Oral Answers to Questions

Debate between Andrew Bingham and George Eustice

Thursday 19th January 2017 Commons Chamber

[George Eustice]

I had a very constructive meeting with members of NFU Scotland on Monday. We had a meeting for almost two hours, where we discussed a range of issues that are of concern to the industry, but also some of the opportunities that we have. As we move forward, we will work closely with all the devolved Administrations and with industry throughout the UK. When it comes to labour, we have heard the representations. We will be looking at those issues. It is a Home Office lead, but we are contributing to that debate.

[Andrew Bingham (High Peak) (Con)]

11. Can my hon. Friend assure me that, when he makes his assessment of the impact on farming of leaving the EU, he will actually listen to the farmers and not the so-called experts from bodies such as the National Trust, who seem to be intent on following their own agenda, with scant regard for the farmers who are trying to make a living on the hill farms in High Peak and across the country?

[George Eustice]

I can reassure my hon. Friend that, having grown up on a farm and worked in the farming industry for 10 years, I will be very much listening to farmers and their views, and wanting to learn from their experience. We will be listening to everybody as we develop future policy.

Groceries Code Adjudicator Bill [Lords]

Debate between Andrew Bingham and George Eustice

Monday 19th November 2012 Commons Chamber

[George Eustice (Camborne and Redruth) (Con)]

I welcome this Bill’s Second Reading. As Conservatives, we believe in free and fair markets, but we rigorously oppose the abuse of dominant market power, which is why the Bill is essential.

Before entering politics, I worked in the farming industry for 10 years. We were a major supplier of strawberries to a number of supermarkets, and I experienced first-hand some of the sharp practices that the Bill is designed to deal with. They ranged from forcing suppliers to use third party contractors, for things such as packaging and haulage, who would then charge suppliers more than the market rate. I experienced the retrospective clawing back of costs resulting from wastage on the shelf. Supermarkets would claw back not just what they paid, but the margin that they expected from a product. Growers were frequently forced to participate, often unwillingly, in supermarket promotions, and were expected to sell their produce for below the market rate.

I saw many instances of supermarkets rejecting stock when they had simply made an error in orders. That was a particular problem with the strawberry industry, because a supermarket buyer would place an order for a batch of strawberries, unaware that it would begin to pour with rain the following day. When it pours with rain, strawberry sales collapse and supermarkets are reluctant to take the orders that they have placed, so they do all that they can to find an excuse to reject batches of fruit that have been supplied to them.

I have been out of the industry for 10 years, and I thought that perhaps things had changed, but other practices have crept in. Only last year, I was talking to a supplier who explained that he was required to show his annual financial accounts to the supermarket as a condition of supply. Ostensibly, that is to check that the business is financially secure, but we all know that in reality it is to see what its profit margin is, and how much further supermarkets can drive it down into the ground without killing it altogether.

[Andrew Bingham (High Peak) (Con)]

The problem, as my hon. Friend sets out, is very serious—it is almost commercial bullying. Does he agree that that is why it is so important that the adjudicator can now receive referrals from third parties, such as trade associations and so on, to protect anonymity and stop future bullying?

[George Eustice]

I absolutely agree. One of the big improvements made to the Bill in the Lords was the extension of its scope so that that could happen—so that anonymous complaints could be made and so that whistleblowers and third party trade organisations could be involved in the process. The evidence we heard in the Environment, Food and Rural Affairs Committee made it very clear that many suppliers are incredibly fearful of the supermarkets they supply. They are conscious that it is easy for suppliers to be identified as there will sometimes be only a handful of them for a particular product line to a given supermarket. It is therefore very important that the Bill has that extra scope.

I also recently spoke to another supplier who told me about a problem that he had encountered with supermarkets putting him under huge pressure to fulfil the terms written into a contract and supply the volumes that he was no longer able to source due to bad weather or a crop failure. In negotiations, he was put under huge pressure by a supermarket to buy the product from abroad and sell it at a massive loss so that he could fulfil his contract. That is unacceptable behaviour. When prices change, supermarkets should also change their prices.