Thursday 17th October 2013

(10 years, 7 months ago)

Westminster Hall
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Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
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I welcome you to the Chair, Mrs Osborne. Together with colleagues from the Select Committee on Environment, Food and Rural Affairs, I am delighted to have secured the debate. I welcome my hon. Friend the Minister to his new position and congratulate the hon. Member for Ogmore (Huw Irranca-Davies) for retaining his as shadow Minister.

The Minister is new, but we look forward to hearing his remarks in summing up the debate. I take this opportunity to thank him, in his individual capacity, for the contribution he made and excellent work he did on the Select Committee. I remind the Chamber—and, perhaps, the Minister—that he contributed to and supported the conclusions of both the reports and the Government responses, which we received just as he was vacating his position. I hope that he will keep some of his enthusiasm and vigour in summing up today.

I would like to talk briefly about the history—a previous Committee report is also of interest. The United Kingdom decided to impose a moratorium on desinewed meat production in this country, which had huge implications—not only for my constituency, but for parts of Northern Ireland. Newby Foods was told that it could no longer produce desinewed meat, which led to a loss of 30 jobs near Thirsk.

Since we conducted our report and reviewed the UK Government moratorium, which was imposed as a short-term measure at the will of the European Commission in Brussels, the Government have clarified desinewed meat from poultry and pork as being from non-ruminants, so that that process may continue. However, will the Minister continue to make the case to the European Union for desinewed meat production from lamb and beef to be allowed to continue, as well as from pork and poultry?

That information is relevant to the debate, because we concluded, in, I believe, March 2012—this was based on an assertion in evidence from a predecessor of the Minister; it was perhaps two farming Ministers ago—that ceasing production of desinewed meat could lead to mislabelling and the contamination and adulteration of meat, with cheaper cuts of meat substituted for the meat that is on the label.

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On resuming
Baroness McIntosh of Pickering Portrait Miss McIntosh
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Perhaps I could set the scene in terms of the food industry. As of last year, there were more than 490,000 food businesses in England. In 2011-12, spending to protect consumers from food incidents was £241 million, 75% of which was spent by local authorities to enforce food law.

One issue the Committee identified was that the Food Standards Agency reports to three key Departments with responsibility for aspects of food policy. Furthermore, there has been a marked fall since 2009-12 in the number of local authority food samples tested. In addition, there are 12 different national and European databases on food intelligence.

Let me record a little of the history. In November 2012, there was a routine meeting between the Food Safety Authority of Ireland and the UK’s FSA. At that meeting, the Irish FSA mentioned that it was developing a new methodology for checking the composition of meat products. The first question the Committee asked—we are asking it again today—was why it took two months for our own FSA to authorise and conduct any testing.

Tests then found that there had been contamination; it was small in the UK, but it was widespread in the EU. In the UK, horse and pig DNA were found in a variety of beef products, including samples of Findus lasagne, which contained more than 60% horsemeat; Aldi lasagne and spaghetti bolognese, which contained between 30% and 100% horsemeat; and beef products certified as halal and supplied to prisons in England and Wales that contained pork DNA.

Those findings emerged only after extensive testing of beef products across the EU and by local authorities and industry in the UK. The EU tests revealed that 4.66% of products contained more than 1% horse DNA. The UK incidence of contamination in products tested was less than 1%. Although the contamination was small, and the principle was that this was a labelling and a fraud issue, there could so easily have been a food safety scare and a food safety scandal.

Complacency is not the best word to use, but we have seen no sense of urgency among the Government, which is why we welcome my hon. Friend’s appointment as Minister. The Secretary of State or another Minister told us in evidence that the perpetrators of this crime—if it was a crime, and everyone generally understands it is a crime—would face the full force of the law. What arrests have therefore been made? What is the role of Europol and, possibly, Interpol? What charges and prosecutions have been brought by the City of London police to draw a line under this issue?

If we are to boost consumer confidence, which I think we all want to do, we must show there is no further contamination and no prospect of further contamination. We therefore need to know at what stage the contamination and adulteration entered the food supply chain. We talk a lot in the two reports about controls in the food chain, to protect consumers from contaminated and potentially unsafe food, which did not work in the case in question.

Perhaps the most worrying aspect of the matter, as something following on from the BSE crisis, is that every 10 years we have either a food scare or a food crisis. In the early 1990s, it was BSE; in 2001, it was foot and mouth disease; and in 2012—we know that it started in 2011—it was the scandal to do with horsemeat contamination and pork DNA being found in halal meat. That was completely unacceptable.

One worry is identifying the supply chain, and traceability, and we drew some clear conclusions from the evidence. The chief executive of the FSA told us the contamination and adulteration could have been going on for almost a year, from March 2012, when desinewed meat production in this country was banned—there was also a so-called ban in the EU, although we believe it was being produced in the EU.

We concluded that the system for food traceability, including the requirement that at every stage in the supply chain operators must keep records of the source and destination of each product, has been breached; that retailers and meat processors should have been more vigilant about the risk of deliberate adulteration; and that trust is not a sufficient guarantee in a system where meat is traded many times before reaching its final destination. We have also noted our concern about the length of supply chains for processed and frozen beef products. We welcome the efforts of some retailers to shorten those whenever possible.

Huw Irranca-Davies Portrait Huw Irranca-Davies (Ogmore) (Lab)
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I commend the hon. Lady for securing the debate. Perhaps I can bring together two strands of her thinking. There will be public discontent if only a relatively few small players are investigated and prosecuted and become scapegoats for the industry. If larger players—whether they are meat processors, retailers or others—can be proved not to have used due diligence, or to have been negligent, ignorant or downright culpable, the size of the operation or its importance to the European market should not preclude investigation, including by Governments working together, if necessary.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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I welcome that intervention. The hon. Gentleman’s Front-Bench colleague, the hon. Member for Brent North (Barry Gardiner), led a line of questioning in that regard, and we met a brick wall. I agree that the action taken should not be symbolic, against small retailers. We must go through the supply chain. When a major supermarket takes a supply chain on trust year after year, without inspecting identities and its integrity, there is definitely something wrong. As to traceability and the so-called labelling issue, I confess to being disappointed with the Government response. We have identified a problem of traceability and labelling, and I urge the Minister to go a bit further, so that we have concrete suggestions.

I have mentioned the number of relevant businesses and the food industry’s importance to the economy. We must accept, with respect to testing, the need for a risk-based assessment, but when we are told that there is a risk in a particular country we need, for goodness’ sake, to wake up, liven up and respond, because of the potential for a problem in this country.

The people we need to go out and do testing—the first in line—are food analysts. We learned in evidence that most of those are in the Association of Public Analysts. I want to dwell on that point for a moment. We found out that insufficient testing has been done by local authorities since 2009. We need to accept that, although testing must be risk-based, there should be some random testing to ensure that nothing slips through the net.

We also identified an acute potential shortage of public analysts. I want to take issue with the Government response to our second report at point 13:

“Officials from both FSA and Defra meet regularly with representatives from the Association of Public Analysts and local authorities to ensure sufficient laboratory capacity exists and suitable methods are in place”.

I want to quiz the Minister on that. The Association of Public Analysts has meetings with FSA officials twice a year. That is not “regularly”—it is only every six months. One meeting was attended by a DEFRA official, the implication being that the other was not, and laboratory capacity is not discussed. Even if it were discussed, it is not within the gift of individual public analysts, or the association, to prevent laboratory closures or to ensure sufficient capacity.

The Government response is flawed because it does not deal with the Committee recommendation that they should ensure that there are sufficient properly trained public analysts. Why does that matter? It is not only the Committee, which heard powerful and compelling evidence about it, that concluded that it is important. The National Audit Office report, published earlier this month, leant heavily on—I would like to think—our work and on the report’s conclusions and recommendations. It stressed, as we did, that budget cuts coupled with a two thirds rise in reported food fraud have increased the risk of another horsemeat scandal. The NAO also said that the cuts in testing led to a loss of intelligence information, so that the Government

“failed to identify the potential risk of adulteration of beef with horsemeat, despite indications of heightened risk.”

The NAO report questions whether there will be sufficient capacity to respond to future incidents. I am mindful of what the previous Secretary of State, my right hon. Friend the Member for Meriden (Mrs Spelman), said about DEFRA being the fourth emergency service, and of the possibility that, given the dramatic decline over recent years in the number of public analysts and laboratories, there will not be the capability for detecting food fraud. I urge the Minister to respond to that concern.

I have covered the question of Europol, Interpol and our police bringing people to book, and discussed traceability. I want to make a final point. There is a richesse before us, and I could dwell on every recommendation and conclusion; I am sure that the Minister will remember the passion with which the Committee adopted the recommendations. I want now to focus on what the FSA’s role should be.

In our first report, we conclude:

“Whilst Ministers are properly responsible for policy, the FSA’s diminished role has led to a lack of clarity about where responsibility lies, and this has weakened the UK’s ability to identify and respond to food standards concerns.”

We found that the FSA and Government reacted in a “flat-footed” way and were

“unable to respond effectively within structures designed primarily to respond to threats to human health.”

We did not much care for the Government response, but I am sure that the Minister will try to justify the rather disappointing response that the

“Machinery of Government changes in 2010 led to some changes”.

The response went on to tell us what they were.

In our more recent report, to which we have only recently received the Government response, we reiterate our previous conclusion and confirm that we need greater clarity about the role of the FSA in major incidents. The point is that we accept that this is primarily a food-labelling issue, but there is the suggestion of fraud, to which the hon. Member for Ogmore (Huw Irranca-Davies) referred, on a massive scale, and we need the reassurance that the FSA is, in my words, fit for purpose. However, the Government response does not fit the bill.

We are told:

“The Government is concerned that the Committee may have misunderstood”—

I say to the Minister that that is a very dangerous allegation to make—

“the status and constitution of the FSA.”

We know, as the response states, that the FSA,

“as a non-Ministerial government department, does not report to any other department. The FSA is accountable to Parliament and reports…through Health Ministers.”

The National Audit Office confirms our initial conclusion that the problem is that the FSA reports to three different Departments. That is a source of concern. It is compounded by the fact that we are having review after review after review. We came to conclusions quite early on—in March, I think—about our fundamental concerns. We are now hurrying towards the end of the year. We have the benefit of Professor Pat Troop’s response to the incident. Her conclusions back up entirely what we say.

The question for the Minister is why the Government are not responding to our conclusions, to the review by Professor Troop and to the National Audit Office findings, but have called for another review. This is something that we used to say in opposition; it is not unfamiliar to me. Under the last Administration, as I am sure the hon. Member for Ogmore will remember, if there was a problem, we would have a review, then another review and then another review. Now, we need to see some action, so the fact that the Elliott review has been set up, will make an interim conclusion and will report finally only in the spring of next year is very disappointing and missing the point.

I would like to draw the strands together and confirm that this is not the time for another review. We need a fundamental rethink on the infrastructure, composition and role of the Food Standards Agency, what its relationships with the Departments are and who goes out and gives explanations to the public and to the industry in the event of an incident.

We need to see some movement on reducing the likelihood of future contamination by improving the traceability provisions and ensuring the integrity of each supply chain. It is very pleasing that in local butchers’ shops in my constituency and, I understand, across the country and in farm shops and at farmers’ markets, the purchasing of food has gone up incrementally. Everyone is buying local, because they know what they are buying. They know that it is beef or whatever the label says. As I said, that is very pleasing, but we need to restore public confidence in what is a multi-million-pound industry through supermarkets. We also need to look at the vexatious issue of there being a shortage of analysts and insufficient testing to put the consumer mind at rest.

I commend our two reports to the House. I have dwelt on three issues, but I would like to bring to the attention of the Minister and the shadow Minister our main concerns, which are set out in all our recommendations. Those have been supported by Professor Pat Troop’s review. She does not disagree with them one iota. We have also had the very powerful—it uses very strong language—report from the National Audit Office on “Food safety and authenticity in the processed meat supply chain”. I therefore now say to the Minister that this is a call for action, rather than for another review.

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Huw Irranca-Davies Portrait Huw Irranca-Davies
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The Minister is a collective author of one of the reports, and there is no way in which he would seek, for whatever reason—under pressure from officials or his Secretary of State, or the lure of the red box or the trappings of a Minister—to resile from the positions that he laid out so very recently. He is a good and honourable man and will stand by his words.

This is a timely debate to look back at the lessons learnt to try to avoid repeating the same mistakes and to return confidence to an industry that was shaken badly. To put it bluntly, consumers were tricked, deceived and defrauded by criminals operating within or alongside the food chain. It is the same food supply chain that we trust to supply safe, nutritious, affordable food and drink to our household tables, our schools and hospitals, and our care homes and cafeterias. That supply chain betrayed us—nothing less. It would be wrong, particularly while criminal investigations are ongoing, to delve too deeply into specific companies and individuals. I think the public and consumer organisations will be rightly outraged if the criminals who infiltrated the supply chain are not brought to book. If complicity or duplicity is identified within the supply chain itself, those companies and individuals should also be brought to book.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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It would be interesting to know what the hon. Gentleman’s potential future Administration would do to check the integrity of the supply chain. I am mindful of the fact that it was a Labour Government who set up the Food Standards Agency, and one of the difficulties that I highlighted is that it reports to at least two, potentially three, Departments. I take the hon. Gentleman’s point about the retailers, but we rely hugely on the work of the FSA to test the supply chain.

Huw Irranca-Davies Portrait Huw Irranca-Davies
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I welcome the hon. Lady’s intervention and the focus that she and the Select Committee have put on not only the FSA, but the overall issue of food governance and the integrity and coherence of it. We have repeatedly made it clear from the early days when its responsibilities were split up that we had concerns about what might happen. Her Committee’s report and the report of the National Audit Office have made it clear that those concerns did not cause the crisis, but contributed to a delayed reaction, which I will come to in a moment. There is confusion at national, local and intergovernmental level. I shall not call for a review today. I shall echo her call for action and for the Government to introduce proposals to change the structure of food governance.

Tesco, the UK’s market-leading supermarket, notably and admirably fessed up to its responsibilities. It said, “We get it.” It took out full-page advertisements coinciding—coincidentally, I am sure—with the NFU conference in February, and it is seeking to re-engineer its supply chains and get closer to primary producers. It has a way to go, as has already been mentioned. I visited Tesco’s headquarters and we went through this in detail. Although it has a journey to make, I do not doubt its sincerity and ambition to do so. It is consumer-focused; there is a reason why it is doing this. Other large retailers have already developed shorter supply chains or other methods of ensuring the provenance of their food.

In the early stages, many took a different approach and frankly said, “Not us, guvnor.” They pointed to abroad or to smaller suppliers, international criminals, other third parties and, frankly, anybody but themselves. It is clear that the criminal activities of some have damaged public confidence in the whole supply chain. The Environment, Food and Rural Affairs Committee spoke for many in the country, when it reported that it could only

“conclude that British consumers have been cynically and systematically duped in pursuit of profit by elements within the food industry.”

Whether that was criminality, negligence, complicity or failure of due diligence through the whole supply chain, from major processors and supermarkets down to the very small players, all were to varying degrees at fault in causing the failures, and all have responsibility in rectifying them and restoring trust and confidence.

I welcome the letter that I received yesterday from ABP, a dominant player in the UK and European beef processing market, which tells me that it supplies more than 20 countries and has a network of over 15,000 farmers. In the letter, the company acknowledges—it cannot deny—the presence of horsemeat in some of its frozen beef products over the past year, but states:

“It was certainly not an activity sanctioned by ABP in any way at any level”.

It goes on to make it clear that the company is not subject to any ongoing investigations.

In some ways, it is unfair to pick out ABP, because it was not alone in a complex and vulnerable supply chain that put beef adulterated with horsemeat and, for good measure, with trace elements—thank goodness, only trace elements—of phenylbutazone or bute into our homes, hospitals, schools and canteens, as well as, through food distribution companies, into Royal Ascot and the royal household. When it comes to food adulteration, we are genuinely—and right royally—all in it together.

As the hon. Member for Thirsk and Malton said, those who came out well from the crisis were the butchers, local abattoirs, and those in local food networks and short supply chains, whose customers could prove where their food came from and what it was. The upside of the crisis is that it has reignited a major debate about our relationship with the food we eat, which I hope will lead to changes in how we produce and value our food.

Much of the modern supply chain is long, complex and international, with multiple handling and processing operations and multiple opportunities for adulteration. The lesson for those in wider supply chains, especially the major and dominant supermarkets, processors and distributors, is that no one can escape responsibility for the mess we got ourselves into or avoid responsibility for restoring trust in those supply chains. It is not good enough to say, “It wasn’t us, guvnor,” because as far as the consumer is concerned, it was.

I want to turn to the issues of food governance identified by the Select Committee’s two reports and highlighted in a timely report by the National Audit Office, on 10 October, entitled, “Food safety and authenticity in the processed meat supply chain”.

I tell the Minister that the Government must clearly now take responsibility: they are also in the dock and must fess up. They must answer criticisms of their role in failing to ensure effective governance of the food manufacturing sector. Although I commend the industry for working alongside UK, Irish and EU agencies to strengthen the testing and tracking of food products in response to the horsemeat crisis, I cannot yet commend the UK Government, whose response to the crisis was hampered by structural problems of their own making. The Environment, Food and Rural Affairs Committee, of which the Minister was a member, put that succinctly in its first report, stating that

“the current contamination crisis has caught the FSA and Government flat-footed and unable to respond effectively within structures designed primarily to respond to threats to human health.”

The National Audit Office’s No. 1 key finding was:

“A split since 2010 in the responsibilities for food policy in England has led to confusion among stakeholders and no obvious benefit to those implementing controls.”

That split in responsibilities is, of course, the one that was devised and implemented in 2010 not by the Minister, who is only just in post, but by his coalition Government. They are the architect of their own misfortune, but more importantly, of what others have described as the flat-footed response to the food adulteration scandal. The food sector and the consumer deserve better. It is not the fault of the FSA, but of the Government who split its responsibilities.

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Baroness McIntosh of Pickering Portrait Miss McIntosh
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I congratulate my hon. Friend on his first outing as Minister. There is some common ground between us, but there are still areas of disagreement. Nevertheless, we have had a very good debate and exchange this afternoon.

It was remiss of me not to thank all those who participated in our inquiry, including the witnesses, who gave both oral and written evidence. I will momentarily point out to my hon. Friend the Minister that his name is recorded in the formal minutes of both reports and we were delighted to have his support.

Dan Rogerson Portrait Dan Rogerson
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The hon. Lady is absolutely correct. When I was responding to the hon. Member for Ogmore earlier, I thought that he was referring to the NAO report when he talked about “two reports”, rather than the two phases of the work that the Committee did.

Dan Rogerson Portrait Dan Rogerson
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No—absolutely not.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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Anyway, a week is a long time in politics.

I will just go through some of the points that have been made. Regarding traceability and the supply chain, I think that the Minister has taken the point, and we need to process that.

On insufficient testing, we concluded—although none of us spelled it out, and it was remiss of me not to do so—that the FSA at the moment does not force the industry retailers to carry out testing. It would be good if we could agree that the Department should look into that and consider giving the FSA a steer on it. Perhaps the Elliott review will do that, and say that large retailers must carry out regular DNA testing of meat ingredients for frozen and processed meat products, with the cost being borne by themselves—the industry—and not by the consumers. That point has been echoed by hon. Members throughout the debate and I think that consumers will respond to it. We insisted, in our conclusions, that the results of the tests ordered by the FSA should be submitted to it and that a summary should be published on the retailer’s website.

There must be change in respect of issuing horse passports. There is a worrying increase in numbers of horses in my county, let alone between Northern Ireland and southern Ireland.

We need to deal with insufficient testing by retailers, including supermarkets, especially those who do not do it at all. I will be pleased if the Elliott review addresses the issue of analysts. I welcome what the Minister said about strengthening intelligence sharing.

Dan Rogerson Portrait Dan Rogerson
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I should like to mention a couple of points that I did not talk about directly in my remarks. The issue of horse passports will be settled at European level, but the Government are keen to engage in that process and see what can be done, as long as it is proportionate, to ensure that we get it right.

The NAO considered capacity in terms of analysts, although it did not say that there was a lack of capacity. The FSA holds that under review, so we will keep a close eye on that.

Baroness McIntosh of Pickering Portrait Miss McIntosh
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I am most grateful to the Minister. Although it would be hugely expensive to deal with, there is concern about abattoirs slaughtering both cattle and horses. We need to be aware of that.

There is a real issue about the governance and structural problems. I poked fun at the shadow Minister, the hon. Member for Ogmore, about how his Government set the structure up. However, it is possible that we have been seen to compound that situation. We will be able to draw a line under this matter only when we can say, hand on heart, where contamination, adulteration and lack of authenticity entered into the food chain. The sooner we can see prosecutions of the perpetrators from the big retailers, the more it will boost consumer confidence.

I endorse comments made about the processed foods that have been a cause of concern. At the heart of our report was concern about processed foods and frozen foods.

I am delighted that the Minister, and the shadow Minister, gave us a hearing today.

Question put and agreed to.