department for Environment, Food and Rural Affairs

Debate between Bob Stewart and James Paice

Tuesday 17th July 2012 Commons Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

I was expecting at least one further subject to be brought up during the debate. [Interruption.] That, like many other wonderful speeches, will be consigned to the filing cabinet of those never to be delivered in this Chamber.

I hope that the House will forgive me if I devote most of my response to dairying, which was the subject of most Members’ speeches. First, though, I will reply to my hon. Friend the Member for Pendle (Andrew Stephenson). I am very sorry to hear about the dog attack on his mother. I am pleased to hear that she is recovering, even if she will bear the scars for the rest of her life. He was absolutely right to refer not only to the measures that we have announced but to the importance of dealing with dog owners. As he said, often the problems with dogs are in fact a problem with the owner, either because they do not understand how to control the dog or have the desire to use it as a form of weapon for intimidation or worse. That is why the Home Office proposals on antisocial behaviour will include measures on the use of a dog as a weapon, which will rightly be seen as an antisocial activity and dealt with in that way.

My hon. Friend referred to the measures that I announced on 23 April. The consultation that stemmed from that closed on 15 June. We have begun to analyse the responses and will announce our conclusions as soon as we can. To recap, the most important element was to extend the criminal offence of allowing a dog to be dangerously out of control on private property, which addresses his point about postmen and the many other people who have a legitimate right to come on to one’s property. We are consulting on the compulsory microchipping of dogs—in particular, precisely on how early to do that and whether it should be at the puppy stage. We are increasing the fee for placing a dog on the index of exempted dogs. We are removing the need to seize and kennel all dogs where court proceedings are pending. We are also, as my hon. Friend said, making a grant to the Association of Chief Police Officers for the training of dog legislation officers. I hope that he agrees that we are endeavouring to address an issue that is long overdue.

Dairying and the crisis in the British dairy sector were referred to by at least four Members in their speeches and by others in interventions. Like my hon. Friend the Member for Montgomeryshire (Glyn Davies), I had milk cows earlier in my life. I fully recognise the huge crisis that is affecting many people in the sector. As a number of Members have said, some supermarkets that have aligned groups of producers have not cut their prices. However, the processors for many producers cut their prices in May or June and have announced further cuts for 1 August. The cut will total some 3.5p to 4p per litre over the two periods. We now seem to have an industry of haves and have-nots—those who have a supermarket deal and those who do not.

As my hon. Friend the Member for Tiverton and Honiton (Neil Parish) said, there has been some good news today. Asda has announced that it will increase the premium that it pays its processor, Arla Foods, by 2p a litre, thereby nullifying the cut that Arla has announced. In other words, the producers affected will not face a cut on 1 August. From memory, that is about 227 producers. Dairy Crest has announced today that, in future, it will require only three months’ notice when producers leave their contracts, and it has guaranteed that it will give four weeks’ notice of any price cut.

[Bob Stewart (Beckenham) (Con)]

I have been listening to the debate and, although I do not know much about this subject, it seems to me that we should somehow ensure that price cuts are not passed on to the dairy farmer. The big supermarkets should take whatever they wish, but they should not pass it on to the milk farmers.

[Mr Paice]

My hon. Friend’s point is properly made and is an important one.

I will concentrate on the issues that need to be addressed. I fully recognise that what matters to the dairy farmer is the price that they are paid. However, as several hon. Members on both sides of the Chamber have said, it is not simply a matter of reversing the price cuts, although that is what the producers want. We need something more substantial and more permanent than that.

As I say frequently outside this place, we have an obsession in this country with the liquid market and with the desire of our processors to gain bottling contracts for supermarkets. They keep undercutting each other to keep their bottling plants at full capacity. When, as has happened on this occasion, cream prices collapse and they face major problems, the only way in which they can recoup any income is by cutting the price for their producers to below the cost of production. That is a direct consequence of the obsession with bottling for supermarkets.

As several hon. Members have said, and as is abundantly clear, there are ample other opportunities for investment. Some 20% of our total dairy consumption is imported. The hon. Member for Bishop Auckland (Helen Goodman) talked about imports. We do not import liquid milk. All the imports are dairy products, but they nevertheless make up a significant part of our total consumption.

What are our processors doing to combat that? One or two are trying to do something. Dairy Crest has gained back some of the cheese market with one of its products and it should be congratulated on that, but there is still much to do. Where do the supermarkets with aligned dairy groups, which pay a premium for their liquid milk, get their own-label brands? Where are their other dairy products, such as their yoghurt, produced? Do they use British milk? In many cases, they do not. There is therefore a great opportunity for import substitution.

There is an even greater opportunity for exports. The world is crying out for increased dairy products. Yes, global prices have fallen back and that is part of the immediate problem that we face. However, I say to my hon. Friend the Member for Ceredigion (Mr Williams) that if I was asked whether I would encourage a young person to go into dairy farming, my unequivocal answer would be yes, because I am convinced that there is a long-term future beyond today’s crisis.