(4 years, 1 month ago)
Lords ChamberMy Lords, I support Amendment 195 in the name of the noble Lord, Lord Empey, and the noble Earl, Lord Dundee; Amendment 197 in the name of the noble Lord, Lord Grantchester, and the noble Baroness, Lady Jones of Whitchurch; and Amendment 207 in the name of the noble Baroness, Lady McIntosh of Pickering, to which I and others are signatories.
Clause 27 is about fair dealing with agricultural producers and others in the supply chain. For a considerable time I have felt that there has been an imbalance in the supply chain that has been disproportionate and has had a diminishing impact on producers. If we believe in public money for public goods, we should be trying to cherish and protect our farm producers.
The Groceries Code Adjudicator is perhaps a very good place for the regulations specified in Clause 27 to be enforced. I would like the Minister to indicate how the regulations will be governed; in the absence of that, I can see a need for proper scrutiny and oversight of the supply chain. That is a missing area. Surely the oversight could be provided by the Groceries Code Adjudicator.
I pay tribute to Christine Tacon. I recall that when the noble Baroness, Lady McIntosh of Pickering, was chair of the Environment, Food and Rural Affairs Committee in the other place, of which I was also a member, we took evidence from Ms Tacon and examined the relationships within the supply chain.
I also believe—and this is a singular view—that smaller retailers should be subject to scrutiny as well, because they have caused many major problems for producers in our supply chain.
We need greater joined-up working between Defra and BEIS, but to provide that oversight, we also need the Groceries Code Adjudicator. Like the noble Baroness, Lady McIntosh of Pickering, I see a direct link between Amendments 197 and 207. This would ensure that the role of regulating agricultural contracts was given to the Groceries Code Adjudicator. As well as telling us how the regulations will be governed, perhaps the Minister will advise us about ongoing discussions between Defra and BEIS about a possible role for the GCA in this respect. Or perhaps there would be another body. But surely the body that has been tried and tested, and has proved its worth, should be the one.
My Lords, I shall speak to Amendment 197, in the names of the noble Lord, Lord Grantchester, and the noble Baroness, Lady Jones of Whitchurch, and to Amendment 207, in the names of the noble Baroness, Lady McIntosh of Pickering, and others. I very much welcome Clause 27. The Government’s commitment to include fair dealing within supply chains in the Bill is important and much needed.
I speak as someone who established a reasonably successful agricultural co-operative to market livestock, finished beef cattle and lambs, during the 1990s, so I am only too well aware of pressures in food supply chains. I still have the scars. Clause 27 goes into a huge amount of detail on how fair dealing obligations will be applied. That is welcome. For far too long, insufficient information has been available on input costs and benchmarks on which to base sensible modern contractual arrangements.
As has already been said, when pressure is applied to supply chains, the primary producer is, ultimately, the fall guy and the weak link in the chain. The buck stops there. So, however welcome the provision is, I am concerned because, in this part of the Bill, the Government are particularly vague about the location of the administration of the function. Like others who have spoken, I think I understand why. I am aware that the Department for Business, Energy and Industrial Strategy is reluctant to expand the scope of the Groceries Code Adjudicator.
As the noble Lord, Lord Grantchester, and the noble Baronesses, Lady Boycott and Lady McIntosh, have said, under the current chair, Christine Tacon, the office of the adjudicator has been established with huge credibility and influence. It is the logical home for this function, and I would encourage the Minister, in negotiations with his colleagues in BEIS, to persist in trying to achieve that outcome. There is no other logical place, even if we consider the RPA, with the experience for the function to be sited there. A new chair of the Groceries Code Adjudicator will be appointed later this year, when the current chair steps down, and that will present an opportunity to review and expand its remit. I support the amendments.