European Pig Industry

Richard Bacon Excerpts

Wednesday 30th January 2013 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

It is an enormous pleasure, especially following our debate on Europe, to speak in an attempt to protect the British pig, a noble beast, from the depredations of the European Union.

On 1 January this year, a European directive, Council Directive 2008/120/EC, came into force throughout the EU. It lays down minimum standards and requirements for the welfare of pigs, and, most notably, outlaws the use of systems, known as stalls, which in fact confine sows in individual metal stalls. It was originally passed in 2001, and in this respect—as in so many areas of animal health and welfare—the United Kingdom has been in the vanguard.

The Minister is a former pig farmer, as is his predecessor, my right hon. Friend the Member for South East Cambridgeshire (Sir James Paice), who is also present this evening. I only wish that I too had been a pig farmer: I should have liked that very much. My right hon. Friend and the Minister will know—as, indeed, will many other Members—that Parliament placed a complete ban on sow stalls in 1999, and that the United Kingdom had already achieved full compliance with the directive when it came into force this year. Unfortunately, however, that is not true of all member states.

In June 2012, the European Commission reported that 18 of the 27 member states expected to meet the January 2013 deadline for full compliance with the directive. Despite assurances given to the Commission, however, figures leaked from the Standing Committee on the Food Chain and Animal Health in December 2012 showed that 80% of member states were expected to fail to comply with the ban.

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

I welcome the debate, because I want to draw attention to a difficulty affecting Europe’s enforcement of the directive. One of the problems with EU legislation is that it is only when it has actually become law that the European Commission can take action. It should be able to take action before the event: that would enable the practice of keeping pigs in stalls to be stopped in Denmark and in all member states.

[Mr Bacon]

My hon. Friend is absolutely right. In this country, once the rules come into force on a given date—1 January 2013, in this instance—that should be it. There is a huge difference between our approach to the law, what we do with it and how we obey it, and the approach of many countries on the continent, where law and the making of law are more of an aspiration than a statement of what is and how things should be. I do not want to dwell on that point too much, because it is outside the terms of the debate, but I think that it highlights one of the fundamental differences between us and many European countries, which makes the melding of our countries—should we wish it, which we do not—almost impossible.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this very important issue before the House. My constituency used to have 30 pig producers, but we now have just one, although it is a large one. The problem has been that we in the UK have religiously followed the regulations, to the detriment of local pig farmers. Does the hon. Gentleman agree that the supermarket chains should give a commitment to sourcing pork from local farmers, rather than buying from across the rest of Europe?

[Mr Bacon]

Yes, that is important, and the evidence is that where supermarkets—such as Waitrose and Morrisons —have made such a commitment, it has had very favourable consequences and customers like it.

As a result of 80% of EU member states not being expected to meet the deadline, many illegal farms are likely to operate well into 2013. Only five nations—the United Kingdom, Austria, Estonia, Luxembourg and Sweden—achieved full compliance with the directive by the 1 January 2013 deadline.

As the Minister will know, at the Council of Ministers meeting on Monday of this week, fresh figures on the extent of compliance with the directive were provided. The latest data from Agra Facts revealed that an additional five member states—Bulgaria, Latvia, Lithuania, Slovakia and Romania—are now fully compliant, taking the total number of compliant countries to 10. It is interesting that some countries that might have faced more difficulties and that are less economically developed have been able to achieve full compliance, while other countries, such as France and Germany, have not. That speaks volumes about why compliance has not been achieved. The reality is that it has not been achieved because it was not in those countries’ interests to achieve compliance, as they can get more profit by flouting the law, and they have done that up to, and beyond, the last possible moment.

Many of these countries export to the UK in significant volumes, including Denmark, the Netherlands and the EU’s largest pork producer, Germany. To take Germany as an example, one quarter of the EU’s pigmeat—some 5.6 million tonnes—is produced by German pig farmers. Recent Eurostat figures show that Germany has 27.4 million pigs, over six times the number of pigs in the UK, and 18.5% of the overall EU pig herd. The website for German Meat, the joint export promotion organisation of the German meat industry, proudly proclaims:

“The production of pork has a long tradition in Germany. Production methods and structures today are of a high standard and undergo constant further development in terms of animal genetics, animal health, production technology and hygiene.”

However, the December 2012 figures for compliance show that fewer than half of Germany’s pig farmers—just 48%—had achieved full compliance with the directive. That figure now stands at 73%—so still more than a quarter are not compliant—and both figures place Germany at 24th place out of 27 member states in terms of the percentage of pig farms in full compliance.

In December, four member states had compliance rates of below 50%: Germany, Portugal, Belgium and France. Together, they produced 49.7 million tonnes of pork and pigmeat. By contrast, the five countries that were fully compliant by December 2012 produced 9.4 million tonnes. These figures help to illustrate the scale of the challenge. Europe is awash with cheap pork produced illegally, forcing down the price of pork and other pig products and adding yet more pressure on Britain’s already hard-pressed pig farmers, who are complying with the law, unlike many of their major competitors.

[Sir James Paice (South East Cambridgeshire) (Con)]

I, too, congratulate my hon. Friend on raising this hugely important issue for our pig industry. May I caution him about the use of the word “compliance”, however? We are talking here about compliance with the EU directive, but that directive does not meet the standards on our statute book in this country. The EU directive allows farmers in other member states to continue to keep sows in stalls for, I think, the first 21 days, while they are being served —or mated—for the future. Therefore, every other farm in Europe is entitled to have some sow stalls on their farm for that reason, but they are completely banned in our country, so even European farmers who are in compliance with the regulation are not necessarily keeping their pigs to the high standards we uphold in this country.

[Mr Bacon]

I am very grateful to my right hon. Friend, who has probably forgotten more about this subject than I will ever know, for pointing that out. In a way, that makes my point even more strongly: even though the word “compliance” must be treated with care, such farmers are not able to reach even that lower standard, which shows how much further there is to go.

Of course, in this country we do have farrowing crates for sows that are giving birth, which I support. That is the safest and best method. I have been in pig houses and watched the process, and it is the right thing to do. The British Pig Executive is sponsoring research into other methods, but at the moment that is the best technology we have, and I support it.

The problem, however, is that, of the top 10 pigmeat-producing nations in the EU in terms of production tonnage, only Romania and the UK are fully compliant, and they are ninth and tenth respectively. The top eight countries, by volume of meat produced, are non-compliant. They include Germany, with 6 million tonnes; Spain, with 3.5 million tonnes; France, with just under 2 million tonnes; and Poland, with 1.8 million tonnes. The vast majority of the big producers are not compliant. In other words, the biggest pork producers are those who have made the least effort to comply with the law and who have benefited accordingly from lower costs. This is more than a question of fairness or a matter of principle. Poor harvests last year have resulted in very high feed costs. That is fine for wheat farmers, but for pig farmers, who rely on buying feed, it is not fine at all, and means that many farmers are under great financial pressure.

If illegal farms either complied with the law, as they should, or stopped producing pork altogether, that would tighten the supply chain and lift pork prices, creating a much brighter future for those who have made substantial investments in making sure the pork they produce is legal. It now falls to the European Commission to work with member states to enforce the protection of pigs directive. However, the Commission’s attempts to enforce it are already going awry. An inadvertent and unofficial derogation has already been granted to Ireland and France, after the European Commission gave them an extension to the deadline for applying for funding for pig farmers who have yet to convert their pig houses. Ireland has until September 2013 to access the funds. In the case of France, a quarter of French pig farmers remain non-compliant.

Together, Ireland and France account for 2.25 million tonnes, or just over 10%, of EU pork production. Interestingly, that is more than the total combined production of the 10 member states that are fully compliant, which between them manage only 2.23 million tonnes, or 9.97%, of EU pork production. Ideally, the money should be withheld until the French and Irish farmers expecting these funds can prove that any illegal sow houses have been empty since new year’s eve, although I recognise that in practice that would be very difficult to achieve.

However, there are three things the Government can do now that would make a real difference to British pig farmers and help to stop illegal pigmeat entering the UK. First, effective enforcement of the directive must begin at home. The Government must ensure absolute clarity in their own buying standards for pork and other pigmeat products. This affects purchasing for schools, the NHS, the armed forces, local government canteens and every other public sector body. By now, every tier of government, from Whitehall to the town hall, should be making sure they are not buying meat that has been produced illegally, and that they know they are not. The Government need to make sure that people in the public sector are aware of this obligation.

However, it is not enough for Government buyers simply to rely on suppliers’ assurances of compliance. The Government must show leadership by making certain that all their suppliers operate a traceable supply chain that procures pork and pigmeat from legally compliant sources. The Minister will recall that at the pig industry summit which I hosted in November, he undertook to write to Government Departments reminding them of their obligations. I look forward to receiving an update from him on this matter and hearing more about what the Government are doing in this area.

Secondly, retailers and food service companies, having been shown leadership by the Government in the way I suggest, should be strongly encouraged to adopt full traceability, so that any pigmeat products they sell are guaranteed to come from legal sources. Such companies should then be expected to have fully transparent systems in place to guarantee that to their customers. The need for full and open traceability has been aptly demonstrated by the recent detection of horse DNA in beefburgers. That discovery not only inspired the largest accumulation of equine puns known to mankind, but illustrated the importance of a fully transparent supply chain.

Tesco chief executive, Philip Clarke, wrote the following in his “Talking Shop” blog:

“We expect our suppliers to deliver to a standard, and to meet basic food traceability rules. But our customers shop with Tesco, not our suppliers, so you won’t find us hiding behind suppliers. It’s our job to ensure they are meeting our high standards.”

I commend Tesco for its speed in reassuring customers and withdrawing suspect products from sale, but the key lesson to take from the scandal is that food traceability rules need to be strengthened significantly. Retailers, processors and food manufacturers know that improved traceability is difficult, but they also know that it is possible. They need to be pressed for commitments to guarantee traceability that extend to branded products such as Wall’s, as much as to supermarkets’ own brands. Claiming either to have assurances from a supplier or to have no control over branded products can no longer be regarded as sufficient.

I am indebted to the National Pig Association for sharing with me an encouraging letter from Mr Martyn Jones, corporate services director for the supermarket Morrisons, to NPA chairman Richard Longthorp. The letter stated that Morrisons’

“commitment to the integrity and transparency of our offer remains paramount. For the pork and pork products we are importing from the EU, we have been clear to suppliers of both branded and tertiary products that this must meet the requirements of the new pig welfare directive”.

I very much welcome Morrisons’ commitment to the transparency of the supply chain. Every company within a supply chain should have sourcing policies that can prove beyond doubt that the pork they are using or selling was legally produced. I am sure that the Minister will join me in encouraging other retailers to follow Morrisons’ example. I would welcome his comments on how that might be achieved.

Finally, what must be avoided at all costs is a further protracted period before 100% compliance across the EU is finally achieved. The European Commission has a responsibility in that regard; it can and should be demanding to see deliverable action plans from non-compliant countries. In the meantime, we should stop illegal pork and pork products from entering the country. Non-compliant nations must be pressed for specific guarantees on when they intend to reach full compliance, rather than some vague promise to be delivered by some indeterminate date. To encourage them, we should refuse to allow illegally produced meat to enter the United Kingdom.

Member states have had more than a decade to move towards full compliance with the directive, so there are no excuses. We used to have to say that British farmers faced unfair competition from imported meat that was produced overseas using methods that would be illegal in the UK. Now, British pig farmers face unfair competition from imported meat produced overseas using methods that are illegal overseas, too—we cannot accept that. We must bear in mind what happened in the poultry industry. It had a far greater number of regulations, agreements and testing regimes than the pig industry to help enforce the directive on the welfare of laying hens. Nevertheless, a year on from the original January 2012 deadline, an estimated 5% of Europe’s egg production still comes from chickens in conventional battery cages.

The British pig industry receives no subsidies—pig farmers live and die by the market—yet farmers across Europe who are in full compliance with their obligations are being undercut by illegally produced pork and pigmeat. Above all, what pig farmers across the UK want, and indeed what compliant pig farmers across the continent want, is a level playing field. Those nations edging towards full compliance have the largest number of pigs in the EU and they have also had more than a decade to get their house in order.

Of course, I would ideally wish to see British pork as the first and only choice for consumers, retailers, the Government and the whole public sector. But right now what matters most is preventing British pig farmers from being continually undercut by illegal pig products that should not be on the shelves at all and should not be in this country at all. The UK’s pig farmers have had to put up with an unfair market for 13 years, and that is far too long. The law is now finally on their side, and I expect the Government to ensure that the law is enforced.

--- Later in debate ---

[Mr Heath]

I agree, and I was coming to that point.

The UK relies heavily on imports, being only 40% self-sufficient in pigmeat and 20% self-sufficient in bacon. Denmark and the Netherlands are the largest suppliers of pigmeat to the UK; both countries are more than 90% compliant and are already taking tough action against non-compliant producers. I have spoken to the Danes and the Dutch and I believe that they are serious about reaching full compliance, so the major importers to the UK will come into compliance.

[Mr Bacon]

I was disappointed but not surprised by what the Minister said about competent authorities. I take his point about the Danes, but of course the reason the pig herd here is now so much smaller than it was is precisely that other countries were not enforcing the rules because they did not have to. Does he not understand the broader point, which is that if the competent authorities on whom he says we must rely were competent, we would not be in this mess?

[Mr Heath]

The hon. Gentleman is absolutely right—I do not disagree with him at all on that point. That is why we must make sure that if those authorities are not prepared to be competent, somebody must make them competent—in effect, the Commission by taking infraction proceedings. I think that is the right approach.

To answer the hon. Member for Banff and Buchan (Dr Whiteford), an essential part of our enforcement approach is to ensure that retailers, processors, food manufacturers and the food service industry have stringent traceability in place to ensure that they source pigmeat only from compliant production systems in other member states. In October last year, I met representatives of the whole pig supply chain and they assured me that they will use their best endeavours to source from compliant systems. There is clearly a significant reputational issue here for individual companies and trade associations. I followed that up by writing to the major pork product manufacturers to seek their individual assurances on traceability, and I will have a further meeting with the supply chain to take stock on 6 February. Let me make it absolutely clear: the major retailers in the UK have promised me that they will not sell illegally produced pork products. In some cases, that will be difficult to implement—I know that—but I will hold them to that promise.

We agree with the broad thrust of the request to ensure that the Government buy pork and pork products that comply with the new directive which came into force this year, and I have been taking action, as the hon. Member for South Norfolk says. I hope he accepts that, although it is complicated, we are making progress. I will of course report back to him on progress in due course. The Government buying standards are mandatory for central Government Departments and voluntary for the wider public sector—hospitals, for example. If we can get this built in, we will have made a significant contribution to ensuring that we do not buy from non-compliant sources.

This is a timely debate and an important one for pig producers around the country. I want to make it clear on behalf of the Government that we are doing everything we can to ensure that member states that are not compliant are made to be compliant. The weapon that we have at our disposal is the pressure we are able to apply on the Commission, but to be fair to the Commission, it is equally adamant that it wants full compliance from member states and it is prepared to back that up. We need to deal with the use of non-compliant meat products in this country, and we have assurances from retailers and others that they will not use such products. We also need to make the general public aware that this is an issue. If they value the welfare standards that we have in this country, they should follow that action with their purchasing.

I am grateful to the hon. Gentleman for securing the debate. I hope what I have said demonstrates how seriously Ministers and the Department view the issue. We need to protect UK pig producers. That is paramount and we will continue to do all we can to ensure swift compliance across Europe.

Question put and agreed to.

Food Labelling Regulations (Amendment) Bill

Richard Bacon Excerpts

Friday 1st April 2011 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

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

This is my fourth attempt to bring in a Bill to amend the Food Labelling Regulations 1996 and my first opportunity, after seven years of trying, to get a Second Reading debate. I am therefore very pleased to have this opportunity today. My Bill seeks to amend those regulations to provide for information about the country of origin of food to be made available to consumers. That is it; I am not trying to restrict imports from anywhere.

I am not trying to prevent people who love Spanish chorizo from buying as much of it as they want. I am not trying to prevent people who want genuine German wurst from buying it by the Mercedes Benz truck load and importing it into this country to sell to all the people who want to buy it. I am not trying to prevent those who are partial to kangaroo meat from buying that, either. According to the website of J. M. Danslow, a quality butcher in Gravesend, kangaroo meat is

“used by some of the world’s best restaurants because of its high quality and unique flavour.”

Those who are partial to kangaroo meat have nothing to fear from my Bill. Those who like bison, which is

“the most flavoured red meat available to today’s consumer …nutritious, tender and easy to prepare”,

can also set their minds at rest.

Likewise, no one who likes eating reindeer meat, which according to Danslow is

“fine-fibred, tender and lean”

as well as being

“rich in vitamin A, vitamin E and all vitamins B”,

has any cause for concern. I might add that there are other concerns about reindeer meat, as the Swedish store Ikea found to its cost a couple of years ago when it started selling salami made from reindeer in its UK stores at Christmas time. The idea that Rudolf’s big thank you for helping Santa to deliver all his presents in double-quick time was to be chopped up and turned into salami for the Christmas dinner table was a little too much for the nation’s children and their parents to bear. But, if there are still any secret reindeer meat eaters out there following that debacle, they have nothing to fear from my Bill.

My Bill seeks to do one thing: I just want consumers to know where meat comes from. I want them to know, not to think or to guess or to hope. If producers say on the label that meat is British, it should actually be British. I have set out this argument in the House on four previous occasions: on 22 March 2004; on 29 October 2008; and in a slightly different Bill on 17 March 2009, which is identical to the Bill that I asked the Leader of the House to introduce on 11 January 2011. So I will not detain the House for very long.

[Mr David Nuttall (Bury North) (Con)]

I appreciate that my hon. Friend has set out his arguments in the House before, but I and other Members who are present today were not here on those occasions, and we would very much welcome listening to those arguments in some detail.

[Mr Bacon]

I hear what my hon. Friend says, and I will set out a précis of the arguments for his benefit and for that of other Members. I do not want to dwell on them at length, however, because I also need to explore the aspects of European law that are unjustifiably held to be fatal to the Bill.

I was saying that the Food Labelling Regulations (Amendment) Bill that I introduced in 2009 is worth some attention, particularly because of its sponsors. I reiterate that that Bill is identical to today’s Bill, save for the names of the sponsors. My 2009 Bill had a range of sponsors from different parties, including my right hon. Friend the Member for South East Cambridgeshire (Mr Paice) and my hon. Friend the Member for Newbury (Richard Benyon), who I am delighted to see sitting in his place today. It is a great pleasure for me to be able to introduce a Bill that I know has the support of two people who are now Ministers in the Department for Environment, Food and Rural Affairs.

I do not wish to detain the House by talking about the cheating that goes on, but I will briefly summarise the problem. The current rules do not do the job adequately, and consumers continue to be misled. In the case of certain foodstuffs, no indication need be given that the product is made with imported meat. Examples include the Tesco chicken dinner in its range of children’s meals, which simply states “Produced in the UK”, although the chicken actually comes from Thailand. Sometimes a phrase will be used to imply the country of origin. For example, items from the Bird’s Eye Great British Menu range turn out, on closer inspection, to contain imported meat. At present, producers of imported meat can lawfully use the Union flag on packaging to imply that a product is British, even when it is not, and they do so. They can, and do, import meat from overseas, package it here and say that it has been produced in the UK.

There are not many people out there who disagree with what I am saying about the need to address the problem. An ICM poll for the Honest Food campaign showed that 87% of consumers in the survey believe that the Government should ensure that the country of origin is clearly shown on food products. The survey also showed that 89% believe that when a product such as sausages or bacon is labelled as “British” or “produced in the UK”, it should mean that the sausages or bacon are from an animal reared in Britain.

The right hon. Member for Newcastle upon Tyne East (Mr Brown) is a sponsor of the Bill. When he was an Agriculture Minister 12 years ago in 1999, he told us:

“I want to give clear unambiguous information on the real place of origin, not place of processing or place of slicing; I want to clamp down on misleading place of origin descriptions”.—[Official Report, 28 October 1999; Vol. 366, c. 1126.]

In the last Labour Administration, the then Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Leeds Central (Hilary Benn) said:

“A pork pie made in Britain from Danish pork can legitimately be labelled as a British pork pie”.

He added:

“That’s nonsense, and it needs to change.”

I agree, and so did the farming Minister at the time, Jane Kennedy, who was then the right hon. Member for Liverpool, Wavertree—and she is, I might add, very much missed. She appeared on the excellent Channel 4 programme, “Jamie Saves our Bacon”, and told Jamie Oliver that misleading labelling was “a disgrace”. Once again, I agree.

Some progress has been made with voluntary codes, but they are voluntary. As I said in seeking leave to bring in this Bill, significant concerns persist about the effectiveness of voluntary agreements, while the demand for mandatory country-of-origin labelling continues to grow. Helen Ferrier, the chief science and regulatory affairs officer for the National Farmers Union said of the guidance from the British Retail Consortium:

“Unless all companies sign up and then consistently stick to their promises, some consumers will still be misled.”

Alice Barnard, chief executive of the Countryside Alliance also welcomed the guidance and urged food organisations to sign up to its standards, but she also lamented:

“The code is not mandatory, which would offer further protection still.”

At the annual general meeting of the National Federation of Women’s Institutes in 2010, a resolution calling for the mandatory, clear labelling of food with its true country of origin was passed unanimously. The Minister might like to reflect that this is an organisation not to be trifled with, as a former Prime Minister found out to his cost. The chair of the Women’s Institute, Ruth Bond said:

“We know that consumers want to make informed choices, and surely it is not right that consumers remain dependent on the goodwill of retailers signing up to a voluntary scheme. Without legislation there is no guarantee that consumers will get the choice and information they are demanding.”

Let me turn to deal briefly with the Bill. It is a very short Bill of two clauses, including the “Short title and commencement”, so I suppose it is what most of us would call a one-clause Bill. It provides definitions of meat products under the rubric of “Country of origin labelling”. More extended provisions explain in more detail the definition of “Meat component” and the circumstances in which the word “British” can be used—or where it cannot:

“No meat product may be labelled ‘British’ unless the animal from which the meat was derived was born, reared and slaughtered in the United Kingdom.”

The key issue I want to devote most of my time to exploring is whether there are fatal flaws in the Bill because of European Union law. Some people believe that to be the case, but I am not sure that it is. Let me start by pointing out the terms of the EC directive—the original directive 2000/13/EC. It states in paragraph (6) of the preamble:

“The prime consideration for any rules on the labelling of foodstuffs should be the need to inform and protect the consumer.”

Paragraph (8) continues:

“Detailed labelling, in particular giving the exact nature and characteristics of the product, which enables the consumer to make his choice in full knowledge of the facts is the most appropriate”—

and now we come to the most interesting bit—

“since it creates the fewest obstacles to free trade.”

More detailed labelling means fewer obstacles to free trade. Paragraph (14) of the preamble continues:

“The rules on labelling should also prohibit the use of information that would mislead the purchaser”.

Moving on from the preamble to the articles, article 2 states quite clearly in the first paragraph:

“The labelling and methods used must not…be such as could mislead the purchaser to a material degree”.

All over the directive, it is perfectly clear that the purpose is to protect the interests of consumers.

It is not at all obvious therefore that what I am doing—it could easily be argued that I am simply trying to transpose into UK law, albeit more effectively than hitherto, the requirements of this directive—is in any sense contrary to European law. However, I accept that there is an argument to be had. My contention is that this is about consumer choice, not about restricting markets in any way.

In order to make the point in more detail, let me turn to the leading text on the free movement of goods. It is the fourth edition of “Free Movement of Goods in the European Community: under Articles 28 to 30 of the EC Treaty”, by Mr Peter Oliver. As it makes clear, an extant jurisprudence offers a considerable opportunity for complex discussion. It states:

“Article 28 (formerly article 30) provides: ‘Quantitative restrictions on imports and exports and all measures having equivalent effect shall…be prohibited between Member States…the concept of measures of equivalent effect to quantitative restrictions differs from quantitative restrictions themselves in that it is considerably wider and more complex.”

In other words, it is quite possible that even if someone was not trying—as I am not trying—to restrict the imports of goods by providing that meat sold here must be accurately labelled, that could be the equivalent effect although it was not the intention, and article 28 prohibits measures that have the effect of quantitative restrictions.

[Mr Edward Leigh (Gainsborough) (Con)]

I strongly support my hon. Friend’s Bill, but I wonder what other countries in the EU do. It is difficult to imagine the French, for instance, tolerating the position that exists in this country, and they are better at protecting their own meat market. Perhaps my hon. Friend can enlighten the House.

[Mr Bacon]

I will. I shall be citing a number of cases that have been heard in the European courts, which illustrate that not just the French but many other countries have come up against these issues and that there is a developed jurisprudence.

As Peter Oliver says in his book,

“in determining whether a particular measure falls under Article 28…it is imperative to proceed in two stages. The first question to ask is: does this measure restrict imports (or exports) so as to be caught by Article 28…? If so, then the second question arises, namely: is the measure nevertheless justified in Community law and thus lawful?”

Mr Oliver examines explicitly the question of the obligation to make a declaration of origin. He makes it clear that in “certain circumstances”, case law has held—in the past—that

“the requirement that the importer make a declaration of origin is contrary to Article 28. This was laid down in the Donckerwolke judgment, already discussed”

—earlier in his book, that is—

“where the Court held:

‘the requirement by the importing Member State of the indication of the country of origin on the customs declaration document for products in free circulation…does not in itself constitute a measure of equivalent effect’”

—in other words, one that would produce the equivalent of quantitative restrictions—

“‘if the goods in question are covered by measures of commercial policy adopted by that State in conformity with the Treaty.’”

The judgment went on to say, however—and this is the point—

“‘such a requirement would, however, fall under the prohibition contained in Article [28] of the Treaty if the importer were required to declare, with regard to origin, something other than what he knows or may reasonably be expected to know’”.

I would say that meat suppliers should

“reasonably be expected to know”

where the meat that they are supplying comes from.

On the face of it, the requirement would not fall under the prohibition in article 28. Unfortunately for that line of argument, however—as Mr Oliver goes on to say—

“At least since January 1, 1993, when Article 14”

—the former article 7A—

“of the Treaty took effect, all obligations to make a declaration of origin constitute measures of equivalent effect. The qualifications in Donckerwolcke, which related to the now moribund Article 134…no longer apply.”

It might be thought that that constituted “Game, set and match”, or “I am done middle stump”—depending on whether a tennis or a cricketing analogy is preferred—but even then it is not as simple as that, because the treaty also contains article 30. Mr Oliver’s book is devoted almost entirely to article 28 and article 30. The main exception, as he describes it—article 30—includes the subject of mandatory requirements. Article 30 states:

“The provisions of Articles 28 and 29 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of”—

and a whole laundry list follows—

“public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property.”

We could drive a pyramid through that group of exceptions. That makes plenty of work for lawyers, of course, but it also shows that the issue is not quite as clear as some might try to make us believe.

Mr Oliver goes on to say:

“The wording of this provision shows that it applies both to quantitative restrictions and to measures of equivalent effect. Furthermore, it covers that latter whether they are ‘distinctly’ or ‘indistinctly’ applicable.”

He continues:

“it is also clear from the wording of Article 30 that, subject to certain limits, it merely entitles the Member States to exercise certain powers: it does not oblige them to do so.”

We must bear in mind that I am not trying to impose any restrictions on imports. I am merely trying to ensure that the consumer has clear information. Therefore, my proposals should receive the lightest possible interpretation in respect of these rules.

Mr Oliver goes on to point out that as the European Court of Justice

“held in Bauhuis v Netherlands, Article 30 ‘constitutes a derogation from the basic rule that all obstacles to the free movement of goods between Member States shall be eliminated’”.

In other words, such derogations are possible. Mr Oliver continues:

“To be justified under Article 30, national provisions”—

which is what mine would be—

“must fall within one of the grounds of justification covered by the first sentence of Article 30”.

I think mine do that. Public policy says there should be better information for consumers so they can make informed choices, and public policy is one of the justifications under article 30.

As Mr Oliver points out, to be justified under article 30 national provisions must also

“not constitute arbitrary discrimination nor a disguised restriction on trade between Member States and must be justified.”

I am not trying to put any disguised restrictions on trade between member states. I simply want information for consumers, and what I am trying to do is certainly not arbitrary.

To continue:

“the Court in ‘Cassis de Dijon’”—

one of the most famous cases in European jurisprudence—

“has recognised a series of ‘mandatory requirements’ in addition to the grounds of justification expressly set out in Article 30.”

As is clearly set out in the book,

“the better view is that the ‘mandatory requirements’ fall under that provision”—

article 30—

“despite the Court’s traditional view that they were subsumed within Article 28.

The ‘mandatory requirements’ recognised so far are: the prevention of tax evasion, consumer protection, the prevention of unfair competition, the protection of the environment, the improvement of working conditions, the maintenance of press diversity”

and so forth.

To continue:

“One questions left open by ‘Cassis de Dijon’ was the relationship between the ‘mandatory requirements’ laid down by that judgment and Article 30, which is not mentioned at all in the judgment. Two schools of thought evolved on this matter:

(a) According to the first view, the ‘mandatory requirements’ are to be weighed up within Article 28, not Article 30. Moreover, only ‘indistinctly applicable’ measures may qualify, so that ‘distinctly applicable’ measures may only be justified on the grounds expressly set out in Article 30. On this view, therefore, ‘indistinctly applicable measures’ are granted more favourable treatment in that the ‘mandatory requirements’ apply to them alone.

(b) According to the second view, the ‘mandatory requirements’ are regarded as being subsumed under Article 30, on the grounds that they constitute additions to the list of grounds of justification expressly set out in Article 30. On this view, the mandatory requirements are subject to precisely the same tests as the latter grounds.”

Mr Oliver continues:

“In support of the first theory, it should be said that the Court has repeatedly held that Article 30 must be interpreted narrowly since it constitutes an exception to a fundamental principle of Community law.”

He adds:

“Yet it is submitted that that is outweighed by the following considerations:

(a) The second view avoids the undue harshness resulting from the first theory with respect to ‘distinctly applicable’ measures necessary on such grounds as consumer protection. According to the first theory, even though they are necessary, such measures are quite simply prohibited. According to the second theory, they are considered to fall under Article 28, but may be justified under Article 30. Since the Court has now accepted that consumer protection may justify restrictions otherwise prohibited by Article 28, does it make sense to approach it differently from, say, plant health merely because in 1957 (when the Treaty of Rome was first drafted) consumer protection did not yet arouse much passion?”

Mr Oliver continued:

“It always seemed clear that the ‘mandatory requirements’ have the same properties as the grounds of justification in Article 30. As van Gerven”—

the then advocate-general—

“remarked in Aragonesa de Publicidad v Departamento de Sanidad ‘…the conditions governing the applicability of the Cassis de Dijon doctrine and of Article [30] are the same”.

He continued:

“For these reasons, the second approach has been firmly and consistently advocated in this book since its very first edition, which appeared in 1982. This is despite the fact that…the Court had already chosen to follow the other approach, which was also backed by most commentators for many years.”

Mr Oliver’s point in this text, which is one of the leading reference books on the free movement of goods, is that the second approach is gaining favour. He continued:

“What is more, the Court has on occasion had recourse to some far-fetched—not to say exotic—devices so as to maintain the façade that the ‘mandatory requirements’ apply only to ‘indistinctly applicable measures’. Thus the Court has been driven to holding the following measures to be ‘indistinctly applicable’ so as to be able to consider the ‘mandatory requirements’ at all: a German statutory provision to the effect that only wines from certain specific regions of Germany could be marketed in bottles of a particular shape; legislation prohibiting the importation and marketing of meat products containing non-meat ingredients; and a measure prohibiting the use of the letter R in a circle (which indicates that a name constitutes a registered trade mark) unless such registration had occurred in the Member States in question.

Perhaps the most striking example occurred in Commission v Belgium (waste disposal), which concerned a blatantly discriminatory ban on imports of waste into Wallonia from other Member States.”

Mr Oliver goes on to talk about a “most welcome” move made by advocate-general Jacobs, whom I sat next to at lunch once in Luxembourg and I found to be a thoroughly excellent chap. Mr Oliver describes how Mr Jacobs

“has criticised the Court’s traditional approach on at least two occasions. In Chemische Afvalstoffen Dusseldorp v Minister van Milieubeheer”—

I think that that is Dutch, rather than German—

“referring to the last edition of this book, he acknowledged that the Court had been ‘obliged to adopt rather tortuous reasoning’ in the cases just mentioned and most particularly in the Walloon Waste case. In PreussenElektra v Schleswag, the same Advocate General went further, saying that ‘the reasoning in Walloon Waste is flawed and that ‘it is desirable that even directly discriminatory measures can sometimes be justified on grounds of environmental protection’, the latter being a ‘mandatory requirement’. He then added: ‘In view of the fundamental importance for the analysis of Article 30 of the Treaty of the question whether directly discriminatory measures can be justified by imperative requirements, the Court should, in my view, clarify its position in order to provide the necessary legal certainty’.

Mr Oliver goes on to say:

“Without expressly renouncing its earlier position, the Court has grudgingly moved in this direction…first…in Konsumentenombudsmannen v De Agostini”.

That case basically considered whether an outright ban on advertising certain products on television, which was held to have a greater effect in some member states than in others, could be justified.

He continued:

“Likewise, in Decker v Caisse de maladie des employés privés, the Court considered a ‘distinctly applicable’ Luxembourg rule requiring the prior authorisation of the purchase of glasses from another Member State…in PreussenElektra, blatantly discriminatory legislation on wind energy was held to be justified for the protection of the environment (a mandatory requirement).

Mr Oliver continued:

“Although these developments must surely be applauded, it is a pity that the Court has not yet shown the courage to disown its earlier approach expressly, as this would undoubtedly be in the interests of legal certainty.”

His fundamental point is as follows:

“In short, the view consistently espoused in all the previous editions of this book has been gaining ground in recent years.”

Why trouble the House with all this jurisprudence, especially as a non-lawyer? The reason is extremely simple: I want to make it clear there is an argument to be had. Indeed, having listened to what the Prime Minister has said on the subject of food labelling, I venture to suggest that he agrees with me. He said at the Oxford farming conference:

“Food can be imported to Britain, processed here, and subsequently labelled in a way that suggests it’s genuinely British. That is completely wrong. I cannot overstate the importance of enabling informed consumer choice. Effective marketing can only be achieved if labelling is accurate and clear.”

He went on:

“I know that this may raise issues with the European Union. But the role of a Government that cares about British farming is not to sit on its hands and say ‘there’s nothing we can do’, but instead to test these rules and if necessary challenge and change them.”

That is exactly what my Bill is designed to do and would accomplish, and I hope that the House will read it a Second time.

[Jacob Rees-Mogg (North East Somerset) (Con)]

It is interesting to reflect that the key aspects of both this and the previous Bill end up essentially being determined by foreign organisations. In this one, we see clearly that it is an issue of the European Union, and it is a great pleasure, as always, to see the Minister for Europe in his place, because he is wiser and better informed on these issues than almost anyone else in the House. In the previous debate, the issue was whether we would be allowed under European treaties to subsidise from the licence fee the production of programmes made in the United Kingdom. That is clearly an issue that Europe would have poked its nose into.

Then we get into a desperately depressing discussion about whether something that this sovereign Parliament is considering doing is legal. Whatever this sovereign Parliament decides to do is by its very nature legal although it may undermine some obligations we have under international treaties. I know that a senior judge—indeed the most senior judge, Lord Justice Judge—spoke recently about the application of European Union law and the rulings of the European Court of Human Rights in this country. He rightly pointed out that they have effect only because of laws that this House has passed; therefore, they can have uneffect, if such a word exists, if this House passes amending legislation. A possible problem with the Bill is that it does not have a “notwithstanding” clause. If it said “notwithstanding the European Communities Act 1972”, it would undoubtedly be possible to introduce food labelling regulations.

This is an issue of great topicality. I have been discussing food labelling for meat products with a constituent, specifically about their religious nature. Canon John Baker who lives in Midsomer Norton has corresponded with me about his concerns that eating halal food would be in breach of a Christian’s obligations, as set out in the Acts of the Apostles, on eating food that has been blessed in honour of gods other than our lord and saviour and the blessed trinity. I have taken this up with the Bishop of Bath and Wells, who I thought would be an authority on this matter. Hon. Members will be reassured to know, when they buy their meat, that whether it is halal or not, labelled or not, it is still perfectly legitimate to eat. I am glad to put on the record the authoritative view of the established Church—not, as it happens, my Church—on this important issue.

[Mr Bacon]

I am inclined to remark in parenthesis that although my hon. Friend is not a member of the established Church, we all feel that he probably ought to be were it not for the minor question of doctrine.

On the “notwithstanding” clause, I was tempted to put one in, but I did not for two reasons: first, because I contend that my Bill falls on the right side of the jurisprudence I have been talking about within the European legal system, and secondly because my right hon. Friend the Prime Minister tends to get the heebie-jeebies when the word “notwithstanding” is mentioned. As I was praying him in aid, as well as the two Department for Environment, Food and Rural Affairs Ministers who have given their support by signing the previous, identical version of the Bill, it seemed to me not a politic thing to do.

[Jacob Rees-Mogg]

I completely understand my hon. Friend’s concern about introducing a “notwithstanding” clause, because it does seem to some to be the nuclear option when it comes to our European relations. We would have to debate whether it was suitable to use such a powerful clause in relation to food labelling, and whether food labelling is an issue of such importance that it is worth fracturing our relationship with Europe over, because the “notwithstanding” clause does ultimately fracture our relationship with Europe, or leads to a fundamental renegotiation. The question, I suppose, is whether that is what the British electorate want.

I have huge sympathy with my hon. Friend on the point about most people in this country wanting to know where their food comes from, how it is processed, and what is in it. It all gets frightfully stomach-churning when we read in the detail of the Bill what is classified as meat:

“the heart, any other internal organ…the muscles of the head, the carpus, the tarsus, or the tail from any mammalian or bird species recognised as fit for human consumption.”

Some of those bits do not sound fit for human consumption at all. They sound more like dog meat, which probably should be equally carefully labelled, so that the great dogs of England, Scotland, Wales and Northern Ireland do not mistakenly consume foreign-produced dog food; I expect that would cause them great concern, because we know that the English bulldog is a particularly patriotic symbol.

I come back to the concerns of consumers. We have had lots of rows with Europe about how food is labelled and processed, and Europe always seems to be on the wrong side of the argument. It always seems to be restraining some form of trade without allowing people to have proper information. I remember the great row about where Parma ham was cut, and whether it could be described as Parma ham if it was not physically cut in Italy. That seemed fair old nonsense; if a person has a great slab of ham and cuts it up at home, it is the same ham as if they had cut it up in Italy. I think it was Asda that wanted to do that in some plant in the United Kingdom. Europe goes for a tough and restrictive anti-free-trade regulation. It seems to put us in a position where we cannot really be honest with the British consumer and let him or her know what they are buying. That is important, because we have read the most appalling stories of the labelling of food that is pretty much no more than packaged in this country as if it were British.

My hon. Friend the Member for South Norfolk (Mr Bacon) so rightly mentioned the use of the Union flag on food. When we see the Union flag, we want to think, “That’s a best bit of British beef.” We do not want to think that it has possibly come from Kobe, where the beef used to be very good and delicious, but which we might now worry was becoming radioactive. We need to know what it is, and what is in it. If it has come from Kobe via some European country and we are not being told, that must be to the disadvantage of the British consumer when they go out to do the weekly shopping.

When one is in North East Somerset, one wants to know that one’s food is really from Somerset, because some of the best food produced in the United Kingdom comes from God’s own county. We have the finest beef, lamb, chickens—you name it; turkeys, even. It has a quality, a taste, a melt-in-the-mouth flavour that makes one proud to come from Somerset. That ought to be on a label, and some bureaucrat Johnny in Brussels should not be saying, “We really can’t have this, because it might deter you from buying a German sausage.” I would not like a German sausage at all; they are much too spicy and flavoured for my taste. I like a good, proper, plain, British banger. Those hon. Members who remember watching “Yes, Prime Minister” all those years ago will know that that has been an issue in British political life for decades. We want our right to eat our sausages stuffed full of bread and things like that, because when they are, they taste nice. We do not want all this garlic and stuff that we get in foreign sausages. I am tempted to mention the Flanders and Swann song but, Mr Deputy Speaker, I know that when I get too poetic I sometimes incur your wrath, of which I live in trembling fear, so I will avoid Flanders and Swann when thinking about garlic-eaters.

We really need to know that information, so that we can get the food that we want, like and love—ideally the food from Somerset, where the grass is of particularly high quality. Those hon. Members who understand the digestion of cattle will realise that if the grass has the right flavour, and the water that falls is the best-quality rain, only to be found in Somerset, the meat and its marbling develops in a particular way.

--- Later in debate ---

[Jacob Rees-Mogg]

There are occasions during a test match at Old Trafford when the rain falling can be the best possible rain, when it saves England from a notable defeat, but the rain that falls on the edge of the Mendips is the finest rain. That, as it happens, is why Joseph of Arimathea visited. He just wanted to see quite what high quality the rain was.

I was talking about the high quality of the beef in Somerset. When one looks at a piece of meat in a farm shop, like the farm shop that I used to live next door to, it has a quality that makes one look forward to one’s Sunday lunch. With some Yorkshire pudding—I know that is not meat, but it would be most upsetting to think that one’s Yorkshire pudding came from the continentals. I am sure that they have no clue how to make it. Where their eggs would come from would be not quite the thing. I know that I am going on to other food products that are not mentioned in the Bill.

I want to say a few words about one detailed concern—perhaps a pedantic concern—that I have about the Bill. That is the reference to the Union flag. Many of our most favoured nations, countries with which we have a great fellow feeling, use the Union flag as a jack. I am slightly worried that we might stop our friends in Australia and New Zealand putting their flag on because of the Union flag being used as a jack, with the stars in the fly. We want to be entirely clear—this may be a point to be discussed in Committee—that flags that incorporate the Union flag should be permissible as a representation of the country of origin when the item comes from that country.

That is a particularly welcome thing to do, because those tend to be countries that share a sovereign with us. We should have a particularly favourable attitude towards them, rather than countries such as France, which of course used to share a sovereign with us—I think of Henry VI, crowned king of France in Paris some time in the 1420s; Mr Deputy Speaker, you will know better than I the precise date—but no longer do so and have therefore lost out in the development of European history. One can only have sympathy for them in lacking such a wise and benign system of government as we have here.

[Mr Bacon]

I took the trouble to mention kangaroo meat, and how it would not be affected by my Bill. I have no objection to kangaroo meat showing a clear national Australian symbol on it, which of course incorporates the Union flag.

[Jacob Rees-Mogg]

I thank my hon. Friend for that. I am greatly relieved, because I thought he was going to propose that we might get some kangaroo meat from Somerset. Although Somerset is very good at almost everything, kangaroos might find the climate a little colder than they are used to, and perhaps the fences not quite high enough. They might do awful things like hopping over to Gloucestershire, which would no doubt be extremely dangerous for their health.

There are all sorts of other peculiar meats that one can eat. I remember being offered crocodile, but I did not have it. I thought that it was more for making ladies’ handbags than a gentleman’s dinner. It was clearly labelled as not being English; as far as I am aware, there are not many crocodiles living in England, although there always used to be those stories about them being in the sewers. As far as I know, that is not true. It was one of those urban myths.

Let us get back to the serious point while I have the attention of the Minister for Europe, which is, as always, a great pleasure. He knows the point that I will come back to and it is a serious one. We have got ourselves into a situation in our relationship with the European Union where laws that are perfectly routine and sensible run up against a European blockage. Whether the jurisprudence of my hon. Friend the Member for South Norfolk is right or the Government’s current view is right I do not know, but I do know that it has become the reason for inaction. It is one of the reasons that I greatly welcomed the European Union Bill, which is passing through the other place and which we passed recently. It contains the sovereignty clause which makes it clear that laws from Europe have effect only because of an Act of Parliament.

The reason I think that this is so important is that we may get the phraseology right—and I urge my right hon. Friend the Under-Secretary of State for Environment, Food and Rural Affairs to bear this in mind—but we often hear about things that are against European law as being illegal. They are not illegal; they are against an international treaty obligation. There is an important difference. It is illegal in this country to murder someone, which is absolutely fine. The application of European law results from a treaty obligation that we have accepted and incorporated into our law, but it is absolutely legal for this Parliament to decide at any point to change it. That might appear to be a relatively obscure point, but language is important, because the House, if it so wishes, may pass the Bill with a “notwithstanding” clause, but it is perfectly reasonable for the Minister to say that because of our international treaty obligations it would not be considered wise to do so.

[Mr Bacon]

My hon. Friend, who is being generous in giving way, prompts me to intervene again on the question of the word “language”. Directive 2000/13/EC specifically states that language can be used as a legitimate restriction, which means that a label must contain the language of the country where the product is to be sold.

[Jacob Rees-Mogg]

That seems perfectly reasonable. With regard to the Bill, I suppose that, as we are in the United Kingdom, the label is likely to be in English anyway, and English is such a commonly used language that it is hard to see that we could get the protection simply by saying that the labels had to be in English; they would be anyway. That would not indicate a great deal.

We need to consider the right balance in our relationship with Europe. In my view, Europe interferes too much in the minutiae of British life, and I would classify the Bill in that category. Whether one is in favour of specific food labelling laws is neither here nor there in this sense, but it clearly ought to be in the ambit of this Parliament to decide without worrying about Europe. It is not, except at the most excessive level, a barrier to free trade. I am concerned that we should have a relationship with Europe that is friendly, hospitable and trading, but we are getting to a situation where our democratic control of what we want to do is so undermined by the constant attrition from European law that the British people will no longer wish to accept the relationship along its current lines.

Therefore, those Ministers and hon. Members who are broadly in favour of a free trading area and the European Communities Act must bear in mind that, by allowing Europe to go too far, they might be sowing the seeds of its own destruction, and we may be beginning to see that in the move for an in-or-out referendum. I am very sympathetic to my hon. Friend’s Bill. I think that it ought to be a matter for this sovereign Parliament to decide, but I quite accept that the Minister may feel that, in terms of our current arrangements with the EU, this may not be the best battle to fight.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

I pay a warm tribute to my hon. Friend the Member for South Norfolk (Mr Bacon) and applaud his tenacity in bringing this important subject before the House. He said that he was speaking as a non-lawyer, but he did not sound like a non-lawyer, although perhaps his use of the word “heebie-jeebies” took him some way from the legal lexicon he was using.

I was proud to be part of the Honest Food campaign in 2009 that supported the idea behind the Bill. The Department is now taking forward those principles in a way that is both effective and legal, and I would be happy to respond to my hon. Friend’s points of jurisprudence. I can assure him that the finest minds at my disposal in the Department will be available to explain our position to him. He has made an important case, and his points deserve a response.

The Bill has come before Parliament previously. I remind hon. Members that even though the Honest Food campaign was the action of the then Opposition Front-Bench team, it resulted in 900 items on supermarket shelves being changed as a consequence of the concerns we raised about the improper portrayal of products on their labelling. It was clearly wrong to state that something was from a certain part of the country and for it to exude every aspect of Britishness when the meat had been reared and slaughtered abroad but processed here, and I am pleased that we made that progress.

The Prime Minister’s comments, which my hon. Friend repeated, are relevant to what we are trying to achieve. We are developing a framework for more honest food labelling, especially for the origin of meat in food. This is an area where the Government have been active in the past year. A food labelling regulation is currently being discussed in Europe. The Government have so far been extremely successful, by including in the current text an extension of the rules, making origin labelling mandatory for fresh and frozen meat. We are tightening the rules where origin claims are made and leaving the door open to further mandatory labelling, subject to a European Commission feasibility report. That position is reflected in the Council’s common position, which is being debated in the European Parliament.

In the meantime, in addition to existing Government best practice guidance, the Department has facilitated an industry-owned voluntary code of practice on improved origin labelling for food, which has received widespread support from major trade organisations. We will evaluate its market uptake and impact shortly. The Department is also developing ways to improve the transparency of country of origin labelling in the food service sector, working with the sector to develop guidance for the hospitality sector. If possible, that will be linked to the Olympics, providing an opportunity to celebrate the origin of food at an international event. Although the Government recognise the need to provide UK consumers with clear and accurate origin labelling, a number of the Bill’s provisions deal with issues that we are already successfully pursuing in the European single market negotiations.

However, I want to make it clear to my hon. Friend and other Members present that the Government believe that clear food labelling is important. We have made considerable progress on food labelling, and we expect further progress in the EU, as the food information regulations make their way through the Council and the European Parliament. Although we are supportive of the Bill’s aims, the Government are already proactive, with many country of origin labelling initiatives already in place. There are existing rules at the European level that, as I have said, are subject to ongoing negotiations. We have been successful thus far, and we believe that we will be more successful in the coming months.

Existing EU legislation already requires mandatory origin labelling for beef, veal, poultry meat and eggs from third countries, fish, most fresh fruit and vegetables, honey, olive oil and wine. Otherwise, origin information is required only where its absence might mislead the consumer. Food businesses can already provide additional information voluntarily, as long as it is accurate and not misleading. Food labelling rules are harmonised at the EU level, and changes in labelling law are a matter for negotiation in Europe.

[Mr Bacon]

I am delighted that my hon. Friend has pointed out that we have a lot of mandatory labelling already—he has mentioned fish, olive oil and honey. However, if we have mandatory labelling already and if, for meat other than beef, where we do not, the consumer manifestly is being misled, is there not a case for now having mandatory labelling for other meat? If there are problems in European jurisprudence—problems that I contend are solvable—that should be tested through the courts.

[Richard Benyon]

I am happy to discuss my hon. Friend’s points about jurisprudence with him. I want to ensure that the consumer is treated fairly, with an honest labelling system, and we believe that we can do so in a way that will satisfy his determination, yet not be tested in court at a later stage. I can assure him that that is an absolute priority for the Government.

We have successfully extended compulsory origin labelling. We have also secured a requirement for origin information to be given for main ingredients where origin claims are made on food products—for example, the origin of the steak in a steak and kidney pie labelled as “Made in the UK”. It is important that the contents are included. Getting a regulation in Europe is a more effective way of improving labelling in this country.

Importantly, the Bill would apply only to England, as food labelling is a devolved matter. Any English law would place producers and retailers in England at a competitive disadvantage, both in the UK and in wider global markets, as the requirements of the Bill would increase costs not applicable across the trade, as pointed out by the hon. Member for Luton South (Gavin Shuker).

The Government are committed to clearer origin labelling and agree that consumers must be confident about the validity of any origin claims when making purchasing decisions. The Government believe that they have facilitated an industry-owned, voluntary code of practice on improved origin labelling for food. This has received widespread support. We recognise the need to provide UK consumers with clear and accurate labelling. However—

Pig Farming

Richard Bacon Excerpts

Wednesday 23rd March 2011 Westminster Hall

[Mr Richard Bacon (South Norfolk) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Bayley. I am delighted to have secured this debate, as we have reached a critical juncture in the British pig industry. I am also particularly pleased to see the Minister in his place, as I know that he is a friend and ally of Britain’s pig farmers and has taken a lot of trouble to understand the problems faced by the industry.

We should not underestimate the size of the industry. The value of pork retail sales in the UK is about £8.7 billion, outpacing chicken, beef or lamb. This is an important industry, but I am sorry to say that it is in trouble. Just three weeks ago, pig farmers from our constituencies and across the country flocked to Westminster to draw the Government’s attention to the plight of their industry. Many MPs will have signed the 16-foot sausage in Whitehall and heard the rousing rendition of the industry anthem “Stand By Your Ham”, all in support of the cry, “Pigs are still worth it!”

I say “still worth it” because the Minister and other colleagues with long memories may recall attending the 2008 “Pigs are worth it” rally. Like this month’s rally, the 2008 gathering was a response to a sharp increase in feed costs that left the industry on the brink of collapse. After the 2008 rally, led by the much-missed standard-bearer of the “Pigs are worth it” campaign, Winnie the pig, the industry returned to profit in 2009. That breathing space allowed farmers to recoup some of their losses and take the opportunity to invest in improvements to production and infrastructure.

Despite fluctuations in profit margins, the outlook remained positive, at least for a few months, until last August, when the industry was driven into crisis once more. The fleeting period of profitability was not long or profitable enough for pig farmers to recoup the severe losses that they sustained in 2007-08.

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

I am grateful to my hon. Friend for giving way, and I congratulate him on securing the debate. Does he agree that one problem has been our loose labelling law? Many consumers wanting to support the British pig farmer by buying British pork have not always known when they were doing so, because it is possible to package pork reared overseas as British if it is merely processed here.

[Mr Bacon]

My right hon. Friend is correct. He might have seen my Food Labelling Regulations (Amendment) Bill, which is scheduled for Second Reading on 1 April. Should the Government wish to take this opportunity to announce that they will give it Government time, I would be only too pleased to hand it over to officials to be steered through the House. Yesterday, I was encouraged by a phone call from the Department for Environment, Food and Rural Affairs asking to see a copy. It is important to say that there has been some improvement in labelling in the pork sector, but I still believe and have always maintained that the only viable long-term answer is a mandatory regime. We already have mandatory regimes for many other foodstuffs; we should have one for pork and pork products as well.

The inexorable slide into loss-making as rising feed prices have affected the industry has begun to cripple pig farmers in this country once again. The price that pig farmers pay for feed has more than doubled since 2010. Feed costs are rising faster than during the crisis of 2008, and I am afraid that the omens for the future are not good. BPEX—the British Pig Executive, which is the industry body—estimates that feed, which is generally made up of a combination of wheat, barley and soya, remains the single largest cost for British pig producers and accounts for 77% of pig farmers’ costs, up from 60% in 2009. BPEX expects food costs to remain historically high this year, and possibly beyond.

That gloomy forecast is being borne out by recent movements on the international cereals market. The Food and Agriculture Organisation of the United Nations expects a tightening of the global cereal supply this year, driven by growing demand after the slump in world cereal production in 2010. According to the FAO, export prices of major grains have risen at least 70% since February last year, and global cereal stocks are expected to fall sharply due to a decline in supplies of wheat and coarse grains. Market uncertainty after the Japanese earthquake caused prices to fall from £214 a tonne in February to £170 a tonne last week, but as of last Friday, wheat prices had climbed back to £195 a tonne. As one might imagine, recent increases in the price of pig feed have had a severe impact on the cost of pig production, which has risen to £1.64 a kilogram.

However, although production costs continue to rise, the dead-weight average pig price—the price farmers receive for the pigs they produce—has fallen during the same period. In February, the DAPP stood at £1.35 a kilogram, 29p short of covering pig farmers’ costs and 12p a kilogram below the July 2010 price of £1.47 a kilogram.

Britain’s pig farmers started 2010 in a state of cautious optimism, their hope to rebuild based on the reasonably steady costs that they faced and their improved returns in 2009, but by September 2010 the industry had returned to making a loss, and by January 2011 the cost of production had risen by one third compared with 2007. According to BPEX, a farmer sending 200 pigs to slaughter in January this year stood to lose £4,500 in a single week. The pig industry is facing overall losses of £4 million a week, and farmers are estimated to be losing more than £21 on every pig produced.

Although the rising price of feed is undoubtedly a major factor in the pain being suffered by British pig farmers, it is far from being the only factor. The pressure on Britain’s pig industry caused by rising feed prices is being amplified by what can only be described as the decoupling of the supply chain. For a supply chain to work properly, manufacturers, processors and retailers must work collaboratively to bring down its costs effectively and sustainably. However, it is clear that the pressure of high feed costs is not being shared across the pigmeat supply chain. If anything, the reverse is the case. Feed manufacturers have passed on the rise in the cost of cereals to their customers—that is, pig farmers—but the costs of rising prices have stopped with farmers and are not being passed up the supply chain to producers and retailers.

The disconnect in the pigmeat supply chain can best be illustrated by the relative performance of its constituent parts in the 12 weeks up to the end of January 2011. In that period, British pig farmers suffered losses estimated at £35 million, which equates roughly to £416,000 every calendar day. However, over the same 12-week period, the processing sector made an estimated profit of £100 million, or just over £1 million a day. Retailers, including Britain’s supermarkets, which set much store by their support for British farmers, enjoyed combined profits of £192 million from pork and pork product sales, equivalent to daily profits of £2.3 million.

[Andrew George (St Ives) (LD)]

On the point about retailers, particularly supermarkets, the hon. Gentleman well knows that we hope the Government will shortly introduce the proposed supermarket adjudicator Bill. Although that cannot and should not be a price-sensitive or price-setting mechanism, it will address the issue of fair dealing. Does he agree that the sooner we pass such a Bill, the sooner we can help not just pig farmers, but many other farmers and suppliers to supermarkets?

[Mr Bacon]

I agree. We all use supermarkets because in many ways they are efficient, but we love to hate them because they are very powerful. We are not discussing perfect competition. People sometimes speak of supermarkets as though they were speaking of the market for foreign exchange, but this is an oligopolistic arrangement. Supermarkets have large amounts of power that they do not always use in the right way, and sometimes they misuse that power. I welcome the Government’s proposals for an adjudicator.

[Mr Keith Simpson (Broadland) (Con)]

I congratulate my hon. Friend and neighbour on introducing the debate. If he will pardon the pun, this is like “Groundhog Day” for other hon. Members and for me, as we have been debating the pig industry for at least 10 years. Although I do not want to turn supermarkets into devils, it seems to me that they stand condemned in two ways. The first relates to driving down costs and forcing down farmers’ profits, and the second is the labelling itself. They are better now than they ever have been, but all too often, as my right hon. Friend the Member for East Yorkshire (Mr Knight) pointed out, they put the Union flag on something and it is only when one reads the small print that one realises that it is imported bacon or ham.

[Mr Bacon]

My hon. Friend is right. There have been some egregious examples involving some of the best known and highly admired supermarkets. Marks & Spencer, for example, was guilty of such practices, but I think that there are fewer of them now. The use of Union, English and Scottish—I was in Scotland for Christmas—flags in supermarket aisles is better and more appropriate, but we are not there yet and he is right that there is still work to do. Some supermarkets are leading the way on doing what I think would be the right thing, both for themselves in the long term and for the industry. I shall mention Morrisons in particular in a moment.

There is no doubt that supermarkets in general seem to be using their part of the supply chain to insulate themselves against the increasing costs of the production of pork and other pigmeat product, such as bacon, ham and sausages.

[Elizabeth Truss (South West Norfolk) (Con)]

Is it not a shame that we import 50% of all pig products? Given that the Chancellor has just given a Budget for growth, would it not be a good idea to try to become a net exporter of pork products, particularly from Norfolk, which is where my constituency, as well as that of my hon. Friend, lies? There does not seem to be a level playing field on welfare internationally to enable us to increase our exports and decrease our imports.

[Mr Bacon]

My hon. Friend is absolutely right—there is not a level playing field. BPEX has done a lot of work on the issue and estimates that 70% of the pork imported to this country is produced under animal welfare standards that would be illegal here. In other words, 30% of what comes in meets our standards, and 70% does not.

Price promotions in supermarkets are a particular problem. Tesco ran a price promotion in January in what are called the gondola ends—the ends of the aisles—and it was very successful because of its high visibility. Such promotions can increase sales by up to 200%. If a supermarket has an uplift of 200%, not only will it want to keep the promotion going for longer, but it will need more product. I fear that, at such times, even if supermarkets such as Tesco are adhering, or say that they are adhering, to the standards for their imports, suppliers will be under pressure and will get the product from wherever they can, and the standards will not always be adhered to.

People may be familiar with the concept of stalls and tethers, which are banned in this country. Tesco wrote to me this morning pointing out that they will be banned in the European Union, but they will not—an allowance will still be made for the use of stalls and tethers, although the period will be restricted. Even so, that will not be introduced until 2013, which means that if one visits a British farm and sees a stall and tether, one will know that it is illegal, whereas if one visits a farm in other parts of the EU, one will still be able to see stalls and tethers and will then have to audit whether they are used for more than four weeks. I really do not know how that can be successfully audited. There are still big issues to resolve.

I have no doubt that the behaviour of some supermarkets has helped to suck in imports, which has had the effect of keeping the lion’s share of the profits at the customer-facing end of the supply chain, and of ramming the rising production costs on to pig farmers.

[Andrew George]

It would be interesting to know whether the promotional campaign to which my hon. Friend referred was effectively being funded by the suppliers themselves. I am afraid that, too often, the so-called promotional campaigns of two for the price of one are largely or mostly funded by the suppliers, not the retailers.

[Mr Bacon]

Of course, that is a common problem with very powerful retailers. We have seen it in the book trade—many book publishers have been driven under by that sort of practice by some book chains. We know that big factors in the marketplace mean that it is constantly dynamic—no static position, even if it holds for a while, will hold for ever—but that is another thing that the adjudicator needs to look at, because it is an exercise of market power that distorts in a way that could sometimes be thought of as anti-competitive.

Retailers have the power, if they choose to use it, to make a difference by using their stocking, labelling and pricing policies to promote the prominence of British produce and to ensure a fair return for British farmers, including British pig farmers. I pay particular tribute to Morrisons, which is the only one of the big four supermarkets to source 100% of its fresh pork from Britain. Morrisons has also committed to using British-only meat in its own-label sausages, and earlier this month the company’s chairman, Sir Ian Gibson—I am led to believe that he is no relation of the former Member for Norwich North—wrote to me about Morrisons’ backing for British farmers. He said:

“We recognise the pressure pig producers are under and will continue to be strong supporters of the sector. We are the only major supermarket to have such close control over the provenance of its meat, buying pigs directly from Britain’s farmers and processing the pork ourselves”.

He continued:

“This results in exceptional quality, freshness and value. It also enables us to offer industry-leading support to British farming. Our commitment to source 100% British fresh pork is unique among the major supermarkets and in 2011 we expect to reach the milestone of purchasing a million pigs a year from British farmers”.

That is extremely good news. Sir Ian added:

“This policy is popular with customers who we know show a preference for British produce if the price is right. Our combination of British provenance and quality at an affordable price sees us overtrade on pork—that is to say, our share of the pork market exceeds our overall market share”.

I think there is a lesson there for other supermarkets. Sir Ian continued by saying that not only are Morrisons

“major customers of British farming but we consistently pay over the market price for our pigs and we always have done. This was reflected in the results of an independent satisfaction survey of our pork farmers last year, with over 70% responding that they were happy at the price paid by Morrison”.

I salute Morrisons for backing British farmers so wholeheartedly and I wish them every success in their million pig milestone.

It would be remiss to not also mention supermarkets such as Waitrose, Marks & Spencer, Aldi, Lidl and the Co-op, which now all source 100% of the fresh pork that they stock from British pig farmers. All of that pork displays the red tractor mark, which is an independent logo that guarantees that the food it adorns was sourced from farms and food companies that meet Britain’s high standards of food safety and hygiene, animal welfare and environmental protection.

Such support, however, is not constant throughout the retail industry. On the day before the “Pigs are still worth it!” rally, Mr Andrew Opie, food director at the British Retail Consortium, commented in a press statement entitled “Pig farmers do have retailers’ support”:

“Retailers know some consumers prefer to buy British. They’re already doing what they need to to look after their supply chain and secure a sustainable UK pig industry”.

I am afraid that that will raise a hollow laugh from many pig farmers. Mr Opie goes on:

“Supermarkets do not generally pay farmers directly for their pork.”

Well, that will be news to Sir Ian Gibson, because that is exactly what Morrisons does. Mr Opie concludes by asserting that supermarkets have no direct relationship with farmers. Unsurprisingly, the BPEX chairman, Stewart Houston, described those comments as “complete rubbish”, before adding that supermarkets

“dictate prices to processors who pass those prices directly to producers. It is a very short supply chain and they have nowhere to hide. How much money there is in the supply chain is determined by the price supermarkets pay. It is as simple as that.”

[Mr Keith Simpson]

Am I right in thinking that supermarkets or their agents frequently inspect farms for hygiene, health and animal welfare?

[Mr Bacon]

They certainly do. They inspect or employ auditors independently to inspect British farms and say—Tesco has been saying this in correspondence with me over the past few days—that they do the same in relation to their foreign supply chain. I fear, however, that, when they have promotions at the discounted end of the market, that audit trail may run out and the provenance will not always be as clear as it should be.

Hon. Members may be disturbed to hear that there is evidence to suggest that British pork products are quietly being withdrawn from the shelves of our largest supermarkets and displaced by imports. Data from Kantar Worldpanel show that, over the past three years, the volume of pork on sale in British supermarkets that does not clearly identify a specific country of origin has increased, with a spike in sales of non-British pork having been recorded recently, in the past few months of this year and late last year.

Families in my constituency and across Britain who make their living from farming pigs may find their weekly shop at the local supermarket increasingly dispiriting. In-store observation by BPEX suggests that an overall increase in pork sales is being driven by promotional sales of imported pork that does not carry a quality mark. Imported pork has replaced British pork carrying either the quality standard or the red tractor. Where major supermarkets have run promotions on pig products that are multi-buy packs or are heavily discounted on price, it is mostly imported pork. According to BPEX, just one in five pork loins promoted by Sainsbury’s two weeks ago was British, Asda’s three for £10 promotion only included imported pork, and anecdotal evidence from BPEX members suggests that Tesco’s recent in-store promotion on the so-called gondola end—end of aisle—of three pork products for £10 also featured only Danish or Dutch meat.

That is borne out by Pork Watch, the bi-monthly survey of supermarkets conducted by representatives of the National Pig Association and by Ladies in Pigs. The most recent survey found that the overall number of pork facings—the shelf space allocated to a product line—has fallen from 80% in November last year to 77% in February, which is the lowest figure for the past 12 months. Facings of the red tractor or the quality standard mark for pork—both indicators that British welfare standards have been adhered to—have also fallen slightly from 75% to 73%, after making small gains last year. It is worth taking a particularly close look at Pork Watch’s findings on Tesco: it found that facings of “British” on Tesco pork had tumbled from 73% to 59% and red tractor facings had slumped from 63% to 55%—a fall of 14 percentage points in the British category, which is the largest decline of facings of “British” on pork in any British supermarket. About half of the pork on Tesco’s shelves does not bear the red tractor, which makes it unlikely that imported pork meets the UK’s welfare standards in all cases, despite Tesco’s claim that its overseas suppliers’ standards “broadly equate” to red tractor standards.

Let us be in no doubt that the situation facing British pig farmers is extremely serious. Of course, neither retailers, individual farmers, their industry bodies nor Members of Parliament can do much to influence world commodity prices. Feed is expensive because cereals are expensive, and that looks unlikely to change in the near future.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

I hope that my hon. Friend can help me on one point. Presumably, the story he is telling ends with pig farmers leaving the industry. If that is the case, is the situation not serious for not just pig farmers, but for agriculture and indeed rural Britain as a whole? I suggest that problem goes much further than pig farming.

[Mr Bacon]

It does go much further than pig farming. People are beginning to exit the industry and many are worried about whether they can expect to still be in the industry by the end of this year. My point is that if we have a stronger pig farming and farming sector, that is good for Britain, for the rural economy and for the economy as a whole, and that that is good for the Tescos of this world and their like. If the supermarkets took a longer-term view, rather than just worrying about the next three months and the next quarterly results, it would be better for them in the end. It is not an accident that Morrisons’ fresh meat sales have increased by 12% since it announced its 100% British pork policy. I urge supermarkets that are not currently doing so to take a more pro-British stance. It is incumbent on institutions—and such companies are institutions—of the like, size and power of Tesco to do more than just think about one set of shareholders; they have to think about the entire community of stakeholders, of which they form such a powerful part.

Let me give an example. Tesco states on its website that it supports British farmers, and hon. Members will have probably seen the signs as they go into Tesco showing that it is the biggest customer of British agriculture. On its website, it identifies 27 farmers whom it supports: five produce apples and pears, five produce cheese, nine produce either beef or lamb or a combination of the two, one produces watercress, one produces rapeseed oil and one produces milk. There is not a single pig farmer among the 27.

[Mr David Ruffley (Bury St Edmunds) (Con)]

Will my hon. Friend explain why the economics mean that Morrisons can make a profit by sourcing 100% British pork when Tesco and the other superstores he has mentioned cannot? What is the economic reason he has divined for that?

[Mr Bacon]

My hon. Friend makes a very interesting point because one might think that if everybody could do it, they would. My point is they can do it and they should. The economic case is that when customers see that supermarkets, such as Morrisons, are backing British farmers and backing Britain, they are disproportionately likely to go and shop in those shops and buy those products. They want to see that the supermarket that they endorse by their shopping decisions—it is their spending the money in their pocket that means a supermarket is profitable—is also helping to back our community, back Britain and back British farmers. When people see that, they respond. That has an economic effect of its own, which is why Morrisons’ policy has proved to be so successful. Other supermarkets should follow suit.

The even broader point is that, even if the effects were cost-neutral in the long term—I do not believe for one moment that they are—the supermarkets should recognise that they are British supermarkets and they are succeeding only because we have allowed the planning permissions to go through, sometimes against people’s better judgment, and enabled them to have those locations. It is because we go into those supermarkets and spend our money that they are able to make such profits. I come back to the question: what kind of market are we talking about? We are not talking about the market for foreign exchange; we are talking about enormously powerful players, and with enormous power comes enormous responsibility. I am asking the supermarkets to exercise that responsibility in a more measured way in the interests of this country. I do not want to rant even more on that point, so I shall stop there.

It is certainly true that some British supermarkets can and do support British pig farmers, but only one of the big four sources 100% of its pork in Britain. That is not good enough. In addition, the biggest of the big four also seems to be slowly turning its back on British farmers, offering cheap imports in the misguided belief—promoted by the British Retail Consortium but disproved by Morrisons—that British shoppers do not care where the meat comes from as long as the price is right. Retailers will no doubt respond that they have to meet the variable demand of their customers and that in the current economic climate price has to be a factor. However, I question how much of the instability in the pigmeat supply chain is due to fluctuations in customer demand on price and how much is caused by the internal operations of the supply chain which, as I have set out, is entirely skewed in favour of retailers.

This is not simply a case of backing our heroic pig farmers against the evil supermarkets because, as we have heard, some of our supermarkets are trying to do the right thing. Of course it would be foolish to state that shoppers will buy British whatever the price, but we also know that it is possible to offer consumers British food at high standards of quality and animal welfare all at an affordable price. Morrisons have shown that that is possible and, if the producers can get a fair price for their pigs, we will have the best of all possible worlds.

When feed prices peaked in 2008, it took six months for prices to fall back to a sustainable level, during which time many pig farmers had left the industry. Today, three quarters of the remaining farmers say that they too will get out of the pig business if things do not improve within the next 12 months. That would be a tragedy for not only pig farmers, but processors, retailers and consumers. British consumers want to buy British produce because they want to support British farmers and they believe that it is the best. I have not wavered in my belief that a mandatory country of origin labelling regime, combined with the widest possible support for the red tractor and quality standard marks, will give shoppers the information they need.

The Minister acknowledged in the House last week that the pig industry receives no subsidies. That is quite correct and I am certainly not calling for that to change. However, if the Government value having a British pig industry that sets the highest standards for quality and animal welfare, they cannot simply shrug and believe themselves to be powerless in the face of global food prices and grocery behemoths. The Government must encourage the pigmeat supply chain to work as it should, so that pig farmers can make a living, not a loss. Pigs were worth it in 2008. They are still worth it today.

--- Later in debate ---

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

It is a great pleasure to serve under your chairmanship, Mr Bayley. I congratulate my hon. Friend the Member for South Norfolk (Mr Bacon) on securing the debate, which is very important not just for us in East Anglia, but for many rural communities all over the country. Pig farming and farming in general have suffered in the past few years. Although it is important that we have a comprehensive debate about pig farming, it also helps us to raise a number of issues that are important to the wider farming sector.

One of my first engagements as a new MP last year was a visit to Stuston farm in my constituency, where I was introduced to a new breed of pig—the mangalitsa pig— which has just come into the United Kingdom; that was a great pleasure. Today’s debate is about the future of pig farming, which is one of the most important parts of agriculture in East Anglia, particularly in Suffolk and Norfolk. I am therefore delighted that we have replying to today’s debate a great friend of East Anglia, Suffolk and my constituency. The Minister knows the issues better than many and I am sure that he will do all he can to help us resolve them.

My hon. Friend the Member for South Norfolk talked about a number of important issues, including the fact that the pig industry slid back into loss making in 2010, its problems exacerbated by the rise in wheat prices and the fact that retailers are not passing on their profits to pig producers. According to the National Farmers Union, over the past three years pig producers have been losing £20 a pig, whereas retailers have continued to make a profit of £100 a pig. That is unacceptable. Retailers should show more corporate responsibility in supporting British food producers.

Of course, the increasing cost of fuel will further exacerbate the problems in the pig industry, so we were pleased to hear in today’s Budget statement about the fuel stabiliser, which will help many farmers. Another important problem is the difficulties in many parts of the country with getting planning permission for local abattoirs, so that we can reduce food miles. I am delighted that we finally have in East Anglia, in my constituency, an abattoir. Local pigs can now be slaughtered locally, which is a very good thing.

We have talked about broader questions of Britain’s food sustainability and the importance of supporting a profitable and sustainable agricultural sector to improve that. In the past decade or so, the amount of food consumed in Britain that is produced here has fallen quite dramatically: we now produce only about 40% of the food that we eat. With climate change already affecting many major agricultural producers such as Australia, where extreme temperatures could undermine a major world supplier of wheat, it is all the more important that we promote food sustainability and support British pig farmers as a means of doing that. I am pleased that that matter has already been raised: the Minister talked about it in response to parliamentary questions from my hon. Friend the Member for North Warwickshire (Dan Byles), who touched on it in the context of supporting our armed forces. It is important that we make sure that Britain can feed itself and that we have proper food security and food sustainability for the future.

One important point that has been teased out in the debate is that British pig producers have much higher standards of traceability and animal welfare than many of their overseas competitors, but they are not competing on a level playing field in the supermarkets where they sell their goods. An important related point is that 30% of imported pork does not meet UK standards of animal welfare, but it is still sold in our supermarkets.

[Mr Bacon]

Actually, BPEX estimates that 70% of imported pork does not meet the British standard, and that only 30% does.

[Dr Poulter]

I thank my hon. Friend for that clarification, which makes the point even more forcefully. As he says, only 30% of imported pork in our supermarkets meets UK standards, according to BPEX. We need action from the Government to put the onus on supermarkets to show greater corporate responsibility and to provide a more level playing field for British food producers and the goods they sell.

--- Later in debate ---

[Mr Paice]

The answer to the first part of my hon. Friend’s question is that we constantly tell the Commission that when a rule is introduced, every country should comply with it, and that there should be no derogations. He is right in saying that we have not seen any proposals for enforcement, and I am not aware that we have seen any assessment of what stage other countries are at. There were efforts to do that with conventional battery cages, but there were difficulties. The matter is important, and I will chase it up to see whether there has been any assessment of what other countries have done. To be fair, we know that many countries with a significant number of pig farmers, such as Denmark, which is a major pig producing country, have converted, but I cannot tell my hon. Friend precisely what the proportions are and how many remain to convert.

The hon. Member for Glasgow North East challenged me on whether we would support an intra-EU ban on those countries that have not introduced the measure. I shall be completely honest, as I always try to be. We have not considered that yet, but he makes a valid point. I made the point about eggs, and there is no logical reason why we should not do the same for pigmeat. However, we want everyone to convert, and until we see some sort of assessment, we cannot speculate too much, but I entirely accept the hon. Gentleman’s point.

I have just been passed a note saying that no official information is available about how far EU countries have moved towards complying with the directive. Denmark and the Netherlands have said that they will comply, but the situation in some other countries is different and vaguer. There are different rules on castration and tail-docking in different countries, and there is a competitiveness issue. Some hon. Members referred to supermarket specifications and, as my hon. Friend the Member for South Norfolk said, claims by Tesco and others about their supply sources. It is reasonable and acceptable, of course, for retailers to ensure that their supply chains comply with British standards, and it is not in the Government’s gift to check whether they do. There is no doubt that tail-docking and castration rules are different in other countries, and it is only right and proper that they should insist on the same standards. I shall return to the supermarket issue.

That leads me to my last point on welfare. My hon. Friend the Member for Suffolk Coastal (Dr Coffey) referred to pigs being kept outdoors. Anyone who drives through Suffolk and South Norfolk will see that tens of thousands of sows are kept outdoors, even through the recent winter and the snow before Christmas. There is no doubt that keeping pigs outdoors is more expensive in production costs. Productivity is lower, there are not so many pigs a year from the sows, and growth rates are slightly affected. Those systems are being adopted because the drive for better welfare from retailers has pushed them that way, but higher management standards are required and farmers do not receive the price for their pigs that that higher standard demands.

I was with a group of Agriculture Ministers in Belgium before Christmas, and we were taken to a modern, highly efficient Belgian pig farm operated in totally enclosed buildings, where the hygiene must have been incredible, as there was no disease. Nevertheless, there were just spartan, bare shelves with a few rubber balls hanging on chains for the pigs to play with. Those pigs compete with our pigs, which are reared outdoors. Apparently, British consumers prefer pigs that have been reared outdoors, but they are not always told about it.

My hon. Friends referred to the overall issue of supply, and to dioxins, which was a problem from Germany that we had in January. The Commission introduced a private purchase scheme for a short space of time, and some pigmeat was taken off the market, which helped for a while. What concerned me was the allegation—I say only that—that certain supermarkets were dropping their British suppliers because the European mainland market was awash with cheap pigmeat as a result of the dioxin scare. To me, that undermines the claims made by my hon. Friend the Member for South Norfolk about supermarkets looking after our sector.

[Mr Bacon]

As the Minister said, it is not in the Government’s gift to check whether claims made by supermarkets about animal welfare standards are adhered to by overseas producers whose products the supermarkets import. Even if the Government cannot do that, however, does the Minister agree that there is an interest on the part of consumers and of Government in knowing whether such claims are true?

[Mr Paice]

My hon. Friend is right and we stand four-square behind the assertion that it is important that the consumer be properly informed about what is available for sale. There should be an effective traceability chain that can verify the claims made on the label.

At this point, I should probably discuss the issue of labelling. I welcome my hon. Friend’s Bill, but he knows as well as I do that there are question marks—to say the least—about the legality of the UK legislating alone on food labelling. There is good news, however, and since we came to office, two things have happened. The hon. Member for Glasgow North East made a point about the pigmeat supply chain taskforce and the code agreed with the industry. That happened before we took office, and I am the first to recognise that. Since we took office, a bigger agreement on all meat has taken place between the supermarkets, the meat trade, the catering and hospitality trades and the producers, resulting in a much broader voluntary code of practice concerning country of origin labelling. That is the key issue. That code is now in place, and we are currently doing an evaluation exercise to baseline it so that we can measure progress in the future.

Alongside that, there are negotiations on the EU food information regulation. Since taking office, we have toughened up the UK’s approach to support the idea of mandatory labelling for meat and meat products, and that is what the regulation currently requires. As my hon. Friend the Member for South Norfolk says, there is a long way to go and I do not want to forecast the outcome. At the moment, however, the food information regulation would achieve what he seeks with his Bill, except that it would apply not only in the UK but across the EU. That is the best way forward, and potentially that is encouraging news.

My hon. Friend the Member for Tiverton and Honiton (Neil Parish) asked about regional labels. There is nothing to stop anybody from marketing and using regional labels, and we strongly support protected name indicators—PNIs—in principle. The two examples I give will not make or break the pig industry, but Gloucester Old Spot pigmeat, and more recently Cumberland sausages, both in the pigmeat world, have been approved for that status. PNIs are a marketing tool, but like any other form of marketing they are effective only if the labelling is honest about the country of origin where the pig was born, reared and slaughtered. That is the point about labelling espoused by my hon. Friend.

[Mr Bacon]

Does the Minister agree that the most important thing about labelling, including mandatory labelling, is to stamp on the canard that giving full, accurate information to consumers somehow distorts the market, because consumers might act on that information? The only possible consequence of accurate food labelling is to assist the clear operation of market preferences.

[Mr Paice]

I entirely agree. We are constantly told by retailers, “We are doing what the consumer demands.” Well, let the consumer demand, but make sure that they are properly informed so that we know that the demand is genuine. There is no reason for anybody, whether producer or retailer, to be afraid of the consumer, and we should not be afraid of consumers being properly informed.

I will touch on the two final issues raised by hon. Members. First, the coalition Government are committed to introducing Government buying standards, and we are on schedule to do so. Some parts of that relate to food but concern health, rather than the DEFRA rules on food, so I will concentrate on pigmeat. Our clear objective is that we should spend taxpayers’ money only on food that has been produced to British standards, as long as it does not cost any more—there are plenty of examples and pieces of casework to demonstrate that it will not cost more. That is only right and fair, and it means using farm assurance schemes as benchmarks to ensure that it takes place. That objective is on schedule.

My final point, on which I have been challenged, concerns the adjudicator. That is the responsibility of the Department for Business, Innovation and Skills and it is clear that the Department is determined to go forward with it. I was asked about its role, and the adjudicator will investigate complaints from anyone in the supply chain who has been affected, either directly or indirectly, by what they believe to be a breach of the code. Furthermore, the issue can be dealt with anonymously. Those are the two big issues that we will see when the legislation is published.

Finally, let me turn to the wider issue of supermarkets. I must resist the temptation to identify individual supermarkets and say what each is doing, because I do not have full knowledge of that. Morrisons is distinct, because it has its own abattoirs, unlike any other supermarket. That is why it buys pigs from the farmer as opposed to from a processer, as other supermarkets do. Usually, however, supermarkets are closely involved in sourcing their meat.

I entirely share the general thrust of the comments made by my hon. Friend the Member for South Norfolk, and those of everybody else who has spoken. If supermarkets and retailers believe that future consumers will want to buy British pigmeat, they have a responsibility to ensure the supply of British pigmeat for the future, and that lies behind the adjudicator and the code. The Competition Commission’s conclusions were not about farmers but about consumers. It was concerned that retailers were shifting too much risk on to the supply side, and that in future the consumer might lose because the supply side was constrained. Therefore, it is in the interests of the consumer to ensure a supply of British pigmeat for the future. I share the view held by my hon. Friends that although no one pretends that there is a single solution to the challenges we face, supermarkets have a big role to play. To be fair, it is not only Morrisons that takes the more responsible line to which my hon. Friend referred.

I am grateful for the compliments that I have received from hon. Friends about my feelings on this matter, but that is not really important. What matters is what the Government do, and we have made a pledge on the adjudicator and are making dramatic progress on the labelling front and on Government buying standards. We have dealt with the issue of potential GM contamination of imports, and we are determined to do everything we can in an industry that, as others have said, is unsubsidised and vitally important. I congratulate my hon. Friend on securing this debate.

Oral Answers to Questions

Richard Bacon Excerpts

Thursday 17th March 2011 Commons Chamber

[Mr Richard Bacon (South Norfolk) (Con)]

Does my right hon. Friend think that customers of Tesco and other supermarkets would be surprised if they understood the disgusting animal welfare practices that those supermarkets support by importing meat produced under such poor animal welfare conditions? Is not the answer for British consumers to go to supermarkets such as Morrisons, which has a 100% British meat policy?

[Mr Paice]

I am sure that consumers have heard what my hon. Friend says without me getting into an internecine war between retailers. What really matters is that the consumer is properly informed of the benefits of buying British pigmeat. That is why the Government are keen, as he is, on country of origin labelling.