Food and Drink: UK Economy

John Stevenson Excerpts

Wednesday 1st December 2021 Westminster Hall

[Geraint Davies (in the Chair)]

Before we begin, I remind hon. Members that they are expected to wear face coverings when they are not speaking in the debate, in line with current Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to have a covid lateral flow test twice a week if coming on to the parliamentary estate. That can be done either at the testing centre in Portcullis House or at home. Please also give each other and members of staff space when seated, and when entering and leaving the room.

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the contribution of food and drink to the UK economy.

It is a pleasure to serve under your chairmanship, Mr Davies. I am delighted that we have the opportunity to debate the importance of the food and drink sector for the UK economy. I also mention that I am the chair of the all-party parliamentary group for food and drink manufacturing.

During the pandemic, we rightly clapped and acknowledged the work and dedication of the medical staff, who did so much for the many people affected by covid. We rightly recognised the commitment of those who continued to work in supermarkets and the many drivers who ensured that the deliveries actually got through. However, there were many other unsung heroes in many different industries and sectors who also helped to ensure that our society continued to function and that life continued in a manageable way.

One such group was the food and drink manufacturing sector. Hon. Members may recall that, at the beginning of the crisis, there was some concern that our food shelves could become empty or the supply of food would be greatly reduced. The adage is that if there was no food available, it would not be long before there was a major crisis, panic buying and potentially something rather worse. That did not happen. Indeed, the factories, sometimes in very difficult circumstances, continued to produce the food and drink that we as a country needed. The deliveries continued to be made, the supermarkets were supplied, the shelves remained full and families continued to shop in the knowledge that there would be food to buy.

There was no panic buying, except—interestingly enough—of toilet roll and pasta, which to this day I do not understand. Nevertheless, that did seem to be something that exercised many people up and down the country, but even that was short-lived. We therefore have a lot to thank the food and drink sector for and, very importantly, all those who work in it. At the time, there was some recognition of their work, and clearly there was a greater awareness of the importance of the food and drink sector, of the vital need to ensure the supply of foods to shops, and of the overall significance of the sector to our society. In many respects, that awareness has sadly disappeared. I believe this is extremely unfortunate. We should be far more aware of the nature of the sector, how important it is, its many strengths, and also its weaknesses. This is about not just the basics in life, such as the supply of food, although that is extremely important, but the real and substantial contribution that the sector makes to our economy, both nationally and locally.

I have a few statistics and facts about the sector. The food and drink sector is the largest manufacturing sector in the United Kingdom. I am amazed at the number of people who are surprised by that. They often think that pharmaceutical, automobile or aerospace would be the largest manufacturing sector, but in reality the food and drink sector is our leading manufacturer.

It has a turnover of more than £104 billion, representing 20% of all UK manufacturing. It contributes over £29 billion to the economy, and directly employs over 440,000 people and thousands more indirectly. Think of the many brands, a large number of which are iconic and international—the very best of British products. Exports exceed £23 billion, going to more than 220 countries and territories, with a huge potential for much more.

We should also be aware of the contribution the sector makes to the local economy. It is often a substantial local employer, which has a significant impact on the performance and growth of local economies, and offers employment and training opportunities to local people.

My constituency of Carlisle is a prime example. Nestlé employs 400 people. It is the largest food and drink company in the world, a significant exporter and a purchaser of much of the milk that is produced by local farmers. The 2 Sisters Food Group employs nearly 1,400 people, and if I were to have a ready-made meal from Marks & Spencer, it would probably have been produced in the factory in Carlisle. McVitie’s, part of Pladis Global, employs nearly 800 people. Talking of brands, Carlisle produces the iconic Carr’s water biscuits and, of course, 6 million custard creams every single day.

These businesses make a huge contribution to the Carlisle economy and the wider regional economy. Think of the spending impact that 2,500 directly employed staff have on the local economy, and those are just the larger employers, as these figures do not include the many smaller businesses.

Indeed, the sector as a whole is incredibly diverse, with over 10,000 manufacturing businesses, most of which are small and medium-sized enterprises. In reality, there are very few large players, which can be both a strength and a weakness for the sector. It means it is a dynamic sector, with much innovation, but at times it also means that the voice of the sector is not heard as much as it should be.

[Sir Greg Knight (East Yorkshire) (Con)]

I congratulate my hon. Friend on securing this important debate. He is making some very interesting points, but does he agree that one of the problems the sector has had in recent times is labour shortages? They do not just affect the retail end of the sector, but the farm gate, with many pig farmers, for example, suffering from a lack of qualified abattoir workmen. Is this not something that needs to be addressed?

[John Stevenson]

My right hon. Friend is absolutely right. Indeed, I will come to that later in my speech, but he has picked up one of the key issues that relates to the sector at the moment, and that extends beyond the food and drink sector, which I fully acknowledge.

The sector can be dynamic, but sometimes the voice of the sector is not heard as much as it should be. This can be a drawback, and something of which the Government should be acutely aware. Just because it does not have the loudest voice, is not the most glamorous sector and does not have a few substantial players with easy access to Government, it is still vital that the industry’s concerns are heard at the very highest level of Government.

I have talked about the economic importance, but I am fully aware of the health issues surrounding this sector as well. I appreciate that we, as a society, have become concerned about obesity and health, and rightly so. To be fair, the industry gets this and is aware of the criticism that is often directed, rightly or wrongly, at them, partly because of their products. However, the issues do not wholly lie with the industry. Indeed, the industry has made huge strides in producing many new products that are healthier and reformulating existing products, and substantial reductions in salt and sugar have helped to improve many of the products.

New products that have been brought to the market often reflect consumers’ interest in these healthier products. I must, therefore, question just how useful schedule 17 to the recent Health and Care Bill will be. The industry is already working hard to improve its products, it co-operates fully with the Government and is receptive to change. However, as a society, we must be realistic and look for other solutions to obesity concerns. We cannot and should not overlook our personal and parental responsibilities. I suspect that the provisions of schedule 17 are unlikely to produce any real improvement, as some people anticipate.

The purpose of this debate is primarily to raise awareness of and the success of the food and drink manufacturing sector, its contribution to our country, what the Government can do to support it, and the challenges it faces in future.

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

I congratulate my hon. Friend, as has already been said. I know he is a great champion of the British food industry. There is something very straightforward that Government could do: they could ensure that public sector purchasing—the procurement of food—prioritised and favoured domestic produce. We make some wonderful things in this country, yet we continue to import far too much food. That would add to traceability, food security and, frankly, simply back Britain. The Government should buy British, and I hope the Minister will confirm that that is exactly what they intend to do.

[John Stevenson]

I very much agree. The two key parts of Government policy in terms of security are energy security and food security. At present, we probably import more food than we should.

I want gently to challenge the Government on some of their attitudes and thinking towards this sector. First, what will the Government do to help promote the sector domestically and internationally?

[James Daly (Bury North) (Con)]

I am sorry to interrupt my hon. Friend, who is making an excellent speech. One of the sectors in the food economy that concerns me is fishing. As my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) said, in this country we do not buy our own produce. How can we encourage people in this country to buy the brilliant seafood we produce all round the coastline, so that it is not reliant on a foreign market?

[John Stevenson]

I am interested to hear what the Minister has to say on that point. How can the Government help our industry both domestically and by creating greater opportunities in the export market? We need to continue to see the success of the industry and exploit the opportunities in both our domestic market, as my hon. Friend the Member for Bury North (James Daly) just said, and in exports.

The development of new products, the competitiveness of the sector and the opportunity to export are vital to our country. However, there is sometimes a feeling that other countries promote this sector far better than we do. I am interested to hear what plans the Minister has to improve that.

The Minister knows that hers is a sponsoring Department for the food and drink sector. Therefore, will the Department with such responsibility challenge in a more constructive way some of the unreasonable pressures that sometimes emerge from the health lobby? As I said, the sector has made great strides on the health issue and does work with Government. Everybody accepts that more needs to be done, but a realistic approach is fundamental.

The supply chain is critical to all industries and the food and drink sector is no different. The appointment of Sir David Lewis as the new supply chain adviser is welcome. I know that the Food and Drink Federation will fully engage with the new supply chain advisory group. It is an outstanding advocate for the industry that works well with Ministers. I am sure the Minister will comment on that in her remarks.

None the less, there are concerns about the supply of food and the inflationary pressures in the supply chain. Those will undoubtedly have an impact on the consumer in due course. That leads on to issues surrounding our trading relationship with the EU. There are concerns about the border controls on exports, but also the very real issue of shortage of appropriate labour. As we know, there is a shortage of HGV drivers, farm workers and factory workers. I can easily give local examples of the firms I have already mentioned and the issues they have with securing employment. We also have pressures in the tourist industry, which compounds the problem in places such as Cumbria.

[Nigel Mills (Amber Valley) (Con)]

I agree with my hon. Friend on this point: the shortage of labour is a real problem for employers in my constituency at this time of year, as they are quite busy in the run-up to Christmas. Does he agree that the industry needs help to increase its productivity and invest in the new machinery that it needs, and that in the short term it probably needs some access to additional labour to help it produce the products that we all want to see in the shops?

[John Stevenson]

I very much agree with my hon. Friend; it is about striking a balance between the two. Clearly, at this moment in time there is a shortage of labour, and the industry needs to secure that labour if at all possible. However, I think the industry itself would accept that driving productivity is equally important, and that through productivity it can quite often end up needing fewer employees while being a much more productive sector. My hon. Friend will know from our visits to factories that the food and drink sector is an incredibly innovative and productive sector overall. It is therefore vital that industry and Government work together, so I would be interested to know what actions the Government are taking on the issues I have already mentioned.

As I have already said, the food and drink sector is a hugely important part of our economy. It employs a large number of people and contributes significantly to our economy, but there is the danger that the Government add more and more cost and regulation, which endangers its success. A small but significant example is the definition of “small and medium-sized enterprise” in the Health and Social Care Bill, which could have a huge impact on UK businesses and give a competitive advantage to foreign competition.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing the debate. One area in which I am sure much of the UK food and drink industry would welcome greater support from Government is that of honest food labelling. As it stands, food could be farmed in Argentina or elsewhere overseas, but packaged in the UK and still labelled as UK produce. Does he agree that the Government need to look at that area, so that we can back British farmers and British food producers more effectively and make sure we have informed consumers who can back our food producers in the shops?

[John Stevenson]

My hon. Friend makes a valid point. Interestingly, food labelling could potentially give us an advantage as a country when selling those products: the UK label, the Union Jack, has great resonance with many overseas consumers as well as our own domestic consumers.

On the cost and regulatory side, we also have the prospect of the extended producer responsibility. The sentiment behind it may be sensible, but the additional cost to the industry will potentially have serious consequences. Have the Government fully thought through the very real cost implications? I appreciate that the relevant primary legislation, the Environment Act 2021, has already passed, but it is the secondary legislation that will determine the detail. As the Minister will know, the industry is concerned about the scope, timescale and implementation of those regulations. It believes that the costs have already risen and could reach £2.7 billion for the industry, which will inevitably be passed on to the consumer. Indeed, it is estimated that each household will face a £75 increase in its annual food bill. Is that something that the Government are happy with? If not, will they work with the industry—particularly, as I have already mentioned, the FDF—to ensure that the regulation and costs are proportionate, and that the industry can absorb them without losing its competitiveness? If it cannot, there is a real danger that the regulations could backfire and be detrimental to an important sector of our economy.

In conclusion, I look forward to hearing from the Minister on the specific points I have raised. I look forward to her comments on how she intends to properly and fully support what is one of the unsung successful sectors of our country, but also one of the most important, as has been conclusively demonstrated during the pandemic through the industry’s performance in making sure that we continue to be fed at a very difficult time. I also hope that the Minister and her Department will fully recognise the importance of this sector, celebrate its successes, and truly be a champion of the industry.

[Several hon. Members rose—]

--- Later in debate ---

[John Stevenson]

I thank hon. Members for participating in this debate. I have often said that this industry affects us nationally, but equally importantly it affects us at the local level. As individual constituency MPs, we all know that the food and drink sector has an impact in virtually every constituency up and down the country, which was demonstrated by the contributions that people have made today.

I am grateful to the Minister for her speech at the end of the debate and for the comments that she made. I look forward to challenging her on some of the issues that we touched on and to maybe having further conversations with her. But as I say, I thank her for her contribution to the debate and I will pass on her good wishes to Ian Wright, who I will hopefully see very shortly as he departs from the FDF. I think he has been a great advocate for the food and drink sector, and I am sure that his successor will continue the good work that he has done.

Question put and agreed to.

Resolved,

That this House has considered the contribution of food and drink to the UK economy.

Oral Answers to Questions

John Stevenson Excerpts

Thursday 17th June 2021 Commons Chamber

[Rebecca Pow]

I welcome the hon. Lady to her place. This is the first time that we have had questions in the Chamber together.

This is a tremendous commitment by the Government to halt the decline of nature by 2030. No other country has done anything like this, so we are totally committed to the target. All the framework that we are putting in place will build towards this nature recovery: our local nature recovery strategies; our national nature recovery strategies; our 30% of land and sea protected; our 10 new large-scale landscape recovery schemes; and the entire environmental land management system. I could go on and on. I do not think that I could reiterate more the Government’s commitment to that. We will be consulting on the exact detail of the target in 2022, along with all the other targets in the Environment Bill.

[John Stevenson (Carlisle) (Con) [V]]

What steps he is taking to help ensure the competitiveness of the food and drink manufacturing sector.

As the Minister knows, the food and drinks manufacturing sector is the largest in this country, employing more than 400,000 people directly. It is a major innovator and exporter. My concern is that the sector may get too much red tape and regulation. If we look at the obesity strategy, for example, there could be a lot of regulation with very little gain. Can she reassure me that there will be proper scrutiny of any legislation, and that the minimum burdens will be put on this sector, which is vital to our economy?

[Mr Speaker]

Can you pick up the substantive question, Minister? That was my fault.

Flooding

John Stevenson Excerpts

Wednesday 4th March 2020 Commons Chamber

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

The constituency in which I live and am proud to serve is the most flood-prone constituency in the country, as it is constituted on land drained by the Dutch some 400 years ago, many of whose descendants continue to live in our area. We are at the bottom of the catchment, so I agree 100% with what the hon. Member for Angus (Dave Doogan) says about the need for better management upstream.

We have seen numerous events in recent years, whether the tidal surge of 2013, the flooding of 2010 and 2011 in Goole or the flooding in December, which happened on a smaller scale. Whether in Crowle, South Ferriby or Burringham, or whether in Snaith, Cowick or Gowdall at the moment, we are repeatedly hit by incidents of flooding.

I begin by paying tribute to my constituents and how they are currently responding to the incredible deluge in Snaith and Cowick. I have been involved in flooding for many years as an MP, parish councillor and councillor, and I have never seen the inundation of water that we now see in the washlands of the River Aire.

My constituents are responding in an incredible way. The Snaith church ladies and our wonderful vicar, Eleanor Robertshaw—I sometimes call her the “commie vicar” but we are good friends—have been providing 24/7 support to those who have been evacuated and to emergency service responders, with free food being provided by many businesses, including the Supreme coffee house in Goole. The response of the community has been incredible.

I thank Vicky Whiteley and Snaith and Cowick Town Council, the Snaith sports hall voluntary team and Andy McLachlan of the Cowick and Snaith internal drainage board for their work in supporting my constituents. Andy and I have worked together on many flooding events over the years, and the response from the drainage board has, as ever, been first class. I also wish to thank the fire and rescue service, including those who have come in from elsewhere, from places such as Cheshire and West Yorkshire, and our ambulance service, which has been on hand with permanent resources. I should also thank the very many residents involved, the council staff and the Environment Agency staff. The response has been incredible. We are dealing with 4 million cubic metres of water, or 800 million gallons, still there, in an area below sea level. We are defended by hundreds of miles of defence banks in our area, and getting that away will be a big challenge.

[John Stevenson (Carlisle) (Con)]

Although we must not be complacent, does my hon. Friend recognise that in some parts of the country there have been successes? In the Carlisle area, through the work of the EA, the councils and the voluntary sector, and the success of the defences, we managed to avoided being flooded this year.

[Andrew Percy]

Indeed. We have not wanted for money for defence funding in recent years, including in Snaith, the community that is currently flooded. Only in 2015, millions of pounds of defence improvements were made, through the piling of the Snaith primary defence bank, but that has been overtopped this time, as have our secondary defences, on which we rely to keep us dry. It is true to say that in some places these schemes have worked, and we have a scheme under way in South Ferriby, but the water coming down the catchment in this latest incident has been on a scale we have never seen before, just as the 2013 surge then was.

I agree with some of what was said by the shadow Secretary of State, the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard). He is a nice guy, one of my favourite shadow Secretaries of State. Some of the others are a bit bonkers, and I know that he agrees with me on that. I agree with much of what he said about the need to review certain things, but he then went on to try to make some cheap political points about what is going on at the moment. There are things we need to do differently, but I am not convinced that diverting millions of pounds, which could otherwise go to flood defences, to a massive inquiry is necessarily the best way forward. I will say something on that in a moment.

What we need now in my constituency is immediate funding, into the future, to look at what we can do for the defences that have been so overrun on this occasion. After the 2013 tidal surge, additional funding was made available to the communities in my area that had been devastated by that surge to allow them to take immediate defence action in the year or two afterwards. That was outside the normal funding rules, and we benefited from that in Reedness, which was overwhelmed in the tidal surge, with immediate action to shore up and improve the defence there. So may we please look at that issue?

May we also look at the funding for the section 19 inquiries that are already under way. My local East Riding of Yorkshire Council, because it has faced so many incidents in recent months, is now engaged in about four or five different inquiries, and funding that is a huge challenge for the local authority. A section 19 inquiry into the flooding in the Snaith and Cowick washlands is under way, but we need funding for that. The recovery of costs is also an issue. Heating Snaith priory church has already cost the church about £700 to £800, and possibly more. We are all doing what we can to get donations in for that, and the Bellwin scheme might cover it, but there are direct costs here to the town council and to the church and sports hall—voluntary organisations—for the costs they have borne in being open 24 hours a day and providing support to those who have been evacuated.

Business support is also an issue. I served on the Committee for the Flood Re Bill. Indeed, in 2013 I had to leave the Committee because of the flood warnings in place in my constituency, including warnings for my own house, when that tidal surge hit. We need extra support in terms of business insurance. I do not have time to say everything I wanted to stay, but I beg that the national funding formula is looked at. We are at the bottom of the catchment and we get everybody’s water; that water is coming to us, whether we like it or not. Although the current formula provides us with the best defences and highest standards, it is not taking account of the number of properties we have versus the risk we face. We need a change to that. We also need to look at the EA’s role in flooding and whether we need a separate body. We need to examine the Flood Re scheme. We need to fund the national flood resilience centre, in my area, the bid for which is with the Government—I have talked about that before. Finally, we need to look at planning and at maintenance.