—hybrid breeding techniques, which were designed to create far greater genetic consistency in plant varieties that are grown commercially.

Precision breeding techniques such as gene editing are really a natural evolution of conventional approaches to plant breeding. They are simply a modern way of creating more targeted and predictable changes to DNA within a species than would have been possible using induced mutagenesis or natural breeding. They result in nothing that could not occur through natural breeding processes. In that sense, precision breeding techniques are distinct from genetic modification, which can involve moving genes across species boundaries. It is the recognition of this difference that is the reason for this Bill today.

In 2018, the European Court of Justice ruled that all gene-edited organisms should be legally regulated as genetically modified organisms. That has hampered our ability to take advantage of precision breeding techniques and of the clear opportunity to help the environment and food producers.

The UK Government disagreed with that 2018 judgment from the perspective of science. Now that we are outside the European Union we are free to consider what a consistent, coherent and science-based policy looks like. What we really need to achieve as we address today’s challenges is a fusion of the traditional principles of good farm husbandry with some of the best technology available to us in the 21st century.

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Secretary of State keeps using this language about precision breeding, but he will know that that is neither a specific technology nor a scientific principle. It relies on the creation of a hypothetical class of GMOs that could have occurred naturally. He will know that there is opposition to that definition from everyone from the environmental non-governmental organisations right through to the Nuffield Council on Bioethics and to the Roslin Institute. Given that level of disagreement about the very principles of how he is framing this Bill, will he take it away and look at it again?

[George Eustice]

We have considered these matters in great depth. We ran a consultation. The overwhelming view of scientists are that these precision-breeding techniques, which do not achieve or do anything that could not be achieved through natural breeding processes, are not in fact GMOs. That is our view. That is why we are bringing this Bill forward today. As the hon. Lady knows, there will no doubt be a debate about these matters in both Houses as the Bill progresses.

Precision breeding techniques give us the ability to produce plant varieties with particular traits far more efficiently than was ever possible with conventional breeding. This opens up huge opportunities for our farmers and growers to produce nutritious food with a lower environmental impact.

Precision breeding techniques can improve crop resistance to diseases, reduce the need for pesticides, increase crop yields, improve resistance to climate change, promote drought resistance and reduce the need for fertilisers.

[Dr Neil Hudson (Penrith and The Border) (Con)]

I do not believe that people need to fear this technology. This is not about creating Frankenstein’s monster or introducing DNA from another species. From developing disease resistant crops to bird flu resistance in poultry to PRRS—porcine reproductive and respiratory syndrome —resistance in pigs, there are significant benefits, including: for food security; for the environment; and importantly, for animal health and welfare. Ultimately, there are also significant benefits for public health, as we are reducing medicines and therefore tackling things such as antimicrobial resistance. Does the Secretary of State agree that, ultimately, this can be a win, win, win for food security, animals and people?

[George Eustice]

My hon. Friend, who knows a great deal about animal welfare issues in particular, raises some very important points. He will know that livestock breeders have long selected traits for polled cattle, for instance, so that they can avoid the need for mutations such as dehorning. It is also the case, as he says, that these new techniques offer the potential for us to breed poultry that is naturally resistant to avian flu, which is a major challenge, and some other issues that I will come on to.

[Tracey Crouch (Chatham and Aylesford) (Con)]

As the Secretary of State knows, I have long campaigned against the badger culls, so the idea that gene editing may improve disease resistance in livestock is something that I find really interesting and could be, as my hon. Friend put it, a win, win. However, the Secretary of State will also be very well aware that, with the Department’s view that this could drive animals to faster growth and higher yields, there is significant concern from animal welfare charities that this would exacerbate the severe welfare problems that have arisen through selective breeding for increased productivity. Can he give some reassurances to those animal welfare charities that we are not seeking to produce more eggs, bigger eggs, or in any way harming breeding animals?

[George Eustice]

My hon. Friend raises an important point. There is already some work going on to breed natural resistance and to select, for instance, dairy cattle that have a higher level of resistance to bovine tuberculosis, and these techniques will allow that to be progressed far faster.

On my hon. Friend’s wider point, we address that in the Bill, and I was going to come on to it. I have listened carefully to organisations such as Compassion in World Farming; that point was highlighted to me some years ago by its head of policy, Peter Stevenson. That is why we have put in some very specific safeguards to protect animal welfare, so that there can be an assessment before any authorisation is allowed. We do not want to have a situation where there could be more lameness in poultry, for instance, or other animal welfare concerns. There will be a dedicated committee to assess that.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Has the Secretary of State considered the impact that this Bill might have on public trust? People might be suspicious of GE food products. For those who are worried, what reassurance can be provided that genome editing will only be used where there are no other less invasive alternatives available?

[George Eustice]

I think consumers want to see fewer pesticides in their food, and technologies such as this open the door for us to achieve that. As part of the notification process that I will come on to describe, we will ensure that there is transparency and that any seed that is marketed is listed in a transparent way. The Food Standards Agency will also conduct a very thorough and comprehensive assessment of any food safety issues. I think that will give people the reassurance they need.

Returning to some other examples of crops, UK Research and Innovation funded a study that has identified promising sources of genetic resistance to virus yellows in sugar beet, a group of viruses that can cause severe yield losses of up to 50% and are at the heart of the controversy around the use of neonicotinoids in sugar beet. Introducing resistance to virus yellows will reduce the need for pesticides, boost our food security and reduce costs to our sugar beet producers.

With food security high on the agenda, we also have the ability to develop wheat that is more resilient to climate change, helping successfully to grow a crop that 2.5 billion people are dependent on globally. Researchers at the John Innes Centre in Norwich have used gene editing techniques to identify a key gene in wheat that can be used to introduce traits such as heat resilience, while maintaining high yields.

These technologies also have potential to improve the health and welfare of animals, as some of my hon. Friends have mentioned. Research in farmed animals is already leading to the development of animals that have increased resistance to some devastating diseases. For instance, the Roslin Institute and Genus have developed gene-edited pigs with natural resistance to porcine reproductive and respiratory syndrome, a disease that causes mortality and major welfare issues in pig populations globally.

I turn now to the contents of the Bill. It will focus on four key areas. First, we will remove precision-bred plants and animals from the regulatory requirements applicable to the environmental release and marketing of genetically modified organisms. That will remove the necessity of adhering to the onerous regulations imposed by the European Union for plants and animals that could also have been produced through traditional breeding. The Bill does that in part 1.

[Caroline Lucas]

The Secretary of State will know that section 20 of the Environment Act 2021 requires him to be able to affirm that this Bill does not weaken any existing environmental protections. Given that he has more or less just said that it precisely does, because it will weaken the EU legislation that we were following and will erode the existing regulatory system, how can he then sign section 20 in good faith?

--- Later in debate ---

[George Eustice]

As I have set out, as a point of science, the scientific community and the UK Government rejected the legal conclusion of the European Court of Justice. It is important to point out that that was based on an interpretation of the clauses in EU regulations, rather than on any coherent assessment of the scientific evidence. We will assess the scientific evidence, and it is on that basis that we are bringing the Bill forward.

The hon. Lady asks whether I can be confident that this will not undermine the environment, and I can. Indeed, I am confident that it will lead to a reduction in the use of pesticides, which is a key objective that she will share with Conservative Members. It could also lead to a reduction in the use of synthetic fertilisers—currently the primary contributor to greenhouse gas emissions from the agricultural sector.

[Andrew Bridgen (North West Leicestershire) (Con)]

What restrictions are there around the world on the agricultural products of this technology? Does the Secretary of State think that in the very near future, when the European Union appreciates the benefits that this can bring to agriculture, it may well change its mind on it?

[George Eustice]

My hon. Friend raises an important point. In fact, I was at the agrifood council when the European Court of Justice judgment came in 2018. Even countries that had some scepticism about genetically modified foods, such as Germany and France, were very concerned about that judgment. It is also the case, as he may well know, that the European Union itself is now consulting on a change to its own laws. The EU will be some years behind us, but it recognises that the ECJ judgment in 2018 was scientifically flawed. He asked what other countries around the world do. The vast majority of serious agricultural producers with the scientific expertise to assess these things treat gene editing and these precision breeding techniques as being distinct from genetically modified organisms.

Clause 1 of part 1 describes what a precision-bred organism is. Clause 2 establishes the scope of what is considered a plant and an animal for the purposes of the Bill. Part 2 introduces two simpler notification systems.

[Ben Lake (Ceredigion) (PC)]

On definitions, the Secretary of State may be aware that the British Veterinary Association has expressed some concern that perhaps the definitions have been broadened somewhat in the Bill—in particular, that organisms or techniques that would insert exogenous genetic material could be allowed under those definitions. Can he confirm whether that is indeed the case?

[George Eustice]

The Bill defines this quite tightly and lists what classes of animals are to be included. On some of these very specific technical issues, I am sure that hon. Members who have read clauses 1 and 2 will see that there are quite a lot of different processes, which we will all have to make sure that we learn a lot more about as the Bill progresses. I am sure that this will be discussed in great detail.

[Sir Roger Gale (North Thanet) (Con)]

There is no doubt that a lot of the Bill is potentially of huge advantage, particularly in terms of animal welfare. However, my right hon. Friend will be aware that concerns have been expressed that people should at least have the right to know what they are buying. Does he have any comments to make about food labelling in this respect?

[George Eustice]

There will be transparency in the sense that any authorised product will be listed. No marketing authorisation will be granted for the sale of any food unless it has been properly assessed. However, it is not currently our intention to have some kind of labelling requirement specifically for food, because a loaf of bread might have some of these crops going into it and others produced through other techniques. We do not currently, for instance, require people to label that a crop has been produced using an F1 hybrid technique such as an open pollination. That is the comparison that I would draw my right hon. Friend’s mind to.

Part 2 introduces two simpler notification systems—one for research and one for marketing purposes. Developers will have to submit information to DEFRA that will be published on a public register, and this will support consumer transparency. Clause 3 sets out the conditions under which a person may release a precision-bred organism in England. Clauses 4 and 5 set out the notification requirements for the release and marketing of a precision-bred organism. Clause 6 describes the application process for obtaining a precision-bred confirmation. This will ensure that each precision-bred organism is assessed on a case-by-case basis. Clause 7 sets out the requirement for there to be a report of the advisory committee, with further provisions in clauses 8 and 9 regarding the precision-bred confirmation and its revocation if necessary.

The Bill will not compromise animal welfare standards. As I said, it establishes a regulatory system to safeguard the welfare of precision-bred animals. This system is described in clauses 10 to 15. Clause 10 establishes that precision-bred animals will need to be authorised before they can be marketed. Clause 11 describes the application process. Clause 12 describes the involvement of an animal welfare advisory body. Clause 14 makes provision for regulations requiring information on the health and welfare of these animals once they have been placed on the market.

Finally, the Bill also makes provision to ensure that there will be no compromise whatever on food safety and that there will be a comprehensive assessment of the safety of any products placed on the market that result from precision-bred organisms.

[Margaret Ferrier]

Will the Secretary of State give way?

[George Eustice]

I will give way one more time, and then I will conclude.

[Margaret Ferrier]

I am keen to understand something. Although the territorial extent of the Bill’s provisions is rather limited, what consultation did the UK Government have with their Scottish counterparts? Scotland remains opposed to GE food products being sold there, but legally cannot prohibit it.

[George Eustice]

This is a devolved matter, as the hon. Lady says. The Scottish Government have taken a particular position, which is broadly that if the European Union changed its law, Scotland would change its law at that time, but not before, and it would appear that the Scottish Government do not want to move early on that. Of course, many of the leading international research institutes, such as the Roslin Institute and James Hutton, are world leaders in these technologies. They will probably be acutely disappointed if the Scottish Government do not take this opportunity to lead the world, rather than waiting and following the European Union.

Finally, part 3 of the Bill, in relation to an assessment of food safety, sets out the powers for the regulation of food and feed derived from precision-bred organisms and includes a new regulatory framework governing the placing on the market of these products, a public register and a monitoring and inspection regime.

In conclusion, it is more than 30 years since the current GMO legislation was passed. In that time, unnecessary and unscientific barriers imposed by the European Union have stalled the development of the agritech industry in the United Kingdom. Our legislation has not kept pace with our increased understanding of the safety and benefits of technologies such as gene editing. By removing these barriers, we will enable investment in these technologies, which have the potential to tackle some of the great challenges faced by the United Kingdom and the world today when it comes to producing food in an environmentally sustainable way. I therefore commend this Bill to the House.

[Several hon. Members rose—]

Government Food Strategy

George Eustice Excerpts

Monday 13th June 2022 Written Statements

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Today I have published the Government’s first ever food strategy, outlining our plan to transform our food system to ensure it is fit for the future.



The Government food strategy follows the independent review of the food system led by Henry Dimbleby last year, which set out an analysis of the challenges facing the food system. The food strategy takes on several of the independent review’s recommendations, and I would like to thank Henry Dimbleby and his team for their work examining our food system and the vital role it plays in all our lives.



Food security sits at the heart of this Government’s vision for the food system—boosting food production, job creation and the wider economy with a focus on skills and innovation, to level up across the country.



We want to create a sustainable food system, from farm to fork and catch to plate, seizing on the opportunities before us and ensuring that everyone has access to nutritious and healthier food.



To do this, our objectives for this strategy are:

A prosperous agri-food and seafood sector that ensures a secure food supply in an unpredictable world and contributes to the levelling up agenda through good quality jobs around the country.

A sustainable, nature positive, affordable food system that provides choice and access to high quality products that support healthier and home-grown diets for all.

Trade that provides export opportunities and consumer choice through imports, without compromising our regulatory standards for food, whether produced domestically or imported. This strategy builds on work that is already underway across Government.



Significantly, it confirms that we will:



support farmers to broadly maintain levels of domestic production through productivity gain and our new farming schemes,

support our farmers through our new farming schemes and innovation programmes and boosting production in key sectors, including horticulture and seafood,

release the additional provision of 10,000 visas under the seasonal worker visa route, including 2,000 for the poultry sector,

work with industry to support the upcoming Migration Advisory Committee review of the Shortage Occupation List, and commission an independent review to ensure the quantity and quality of the food sector workforce,

work with the food and drink industry to review existing skills programmes, identify improvements, and tackle barriers that currently prevent uptake, helping to drive up completion of skills training, pay and productivity in all areas of the UK to support levelling up,

publish a land use framework in 2023 to ensure we meet our net zero and biodiversity targets, and help our farmers adapt to a changing climate,

launch a Food Data Transparency Partnership, bringing together Government, industry and civil society to drive a real transformation in health, animal welfare and environmental outcomes through our food,

consult on Government Buying Standards for Food and Catering Services (GBSF), including whether to widen the scope of GBSF mandatory organisations to cover the whole public sector and introducing an aspirational target that at least 50% of food spend must be on food produced locally or certified to higher environmental production standards, while maintaining value for money for taxpayers,

harness the benefits of new Free Trade Agreement (FTAs) made possible following Brexit, while maintaining our world-leading domestic standards, by using a range of levers within our bespoke trade agreements.

The levers influencing the food system are dispersed. We will work collaboratively across UK Government Departments, as well as closely with the devolved Administrations, industry and civil society to achieve our ambitions. We will report on our progress against the food strategy goals alongside the next UK food security report.

[HCWS92]

Government Food Strategy

George Eustice Excerpts

Monday 13th June 2022 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

With permission, Madam Deputy Speaker, I would like to make a statement on the Government’s food strategy. Recent events have been a reminder of the importance of domestic food production. It gives us national resilience. Throughout the pandemic, those working at every stage of the food system, from farming and fishing to manufacturing, distribution and retail, did not let us down. The food industry has shown tremendous commitment and ingenuity in the face of recent international events.

The UK is largely self-sufficient in many products, including wheat, most meats, eggs and some sectors of the vegetable industry. Overall, for the foods that we can produce in the UK, we produce around 74% of what we consume. That has been broadly stable for the past 20 years, and in our food strategy, published today, we are committing to keep it at broadly that level in future, with the potential to increase it in areas such as seafood and horticulture. For instance, we are exploring policies to incentivise the use of surplus heat and carbon dioxide from industrial processes in a new generation of glasshouses here in the UK producing salad crops such as tomatoes and cucumbers.

With the cost of agricultural commodities linked to global gas prices, we recognise concerns about the cost of food. Through this strategy, we are setting out long-term measures to support a food system that offers access to healthy and sustainable food for all. It will complement the measures we have already taken to support those struggling to afford food and help them to eat healthily, through the Healthy Start scheme, breakfast clubs and the holiday activities and food programme.

The food industry is present in every part of our country. It is the largest manufacturing sector in the UK—bigger than automotive and aerospace combined. Food manufacturers provide employment opportunities in areas where there might otherwise be deprivation, they offer apprenticeships and opportunity, they invest in research and development and they give local areas a sense of pride and identity. None of our food manufacturers could succeed without the farmers and fishermen who supply them with high-quality produce.

Our fresh produce industry has always required access to seasonal labour, and I am pleased to announce today that we will bring forward another 10,000 visas for the seasonal workers route and expand the scheme to cover poultry. We on the Government side of the House want people at home and abroad to be lining up to buy British. Our food strategy sets out our intention to consult on ensuring that the public sector sources at least 50% of food locally or produced to higher standards.

There are new challenges to address that will require the characteristic ingenuity of our food industry. As Henry Dimbleby’s independent review highlighted, poor diet has led to a growing problem of obesity, particularly among children. Good progress has been made on reformulation in some categories. Industry-backed initiatives such as Veg Power, which conceived the successful Eat Them to Defeat Them campaign, have shown the value of positive advertising to promote vegetable consumption among children. But there is more that must be done in future, with Government and industry working in partnership on a shared endeavour to promote healthier diets. The Government accept that they have a role, and new regulations regarding the position of retail displays of foods that are high in salt, fat and sugar take effect later this year.

One of the recommendations of the Dimbleby review was the formation of a new data partnership between industry and Government, which we will be taking forward. Food manufacturers and retailers have a wealth of data and behavioural insights that can help to identify solutions. This will provide consumers with more information about the food they eat while incentivising industry to produce healthier, more ethical and sustainable food.

Our strategy acknowledges that the food system has a significant impact on the environment. We are therefore taking forward the recommendation of the Dimbleby review for a land use strategy. Our future agriculture policy will seek to financially reward sustainable farming practices, to make space for nature within the farmed landscape and to help farmers reduce their costs. From precision breeding techniques that reduce the need for pesticides to tractors fuelled with methane captured from slurry stores, and new feed additives that can significantly reduce methane emissions from ruminants, technological solutions are developing at pace. Our future farming policy will support innovative solutions to the environmental challenges we face.

Our food strategy will set us on a path to boosted food production, ensuring that everyone has access to healthy, affordable and sustainably produced food. I commend this statement to the House.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

I thank the Secretary of State for advance sight of his statement. It certainly did not take long to read.

It is now nearly a year since the publication of Henry Dimbleby’s independent review of England’s food system, a review commissioned by the Secretary of State’s Department. On the back of the review, he promised a national food strategy White Paper by January. Not only is he six months late on his own deadline, but this is just a statement of vague intentions from the Government, with no concrete proposals to tackle the major issues facing this country.

Henry Dimbleby’s review consisted of almost 300 pages, yet the Secretary of State has responded with barely 10% of that. To call this a food strategy is farcical and, frankly, an insult to all who took the time to contribute to the review. There is no need to take my word for it, as we all saw the responses over the weekend from industry leaders and those involved in the review. They are aghast at the Government’s lack of ambition, as the Secretary of State will have seen as he watched the television and read the morning newspapers over his cornflakes. This is a missed opportunity.

We should be discussing a real plan for delivery, a plan to put right the Government’s record of failure: 7.3 million people, including 2.6 million children, are living in food poverty; 2.1 million food parcels were handed out last year alone; 64% of adults are obese, as are 40% of children; £2.6 billion of trade with the EU, our biggest trading partner, has been lost; a quarter of all exports to Ireland have been lost completely; 40,000 pigs have been culled because of the labour shortage; and food is rotting in farmers’ fields because it cannot be picked.

This should have been a plan for food security and ending food bank usage by ensuring every family has access to healthy, affordable and sustainable food. It should have been a plan to back our farmers rather than undercutting them through the Government’s trade deals. It should have been a plan to drive growth through investment in new enterprises, the food and drink sector and our thriving co-operative sector. It should have been a plan to ensure that we buy, sell and make more here in Britain by supporting our fantastic producers and entrenching Britain’s reputation as a beacon for quality food, high standards and ethical animal welfare.

This should have been a plan to ensure that our schools and hospitals are stocked with more locally sourced, excellent quality food. It should have been a radical plan to tackle the obesity scandal in this country by ensuring every family has access to the healthy food that we know too many are missing, and it should have been a plan to deal with today’s supply and cost-inflation crisis.

We know, for example, that fertiliser and carbon dioxide availability has had a direct impact on the price of household staples such a bread, milk and meat products. Alarmingly, the UK’s biggest producer of fertiliser and CO₂ closed one of its plants last week because of a lack of support from this Government. The Secretary of State has been warned repeatedly, but action never follows.

Where is the plan to address the real issues facing this country today? All we see in this document is more dither, more delay and absolutely no ideas to address the scale of the challenge from a Government who are, frankly, devoid of ideas. Cruelly, there is no support for British farmers who kept this country fed during one of our most difficult times. [Interruption.] I hear the growls from Conservative Members, but what I hear most are the calls from British farmers who, for all the Government’s warm words of encouragement, are left waiting for support whenever they go to the Government for help. They wait and wait, and nothing ever comes. This is not a plan but a missed opportunity when the country can least afford it. Britain deserves better than this.

[George Eustice]

The hon. Gentleman refers to the length of my statement. I like to keep statements in this House as brief as possible, with them being a summary. I think my statement ran for about six or seven minutes, which is generally what Mr Speaker likes to see.

Clearly, if the hon. Gentleman wanted more detail, he could have read the full report, but it is clear from the list of issues he raised that perhaps he did not read it, because I simply cannot accept any of the criticisms he made. He raises the issue of obesity, and the report deals at length with it. We have already introduced a soft drinks levy that has driven reformulation. As I said in my statement, later this year we will introduce new point of sale regulations that will also drive reformulation.

The hon. Gentleman raises the issue of labour on farms. Had he read the report, he would know that we have increased the number of seasonal agricultural workers from 30,000 to 40,000, and we have worked closely with industry to understand precisely its needs. He says that we have no plan to increase spending on British agriculture by the public sector—by schools and hospitals—but we have set out a clear ambition to increase that spending by 50%. That is set out in great detail in the report.

On household spending on food, we absolutely recognise that with the sharp rise in energy bills there are households that are finding it difficult to afford food. That is why we have put in place a range of support mechanisms, the latest of which were announced by the Chancellor two weeks ago. We are talking about significant help for the most vulnerable families to help with those energy costs. We also know that although food prices have indeed risen, by about 0.2% in March and 1.5% in April, in the past 15 years or so, including during the last financial crisis, household spending on food remained fairly stable, even among the lowest income households, at about 16%.

Finally, the hon. Gentleman mentioned the important issue of fertilisers, and we are aware of that. It is important to note that the Billingham plant, run by the major producer of fertiliser here, is continuing to operate and has full order books until the end of this year, and that the price of ammonium nitrate has fallen back significantly from its peak in March and is now at a level that farmers are able to purchase at.

[Several hon. Members rose—]

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

I welcome the direction in which the strategy takes us, but will the Secretary of State comment on what I might suggest are a couple of omissions? First, he rightly says that, in terms of the food that we can produce, we produce about three quarters of what we consume. However, in recent years, we have seen a dramatic reduction in the amount of vegetable oil we produce, making us more reliant on sunflower oil and rapeseed oil from Ukraine and on unsustainable palm oil from the far east. What can we do to address that? Secondly, on the location of photovoltaic installations, more regard seems to be given to the proximity of an electricity substation than to the quality of the land on which they are installed. Could the Secretary of State perhaps look at that issue again?

[George Eustice]

First, may I take this opportunity —my first at the Dispatch Box—to welcome my right hon. Friend to his new post on the Environment, Food and Rural Affairs Committee. He was a predecessor of mine as a Minister for Agriculture, Fisheries and Food, and I know that he will bring considerable expertise to his new job.

On the two points that my right hon. Friend raised, planning guidance already sets out a clear presumption against building solar farms on the best and most versatile agricultural land, which is classed as grade 3b and above. I am aware that there have recently been instances where BMV land has been built on, and we are discussing that with Government colleagues.

On the second issue that my right hon. Friend raised, around our dependence on imported sunflower and rapeseed oil, the rapeseed crop has declined in recent years due to the withdrawal of the use of neonicotinoids. It has recovered in the last year, and prices are strong, but the ultimate solution probably lies in the Genetic Technology (Precision Breeding) Bill, which will be introduced in the House later this week and bring forward our ability to tackle some of these agronomic challenges.

[Richard Thomson (Gordon) (SNP)]

I welcome the advance sight that I had of the statement. Agrifood is a hugely significant industry, providing a great deal of employment. It is also of huge strategic importance to us as a country. It is therefore quite troubling—I hope the Secretary of State will appreciate quite how troubled I am by this—that the National Farmers Union president, Minette Batters, said earlier today that the industry is in “absolute crisis”.

It is easy to see why. We have massive labour shortages, we have food going unpicked and we have food being ploughed back into the fields. I welcome the 40,000 visas that have been announced, including the 10,000 additional visas, but that barely scratches the surface of demand across Scotland, let alone the rest of the UK, when it comes to tackling these issues. It is imperative that we do all we can during this heightened cost of living crisis to support our producers to maximise the quantities of food we produce domestically, so that we can keep costs down.

We have problems at our borders. Thanks to the Brexit we have chosen, there is effectively a free-for-all when it comes to goods coming in, but massive barriers and trade frictions when it comes to us exporting goods. The all-party parliamentary group on fisheries has today produced a report that makes for grim reading for anyone in the industry, or with a care for it, given how Brexit has played out. In addition, we have a continued welfare crisis in our pork industry, and farm incomes remain at historic lows.

It is hard to encourage people to buy as we might wish them to, when they are grinding against the cost of living crisis and, in some cases, struggling to pay for the energy necessary to boil vegetables or even to make something as simple, basic and nourishing as a bowl of soup.

We therefore need to take steps to put our food strategy on the same basis as we would an energy strategy. We need to tackle energy prices, the cost of fertiliser and the debilitating shortage of labour. We need to support rather than undermine our producers when it comes to food and welfare standards. We need to support the industry as the custodian not just of our food chain and supply but our landscape. Finally, we absolutely need to make sure that the industry plays its part in feeding our people and battling the cost of living crisis.

[George Eustice]

The UK Government stand absolutely four-square behind our fantastic Scottish food industry. Scotch whisky is our biggest food and beverage export, and Scottish salmon is also a major export. We have some really strong industries in Scotland.

On the issues that the hon. Gentleman raised, we absolutely recognise that farm businesses have seen their input costs rise, particularly over the last six months. That is because the price of fertiliser and many other agricultural inputs is directly correlated with the gas price. It is also the case that agricultural commodity prices have risen. Generally speaking, since 2016, as a result of the referendum result and exchange rate changes, we have seen farm incomes and farm commodity prices rise quite strongly. The price of lamb is now more than £6 a kilo. The price of wheat has doubled in the past year, and we have seen strong prices in other sectors, such as that of beef. The picture is mixed, though. There are some sectors that have not seen that price rise, but, generally, the position has been strong. Finally, on the issue of labour, as I have said, we have a seasonal agricultural workers scheme. We work closely with the industry to understand its needs. Our assessment at the moment is that 40,000 visas are necessary for this current year.

[Sir Bill Wiggin (North Herefordshire) (Con)]

I will, if I may, draw my right hon. Friend’s attention to paragraph 2.4.2, which concerns public procurement leading by example. It says that

“the public sector reports on progress towards an aspiration that 50% of its food expenditure is on food produced locally”.

As a very small British farmer, I think I can speak for all of agriculture when I say that we want not 50% British, but 100% British.

[George Eustice]

The commitment that we outlined today is in addition to the previous commitment of which my hon. Friend will be aware. It is the case that, some years ago, we introduced changes to the Government buying standard and the so-called balanced scorecard, which already requires all Government Departments and the Crown Commercial Service to follow that approach, and that is mandatory. What we are seeking to do in this case is to broaden that to hospitals and schools, which control their own budgets, but it is a slightly different situation.

[Chris Bryant (Rhondda) (Lab)]

It is great that the Secretary of State is increasing the number of seasonal workers from 30,000 to 40,000, but, as I understand it, last year, we did not even manage to get the 30,000. A quarter of those who applied for visas and got visas did not even come here. We are now looking to Nepal and Tajikistan to pick our cucumbers, tomatoes and all the rest of it. This is a manifest failure. If we are not able to pick our own food and put it on our own plates, how will we make sure that Britain is properly fed in the future, unless we are really going to answer that question?

[George Eustice]

Last year, we had just short of 30,000 people—it was around 27,000—who came to this country under the seasonal workers scheme. It was a covid year when there was a lot of stress and disruption to travel. This year, we are currently approaching the 30,000 level for those who are either here or on the way here. For the high-fruit season later in the year and for the poultry season at the end of the year, we judge that another 10,000 visas is about right. I also point out that many other European countries are struggling to find labour at the moment. The hon. Gentleman will also know that, last year, the majority of people who came here were from Ukraine for reasons that we all understand given the atrocious invasion of Ukraine by Russia. Those people have now stayed behind to fight, which is why we are drawing from a wider pool of countries in this current year.

[Sir Roger Gale (North Thanet) (Con)]

I may have to try to press this with the Prime Minister on Wednesday, but let me try it on the Secretary of State now. The Isle of Thanet has produced, historically, some of the finest fruit and vegetables in the country bar none. I think I am right in saying that, in Thanet Earth, we have the largest greenhouse complex in the whole of Europe. This summer, Thanet Earth will be producing most of the tomatoes that most people in this House and beyond will be eating. We want to do more. We want to grow for Britain, but we will not be able to do so if we smother our farmland in housing and have nothing left on which to grow. Please may we have a moratorium on house building on grades 1 and 2 agricultural land while we get this policy right?

[George Eustice]

I am quite sure that my hon. Friend will take the opportunity to raise that with the Prime Minister and also with other Departments as well. I visited Thanet Earth in his constituency. It is an extraordinary operation. There is some 220 acres of glass. It is the largest salad producer here in the UK. As I set out in my statement, we want more organisations like Thanet Earth in this country. We want more of that kind of large-scale glass co-located with industrial processes, and that is what we have set out in the strategy today.

[Kate Green (Stretford and Urmston) (Lab)]

Social distributors of surplus food such as The Bread and Butter Thing and suppliers to food banks such as Klyne & Klyne, both located in my constituency, report interruptions to the supply chain and difficulties in redistributing white-labelled foods. Can the Secretary of State say what discussions he is having with such distributors to ensure continuing, stable and secure supplies for those who supply food to those on extremely low incomes?

[George Eustice]

The hon. Lady raises an important point. That specific issue has not been raised with me previously, but I will take it up. The Government work quite closely with organisations such as FareShare to support food charities around the country, and if there are particular difficulties of that sort I am happy to investigate.

[Sir John Hayes (South Holland and The Deepings) (Con)]

The strategy is welcome inasmuch as it is a recognition that food security is as important as energy security. It is critical that we reduce the length of supply lines, so guaranteeing sustainability and traceability. Being that I know something about Government procurement, due to my ministerial jobs, will the Secretary of State make it clear that the desire for us to produce more food that is then consumed by the public sector is not merely an aspiration, but an obligation—not merely a hope, but an expectation?

[George Eustice]

We have different levers for different parts of the public sector. With core Government Departments, we can give exactly that kind of clear direction; indeed we do, through the agreements they have with organisations such as the Crown Commercial Service, they must pursue our policy. We want to work with the wider public sector on this, including schools and hospitals, but it is fair to say that they too want to support healthy, nutritious, locally produced food.

[John McDonnell (Hayes and Harlington) (Lab)]

Recent surveys have demonstrated food insecurity among the workforce within food production itself. In other words, many of the workers producing the food cannot even afford to pay for it themselves. Recent surveys have also demonstrated increased dependency on food banks among food workers. Although there is a reference in the strategy to improving productivity and pay, working with the industry, that will take time. What emergency measures is the Secretary of State looking at to boost levels of pay so that the workers in food production can afford the food they produce?

[George Eustice]

The Government have already increased the national living wage to £9.50 an hour. We have stipulated that those coming in under the seasonal worker visa scheme must be paid at least £10.10 per hour. The right hon. Gentleman should also note that in food processing generally, because it is quite a tight labour market, we have seen significant increases in wages for the lowest paid in this country.

[Fay Jones (Brecon and Radnorshire) (Con)]

I warmly welcome the strategy, which recognises that trees and butterflies are extremely important, but so is domestic food production. When the Secretary of State talks about rewarding sustainable farming, he need look no further than my constituency and its rolling green hills, grazed by livestock—a perfect example of the virtuous circle of UK livestock farming. Can I invite him to restate his support for the UK red meat sector, which, contrary to media portrayal, is good for our health, our environment and our economy?

[George Eustice]

The environmental issues around livestock production are more complex than some would have it. The truth is that permanent pasture has an important role to play in seeing the restoration of nature and the recovery of biodiversity in the farmed landscape. Livestock production done well, particularly in pasture-based systems, has an important role to play in rekindling that biodiversity in nature that we all want to see.

[Munira Wilson (Twickenham) (LD)]

With food and energy prices spiralling, many parents are worried about putting food on the table. Our children’s health and education should be a top priority, yet not only have Ministers rejected Henry Dimbleby’s recommendation to give a free school lunch to every child whose parents are on universal credit, but they have even rejected his back-up, less generous proposal to change the eligibility criteria. Will the Secretary of State listen to parents and think again about denying an extra 1.5 million children in struggling households a free school meal?

[George Eustice]

The principal driver of pressure on household budgets at the moment is the very sharp rise in energy costs. The measures that the Chancellor announced two weeks ago are a major step towards helping the poorest households to deal with that blow to their finances. The Department for Work and Pensions has already made some changes to eligibility for free school meals, because on 24 March it made permanent the extension of free school meal eligibility to include some of the children who had no recourse to public funds, subject to specified income thresholds.

[Chris Grayling (Epsom and Ewell) (Con)]

Opposition Members might like to note the fact that April exports to the EU were the highest on record.

I congratulate the Secretary of State on the statement, in which there is much to be welcomed. He knows of my concern and that of Back-Bench members of the 1922 committee about food security and encouraging the maximisation of the harvest over the coming months. Will he ensure that as the strategy is taken forward he does not walk away from some of the Government’s biodiversity strategies, which are so important, and makes sure that they remain at the heart of what we do? In particular, can we resist the turning of farm land into pine forests to the exclusion of biodiversity and of the rewilding that can make a difference?

[George Eustice]

My right hon. Friend raises an important point. He has been a long-standing champion for the hedgehog, as many Members will know, and he has previously raised with me the issue of food security. I hope that what we have set out today addresses our intentions in that regard. He is also right that sustainable environmental protection and profitable, successful food production are not in conflict with one another but are two sides of the same coin, and if we get our policy right we can achieve both.

[Neil Coyle (Bermondsey and Old Southwark) (Ind)]

Twelve years into Tory Governments, this pretence of a strategy says that DEFRA will work with local authorities and food charities in priority areas to tackle food-related inequalities. Some 5,000 households in Southwark used food banks last year and more than 30 organisations in my central London borough are trying to tackle the issue, which is largely driven by Government policy. When will the priority areas be fully identified, and what additional support will eventually be provided as a result of being determined a priority area?

[George Eustice]

As I said, we have a range of policies in place, including the holiday activities and food programme and the work we do through FareShare. We also have the household support fund, and we are working with local authorities to identify where the needs are to ensure that that support can be directed to the right places.

[Dr Neil Hudson (Penrith and The Border) (Con)]

I welcome this statement that the Government are bolstering food production and food security. Producing food sustainably and looking after the environment go hand in hand, and our fantastic UK farmers are best placed to do that as they have been doing it for generations. The pandemic and the war in Ukraine have brought food security into sharp relief, and farmers are faced with the challenges of rising costs of fuel, animal feed and fertiliser, the supply of which is more uncertain with the announced closure of one of the UK’s fertiliser and CO₂ plants. Can my right hon. Friend reassure farmers in Cumbria and across the UK that the Government will support them through these challenges in the shared endeavour to produce more local food?

[George Eustice]

My hon. Friend raises some important points. We are watching the situation closely on fertiliser supply. Our current assessment is that production at the Billingham plant, which has the lion’s share of UK production, is continuing. We understand that it has had strong orders during the course of the year and farmers are managing to source their fertiliser by that route. We are also successfully continuing to import fertiliser from countries such as Norway. However, we monitor that closely because it is important that we ensure that farmers can get access to fertiliser, particularly for next year’s winter wheat crop.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

The Secretary of State will find many of us who will support him in seeing food prices as a massively important issue as we all have constituents who are not choosing between heating and eating because they cannot afford to do either. On the question of how we can cut the cost of food and support British farming, the elephant in the Chamber is that he has not talked at all about the impact of leaving the European Union yet the evidence from the UK in a Changing Europe think-tank is very clear about the impact of that on food prices. The children of this country cannot eat red tape, yet that is exactly what has been imported into this country and is now strangling British farmers. What conversations has he had with his colleagues in the Department for International Trade and with the Prime Minister about how to cut through that and make sure that we can export all our British delicacies and put food on the plates of our constituents?

[George Eustice]

I think the hon. Lady is wrong on food prices for this reason: EU-produced food can still enter the UK completely tariff-free, and at the moment we are not even requiring export health certificates or other paperwork. The impact on food prices of leaving the European Union and the single market is negligible; the real driver of food prices is oil prices and exchange rates, and that has always been the case.

[Steve Brine (Winchester) (Con)]

The Government are to be commended on a thoughtful piece of work, specifically on farming and domestic production. The approach on meat-eating and methane is right, too—technology is our friend in that—but I have to say that on salt and sugar I am a wee bit disappointed. The Secretary of State will know that I put together the prevention Green Paper in the Department of Health and Social Care. That built on the sugar tax, which led to the sensible reformulation of soft drinks. It did not push up costs to the consumer, because the industry reformulated its products. That document, agreed across Government, had proposals to extend that winning formula to other products high in fat, salt and sugar. We can kick the idea into the long grass, and many will be pleased that we have done that—I concede that—but we are storing up obesity, type 2 diabetes and stroke, which we are increasingly seeing in younger people, for the future. Surely as a publicly funded health system, we have a right, and I would argue a responsibility, not to kick the issue into the long grass.

[George Eustice]

My hon. Friend highlights an important issue and I can assure him that we are not kicking it into the long grass. The soft drinks levy was indeed a tremendous success, but only because it was relatively easy to take sugar out of soft drinks, because it is only a sweetener and reformulation can be driven quite simply. With some other products, such as chocolate, cakes and so on, sugar is a different type of ingredient that is harder to reformulate and take out. Later this year, we are taking forward new point-of-sale restrictions on foods that are high in salt, fat or sugar. I can tell my hon. Friend that that is already driving reformulation and changes in retailer supply chains.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

May I press the Secretary of State on the issue of school food? Eighteen years ago, in 2004, Hull City Council pioneered free healthy school meals as a means of fighting food poverty, improving classroom attainment and tackling the problem of childhood poverty. The evidence is there that that works. If the Government accepted into the strategy the recommendation on that, it would help them fulfil their aims for healthy eating, easing the cost of living crisis and the levelling-up agenda. Will the Secretary of State think again about accepting the recommendation on free school meals?

[George Eustice]

We have to be mindful of some of the unintended consequences if we load too many of these things on to the universal credit system. As Members will know, one of the principles behind universal credit is its gradual, tapered withdrawal. If we have cliff-edge entitlements of that sort, that starts to undermine the principle that sits behind universal credit. Nevertheless, we recognise the value of free school meals—that is why we have always had them and why some changes were made permanent on 24 March. We are also more widely recognising the impact on households of the increase in energy costs, and that is why the Chancellor announced that package of measures two weeks ago.

[Harriett Baldwin (West Worcestershire) (Con)]

I warmly welcome the spotlight that the strategy shines on the wonderful food produced in West Worcestershire and across the whole United Kingdom. I also welcome the fact that unemployment in this country is at an historic low. In welcoming the extra 10,000 seasonal agricultural workers that have been announced today, will the Secretary of State elaborate on the advice that he received that meant that this year, with our strong labour market, he did not accept the request from farmers to go as high as 90,000 visas?

[George Eustice]

My hon. Friend does indeed represent an important part of our country for horticulture—in fact, I spent a summer working on an apple orchard at Bransford in her constituency. On her question about the evidence that we have, we work closely with the operators running the seasonal agricultural workers scheme. As I said, we are approaching 28,000 visas issued or people already here. The judgment is that for the top fruit season, which is predominantly what they will be recruiting for later this year, a further 10,000 will be sufficient. The truth is that the total number of people who do seasonal agricultural work in the UK is estimated to be between 60,000 and 70,000. We think it is still the case that close to half of that number are coming as settled EU citizens or are people who are here, with the other half being carried by the scheme. That will change over the years, but for the current year, we think that 40,000 is sufficient.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

As has been referenced already, last week, CF Fertilisers in my constituency announced that it would begin consultation on closing the plant, which puts 300 jobs at risk. It also exposes us far more to the international fertiliser market, which is the opposite of what I understood this strategy was meant to achieve. Ministers have had nine months’ notice that there was a problem at the plant and, from what I can see, they have done absolutely nothing to help it survive. The Secretary of State said that he was monitoring the situation but, frankly, we need far more urgent action than that. What is being done to look at potential purchasers of the site or to keep production going there? Are my constituents’ jobs not worth more than just a monitoring exercise?

[George Eustice]

We are monitoring the situation, but the hon. Gentleman will be aware that there are some commercially sensitive issues around that. He talks about the potential sale of the site to alternative operators, which I know that the company is investigating. If he would like, I will offer to meet him to update him on some of those issues.

[Katherine Fletcher (South Ribble) (Con)]

I thank the Secretary of State for recently meeting the little pocket of marvellousness made up of the grade 1 agricultural land and glasshouse growers in South Ribble. Banks, Tarleton and Hesketh Bank are producing some of the finest celery, turnips, tomatoes and salad leaves in the world. Glasshouse growers are often forgotten, but I note that the food strategy does not forget them and actually enhances support for them; I welcome the farming innovation fund to help to improve their productivity. I hope to speak on the Genetic Technology (Precision Breeding) Bill later this week, but will he assure me today that he will continue to use the flexibility that he has in the seasonal agricultural workers visa scheme to make sure that 10,000 workers are available to pull the crops out of our grade 1 agricultural land and that he will keep an eye on the situation in case it changes? My farmers rely heavily on that seasonal labour.

--- Later in debate ---

[George Eustice]

I very much enjoyed meeting growers from my hon. Friend’s constituency with its wonderful fenland and high-grade horticultural land. We do indeed keep a close eye on the requirement for seasonal agricultural workers, but, as I said, we currently judge that 40,000 is sufficient for this year.

[Helen Morgan (North Shropshire) (LD)]

I met various farmers and farming representatives in my constituency on Friday. They are keen to produce food sustainably, but they told me that their biggest problem is the phasing out of the basic payment scheme before the environmental land management scheme is ready to go ahead. Moreover, they believe that they will not be able to get involved in the sustainable farming incentive because of the up-front costs involved in some of those schemes. Will the Secretary of State look at that problem? We are in danger not only of our environmental and welfare aspirations falling away, but of some of our critical food producers going out of business in this critical short-term period.

[George Eustice]

As the hon. Lady will know, the Government committed to keeping the budget that we spend on agriculture the same in cash terms for every year of this Parliament. That is exactly what we are doing. Although we are making a modest 15% further reduction to the BPS payment this year, we are simultaneously giving farmers access to that money through the sustainable farming incentive. It is universally open to all, there are not the up-front costs that she talked about, and we will pay farmers quarterly. It is a scheme that leading farming organisations, such as the Country Land and Business Association, have been supportive of. The old legacy EU subsidies on land ownership meant that 50% of the budget went to 10% of the wealthiest landowners in the country, which cannot make sense or be a coherent policy for the long term.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

I draw the House’s attention to the fact that I am married to a farmer.

Lincolnshire farmers produce fabulous food in harmony with the environment, but many farmers of late have been concerned that the Government were more interested in their becoming biodiverse or parkland farmers than in their growing food, so I am pleased to see this strategy and the Government’s focus on the importance of food security and productivity. I am also pleased to see the £270 million farming innovation fund, but could the Secretary of State tell us how farmers apply and when this money will start to become available?

[George Eustice]

The money is already available, and we have already had a number of rounds. Indeed, earlier this year, when we opened a round of the farming investment fund for equipment on farms, it was over-subscribed, so we trebled its budget to £48 million. This week, we have opened a new round to support farmers who want to add value. There is £30 million going into that fund, and there will be many more rounds over the current year or two.

[Kim Johnson (Liverpool, Riverside) (Lab)]

Food prices are rocketing and food insecurity is increasing, but this White Paper goes nowhere near addressing the root causes of these issues. The recommendation to extend free school meals to more than 1 million children on universal credit has been ignored, so how does the Secretary of State plan to address this, and ensure that our children are well fed and nourished to be able to learn?

[George Eustice]

As I explained earlier, the Chancellor has unveiled a package of measures to help those on the lowest incomes deal with the sharp increase in energy costs. We also have a range of programmes, including Healthy Start and the holiday activities and food programme.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

Given the recommendations of the independent review, the White Paper is not bold enough, but I am pleased that the junk food cycle is being addressed with a goal on healthy ingredients sold and reporting with the Office for Environmental Protection, Food Standards Agency and Climate Change Committee. I am pleased with the innovation package, particularly research into diet, as well as with the visa scheme review, mandatory procurement and the target of a 50% reduction in child obesity by 2030. Does my right hon. Friend agree that these policies should be enshrined in law through a good food Bill?

[George Eustice]

We have judged that we do not need any new legislative powers to implement all the things we have set out to do in the strategy. However, we have been very clear that the Food Standards Agency, the OEP and others will of course perform their statutory functions in holding Government to account on progress on these agendas.

[Alison Thewliss (Glasgow Central) (SNP)]

Missing from this strategy is food security for our very youngest citizens—those who require infant formula. We only need to look to the United States to see how precarious the formula market can be. The forced closure of a formula factory due to contaminants resulted in costs being driven up and families being left without. In the UK, the cost of infant formula has gone up, with which Healthy Start vouchers are not keeping pace, so families are struggling to access that. How does the Secretary of State plans to address the deficiencies in infant formula policy? Will he implement the code of marketing of breastmilk substitutes, which will protect both those who use infant formula and those who breastfeed?

[George Eustice]

The hon. Lady raises an important point. During the pandemic, when there were concerns about global supply chains, we looked in great detail, with the Department of Health, at possible problems with the availability of infant formula milk. She is right that we import the vast majority of our infant formula milk, principally from France and Ireland, but we have done some work to encourage and support dairy processors in this country to enter the market.

[Anthony Mangnall (Totnes) (Con)]

May I confirm that, under the strategy, public money for public good in environmental land management schemes will be about food production? Will the Secretary of State push for a national food security target? Lastly, on the impact of fuel prices, fishermen in Brixham are laying up their vessels because their average takings for an entire day’s work are £32. If we do not step in, fishermen across the United Kingdom will lay up vessels. We need a strategy fast, or we will not be able to anything on fish and shellfish.

--- Later in debate ---

[George Eustice]

On the latter point, I am happy to meet my hon. Friend to discuss some of the issues that fishermen in his constituency have raised with him. Over the last six months the price of most fish has strengthened considerably, which has generally been good for fishermen’s incomes, but I am happy to look at the issue he raises. On the wider point, under the Agriculture Act 2020, Governments are already required to produce a review of food security every three years—the first was published in December last year—and they have a legal obligation, when designing future schemes, to consider food security and availability.

[Jim Shannon (Strangford) (DUP)]

Our farmland in my constituency of Strangford is highly productive so we greatly welcome the strategy, but the drive for rewilding is being discussed locally. I am concerned that the United Kingdom will be reforesting land that could and should be used to grow produce and thereby enhance our food security and self-sustainability. As farming is a devolved matter for all the regional Administrations, what safeguards are in place to ensure that good arable land is planted and that reforestation and rewilding are introduced only on land that is not appropriate for productive farming?

[George Eustice]

Agriculture policy is indeed devolved but we have created the UK agricultural partnership. Its last meeting took place in Northern Ireland and I heard about some of the Northern Ireland Administration’s plans for their future policy. I reassure the hon. Gentleman that my opposite number there, Edwin Poots, is well aware of these issues and there is very little danger that he would allow things to be planted inappropriately where there should be crops.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I thank the Secretary of State and everyone who took part in the proceedings. I noted that, at last, attention was paid to what Mr Speaker and I had said about presence in the Chamber and that all Members who were not here at the beginning of the statement had the decency and honour not to ask to be called. That has been gratefully noted.

Food Price Inflation

George Eustice Excerpts

Thursday 19th May 2022 Commons Chamber

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs to make a statement on food price inflation.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

The global spike in oil and gas prices has affected the price of agricultural commodities. Agricultural commodity prices have always been closely correlated with energy costs, since gas is used to manufacture fertiliser and fuel energy is needed throughout the food chain. Gas prices were rising as we emerged from the pandemic, but the invasion of Ukraine has caused some additional turbulence in international commodity markets. I have already set out measures to support farmers and growers in England ahead of the coming growing season. Those measures are not a silver bullet, but they will help farmers to manage some of their input costs from fertilisers.

The turbulence of the market has brought into focus again the importance of a resilient global supply chain and the importance to our national resilience of having strong domestic food production. In the UK, we have a high degree of food security. We are largely self-sufficient in wheat production, growing 88% of all the wheat that we need. We are 86% self-sufficient in beef and fully self-sufficient in liquid milk, and we produce more lamb than we consume. We are also close to 100% self-sufficient in poultry. Sectors such as soft fruit have seen a trend towards greater self-sufficiency in recent years because of the extended UK season.

As part of a global market, however, there have been pressures on input costs and prices. As a result of those rising input costs, there are of course also some pressures on households, predominantly as a result of the energy costs. There have also been some rises in food prices in recent months, although the ferocity of retail competition means that price pressures have been contained on certain product lines.

In March, overall food prices rose by 0.2%; the price of fruit actually fell in March by 1.2%. In April, however, food prices rose by 1.5%, which is a faster rise than we have seen in some years. If we look at the price of specific categories of food, in April, bread and cereals rose by 2.2%; sugar, jams and syrups rose by 2%; fish rose by 2%; meat rose by 1.9%; vegetables, including potatoes, rose at a lower level of 1.3%; fruit remained broadly stable; and oils and fats decreased slightly by 1.1%.

The single most important measure of household food security and the affordability of food remains the household food survey that the Department for Environment, Food and Rural Affairs has run for many decades. That shows that, among the poorest 20% of households, the amount spent on food consumption was relatively stable at around 16% of household income between 2008 and 2016. It then fell slightly to 14.5%, but with the recent price pressures, we can expect it to return to those higher levels of around 16% in the year ahead.

We are monitoring the situation. The Government have put in place an unprecedented package of support to help those who need it. That includes targeted cost of living support for households most in need through the household support fund, where the Government are providing an additional £500 million to help households with the cost of essentials.

[Jim McMahon]

I am staggered by that response. The Secretary of State speaks like a commentator or spectator on the sidelines, rather than the person responsible around the Cabinet table for food security. He seems oblivious to the cost of living crisis that people are facing. He can reel off the stats all he wants, but working people know that when they go to the supermarket, the price of almost everything they are buying is going up and up. All the Government do is spectate and commentate from the sidelines.

The Secretary of State says that the Government have made interventions, but to what end? He talks about a fertiliser shortage and an input costs crisis, but there is a fertiliser plant in the north-west that is completely closed and has been since September, and the fertiliser plant in the north-east is running at only 30% capacity. Let us also look at carbon dioxide, the labour shortage and distribution costs, and what they are doing to the cost of food.

Let us then look at the public sector. Bear in mind that the NHS serves 140 million meals a year, schools serve 600 million meals a year and prisons serve 90 million meals a year. Cost inflation has an impact on frontline services as well as on household budgets. For households, that is on top of inflation, on top of energy prices going up, on top of mortgage payments going up, on top of petrol and diesel going up, and on top of taxes going up.

What interventions have the Government actually made in practice? They have told people to ride the bus for the day to keep warm, to try to live off 30p a meal, or to just work that bit harder and they will be fine. Well, let me tell them: the number of working people in poverty is the highest since records began. Sixty-eight per cent. of people in poverty are in work. Working is not a route out of poverty after 12 years of this rotten Government.

I see it in Oldham. People who are coming for food parcels now are not in temporary crisis, but in permanent crisis. They are in debt. They are wearing NHS uniforms, coming to collect food parcels to put food on the table. But let us go from Oldham to Camborne, because I have visited the Secretary of State’s constituency. The food bank there is now giving out 10,000 meals a month—just one food bank in his constituency. It is a constant crisis. Will he commit, even at this late stage, to call an urgent cross-Government, industry and charity commission to get ahead of the food crisis? He knows that, if the Government do not get a grip by Christmas, it is going to be even worse.

[George Eustice]

I am sorry that the hon. Gentleman does not want to hear facts, but the urgent question is about food price inflation and the facts about that do matter. He is the one who wishes to spectate and commentate, rather than dealing with the facts before us. I absolutely acknowledged that food prices are rising, and faster than we have seen in recent years. Indeed, household spending among the poorest 20% may return to the levels it was when his party was last in power. However, it is also the case that, in April, overall food prices rose by 1.5%.

The hon. Gentleman asked about fertiliser prices. Here there has been more positive news this week. Fertiliser prices peaked at about £1,000 per tonne in March. This week they have fallen to about £620 per tonne—it was £290 per tonne a year ago. Farmers are purchasing at that level. He expressed concerns about carbon dioxide supply, but that is a by-product of the manufacture of ammonium nitrate, and now that the main fertiliser plants, including the one at Billingham, have reasonably full order books for the remainder of the summer and are manufacturing and selling ammonium nitrate, we do not foresee a problem when it comes to carbon dioxide.

The hon. Gentleman made a good point, which was that the cause of the pressure on household incomes has been the global spike in gas prices and the corresponding impacts on people’s energy bills—household electricity and gas bills have risen sharply. The Government have put in place some measures to try to mitigate and dampen that, but we have always been clear that we cannot remove the impact altogether. Of course, because people need to buy food every week, when there is pressure on the household budget, an inability to buy food is what they notice first, even if food prices have not changed dramatically from where they were previously.

The hon. Gentleman mentioned those in work. The Government have been very clear about that. Over the years, we have continued to raise the threshold before the lowest earners pay any tax at all and in April this year we increased the new national living wage to £9.50 an hour. Those on the lowest pay will have an additional £1,000 in their pay packets as a result.

Finally, I take this opportunity at the Dispatch Box to praise the work of Don Gardner and local volunteers, whom I meet regularly in my constituency of Camborne and Redruth. We often work in conjunction with them to help to ensure that people visiting that food bank can get access to the benefits and support that they need.

[Andrew Percy (Brigg and Goole) (Con)]

Compared with the last major recession we had under the Labour Government, we have done a great deal to expand provision, including free school meals to post-16 students and to all infant-aged children—something the Labour party never offered. On the issue of community food pantries and food banks, I commend to the Secretary of State the model established by Councillor Anne Handley in Goole, the Two Rivers community pantry and the incredible team of volunteers. They are providing heavily subsidised food to anyone in the town who wants it. We have received support via the Department for Environment, Food and Rural Affairs in the past. Can he assure me that that support will continue for amazing schemes such as the Two Rivers community pantry?

[George Eustice]

My hon. Friend makes an important point. Projects and charities such as that do indeed perform an important role in our country. Often, the strongest part of their role is not just the provision of immediate emergency support, but help for people to get the support that they need to address other issues and challenges they might have in their life, so that they can get things back on track.

[Mr Speaker]

I call the SNP spokesperson.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The 9% rise in the consumer prices index is the highest since records began, with a quarter of those in the UK resorting to skipping meals. The Governor of the Bank of England has warned of an “apocalyptic” outlook for consumers, with the worst yet to come as inflation looks set to hit 10% by the autumn. Food banks are already struggling to cope as households face unprecedented demands with the cost of living. Food banks themselves are a clear sign that the welfare system is failing: that is why food banks exist. Will the Secretary of State argue in Cabinet for measures such as converting the energy loans into grants, the reintroduction of the universal credit uplift, a reversal of the national insurance hike and an inflationary uplift for all welfare and state pension payments, so that—in 2022, in the UK—we do not have to witness the scandal and shame of people being unable to afford to feed themselves and their children?

[George Eustice]

We have obviously made some changes to the benefits system over the years, in particular the introduction of a tapered reduction in universal credit; it always pays people to work more hours and take on more work. We are in a fortunate position in this country in one way: unemployment rates are very low—the lowest since 1974—with close to 1 million job vacancies, and wages for the lowest-paid have been rising.

[Sir Desmond Swayne (New Forest West) (Con)]

The same price shocks have left Japan and Switzerland with inflation nearer 1%. What difference in monetary policy has protected them and exposed us?

[George Eustice]

The analysis we have done on food price inflation—I would point out to my right hon. Friend that, in the month of April, food prices on average rose by 1.5%—suggests that around three quarters of the price pressures we have seen can be directly attributed to the price of gas and the remainder to other factors, including rising costs of labour as wages rise for the lowest-paid.

[Tony Lloyd (Rochdale) (Lab)]

In my constituency, many people before inflation began to become an issue were already finding it difficult to make ends meet. That is not propaganda; that is a matter of practical reality. Every Member of Parliament knows this about their own constituency. What I looked for from the Secretary of State was some indication that there was action that he and his colleagues in Government were going to take, and there came no answer. What is he going to do to help my constituents, who really are on the breadline?

[George Eustice]

The action that the Chancellor has taken so far was announced earlier this year in the spring statement. It included a £150 rebate on council tax bills, and a £200 rebate on energy bills to dampen and spread the cost of the spike in energy bills. We increased the national living wage in April to £9.50 an hour, and that puts an extra £1,000 in the pockets of the lowest-paid. Obviously, we keep this matter under constant review, as the Chancellor has made clear.

[Holly Mumby-Croft (Scunthorpe) (Con)]

My constituents in Scunthorpe and the surrounding villages well understand the global factors affecting the cost of living and of course food price inflation, but they are worried about what is to come. I know the Government have set out a number of measures, and we are doing a lot. When does my right hon. Friend think we will start to see the effect of those measures at the supermarket till?

--- Later in debate ---

[George Eustice]

The reality, as I have said, is that the changes in global commodity prices are being driven by the high price of gas and energy. As I pointed out earlier, the cost of fertiliser, which is one of the key drivers of those international commodity prices, has now fallen by 40% from its peak in March, and is now running at about £620 a tonne. If fertiliser prices remain at that level, or indeed continue to fall, we are likely to see pressure come off the forward prices of international commodities.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

I want to share with the Secretary of State the experiences of my constituent Rebecca, who is a single mum expecting her second baby soon. She said she reached out to me in “desperation and fear”,

and she told me:

“The cost of living has shot through the roof, it is unaffordable and I am having to make some pretty desperate decisions. My weekly shop amount has already jumped from under £50 per week to £75 a week… I am finding it virtually impossible to buy the necessary equipment for my baby’s impending arrival.”

How can the Secretary of State expect Rebecca and millions like her to struggle with tax increases and soaring inflation with no additional support? What is he going to do and what are the Government going to do to ease this pressure on families, which Rebecca tells me is now making her “fearful for the future”?

[George Eustice]

As I acknowledged in the statement, it is undoubtable that rising energy bills have affected household incomes, because people are paying more money on their gas and electric. Food prices have indeed risen—but across the year, with the rate currently at about 6.5%. Of course, we all have constituents with such challenges in their lives, and we all work with them. The Government have put in place the household support fund specifically to help those who fall between the cracks and cannot get support elsewhere, and we have doubled the size of that fund.

[Richard Fuller (North East Bedfordshire) (Con)]

In tackling the global pressures behind surging inflation—US monetary policy tightening, the increase in raw material prices and the conflict in Ukraine—my constituents prefer the Government’s considered approach to the knee-jerk reaction of the Opposition. The key aspect that is beneficial to most families is to put more money into their pockets through tax cuts. Will my right hon. Friend work with the Chancellor and the Prime Minister to see what room there is for tax cuts as part of our response?

[George Eustice]

These matters are regularly discussed in Cabinet, but it is perhaps best that I do not go further at this particular stage.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I remind the House of my entry in the Register of Members’ Financial Interests.

Any fair-minded person can see that international factors are clearly at play, over which no Minister can have total control, but we can control the support that we give to our domestic food producers. Is this not the moment to do as the National Farmers Union has asked of the Secretary of State and pause the Department’s programme of basic payment cuts to farmers? They will see their payments cut this year by 25%, next year by 30% and the year after by 50%.

[George Eustice]

The Government pledged to keep spending on agriculture in cash terms the same year after year in this Parliament, and that is precisely what we are doing. The right hon. Member is correct: we are phasing out the subsidy on landownership that meant that 50% of the budget went to 10% of the wealthiest landowners in the country and replacing it with a more logical approach that is about supporting the things that farmers do for the environment. Our sustainable farming incentive in England will deliver that by helping farmers with the cost of alternatives to fertiliser to chart their course. Of course, it is for Scotland and the Scottish Government to decide what they want to do in that regard, but we have a programme that is supporting farmers in England.

[Fay Jones (Brecon and Radnorshire) (Con)]

It is clear that food prices are up at the supermarket tills, but I am not clear about whether they are also up at the farm gate. Farmers in my constituency are being hit twice, because food is also more expensive to produce. Will my right hon. Friend confirm that he will continue to work closely with the retailers to ensure that, during this period of pressure, they give fair contracts and have good relationships with their suppliers?

[George Eustice]

My hon. Friend raises a fair point, but I point out that the farm-gate price of milk has risen by close to 30% so far this year, the price of lamb is at record levels, having just gone above £6 a kilo at the farm gate, and the same is true for beef. The price of cereals has doubled. The price of pork is also rising, partly because poultry and pork contracts tend to be linked to the cost of production. So farm-gate prices are also rising, but we recognise that farmers also have higher input costs.

[Nick Smith (Blaenau Gwent) (Lab)]

The Government are at sixes and sevens on how to respond to the cost of living crisis. No. 10 is saying that Labour’s windfall tax idea is ideologically unconservative, although, of course, Margaret Thatcher had one. Will the Secretary of State go back to the Chancellor and demand a windfall tax to support families across our country?

[George Eustice]

The Chancellor is very familiar with all the arguments around the policy that the hon. Member mentions. I would simply say this: the Treasury is rightly concerned that, in an inflationary environment when prices are rising, we must be careful about borrowing and throwing more money at that or even increasing public spending in a way that could exacerbate the problem, so it is a difficult line to tread. That is what the Chancellor is considering as he looks at this issue.

[Duncan Baker (North Norfolk) (Con)]

Food prices going up around the country has a particular impact in my constituency, which has the oldest demographic in the country. Pensioners are worried not only about rising food prices but about the value of their pensions. Between March 2021 and March 2022, food prices went up by 6%. What conversations has the Secretary of State had with the Chancellor, so that there is an absolute cast-iron guarantee that the triple lock will return next year to help my pensioners who are struggling with food costs and the cost of living?

[George Eustice]

Mr Speaker, given the nature of these questions, I almost feel that this urgent question should have been taken by the Chancellor. I am sure that my right hon. Friend the Chancellor is well aware of the arguments that my hon. Friend makes. A decision was taken to change the triple lock temporarily, for reasons we all understand, with very rapidly rising incomes. That is a matter for the Chancellor to deal with in a future statement in this House.

[Mr Speaker]

Maybe the Minister will be the next Chancellor after a reshuffle, given these questions.

[Joanna Cherry (Edinburgh South West) (SNP)]

Recently, I caught up with staff and volunteers at the community one-stop shop in Broomhouse in my constituency. They are doing a great job, but their food bank and their community pantry is hugely oversubscribed. It has become a bit fashionable in here to laud food banks. These sorts of schemes help to feed families and give dignity to users, but they really should not be necessary in a society where so many companies are enjoying the benefits of huge windfall profits caused by the same factors that have led to some of the increases in food prices. I hear what the Secretary of State says about not being the Chancellor, but will he use his position in Cabinet to urge that those windfall profits are taxed so that the money can be used to help people like my constituents, many of whom are working hard—employment is not the answer; this is about in-work poverty—and many of whom have received cuts to their benefits?

[George Eustice]

Specifically on food banks, the area for which the Department for Environment, Food and Rural Affairs has responsibility is through supporting projects such as FareShare and other food charities which play an incredibly important role in supporting food banks to ensure they have supplies. I think I dealt earlier with the second issue that the hon. and learned Lady mentions, which really is a matter for the Chancellor at a future date.

[Alexander Stafford (Rother Valley) (Con)]

Ukraine is known as the bread basket of Europe and the world. It is one of the largest exporters of wheat, grains, oils and barley. On average, it exports between 4 million and 5 million tonnes of grain each month. At the moment, it is exporting only a couple of hundred thousand tonnes of grain and that is having a huge impact on food prices in England and on inflation across the world. What are the Government doing to increase the homegrown production of foods and help to secure more routes into the country for grain in order to lower prices?

[George Eustice]

My hon. Friend raises an important point. Ukraine is a very large producer and in particular it is the world’s biggest producer of sunflower oil, which is the principal agricultural commodity we were importing from Ukraine. On cereals, Ukraine accounts for around 9% of wheat exports, a lower percentage of global production. In answer to his question, as I said in my statement we have a very high level of food security in this country, with high levels of self-sufficiency in wheat, producing 88% of the wheat we need. Of course, we are also mindful of the impacts on other countries around the world, in particular those in north Africa that import significant quantities from Ukraine.

[John McDonnell (Hayes and Harlington) (Lab)]

In crises on this scale, Governments of all complexions, Conservative and Labour, have looked at ensuring people have the resources coming in so that they can afford basic foods. At the moment that means inflation-proofing benefits, pensions and wages, but they have also looked at price controls. The Government are looking at price controls for energy. Will they now look at price controls on a basketful of basic food stuffs, so that we do not see what we have seen in recent surveys, which is people actually now on the edge of hunger?

[George Eustice]

I would simply point out that the ferocity of retail competition in this country at the moment means that two of the big companies, Sainsbury’s and Tesco, are in a price match war with Aldi. That will actually do far more to constrain prices in some of those categories—not all, but in some of them—than any regulation the Government can bring in. I would point out that the last time we saw a spike in food prices of this size, with household spending on food exceeding where it is today, was 2008. The Labour party did not choose at that point to introduce price controls.

[Bob Blackman (Harrow East) (Con)]

My right hon. Friend has set out for the House the complications involved in price rises of food and other substances, and supply is clearly one of those. Will he therefore take action to encourage our farmers to produce more, and then make sure that our supermarkets pass on the profits they make to farmers to encourage them to grow and develop more product?

[George Eustice]

Confidence among farmers to sow next year’s winter wheat crop and to continue to put down flocks of broiler chicken and so on really does matter. In the case of poultry and pigs, many of the contractual arrangements automatically pass on some of the costs—for instance, the costs of feed. With fertiliser prices easing down, I think we will see confidence returning, but my hon. Friend is absolutely right. In England we have chosen to bring forward 50% of the annual subsidy payment to July this year to help farmers with cash flow during a difficult time.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

Dennis Woods from Unity in Community in north Hull told me last week that demand at its food bank is soaring. This is a left-behind community, so donations are suffering, and every week the food bank’s stock is cleaned out. It seems to me that things will only get worse, so given that the Government are combining 1970s stagflation with attitudes from the 1870s about the working poor, what exactly will they do to help people in my constituency who are suffering from hunger and who cannot put food on their table?

[George Eustice]

As I said, we have doubled the funding in the household support fund, putting an extra £500 million into it to help the right hon. Member’s constituents and others. We also support food banks through projects such as FareShare.

[Ben Lake (Ceredigion) (PC)]

The Secretary of State may be aware that in Wales a policy of providing free school meals to all primary school children is being progressed thanks to an agreement between Plaid Cymru and the Welsh Government. Will he speak with colleagues in the Treasury about potentially uprating the public sector budget so that that important provision is not affected by rising food prices?

[George Eustice]

These matters are often covered in the Barnett formula and the complexities of Treasury settlements with the devolved Administrations, so I advise the hon. Gentleman to write to the Chancellor or the Secretary of State for Wales to raise his issue.

[Stephanie Peacock (Barnsley East) (Lab)]

The Governor of the Bank of England has described food inflation as “apocalyptic”. Instead of telling people to work harder, buy cheaper or cook better, why do the Government not think again about raising national insurance, cutting universal credit and putting a windfall tax on the oil companies?

[George Eustice]

Again, these are matters for the Chancellor, but I would simply say that, as we emerge from this pandemic, there are challenges—challenges to global supply chains, challenges to the global economy and, domestically, challenges to our NHS. The NHS has had two years of wrestling with the pandemic, and it now has a backlog in some areas that it needs to get on top of. The national insurance rise and social care levy that we have put in place will bring in the resources that will help the NHS to get back on its feet after the pandemic.

[Ian Mearns (Gateshead) (Lab)]

In my constituency, hunger, poverty and malnutrition are not abstract concepts. Food bank demand is through the roof, and many food banks can no longer cope with demand as donations are squeezed from the very communities that need their services. The Secretary of State can robotically repeat what the Government have done and how much they have spent—only once—but the simple, sad fact is that it is just not enough. Many of my constituents are going hungry in one of the richest economies in the world—here and now in the 21st century. We need some urgency and some action, Secretary of State.

[George Eustice]

The Chancellor acted with urgency in his spring statement to increase spending on the household food budget, to increase the national living wage and to put in place easements on council tax and energy bills.

[Rachael Maskell (York Central) (Lab/Co-op)]

When my constituent goes to Collective Sharehouse, she has to select items that do not need to be cooked, because she cannot afford to cook any food. She is therefore not getting a balanced diet, and we are going to see inequality grow not only economically but in terms of health outcomes. Will the Secretary of State go back to the Cabinet and speak to the Secretary of State for Work and Pensions to ensure that we see a proper increase, in line with inflation, in people’s social security and pensions so that they can eat?

[George Eustice]

As I said, we recognise that the single biggest driver of pressure on household incomes has been rises in gas and electricity bills. That is why the Government have focused their attention on those areas. My right hon. Friend the Secretary of State for Work and Pensions obviously keeps under open review the approach and the support that we give people, but we should recognise that there are around 1 million job vacancies in this country, with unemployment at the lowest level ever. We want to support people into high-paid work.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

As the campaigner Jack Monroe has highlighted, and as Newcastle’s West End food bank sees in practice, the cruel truth is that the poorer you are, the higher the rate of inflation you face and the fewer choices you have. But the Government have choices, and my constituents are amazed and disgusted at the choices they make to protect windfall profits rather than working people. Why does the Secretary of State think it should be the poorest who pay the price of inflation?

[George Eustice]

I reject the hon. Lady’s caricature. This Government increased the national living wage to £9.50 an hour and have consistently raised tax thresholds so that the poorest do not pay tax at all. This Government and this Chancellor have put in place a package of measures to help those on the lowest incomes.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

None of us came into this place thinking that we would see a day when children went to bed with no food in their tummy and no heat in their home. I know the Secretary of State to be an honourable man, but today’s statement does not show an understanding that this is a national and global emergency just like covid. There should be a Cabinet-level group—it could always be all-party—because this crisis is not going to go away. People are going to starve in this country and worldwide. We should have a programme to grow more, not just for us but for the whole world. Please, Minister, go back to the Cabinet, shake No. 10 up and get this moving.

[George Eustice]

Our domestic production of food is crucial to our national resilience and plays an important role in our overall food security, as do open markets around the world. We will be setting out a food strategy in June that will deal with many of these issues and will set out our ambition to expand agricultural output.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for his answers to the questions—he is obviously over his subject matter. In my constituency, milk went up by 25p in one week and since March of last year the price has risen by more than 25%. That is only one of the cupboard staples, and an essential element for future health. What steps can the Secretary of State take with regional counterparts to bring down prices and ensure that the farmer is supported and helped? Will he bring to the ears and attention of the Chancellor the need to halt the plastic packaging tax, which has increased production prices for dairymen across all the United Kingdom of Great Britain and Northern Ireland?

[George Eustice]

There have been so many questions for the Chancellor that I am sure by now he has tuned in and is listening to proceedings. In answer to the initial part of the hon. Gentleman’s question, the Government are removing the tariff that was introduced on United States feed maize so that we can reduce some of the input costs, particularly for the pig and poultry sector. That will also benefit dairy farmers.

[Mr Speaker]

I thank the acting Chancellor for that. Let us move on to business questions.

Oral Answers to Questions

George Eustice Excerpts

Thursday 28th April 2022 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

2. What assessment his Department has made of the impact of food price rises on household budgets.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Since we last gathered for DEFRA oral questions, our noble Friend Lord Plumb has, sadly, passed away. He was a titan of the agriculture industry, and National Farmers Union president throughout most of the 1970s, during a period of great change. He then went on to be President of the European Parliament. I know that the thoughts of all those in the House will be with his family.

Agricultural commodity prices fluctuate in any given year based on factors including energy costs and exchange rates. High energy costs exacerbated by events in Ukraine mean that there is going to be pressure on food prices as a result of increased input costs. The Government monitor household spending on food. Between 2008 and 2016, the proportion of household income spent on food by the poorest 20% of households was about 16%. It then dipped to under 15%, but we can expect that proportion to rise.

[Mr Speaker]

Order. We only have until 10 am for these questions, so we have to help each other.

[Jessica Morden]

Family-run farms such as Castle farm in my constituency are really being hit hard by the cost of feed, fuel and fertiliser, which in turn impacts on the cost of things such as eggs, as reported by BBC Wales today, and just adds to the soaring food prices that are hitting families so hard. Why are the Government not doing more, especially when the supermarkets are now cutting prices?

[George Eustice]

The Government are taking action. We have made available an additional £500 million to help households with increased pressure on household budgets. We are also taking measures, for instance, to remove tariffs on maize to try to reduce the costs of animal feeds. The hon. Member is right that the supermarkets will absorb some of these costs, but probably not all.

[Chris Loder (West Dorset) (Con)]

What is my right hon. Friend doing to give the Groceries Code Adjudicator some more teeth to make sure that supermarkets do not inappropriately take advantage of the difficulties that we see with food prices? As he will well know, a lot of farmers face great pressure from supermarkets, and some would argue that they actually control the prices that farmers get when that is not really how it should be.

[George Eustice]

The supermarket adjudicator has, in recent years, made good progress in bringing transparency to the way relationships work between suppliers and the supermarkets. In addition, through the Agriculture Act 2020, we have introduced new powers so that in future we will be able to regulate and improve the transparency and fairness of contracts between farmers and processors.

[Mr Speaker]

I call shadow Secretary of State Jim McMahon.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Britain is besieged by a cost of living crisis. Tax hikes and rocketing bills are making life harder for working people. We know that 4.7 million adults and 2.5 million children live in food poverty, 2.1 million food parcels were issued last year, and 1 million people will not eat at all today. Looking back on his nine years in the Department, what would the Secretary of State have done differently to improve rather than weaken the food security here in the UK?

[George Eustice]

Our food security, based on the amount of production we have in this country as a proportion of our consumption, has remained remarkably stable, at around 75%, for the past 22 years. Since we have left the European Union, we have had the ability to increase investment in farms and make available more grants for that, which we have done, and we have also introduced measures to improve transparency and fairness in the supply chain.

[Jim McMahon]

The Secretary of State knows that the cost of food will get much higher as farmers and producers grapple with increased costs and Government-inflicted labour shortages. As the Minister responsible for food security, will he urgently convene a cross-Government summit with the food industry, devolved and local government and charities to finally get ahead of the crisis—or are the Government once again just out for themselves, out of touch, and completely out of ideas?

[George Eustice]

I have already had many such meetings with the food industry and the agricultural industry about the current situation and the pressures on those input costs. The next meeting of the UK Agricultural Partnership in Scotland will focus specifically on the issue of food security.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

The shadow Secretary of State will be pleased to hear that Cabinet Secretary Mairi Gougeon has called for a four-nation summit, and I believe the UK Government have agreed to that, so I am pleased that that will see some progress.

National Farmers Union of Scotland president Martin Kennedy has said that the UK is on the verge of food security concerns not seen since world war two due to covid, Brexit and the war in Ukraine, with feed, food and fertiliser costs and labour shortages drastically affecting the farming and food production sectors. London School of Economics analysis shows that Brexit alone raised food prices by 6% in the past year or so. The Office for Budget Responsibility forecasts Brexit losses to be more than £1,250 per person, and 178 times bigger than trade deal gains, which, combined, are worth less than 50p per person. What support packages is the Secretary of State considering for the farming and food production sectors to ensure that their extra costs will not also be passed on to consumers?

[George Eustice]

The hon. Lady is right: I have spoken to Mairi Gougeon of the Scottish Government, and we are going to have the next meeting of the UK Agricultural Partnership at the James Hutton Institute, which approached me to host that event, and we look forward to it. On her wider points, the truth is that after the 2016 referendum household spending on food actually went down, but food prices have always been governed principally by the price of energy and by exchange rates.

[Robert Largan (High Peak) (Con)]

3. What steps he is taking to strengthen flood defences.

--- Later in debate ---

[Richard Thomson (Gordon) (SNP)]

7. What recent assessment his Department has made of the impact of Russia’s invasion of Ukraine on food security in the UK.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Ukraine is a significant global producer of many agricultural commodities, such as wheat and sunflower oil. The UK is largely self-sufficient in wheat production and imports a small amount, predominantly from Canada. However, the Russian invasion of Ukraine has had a significant impact on commodity prices. We are taking steps to assist the food industry in using alternatives to sunflower oil and working with like-minded countries around the world to ensure markets remain open and trade flows continue.

[Richard Thomson]

The conflict in Ukraine shows the fragility of many of our supply lines, and it has certainly increased the cost of many inputs and is disrupting the sector considerably. In order to minimise these effects, will the Secretary of State look again with his colleagues at having a more flexible immigration strategy and at uniting again on our sanitary and phytosanitary approach with the European Union, and take steps to make sure we are putting our food security on the same level as our energy security?

[George Eustice]

We do recognise the importance of food security; under the Agriculture Act 2020 we introduced a new requirement that every three years the Government must publish an assessment of our food security, and we monitor that closely. On the wider point, the reality is that food prices and international commodity prices have always been linked very closely to the price of energy, and the sharp spike in gas prices is inevitably going to have an impact, but overall we are still self-sufficient for about 75% of the foods we consume.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

8. What recent discussions he has had with his Faroese counterpart on access for Russian fishing vessels to shared UK-Faroese fishing grounds.

--- Later in debate ---

[Bim Afolami (Hitchin and Harpenden) (Con)]

T1.   If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

The Russian invasion of Ukraine has caused shocks to international commodity markets. Over the last few days, I have been in the United States to meet political leaders and the US farming industry to discuss the challenges that they face and the global situation. There are many similarities in our concerns, particularly about rising fertiliser costs and labour availability. This week, the UK issued a joint statement with the US on the importance of keeping markets open so that we can move wheat and other essential commodities to nations that were previously reliant on Ukraine for their supply.

[Bim Afolami]

I strongly support the Government and the Department in their introduction of biodiversity net gain, which could be transformative across the east and south-east of England in particular. Will the Secretary of State commit to ensuring that biodiversity net gain becomes mandatory on all construction sites in England by the end of 2023?

[George Eustice]

My hon. Friend is right about the importance of biodiversity net gain. It will ensure that we can get the housing development that we need while protecting nature and building back greener. We have committed to a two-year transitional period to ensure that biodiversity net gain is introduced in that timeframe.

[Mr Speaker]

We come to the shadow Minister, Ruth Jones.

--- Later in debate ---

[Dave Doogan (Angus) (SNP)]

Input costs in agriculture are at a tremendous high, including for feed, fuel, fertiliser, energy and wages. On that last point, the Home Office’s pernicious surcharge on growers of £10.10 an hour has no basis in reality. Will the Secretary of State explain what the Home Office is thinking, and will he come to speak to my local growers to see how they can make their way through this unnecessarily difficult situation?

[George Eustice]

In introducing the seasonal agriculture workers scheme, we were very keen for it not to undermine the domestic labour market and prevent people from joining it. We wanted to give industry access to labour, but not to cheap labour. That is why we followed the Migration Advisory Committee’s recommendation to have a slightly higher minimum wage for those coming in under the scheme.

[Robin Millar (Aberconwy) (Con)]

In Wales and Aberconwy, farmers have told me of their concerns that an unintended consequence of encouraging tree planting is, specifically, the creation of a new asset class by carbon capture incentives, which encourage the purchase and forestation of viable upland farms. Will my right hon. Friend reassure them that he has that under control?

[George Eustice]

I reassure my hon. Friend that we are well aware of that challenge. My noble Friend Lord Benyon is leading a piece of work on the green market, including looking at where we should allow private capital to support the development of new forestry.

[Wera Hobhouse (Bath) (LD)]

Further to the questions about sewage, there are fears that dogs swimming in rivers will be poisoned by sewage. Will the Secretary of State make it mandatory for water companies to report on the number of dogs and animals poisoned in their rivers and name and shame the worst offenders?

Budget of the Office for Environmental Protection

George Eustice Excerpts

Thursday 31st March 2022 Written Statements

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

The Secretary of State is setting out the budget for the Office for Environmental Protection (OEP) for the financial year 2022-23 and an indicative budget for five years which will be protected by DEFRA within this spending review period. This will ensure the OEP has sufficient funds to carry out its statutory functions in England and gives greater certainty to the OEP over its long-term finances with which to plan its activities. The Northern Ireland contribution to the OEP’s budget, reflecting the additional cost of the OEP’s functions in Northern Ireland, is subject to ongoing discussion and will be confirmed in due course.

Following DEFRA’s internal assurance of the budget allocation, the OEP will receive:

In 2022-23: a ring-fenced baseline budget of £7,108,583, and additional funding of £4,364,366, totalling £11,472,949

In 2023-24: a ring-fenced baseline budget of £7,250,755

In 2024-25: a ring-fenced baseline budget of £7,395,770

The indicative baseline budget for 2025-26 is £7,543,685 and for 2026-27 is £7,694,559.

The total funding of £11.47 million for the upcoming financial year includes an additional £4.36 million to support the OEP’s establishment costs. The 2022-23 baseline budget of £7.11 million to cover ongoing operational costs and the exercise of the OEP’s statutory functions will increase year on year allowing for inflation, forming the five-year indicative budget.

The OEP’s baseline budget is ring fenced for the duration of the spending review period and the OEP will not be subject to savings. As with the use of any public funds, we expect the OEP to manage its budget with a high standard of probity, declare in-year underspends and return any unspent funds to the Department.

Should the OEP be asked to undertake additional duties which increases the cost of undertaking its functions, the Secretary of State will ensure supplementary funding is available so that the OEP’s funding overall remains sufficient. Further, should the OEP identify additional needs in 2022-23 or future years it will be able to bid for supplementary funds through a bespoke budget allocation process.

DEFRA will also conduct a review within 18 months of the OEP being set up in line with Cabinet Office guidance regarding new arm’s length bodies. This will provide an early assessment of the effectiveness and long-term resource requirements of the body.

[HCWS750]

Delivering the Environment Act

George Eustice Excerpts

Wednesday 16th March 2022 Written Statements

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

We are today launching our consultation on legally binding targets under the Environment Act to leave our environment in a better state than we found it. This includes a world-leading target to halt the decline of nature by 2030. This is our compass, spurring action of the scale required to address biodiversity loss. We are also proposing targets for air quality, water, trees, marine protected areas, biodiversity, and waste reduction and resource efficiency.

This goes beyond the legal minimum required under the Act and will support the delivery of many of the Government’s priorities, including to reach net zero by 2050, build resilience against the impacts of a changing climate, and level up all corners of the country.

In order to meet these targets, we must move the emphasis away from bureaucratic EU processes that have not done enough to moderate the pace of nature’s decline, and instead put in place the governance regime that can deliver nature’s recovery. That is why we are publishing a Green Paper today, setting out proposals to create a system which better reflects the latest science, has regard for our domestic species and habitats, and delivers nature recovery.

We have always said we will take a cautious and evidence-led approach to any reform. This Green Paper is the next step in setting out our ideas and gathering views to inform our approach.

Our protected sites and nutrient pollution

As set out in our 25 year environment plan, England’s protected sites are a vitally important part of this Government’s ambitious commitments on the environment, including delivering the target to halt species decline by 2030. Nutrient pollution is a particular problem for our freshwater habitats and estuaries. Increased levels of nutrients—especially nitrogen and phosphorus—can ultimately damage protected sites and the wildlife that live there.

Many of our most internationally important water bodies are designated as protected sites under the Conservation of Habitats and Species Regulations 2017. Under the Habitats Regulations, competent authorities, such as local planning authorities and the Environment Agency, must assess the environmental impact of planning applications or local plans. As a result of these regulations and European case law, Natural England has advised that in areas where protected sites are in “unfavourable condition” due to nutrient pollution, Local planning authorities can only approve a project if they are certain it will have no negative effect on the protected site.

Following further work to understand the sources of site deterioration, Natural England has today issued updated advice and support to the 32 local planning authorities currently affected by nutrient pollution, as well as 42 new local planning authorities. So far this approach has too often been complex, time-consuming and costly to apply, and Government is clear that action is needed to make sure that we both deliver the homes and communities need and address pollution at source.

First, to help all local planning authorities affected to navigate this requirement, Natural England has published a “nutrient calculator” to enable development to take place in a sustainable way. The Government is offering £100,000 to each affected catchment to support cross-local authority work to meet Natural England requirements and enable development to continue.

These solutions are pragmatic short-term steps but do not amount to a permanent solution that will improve water quality and allow sustainable development to proceed, and so we are going further. The Government already has highly ambitious plans to reduce nutrient pollution from both agriculture and sewage works and has further plans for the future. We have also secured a series of pledges from water companies to provide new funding for nature-based “strategic solutions” to tackle nutrient pollution. We welcome the new and proactive investment from Severn Trent Water, United Utilities, South West Water and Yorkshire Water in collectively investing an additional £24.5 million in reducing nutrient pollution affecting these sites, including nature-based solutions. We will work with the wider industry to deliver further action, as far as possible.

Finally, we will explore legislation to further strengthen requirements to reduce nutrients at source enabling more sustainable development. This will provide greater certainty for local authorities.

[HCWS688]

Oral Answers to Questions

George Eustice Excerpts

Thursday 10th March 2022 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

4. If he will hold discussions with the Secretary of State for International Trade on the potential effect on farmers and crofters in the highlands and islands of the UK-New Zealand free trade agreement. [R]

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Over the past 18 months, I have held regular discussions with both the current Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and her predecessor, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), regarding the negotiating mandate for the free trade agreement with New Zealand, which includes protections for British agriculture. Tariff liberalisation for sensitive goods, including beef and lamb, will be staged over time.

[Mr Carmichael]

The Secretary of State’s decision to seek advice from the Trade and Agriculture Commission is welcome, but the questions on which he seeks advice all seem to revolve around standards. Important though standards are, they are not the full story as far as the crofters and farmers in my constituency are concerned. Will the Secretary of State encourage his right hon. Friend the Secretary of State for International Trade to take a more farmer and crofter-focused approach? This week the Government’s own figures indicated that that trade deal risks taking £150 million out of British agriculture.

[George Eustice]

It is important to recognise that New Zealand has always had access to the UK market under an existing World Trade Organisation schedule of around 114,000 tonnes, but in recent years New Zealand has used only half its quota, because long before the quota is filled it is unable to compete with the great UK producers, including those in the right hon. Gentleman’s constituency.

[Jane Hunt (Loughborough) (Con)]

5. What steps he is taking to support livestock farmers.

--- Later in debate ---

[Kate Osborne (Jarrow) (Lab)]

6. What recent assessment his Department has made of the impact of food price rises on household budgets.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

International commodity prices are heavily influenced by factors such as energy costs and exchange rates. Recent pressures have been sustained and we have seen food price inflation rise to 4.4% in January, up from 4.2% in December. Events in Ukraine and the effect of that on energy prices are likely to have further impacts, which we are monitoring closely. Our UK food security report, published in December, included analysis of food security at household level.

[Kate Osborne]

The cost of living is rocketing and the price of food has risen by 3.9% year on year. Food banks such as Hebburn Helps and Bede’s Helping Hands in my constituency tell me that they are as busy as ever, as more and more people are being driven into poverty, having to choose between eating and heating. Does the Minister agree that the time has now come for the Chancellor to commit to ending food poverty in the UK by including in his forthcoming spring statement all the measures set out in the “Right to Food” campaign of my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) to achieve the permanent eradication of hunger in the UK?

[George Eustice]

The hon. Lady will be aware that the Government have put in place a number of measures to help households, particularly with the sharp increase in energy costs that they face. The Chancellor and the Secretary of State for Business, Energy and Industrial Strategy have set those out previously. In addition, we have other schemes such as the holiday activity programme to support those suffering from food insecurity and additional food costs, and we have given local authorities additional measures to help them with those struggling to afford food.

[Neil Parish (Tiverton and Honiton) (Con)]

With Putin’s murderous regime wreaking havoc on Ukraine and murdering innocent women and children, there is a direct impact on food and grain prices. Ukraine has stopped exports, as have many other countries. What will the Secretary of State do to protect grain supplies in this country? Secondly, what talks will he have with the retailers to ensure that we can share some of the pain of the costs, which pig and poultry just cannot stand? Thirdly, how are we going to create greater food security and grow more grain in this country, which we are in need of?

[George Eustice]

On my hon. Friend’s final point, we published a highly comprehensive analysis of our food security, including a focus on the production to supply ratio, which showed that we produce roughly three quarters of the food that we are able to grow and consume here. On his specific point, we were aware of the risk of these events in Ukraine and set up a dedicated group within DEFRA at the beginning of January to do contingency planning for the possible impacts on food. We do not import wheat from Ukraine, or only very small quantities; we are largely self-sufficient in wheat and we import the balance from Canada. However, we are looking at the cost of inputs, particularly for the livestock sector, such as poultry.

[Ben Lake (Ceredigion) (PC)]

The Secretary of State will be aware of widespread concern that the rising cost of fertiliser will add further inflationary pressures to the price of food. Indeed, I have been told by one farmer of a quote for £930 a tonne plus VAT for a shipment that last year cost about £280. What steps can the Government take to address this crisis and ensure that our food security is not undermined?

[George Eustice]

The hon. Gentleman raises an important point. Fertiliser prices had spiked even before current events in Ukraine, because the cost of ammonium nitrate is heavily dependent on the cost of gas, as he knows. We have been working closely with our own domestic producer in the UK to ensure that it maintains production. Most farms will now have purchased their fertiliser and have it on farm for the current growing season or the beginning of it, but we are setting up a special group with industry to work on this challenge and to identify better long-term solutions that rely less on the price of gas.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Price rises are having an adverse effect on the household budgets of people across my constituency, perhaps none more so than those people who are off the gas grid and must buy heating oil or gas in bulk. They are not protected by the Government’s energy cap. Can my right hon. Friend tell me what he is doing and what work he is doing with BEIS and the Treasury to help to protect my constituents from bills that may have more than doubled?

[George Eustice]

I have had conversations with the Business Secretary on this matter. The disruptions we are seeing, particularly following events in Ukraine, are having some impact on the supply of household heating oil for those who are not on the grid. I know he is well aware of these issues and his Department is working closely on it.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Russia’s appalling invasion of Ukraine clearly drastically affects Ukraine’s ability to produce grain and many other foodstuffs, threatening not only price increases, but global famine and disease spread. Domestically, our farmers are experiencing increased seed, fertiliser and transport costs, and the UK, lacking the leverage it once had as part of the EU, is now a small player on the global market. The Secretary of State mentioned a food security review and summits. Exactly what actions is his Department taking to ensure food security in the UK and stabilise food prices, and what plans are the Government making to assist developing countries to meet their needs?

[George Eustice]

Tomorrow, I will attend a special session of the G7 where, with other like-minded countries, we will discuss some of those issues and the impact on international commodity prices. It is inevitable that when a country such as Russia under Putin takes such steps, there will be some turbulence in the market. It is essential that the world community shows solidarity in taking tough action on sanctions, which we will do. It is inevitable that there will be some collateral damage to our own interests and prices, but nevertheless we must see that through and impose those sanctions where they are needed in order to bring the regime to its senses.

[Anna Firth (Southend West) (Con)]

7. What steps he is taking to support coastal communities.

--- Later in debate ---

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

The harrowing events following the invasion of Ukraine have touched us all. The Department for Environment, Food and Rural Affairs has received inquiries from many farmers, food producers and water companies that want to offer help to the people of Ukraine. We are co-ordinating with the Foreign, Commonwealth and Development Office and aid agencies to ensure we target those offers through the right channels.

There has also been some turbulence in international commodity markets, with agricultural commodity prices strongly correlated to the price of energy. My Department established a dedicated team to plan contingencies for this eventuality early in January. While the UK is largely self-sufficient in wheat and imports some, predominantly from Canada, we do import certain vegetable oils from Ukraine. Tomorrow, I will attend a special meeting of the G7 to discuss these issues further.

[Jonathan Edwards]

The amount of meat imported to the UK as a result of the trade deals with New Zealand and Australia will vary considerably, depending on whether it is in carcass form or deboned. Are there any nuances in those trade deals stipulating that the meat coming in should be in carcass form, which will not only limit the amount of meat imported but ensure that the added value of the produce is obtained here?

[George Eustice]

There is a convention in the sheep meat sector that these international agreements are based on something called the carcass-weight equivalent. That does not always apply to beef. However, the special agricultural safeguard that operates from years 10 to 15 will be based on a carcass-weight equivalent mechanism.

[Stephen Hammond (Wimbledon) (Con)]

T3. My hon. Friend the Minister knows how important the Animal Welfare (Kept Animals) Bill is for animal sanctuaries. Could she update the House on the progress of that Bill and its timeline in this Session?

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

It has been two weeks since I submitted this parliamentary question. Russia and Ukraine account for 29% of global wheat exports and are significant in fertiliser supply. Cereal, bread and pasta are household staples for millions of homes across this country. Even before the war in Ukraine began, we were in the midst of a supply chain and cost of living crisis, with gaps on the shelves and food left rotting in the fields. Labour has a plan to buy, make and sell more of our great British produce, but what is the Secretary of State’s plan to address our weakening food security?

[George Eustice]

As the hon. Gentleman will know, we are working on a food strategy that will address all these issues across the food supply chain and some of the other challenges around the food industry, too. On his specific question, as I have said, we are largely self-sufficient in wheat production. We import some wheat from Canada. Most of our bread manufacturers therefore have British or Canadian wheat in their bread. We have modelled the impact of the increase in commodity prices on the price of a loaf of bread, and because wheat only represents about 10% of the cost of a loaf of bread, the impact is actually quite modest. A much bigger impact is likely to be the increase in fuel costs, since the cost of delivering bread is the biggest cost they face.

[Jim McMahon]

Many food banks have raised concerns that they may face having to turn away hard-working families struggling to get by. Some have reported that donations are down as families feel the cost of living squeeze, but demand for services is rocketing. It cannot be left to charities and retailers such as the Co-operative and others to fight this alone. What will the Government do to step up and deliver food justice, especially given that this cost of living crisis originated in Downing Street?

[George Eustice]

The big drivers of household financial insecurity are energy costs, housing costs and so on, and that is why the Chancellor and the Secretary of State for Business, Energy and Industrial Strategy have already announced schemes to try to help households with the cost of energy. When it comes specifically to food, we have a household support fund worth around £500 million, and at a DEFRA level we support projects such as FareShare.

[Tom Randall (Gedling) (Con)]

T5. Breathing clean air is an essential ingredient in living a long and healthy life. Does my hon. Friend agree that it is important that residents, particularly in our urban areas, are breathing as clear air as possible? What support are the Government offering local authorities to tackle air quality?

--- Later in debate ---

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T6. I remind the House of my entry in the Register of Members’ Financial Interests. I say to the Secretary of State that farming faces a moment of existential crisis with massively increased input costs, especially for fuel and fertiliser, which could seriously reduce productivity in the long term. Will he use his office to bring together the unions, the supermarkets and other stakeholders in farming to find a way through so that farming has a long-term future?

[George Eustice]

Yes, we are doing that in fertiliser. We are also exploring options to identify alternative sources of animal protein.

The hon. Member for City of Chester, representing the Speaker's Committee on the Electoral Commission, was asked—

Northern Ireland Border

George Eustice Excerpts

Thursday 3rd February 2022 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

I would like to update the House on current developments regarding the implementation of sanitary and phytosanitary checks at points of entry in Northern Ireland.

Yesterday, Minister Edwin Poots directed his officials in the Department of Agriculture, Environment and Rural Affairs to suspend checks on points of entry for goods from Great Britain from midnight last night. There have been no operational changes on the ground as yet while officials in DAERA seek further advice in response to the direction provided by Minister Poots yesterday.

Although the overarching responsibility for international relations rests with the United Kingdom Government, delivering many of the requirements under the Northern Ireland protocol, including agrifood checks, is a devolved matter and responsibility for doing so falls to the Department of Agriculture, Environment and Rural Affairs in the Northern Ireland Executive. This includes checks that take place at Northern Ireland points of entry.

I spoke to Minister Poots this morning to gain an understanding of his perspective. He explained that he had taken his own legal advice before issuing the direction to officials. He also explained that he had hoped to secure an opportunity for the Northern Ireland Executive to discuss the situation regarding the current implementation of SPS checks at points of entry.

Since the end of the transition period, Minister Poots has been consistent in arguing that the Northern Ireland protocol creates significant challenges for communities in Northern Ireland. The Government recognise that the Northern Ireland protocol is causing significant problems in its current form, which is why we published a command paper last summer setting out an alternative approach to arrangements in Northern Ireland.

We have proposed new arrangements to provide the EU with the assurance that it has requested for its own single market without the need for export health certificates or routine checks at points of entry. Negotiations between my right hon. Friend the Foreign Secretary and Vice-President Šefčovič are continuing, with a further meeting scheduled for later this afternoon. Throughout these talks, our clear priority is to preserve peace and stability in Northern Ireland and to protect the Belfast/Good Friday agreement in all of its dimensions.

The Government recognise the sensitivities that surround the Northern Ireland protocol within communities in Northern Ireland. That is why we continue to represent the interests of Northern Ireland in our discussions with the European Commission and, in the meantime, my officials will continue to liaise with officials in DAERA to support them while we seek a solution.

[Peter Kyle (Hove) (Lab)]

I shall not wholly thank the Secretary of State for advance sight of his statement, because it arrived in my hand as he got to his feet, but I certainly thank him for making an effort to get it into my possession. We are, again, in a position where the Government are trying to ignore the reality that it was the Prime Minister who negotiated every single word of the Northern Ireland protocol. He told this House that what he had delivered was

“in perfect conformity with the Good Friday agreement”—[Official Report, 19 October 2019; Vol. 666, c. 583.]

and he told the public that it would

“bring to an end far too many years of argument and division”,

but here we are.

The same Government are now arguing that upholding the terms of the deal that they negotiated is not even the responsibility of the United Kingdom Government. Instead, they want us to believe that it is a function of the Northern Ireland Executive. In the last week, the Foreign Secretary and the Northern Ireland Secretary said that the Irish sea border checks are a

“matter for the Northern Ireland Executive”.

The protocol was signed into international law by the UK Government, and now they are bystanders as their deal falls apart, pathetically claiming that it is all somebody else’s responsibility. Let us think of the implications. Is the message that the Welsh Senedd or the Scottish Parliament can break international law too and the Government will have nothing to say about it? It is another piece of vandalism committed against our Union by a reckless Government too busy partying to notice what is going on out there in the real world.

A few moments ago, the Prime Minister’s spokesman said that they had been caught completely unaware by developments—are they kidding? I do not know anyone who did not see it coming. The Foreign Secretary is today negotiating with our EU partners. Does the Secretary of State believe that the events that are unfolding will strengthen her hand in negotiations as she seeks to reassure our partners that we are a credible partner who will stick to our end of negotiations and commitments?

Last year, the Secretary of State wrote to the Northern Ireland Executive to instruct them that work on border control posts must progress “without delay”. He used his powers to do so. The same principles stand today—the same Stormont Minister, the same Conservative Environment Secretary, the same Prime Minister’s deal—but there is a completely different interpretation of parliamentary sovereignty and Government responsibility. That is a total U-turn. Can the Secretary of State tell us what has changed in the Government’s position between now and then?

The situation puts civil servants and council workers in an impossible position. We are already hearing of confusion at ports. Right now, business groups are disagreeing with the Government’s stance. Yesterday, Manufacturing Northern Ireland said:

“Regardless of events, the legal and administrative advice is that these are international obligations on traders and they should continue to meet those obligations whether or not there’s a guy with a hi-vis to greet them at the Port.”

Does the Secretary of State agree with that statement and, therefore, encourage businesses to adhere to the protocol terms? They need a definitive answer.

The Labour party acknowledges issues with the protocol, which is why we fought for a better deal in the first place. There has been positive movement on how it works in the last year and concessions have been made by both sides. Progress has been achieved and more is within reach, but the Government must do more. Can the Secretary of State give us an update on progress with the veterinary partnership agreement?

As the Opposition have acknowledged many times in this House, peace in Northern Ireland is fragile and has been hard-won. Successive Prime Ministers, including John Major, Tony Blair and Gordon Brown, all secured progress by being the honest broker that the people of Northern Ireland need. The current one, however, is setting us back by exacerbating divisions and damaging the Union.

Because of the Government’s actions, people across the UK face a cost of living nightmare. On top of that, we are being plunged back into the Brexit quagmire totally unnecessarily. The Labour party would diligently negotiate a position where people and businesses across the United Kingdom can focus on future opportunities, freeing us from Tory failures that do nothing more than trap us in the battles of the past.

[George Eustice]

The hon. Gentleman asks about the Northern Ireland protocol, which he will know required that any checks that might be put in place should protect trade within the United Kingdom and should not lead to an unnecessary diversion of trade. That is a key principle of the Northern Ireland protocol. Many of the details as to precisely how any checks would be carried out were deferred in the first instance to the Joint Committee, which completed its work and reached some interim arrangements. It was always understood that the talks would need to continue.

The principle behind the Northern Ireland protocol was to try to protect the provisions of the Belfast/Good Friday agreement, which requires us to protect all communities in Northern Ireland. It is built on the principle of the consent of all communities and the principle of power sharing. The hon. Gentleman is right that the United Kingdom takes the lead role when it comes to international agreements—which is why my right hon. Friend the Foreign Secretary is now leading the discussions with her opposite number in the European Commission to resolve some of these issues—but matters such as SPS and agrifood issues are devolved to the Northern Ireland Executive.

For the reasons I explained earlier, Edwin Poots had sought the agreement of the Northern Ireland Executive, or a discussion with the Northern Ireland Executive, following a particular EU audit that took place last year and implied that individual passenger cars should sometimes be searched to look for food items in people’s personal luggage. His concern was that that would cause difficulties for the very principles of the Belfast/Good Friday agreement. That is why, he says, he sought some authority from the Northern Ireland Executive. He has made it clear that he still intends to bring a discussion of the matter before the Northern Ireland Executive.

The hon. Gentleman asked whether the Secretary of State for Northern Ireland could use reserved powers to issue directions and so on. As he will understand, the bar for such an intervention is high, and rightly so, and is entirely unnecessary at this stage: the checks are continuing and there is currently no change. Yes, a direction has been issued and officials in DAERA are taking their own legal advice, as accounting officers, on elements related to that. We very much hope that, in the first instance, implementation can be delivered in its right and proper place through the Northern Ireland Executive.

[Julian Smith (Skipton and Ripon) (Con)]

I support the Government’s negotiations with the EU on improving the protocol, but will my right hon. Friend clarify that for the civil servants in Northern Ireland who are implementing the current rules his letter still stands? We cannot be a country that agrees an agreement and then does not stand behind it. In the absence of the Executive, which looks to be in a difficult position today, the British Government have to back the letter of 1 April and support the civil servants in Northern Ireland who are doing the checks.

[George Eustice]

My right hon. Friend was very involved in discussions on and elements of this matter and has a great deal of experience of navigating the politics of Northern Ireland and the community tensions there, but at this particular stage the officials in DAERA are taking legal advice, so we are not yet at the position of having to consider any kind of direction in the way that he suggests. In the first instance, we would all agree that it would be preferable if the Northern Ireland Executive reached a resolution to this issue on their own terms and found an ability to discuss it.

[Richard Thomson (Gordon) (SNP)]

I thank the Secretary of State for advance sight of his statement. Let us be clear why we are discussing this issue: because the current occupant of the most notorious party flat in central London has persistently and simultaneously promised contradictory outcomes in respect of border arrangements between GB and the single market, in the hope that others might eventually develop the same kind of casual attachment that he clearly has to the arrangements into which he enters.

Although, by contrast with the economy of GB alone, the economy of Northern Ireland prospers with its dual membership of the UK single market and the European single market, that clearly comes at some cost to east-west trade frictions and, of course, all the political symbolism that entails. Of course, we could legitimately, lawfully and immediately eliminate the problems of sanitary and phytosanitary checks by entering into a direct agreement with the European Union on these matters, which would be hugely beneficial to all parts of the UK. On television last night, the Secretary of State for Northern Ireland appeared to try to subcontract responsibility for complying with these aspects of international law in respect of the current protocol solely to the Northern Ireland Executive, and this statement does much the same.

What will the UK Government do to ensure that the UK continues to adhere to its international obligations under the protocol, into which they entered freely? In the Secretary of State’s understanding, from which legal authority should civil servants and, indeed, Ministers of the Crown in Northern Ireland take advice on how to act?

[George Eustice]

As I said earlier, Minister Poots has taken legal advice. Under the constitutional arrangements in Northern Ireland, I understand that he is entitled to issue this direction. The Northern Ireland civil service and DAERA are taking separate legal advice relating to some of the accounting officer issues, and Minister Poots understands why they would want to do that.

On the hon. Gentleman’s wider point, I come back to what I said previously. The agreement on the Northern Ireland protocol required many things, including that there should be no disruption and no unnecessary checks that would cause problems for trade within the UK, which is why there are still grounds for us to try to resolve some of these issues constructively. That is why my right hon. Friend the Foreign Secretary continues to have discussions with the European Commission on this particular point.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

I have confidence in and admiration for my right hon. Friend, but I am somewhat disappointed that this matter is being treated as some kind of technical problem when it is actually a constitutional crisis. He says the Northern Ireland Executive should seek to resolve it but, under the Northern Ireland Act 1998, the Northern Ireland Executive resolves matters by agreeing things between the power-sharing parties. They fundamentally disagree on this matter because the Northern Ireland protocol is, in fact, incompatible with the Good Friday agreement. The protocol is also incompatible with the Act of Union, because it has been ruled that it supersedes the Act of Union. And the European Union says there are not enough checks taking place.

Is it not now clear that the Northern Ireland protocol is unfit for purpose and is not delivering on what it said on the tin, which is that it would strengthen and underpin the Good Friday agreement? It needs to be scrapped and replaced by something completely different, and the EU should agree to that. The EU is the only party that has threatened to put infrastructure on the border in Northern Ireland, and we should keep reminding the EU that it is the one threatening the peace in Northern Ireland.

[George Eustice]

My hon. Friend makes an important point, and it is why the UK Government have engaged in negotiations with the European Union to seek important changes. We are motivated solely by our commitment to the Belfast/Good Friday agreement. In so far as the implementation and the interpretation of the Northern Ireland protocol by the European Union to date is incompatible with the principles of the Belfast/Good Friday agreement, all parties should seek to adopt a more sensible interpretation that brings it back into line with the Belfast/Good Friday agreement. That is what we are endeavouring to do.

[Ian Paisley (North Antrim) (DUP)]

Parties have warned for months that there will be a crisis, so no one should be surprised that there is a crisis. I am disappointed by the shadow Minister’s comments, as what he put to the Government today is not honest brokership. This is a serious crisis; it is not about parties in Downing Street.

The Secretary of State says that Minister Poots is entitled to take this advice, which told him that the checks are not lawful. Sinn Féin will not allow a discussion about this in the Executive to try to repair them and make them lawful. Minister Poots therefore has no vires to continue with the operation of the checks. If that is the case, will the Secretary of State affirm that Her Majesty’s Government will not interfere in this process? Will Her Majesty’s Government accept that they must now remove the friction between GB companies and Northern Ireland, as that is where the main problem now rests?

[George Eustice]

I would express it slightly differently, but would say this: the rationale Minister Poots has advanced is that the EU audit that took place and whose findings were published at the end of last year raised some issues that he believed were contentious and therefore potentially a threat to community relations. Therefore, in his view, part of the threshold test for authorisation to be required by the Northern Ireland Executive has been met. He therefore believes that there should be a discussion; to date, under the power-sharing agreement there has not been agreement that it should be discussed, and that has led to the current state of affairs. So it is too early to say what the legal position is. I know it is the position of Edwin Poots that it is not lawful to continue these checks without the express authority of the Northern Ireland Executive. Others may take a different view, but the UK Government very much hope the Northern Ireland Executive can find a resolution to this, and for our part, as the ones who stand behind the Belfast/Good Friday agreement and are responsible for it and for protecting it, and as the ones who are responsible for international negotiations, we will continue to endeavour through the negotiations with the EU to find an enduring solution.

[Sir Robert Buckland (South Swindon) (Con)]

My right hon. Friend rightly characterises this as a devolved matter, and the Government, far from making a U-turn, have been very clear and consistent about it. However, the international law dimension of this and the obligations of the United Kingdom Government are also very clear. Would it not have been better for the Minister in the Northern Ireland Executive to have told my right hon. Friend before he decided to make this directive because of the obvious sensitivities and the vital importance of allowing my right hon. Friend the Foreign Secretary to conduct her negotiations with Commissioner Šefčovič in as smooth and unimpeded a way as possible? We will deal with this through negotiation and resolution at international level, and therefore we need to avoid the elephant traps that unilateral action present.

[George Eustice]

My right hon. and learned Friend knows from experience that the UK Government have considerable patience for negotiation in order to reach agreement and sensible pragmatic settlements in these areas. He is absolutely right that we seek and would prefer a negotiated reform of the way the protocol is interpreted, and that is what my right hon. Friend the Foreign Secretary is working on, but I hope I have given an explanation on a number of occasions now about the perspective that Edwin Poots brings to this and why he has acted in the way that he has. I hope my right hon. and learned Friend will also understand that there is a difference between things we are responsible for in international law and things a devolved Administration are responsible for implementing under the devolved devolution settlement that we have.

[Hilary Benn (Leeds Central) (Lab)]

It should be a cause of great sadness to all that the act of leaving the EU continues to cause such business and political instability in Northern Ireland. I have listened very carefully to what the Secretary of State had to say and think he was arguing that, while it may indeed be the case that the administration of SPS checks is a matter for the Northern Ireland Executive, the legal obligation under the withdrawal agreement and Northern Ireland protocol to ensure checks are done falls upon the UK Government. So, if the checks do stop, do the Government intend to use their powers under section 26 of the Northern Ireland Act 1998? He talked about a high bar; may I briefly read to him what it says?

“If the Secretary of State considers that any action proposed to be taken by a Minister or Northern Ireland department would be incompatible with any international obligations…he may by order direct that the proposed action shall not be taken.”

[George Eustice]

Of course the Secretary of State may direct, as the right hon. Gentleman points out, but for all the reasons I have given—for all the reasons that we understand—the bar for using such reserve powers is high. At the moment, checks are continuing. There is no breach, and the Government judge that at this stage, the right thing to do is appeal to the power-sharing Executive in Northern Ireland to find a way through this.

[Jane Stevenson (Wolverhampton North East) (Con)]

As someone with a large Northern Irish population in Wolverhampton, and being half Northern Irish myself, I have grave concerns about the constitutional crisis that the protocol is causing. Will the Secretary of State commit to urgently reviewing this, to come to a solution that will fully restore and maintain Northern Ireland’s position in our Union? Does he also agree that a Labour solution that would align us back with the EU regulations is absolutely unacceptable?

[George Eustice]

My hon. Friend makes an incredibly important point. The Government stand absolutely full square behind the Belfast/Good Friday agreement, which is built on the principle of consent within the communities in Northern Ireland. It respects the role of Northern Ireland within the UK and the importance of unfettered trade between GB and Northern Ireland as a component part of the UK, and I assure my hon. Friend that the Government are absolutely committed to finding a solution. That is why my right hon. Friend the Foreign Secretary continues to endeavour to get a sensible resolution to this issue.

[Stephen Farry (North Down) (Alliance)]

The protocol exists due to the choices made by this Government about the nature of Brexit, and in order to protect the very particular circumstances faced in Northern Ireland. I want to make it very clear that it is already the policy of the devolved Executive from May 2020 that the checks be implemented, and the legal adviser to the Executive is the current Attorney General, not the former Attorney General. Does the Secretary of State agree that we need to find long-term, sustainable and legal pragmatic solutions to the issues with SPS, and also with customs? If we are asking the European Union to subcontract more and more functions around the marginal checks to the UK authorities, trust is essential, and anything that undermines trust is entirely counter-productive.

[George Eustice]

As the hon. Gentleman will know, the Northern Ireland protocol had a number of requirements, including that there should not be unnecessary checks on goods going from GB to Northern Ireland, ensuring that that trade could continue, and ensuring that the principles of the Belfast/Good Friday agreement in all its dimensions were respected. That is why the UK Government are seeking some changes and modifications to the way in which it is interpreted. Finally, it is not for the European Commission to unilaterally interpret what the Northern Ireland protocol means: its interpretation must be bilaterally agreed.

[Mr Philip Hollobone (Kettering) (Con)]

Two years on from Brexit and seven months on from the Command Paper, which made it clear that there were sufficient requirements for article 16 to be triggered, with continued disruption to trade between Great Britain and Northern Ireland and with completely unnecessary checks, does the Secretary of State share my hope that the action taken today in Northern Ireland might be the wake-up call that the European Union needs to finally realise that the protocol is undermining the Belfast/Good Friday agreement, and that it should negotiate its replacement sooner rather than later?

[George Eustice]

We have consistently made clear through our negotiations with the European Union that the UK Government are motivated on this issue solely by our defence of the Belfast/Good Friday agreement. It is because we want to stand behind it and protect the peace that the Belfast/Good Friday agreement has brought that we seek the changes to the Northern Ireland protocol.

[Tony Lloyd (Rochdale) (Lab)]

The author of this present problem is the Prime Minister. At a time when Northern Ireland is looming into a real crisis, not simply because of the actions of Edwin Poots but because of the threat to collapse the Northern Ireland Executive, it is incumbent on the Prime Minister to be engaged, and it is disappointing that he is not. Will the Secretary of State undertake to go back and say to the Prime Minister that it is time for him to demonstrate real determination to sort out the overall problem of the protocol?

[George Eustice]

I can assure the hon. Gentleman that the Prime Minister is absolutely engaged in these issues, as are the Northern Ireland Secretary and the Foreign Secretary. Those of us who were in the last Parliament can all recall that finding a resolution to this particular challenge around trade between GB and Northern Ireland was a difficult problem to solve. The Northern Ireland protocol had a solution, but it required both parties to continue to work through certain details to make it work in practice, and that is what we have been doing.

[Mr Peter Bone (Wellingborough) (Con)]

Following on from what the Secretary of State has just said, is it not extraordinary that 20% of the checks that the EU has with third countries are between Great Britain and Northern Ireland? It is even more crazy, because the vast majority of those goods are circulating within the UK single market. Will he give the House an assurance that he will always put the interests of Northern Ireland above the interests of the EU?

[George Eustice]

Through the Joint Committee process and the negotiations led by the then Chancellor of the Duchy of Lancaster, my right hon. Friend the Member for Surrey Heath (Michael Gove), we secured easements for the major retailers in particular, and other arrangements that set aside the requirement for export health certificates until a more durable solution could be found. It is the case, as my hon. Friend the Member for Wellingborough (Mr Bone) says, that the European Union has a very legalistic approach to the proportion of goods that it inspects, which bears no resemblance whatsoever to the degree of risk. The UK Government think that there is no sense in such an approach, and our own future border arrangements will be based on a calibrated assessment of risk, not on an arbitrary percentage figure plucked out of the sky.

[Sammy Wilson (East Antrim) (DUP)]

I am sure the Minister is aware that the Good Friday agreement, which has been much referred to here today, rests upon the principle of consent, and that controversial issues therefore have to be dealt with on a cross-party basis. That was embodied in the law that set up the Assembly; the Northern Ireland Act 1998 requires that to happen, but it has not happened in this case. The Minister will also be aware that it has not happened in relation to the border posts, which have not been built yet because consent could not be achieved, and that it has not been implemented in relation to the charging of lorries coming through those border posts, because there was no consent on that either. This principle is well established, so instead of listening to the EU cheerleaders in the Labour party, the Alliance party and the Social Democratic and Labour party who want full implementation of this damaging Northern Ireland protocol, would the Secretary of State agree that the real responsibility lies with the EU to stop using Northern Ireland as a whipping boy for the UK leaving the EU, and to treat us with the respect we deserve as a part of the United Kingdom?

[George Eustice]

As I said earlier, Minister Poots gave me a similar description of the requirements of consent, and his understanding is that this issue should have been discussed and agreed by the Northern Ireland Executive. On the right hon. Gentleman’s wider points, although I would express them rather differently, I have not been known for listening to EU cheerleaders during my political career.

[Claire Hanna (Belfast South) (SDLP)]

The DUP is executing a series of reckless stunts today to try to regain some political memorandum and distract from the terrible mess that it has made, but removing officials and collapsing the Executive solves nothing. It damages trust, it undermines the culture of lawfulness that many of us are trying to foster and it risks vital legislation on climate, education and many other things that have been left hanging since the last governance black hole. I believe that it will also prevent the Executive from spending the money announced in this Chamber today to mitigate rising fuel prices. It is very disturbing that the UK Government seem content to shrug their shoulders and collude with this. What is the Minister’s clear message to businesses today, including those large retailers that are sending goods into Northern Ireland? Is it that they should continue to follow the legally mandated rules as outlined in the trade and co-operation agreement and the protocol, or should they collude with this stunt and undermine international law?

[George Eustice]

On the latter point, the legal obligations that exist apply to the relevant authorities, whether that is the UK Government or indeed the Northern Ireland Executive, so businesses should continue as normal. There is no legal liability to businesses for continuing to trade with Northern Ireland under any circumstances. On the former point, I hope that I have made it clear in everything I have said that the UK Government hope that the Northern Ireland Executive will continue and that they will pull together and find a resolution to this problem. That is the right thing to do.

[Karin Smyth (Bristol South) (Lab)]

This is really the most farcical of situations among a number of farcical situations. It seems to me that what the Minister is saying here today is that everything is as was and as normal and traders can continue. Mr Poots seems to have lawyers; I wonder whether the Government’s lawyers are involved in any of this. It seems to me that the Government are involved in wishful thinking, following on from the question asked by my right hon. Friend the Member for Leeds Central (Hilary Benn) about what happens next. Can the Minister tell us what is plan B?

[George Eustice]

I am here to give the House an update on the current situation, which I am doing in all the detail that I am able to. If events change, I am sure there will be an opportunity to have to further such exchanges.

[Sarah Olney (Richmond Park) (LD)]

I do not agree with all the points made by the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), but on one point he was correct. This is not an operational issue but a constitutional one. Can we expect a further statement from the Secretary of State for Northern Ireland on all the points raised around that matter today?

[George Eustice]

I know that my right hon. Friend the Secretary of State for Northern Ireland has been engaged in these matters over the past week or so as events have been developing. I am sure that there will be many opportunities for the Northern Ireland Office to bring such statements before the House should there be anything new to report.

[Jim Shannon (Strangford) (DUP)]

Does the right hon. Gentleman agree that the people of Northern Ireland have been kept in the call waiting queue for long enough? We hear continual EU platitudes that our opinions are important, while they simply entrench further into the protocol. We are determined that now is the time for the call to be taken, for our voice to be heard, for our problems to be addressed and for justice and UK parity to be restored. Does he agree that since the EU and its government have continued to stall, there are now no options available to the people of Northern Ireland other than major steps that were a last resort and are now the only resort?

[George Eustice]

The Government have been clear throughout that, where there are legitimate grounds to use article 16 of the withdrawal agreement, we reserve our right to do so. We also, as I said earlier, have considerable patience for a negotiated outcome. Our preference is still to get that negotiated outcome. That is why my right hon. Friend the Foreign Secretary will be having further conversations this afternoon.

Oral Answers to Questions

George Eustice Excerpts

Thursday 27th January 2022 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

4. What assessment his Department has made of the impact of food price rises on household budgets.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Food prices are influenced by a number of factors, including exchange rates and energy prices, both of which have risen since the coronavirus shock. Last year, we published the “United Kingdom Food Security Report 2021” which included a comprehensive analysis of household level food security. It showed that over the last decade spending among the poorest 20% of households has remained relatively stable at 16%.

[Dr Huq]

Shamefully, this country now has more food banks than branches of McDonald’s. As Jack Monroe, the bootstrap cook, highlighted, inflation at a 30-year high has put many staples out of reach of household food larders, yet at the same time supermarkets have thrown away the equivalent of 190 million meals worth of food. Will the Secretary of State sit down with the big top 10 and charities such as City Harvest in Acton, the Felix Project and the newly launched Ealing Food Cupboard, and work out a way to link the two in a circular economy fashion to eliminate both landfill waste and food insecurity?

[George Eustice]

The hon. Lady raises an important point that we can reduce food waste. A number of supermarkets are already engaged in programmes to support local food banks. The Government support the FareShare charity, which also helps to redistribute food and tries to prevent food waste in the way she sets out.

[Neil Parish (Tiverton and Honiton) (Con)]

Further to that question, many large retailers are keeping their budget lines at a higher price than they need to while not raising the price of higher-priced food, so I think there is an argument that they could do more to lower the price of food. Further to the Secretary of State’s comments on FareShare, can he see the £5 million that I think it is due to get food directly from farms, processors and retailers straight out to the people who need it?

[George Eustice]

I am aware that my hon. Friend has asked previously whether FareShare could also be engaged in making sure that food from farms does not go to waste, and I have said that I am willing to discuss that with it. On his point about prices, we have a highly competitive retail sector and, generally speaking, it has absorbed some of the price pressures to date.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

5. What assessment he has made of the potential effect of winding down the seasonal agricultural workers scheme on the food and drink sector.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

We are not winding down the seasonal agricultural workers scheme; in fact, we have now extended it until 2024 and it supports both edible and ornamental horticulture. There are 30,000 visas already available, with the potential to increase that to 40,000 if there is demand.

[Dr Whitford]

Instead of the 70,000 seasonal agricultural workers needed across the UK, the Government are limiting visas to 30,000, which is less than half of what is required. The National Farmers Union of Scotland has warned that, just like last year, we will again see millions of pounds-worth of crops lying rotting in the fields. Will the Secretary of State explain why the UK Government are not providing enough of the visas required? If they cannot manage an immigration scheme without harming one of Scotland’s key sectors, perhaps the Scottish Government should manage our borders.

[George Eustice]

As the hon. Lady may know, I worked in the soft fruit industry before coming into politics, so I am very familiar with the soft fruit industry in Scotland. It is one of the reasons why the Government have put in place the seasonal workers scheme, and we have had such a scheme since the second world war. Last year, we had a scheme with 30,000 visas, but only just over 25,000 were required. Many settled EU citizens will also continue to return to do seasonal work and we judge that 30,000 is probably the right number.

[Mr Philip Hollobone (Kettering) (Con)]

6. What assessment he has made of the potential effect of his authorisation of the use of the pesticide thiamethoxam in certain circumstances on the bee population.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

The emergency authorisation of thiamethoxam has been granted for sugar beet, which is a non-flowering crop so there is no direct risk to bees. However, due to the risk that thiamethoxam can stay in the soil for a period, we impose strict conditions on authorisation, including a requirement not to sow other flowering crops such as oilseed rape in the same field for at least 32 months.

[Mr Hollobone]

Residents in the Kettering constituency want to see a larger and healthier bee population, but they do not want the England sugar beet crop destroyed by aphids. Will the Secretary of State outline the economic impact on sugar beet production if that pesticide is not used and what examination he has undertaken of alternative means of controlling aphids?

[George Eustice]

As part of our assessment of emergency authorisations, we consider the economic impact, and it is considerable. The sugar beet industry is an important crop for this country. As hon. Members will be aware, 12 other EU countries have also granted an emergency authorisation for sugar beet, so it is a common approach across Europe, but we have taken many steps to ensure that there is no risk to pollinators.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

7. What steps he plans to take to help increase farmer and other land manager engagement with nature recovery networks.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

England’s nature recovery network is backed by the national delivery partnership, which includes partners such as the Country Land and Business Association. Earlier this month, I set out further details of our new farming schemes, including local nature recovery, which will incentivise farmers to make space for nature on their land and contribute to the network.

[Mr Sheerman]

I do not want to upset the Secretary of State, but I really like this policy and approve of it wholeheartedly. The fact of the matter is that most of our constituents are not Greta Thunberg or Bill Gates, but they want to roll up their sleeves and do something in their local community. That is why I like the schemes. I am involved in one in John Clare country, in the poet’s neighbourhood, and one in Huddersfield. I speak to farmers, charities and people who really want to do that, but there is a blockage relating to how people get the money and a bit of resource to do it and how they open that up. Farmers, in particular, think it is a magical mystery tour. They want to do it but they cannot get on the journey.

[George Eustice]

It is great that we have cross-party consensus on the importance of nature. We also have the local nature recovery strategies that local authorities are putting together, making space for nature within local communities and new local nature reserves. In terms of schemes for farmers, we have already announced full details of the sustainable farming incentive and there will be many more details to come on things like landscape recovery for them to engage with.

[David Duguid (Banff and Buchan) (Con)]

8. What steps he is taking to ensure a greater share of the UK-EU catch limits for the UK fleet in 2023.

--- Later in debate ---

[Damien Moore (Southport) (Con)]

12. What steps he is taking to support coastal communities.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Coastal communities are key to our levelling-up agenda. A positive picture is emerging for our fishing industry, with a quota uplift of £146 million by 2026. In addition, our £100 million UK seafood fund will invest in coastal communities across the UK.

[Damien Moore]

Research has shown that, with rising sea levels, Southport could resemble an island by 2050 if no further action is taken. Will my right hon. Friend the Secretary of State commit to visiting Southport to explore what further steps we could take to protect my constituents’ homes from rising water levels and the increased risk of flooding?

[George Eustice]

As my hon. Friend knows, the Government have increased spending on flooding to £5.2 billion so that we can better protect 336,000 properties across England. I would, of course, be delighted to meet my hon. Friend and visit his constituency to discuss the particular challenges that Southport faces.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The fishing industry in Shetland is being hammered by Spanish boats engaging in the completely unsustainable practice of gill netting. I have spoken to the fishing Minister about this in the past. What is being done to stop it or to ensure that, if it is to be done, it is to be done safely?

[George Eustice]

We keep different gear types and fishing practices under constant review. Concerns are sometimes raised about gill netting; that can be a sustainable form of fishing in some inshore waters, but not in all cases. I would be willing to meet the right hon. Gentleman to discuss his particular concern, although in some areas it will be for Marine Scotland to make the technical decisions.

[Peter Aldous (Waveney) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Earlier this month, I set out further details of our future agriculture policy. Local nature recovery will support farmers who want to make space for nature on their holdings, and landscape recovery will support land use change. However, ensuring that tenant farmers can access our future policy is going to be very important, so today I can announce that my noble Friend Baroness Rock will be chairing a new working group to investigate how we can ensure that tenant farmers access our schemes.

[Peter Aldous]

The consultation on the joint fisheries statement is welcome, and REAF—the Renaissance of East Anglian Fisheries—will be making a representation. However, there is a concern among East Anglian inshore fishermen as to the bureaucratic burden being imposed with regard to vessel testing stability, inshore vessel monitoring and the under-10-metre catch app. Accurate data is important, but I urge my right hon. Friend to ensure that obligations imposed on SMEs and self-employed individuals are proportionate, realistic and underpinned by common sense.

[George Eustice]

My hon. Friend has been a long-standing champion for fishermen in his area and the inshore sector in particular. We have introduced the under-10-metre catch app to ensure that we have more accurate data, but I should point out to him that in this current year we have also increased the amount of quota in the inshore pool by around 70%, with the additional quota that we had as a result of leaving the European Union.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

This week, I convened a roundtable discussion with leading members of our food and drinks sector. To the surprise of many, I am sure, the Prime Minister’s having his cake and eating it and stuffing suitcases full of booze were unfortunately not quite enough to sustain the industry through these difficult times.

What is clear is that the sector is struggling: the impact of inflation, the CO₂ crisis, the rocketing of feed, fuel and energy bills, and labour shortages are all increasing costs, reducing profit and ultimately pushing prices up for consumers. Those same businesses will be listening closely today. On behalf of those people, may I ask the Secretary of State what the plan is to control inflation, tackle fuel and energy costs, address labour shortages, solve the CO₂ crisis, and finally back British business?

[George Eustice]

I, too, regularly meet food industry representatives—indeed, yesterday I met the retailers, and I meet manufacturers as well. The food industry is Britain’s largest manufacturer: bigger than aerospace and automotive combined. It employs millions of people and brings prosperity to every part of our United Kingdom. There are some cost pressures at the moment, caused by gas prices, which my ministerial colleagues elsewhere are looking at, but we continue to work closely with the industry to manage its challenges.

[Jim McMahon]

Essentially there is no plan, and the lack of a plan is a theme running through the Government.

Let us move on to sewage discharge. Yesterday, when asked what could be done to reduce sewage discharges in the River Wye, the Prime Minister suggested putting on his trunks and going for a swim. While it might be normal for him, most of us do not like being up to our necks in raw sewage. Yet investment is down, water companies are £50 billion in debt, private investment has not followed, and the only things that are up are sewage discharges and shareholder profits. That is hardly surprising when over the past decade the Environment Agency has had its grant cut from £120 million to £40 million, reducing its ability to investigate and enforce. What is the Secretary of State going to do to give everybody the right to clean water? And please, don’t say you’ll join the Prime Minister.

[George Eustice]

If the hon. Gentleman had followed some of the debate on the Environment Act 2021, he would know that this House has put in place legal obligations to reduce storm overflows in particular. That follows up on the Government’s decision last summer to put that in their policy statement to Ofwat. We have also doubled spending on catchment sensitive farming and have increased the number of Environment Agency inspectors by 50.

[Mr Speaker]

We have only five minutes left. We really have to think about Back Benchers.

[Rob Butler (Aylesbury) (Con)]

T2. Two thirds of my constituency of Aylesbury is rural. Farmers there have told me that they really welcome the Government’s new policies, which recognise the importance of benefiting the environment as well as of producing food, so can my right hon. Friend update me on the roll-out of future farming schemes in Buckinghamshire?

[George Eustice]

We have already planned this year to open the sustainable farming incentive. It will be open to all farmers and universally available. We have also increased the payment rates for countryside stewardship. Half of farmers are already in that, and we are encouraging the other half to join, too.

[Geraint Davies (Swansea West) (Lab/Co-op)]

T5. The Secretary of State knows from the Select Committee on Environment, Food and Rural Affairs that there are some 6.6 million people in food insecurity, with insufficient daily food of a nutritious standard. He also knows that food prices, energy prices and national insurance are going up, and universal credit is going down. Does he agree, therefore, that that figure will reach 10 million unless something is done, and will he meet me and the co-operative movement to discuss a plan, including to put the right to food into law?

[George Eustice]

Our food security review, which was published before Christmas, showed that we have the lowest spending on food as a percentage of household income anywhere in Europe. Overall, food prices in this country are stable and spending on food is low. However, there are challenges for certain individuals. That is why we have things like the holiday funding.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T3. Can my right hon. Friend confirm that there will be financial support to help upgrade fishing vessels and ready them for five and a half years’ time, when the TCA agreement with the EU ends, in particular our inshore commercial fleet, such as those operating from the port of Looe in my constituency?

[George Eustice]

Yes, we have a new £100 million fund to support a range of activities, including port infrastructure as well as upgrades to vessels.

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

T7. When I met Southern Water to discuss sewage discharges, it said, “Oh, it isn’t our fault because we’re not in charge of runoffs and there’s a mixture of companies that do sewage treatment.” Is it not time to follow the model in Wales and have one water board that is publicly controlled by the consumers, so that there is no more finger pointing in other directions?

[George Eustice]

The Environment Agency brought a prosecution against Southern Water in respect of its failures, and it received, as the hon. Gentleman will know, a record fine of £90 million.

[Jack Brereton (Stoke-on-Trent South) (Con)]

T4.   Illegal waste sites have been a problem across North Staffordshire, and the number of organisations and agencies involved in regulating waste is allowing unscrupulous actors to go unchecked, so will Ministers look at better regulating waste?

[Caroline Lucas (Brighton, Pavilion) (Green)]

The Government’s recent decision to authorise a neonic, bee-destroying pesticide runs contrary to the advice of both the Health and Safety Executive and the Government’s expert committee on pesticides. How on earth is this decision compatible with the Government’s legal requirement to halt species loss by 2030, and will the Secretary of State look again at this particular decision?

[George Eustice]

I addressed this issue earlier. The chief scientist gave some analysis, along with others. We took a decision firmly based on the science. Twelve other EU countries have done so, too.

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

The Government promised a White Paper in response to the national food strategy within six months of its publication. That time runs out at the end of this month, so when are we going to see it? Please do not say “shortly” or “soon”.

[George Eustice]

We are working on it and it will be published in due course.

[Richard Graham (Gloucester) (Con)]

In this “tree-bilee” year, the Environment Minister knows about Gloucester’s huge new project, Hempsted woods, where I hope every child will have the chance to plant a tree. She herself kindly planted an apple tree there last year. Does she agree that it would be very helpful if the Department could publish a crib sheet about how everybody in the country can access new trees to plant this year, as soon as possible?