Dairy Industry

Debate between Andrew George and Simon Hart

Wednesday 5th November 2014 Westminster Hall

[Simon Hart]

That point is accepted by the farming unions, but as my hon. Friend rightly points out, offsetting those difficulties through diversification schemes is often easier said than done. The uncertainty of the future of dairy farming gives rise to the issue of whether farmers can obtain the necessary funding to enter diversification schemes or more adventurous marketing schemes on the back of a dangerously fluctuating short-term horizon. However, I take on board his well made point.

Some solutions have been put forward by the retailers themselves, so there are silver linings to one or two clouds that we have referred to. To cite ideas from one particular retailer—I am trying to avoid naming individual companies, so that I am not bombarded with rebuttals and the like when I leave the Chamber—those solutions include working with processors to create greater transparency in the supply chain, and enabling farmers to see how prices are set in order to create better trust within the supply chain. That is a new way of working that has not been seen before in the industry, and it will create benefits for farmers, consumers and the industry. For example, the price paid to farmers will be worked out every three months, based on a rolling average of indexed butter and milk powder prices. Those commodity prices are publicly quoted, and in each case there is a futures market, allowing farmers to look ahead and hedge or protect themselves against price movements. That will allow dairy farmers better to predict milk prices and plan accordingly.

That idea comes from an e-mail from somebody who took the trouble to contact me recently. However, if I may use a rather clumsy analogy, it aligns what we are discussing with the principle of a fixed-term mortgage. If the industry is prepared to enter into an arrangement in which it can play the futures market, we can have contracts that are perhaps fixed for a longer period. If contracts can be fixed both between retailer and processor and between processor and farmer, we will be able to look at one-year or two-year contracts, or perhaps—maybe I am being over-optimistic—even further ahead than that.

Yes, of course, there are risks. There are risks to each person in the chain, but surely we can inject a degree of certainly into the industry to eliminate the risks and the downside from which people are suffering, which affects not just farmers, but everyone who relies on farmers in some shape or form.

It is a promising way forward if the retailers are beginning to recognise that there is a need for a transparent contract system based on being able to look ahead and take an average price over a future period. There would then at least be recognition that we are looking at the end of the unacceptable practice of simply sending a text message to a producer to downscale their milk price in two or three weeks.

[Andrew George (St Ives) (LD)]

I assure the hon. Gentleman that there is no press release attached to my intervention. He has got to the nub of a constructive proposal, but at present the groceries code adjudicator is limited in what she can do. Improving the adjudicator’s powers and the code would enhance the solution that the hon. Gentleman is constructively proposing: a direct relationship between the retailer and the producer of the goods coming into the supermarkets.

[Simon Hart]

The hon. Gentleman plays nicely into the completion of my contribution. I want to quote from a farmer in my constituency, not a particularly large farmer and certainly not a militant one, but someone who has worked hard on his holding for a long time and reinvested every penny in his business:

“The important bit, and the message which we are struggling to get across, is the”

groceries code adjudicator

“needs to use her powers to investigate the relationship between the Retailers & the Processors. If the Adjudicator would look at the paper trail between the likes of”

x and y,

“she would find millions of pounds, which could result in a minimum of 3p per litre back to the producer. This would turn the job round immediately as it would go to the nonaligned producers. If this was followed up & she had the guts, it would open up the biggest can of worms ever in the dairy industry. The problem is the Retailers & Processors will fight this all the way because it's their extra profit that is cleverly hidden.”

That sounds provocative and it was written with passion, but it highlights a belief and a feeling that is probably replicated throughout the UK dairy industry. We now have an opportunity to correct that, thanks, dare I say it, to the price crisis that most farmers are experiencing. We have a chance to correct it with Government, retailer and processor action, and through greater awareness and willingness to accommodate changes from the producers.

I hope that other hon. Members will produce their own anecdotes and views, so that the Minister can form a view that he can put to us at the end of the debate and that will, above all, encourage all those who are struggling, but on whom we rely to secure a longer-term sustainable business for the benefit of UK agriculture.

Badger Cull

Debate between Andrew George and Simon Hart

Wednesday 5th June 2013 Commons Chamber

[Andrew George (St Ives) (LD)]

Continuing on the same note as the hon. Member for Llanelli (Nia Griffith), in my speech I will encourage the Government to do as they say they will do, which is consider and keep available to them all the tools in the box, including vaccination. I, like the hon. Lady, believe that vaccination offers the most effective means of getting on top of this disease.

It is worth reminding ourselves of the impact that bovine tuberculosis has on farming communities. To see how it has affected farmers in west Cornwall over the past 30 years, people need to talk to farmers and understand the impact of getting TB reactors in their herds. The impact is not only financial, but emotional: there is an effect on confidence in the farming community, because many farmers live in fear whenever vets come round to undertake the tests. It is vital that people fully appreciate that.

We would all claim that we support a process of evidence-based policy making, but today’s debate demonstrates the constant risk among politicians of using policy-based evidence making, whatever one’s perspective. Having looked at the balance of evidence provided by the best-informed scientific expertise on this question, especially from those involved in the RBCT and others, it is clear to me that the Government are running a high risk of making the situation worse in those areas where they proceed with the cull. I simply point that out.

I strongly supported, as did all parties at the time, the previous Government’s approach and the randomised badger culling trial. In my area, I faced down strong opposition from animal rights activists and others to the proactive cull in particular, so I have been there, done that and run the gauntlet of strong and extremely vociferous protests. As I say, there is a high risk that we could end up making the situation worse.

The Ireland study has been referred to on several occasions. It is worth saying that the four areas selected were among the most isolated in the country, and had badger populations that were extremely small and disparate. The nature of those populations is quite different from the nature of the badger population in Great Britain; the likelihood of migration and perturbation was bound to be significantly lower in the Ireland populations. We cannot say that the situation in Ireland is representative of what we have in the UK.

On vaccination, Professor Rosie Woodroffe and I are working on a proposal. We have been to see the Minister with responsibility for farming, my hon. Friend the Member for Somerton and Frome (Mr Heath), who has been supportive of us developing our proposal to roll out, using volunteers, a five-year vaccination programme across the whole Penwith peninsula—200 sq km—which clearly has the hard edges of the Atlantic around it. The Government’s estimated cost of about £2,200 per square kilometre would be significantly reduced by about 50% through the use of volunteers. We already have a large team of 50 or more volunteers who have come forward. We suspect that we can offer vaccination and wildlife holidays in the area for people who get involved in the programme. Clearly, only a very few people who are trained and licensed to undertake the actual injection of the vaccine are needed.

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

Does the hon. Gentleman have any idea of the complexities of dealing with the physical act of vaccinating a wild animal?

[Andrew George]

Absolutely; that is fully understood. Indeed, many people working on our wider advisory group are already doing this work. We have consulted the Killerton estate in Devon, which has been doing this for a couple of years. Professor Rosie Woodroffe is trapping badgers in that area at this very moment; she is working with farmers on her own programme, which is funded by the Department for Environment, Food and Rural Affairs. There is a great deal of experience and knowledge going into this, as well as understanding of the challenges of rolling out such a programme. I have a great deal of experience of this, too. We believe that we can proceed with a very effective programme, with the proper support of landowners in the area, though taking on 200 sq km is a significant challenge.

Sustainable Communities

Debate between Andrew George and Simon Hart

Wednesday 13th June 2012 Westminster Hall

[Andrew George]

I am very grateful. The New Economics Foundation report on ghost towns has been a persistent theme and originally provided the stimulus for the 2007 Act. The impact of development, commercial pressures, planning restrictions and the business rating system, which seems to advantage out-of-town retail, was creating and still creates in many parts of the country—including mine—relative ghost towns. I am sure that many right hon. and hon. Members can identify such areas in their own constituencies and wish to resist them.

It is worth moving away from the conceptual to the practical and to look at ways the 2007 Act can enable local communities to introduce initiatives. I thought to list the kinds of scheme that I hope local communities will feel encouraged to propose for their areas. It is not a restrictive list, but simply a stimulus for other people’s creativity. It includes proposals to require full planning permission before any facility, such as a shop or a pub, is demolished; empower licensing authorities to decide and to set a cap on the number of bookmakers premises, for example, that are allowed to open up in a particular neighbourhood, town or local parade; introduce automatic statutory allotment status for appropriate sites after an agreed period, which, because of the difficulties of managing the limitation on allotments, should apply to both local authority and privately owned sites; create a mechanism, either through legislation or a framework, that legally binds energy suppliers and generators to partner local authorities, or other local partners, to accelerate community-wide renewable energy programmes; establish local appeal boards to determine planning appeals on minor applications; and place a tax on the purchase of plastic bags by retailers to reduce local waste and improve the community’s environment.

I have long argued that we should change the use-class system to differentiate between residential properties and properties that are used only on occasion—properties that are in non-permanent residential use or, in other words, second homes. If it were possible to have a byelaw in one planning locality that enabled such a distinction to be made, that local authority might wish to put a cap on the number of second homes in their area. Because of the impact that that has on the sustainability of communities in areas such as my constituency, there is a strong argument to support such a measure.

The Minister has heard that I am looking in the regulations for things that strengthen, rather than weaken, the 2007 Act, and therefore emphasise transparency and the evidence that the Secretary of State, through the selector, is engaged and trying hard to reach agreement. We need evidence of that. I hope the Minister will say that a time limit will be put on the period within which the Secretary of State has to respond to such proposals. Obviously, there must a commitment to transparency.

Engaging with the National Association of Local Councils and putting parish and town councils in the centre place, where they should be, follows the logic of the Government’s rhetoric. If we are turning the world and the Government upside down, we are saying that, because parish and town councils are closest to the people—more accessible to people on the ground, in their street and in their village, and so on—they are the highest tier of government. I hope that that perception will be reflected in their being given, as far as possible within the sustainable communities concept, enhanced status and access and a role to play. I hope that Local Works will be encouraged to take that role, as well.

I mentioned retail and parking space, and although I do not wish to detain the House too long, I shall expand on that a little, using examples from my area. The impact of out-of-town supermarkets clearly is having a hollowing-out effect on the town centres of Helston and Penzance in my West Cornwall and Isles of Scilly constituency. I recently received a letter from Jason Crow, one of my constituents—I have corresponded with the Minister about it, as well—specifically about Helston, which has four superstores around it, all of which have free parking, at a time when Cornwall council is significantly increasing short-term and long-term parking charges in the town. Mr Crow says that:

“it is as if the shop owners are being deliberately driven out.”

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

Does the hon. Gentleman agree that there is a dilemma? Although I agree with him on supporting shop owners and keeping them afloat in such areas, does he agree that, given the option, shoppers would sometimes prefer to go to a supermarket? Should our interest be concentrated on the shopper or the shopkeeper?

[Andrew George]

We should consider the sustainability of the community as well as the convenience of the shopper. Yes, people make their own decision, of their own free will, about which shop to go to and in which location they shop, but a clear impediment to and discouragement of people using town centres is the difficulty and expense of getting into them. That needs to be addressed. It is so much easier to drive into a whacking great car park in an out-of-town retail centre that people say, “I only want to get a few things. We’ll go in there, otherwise I’ll be hours trying to get something from town.” People’s choice about where to shop is not a result of the product or poor service in the town centre; it is a simple matter of having an uneven and unfair playing field. Perhaps there is something that the community and the Government can do to level that playing field, and that is all I am arguing for. Other than that, the town centres are competing in the same commercial space in the same way and one has to take one’s hat off to the supermarkets, because they do a good job at promoting themselves and advancing their cause.

Mr Crow continues:

“I know some would argue it’s retail evolution, with the superstores’ growth grabbing more and more local trade, but we’re also dangerously close in my view to losing the few individual specialist shops remaining, which provide diversity and bring in the tourism.”

That is true in my part of the world, as well. Another of my constituents, Mr Don Briggs, has compared in-town and out-of-town rating. To quote one example of many, he checked the Tesco valuations in Penzance and found that the zone A rate for the Tesco Express, which in the centre of town, is £550 per square metre, but the main rate for the our-of-town Tesco superstore is £210 per square metre. He has compared figures across Cornwall and finds that the story in Penzance is repeated time and again. We end up with an unfair difference—an uneven playing field—between in-town and out-of-town stores. We should address that.

I know that the Minister will say that it is difficult to advance the case today—he is not going to collapse and say, “Let’s go and achieve this as quickly as possible.” However, I believe it has the support of many Members—not all, I acknowledge—in all the parties across Parliament. This is not a party political issue, and it concerns many right hon. and hon. Members. I hope that the Minister will at least keep the door open to advancing the case, so that we can explore ways of evening things out. Finally—I am sorry to have detained hon. Members for so long—I look forward to seeing the regulations, when they are published, and to further promoting sustainable communities.