Debate on the Address

Crispin Blunt Excerpts

Wednesday 9th May 2012 Commons Chamber

[Mr Llwyd]

I am always in favour, where possible, of putting the powers in the Bill, because many things happen by way of secondary legislation that slip through on the nod, and suddenly we have unintended consequences and law that is not as workable or useful as we might have thought. I agree, therefore, with the hon. Gentleman.

I have heard it said that there will be a power to name and shame. That is one thing that supermarkets, for example, would be concerned about, but equally there must be a power to impose substantial financial penalties. Small financial penalties will not do the office justice; they must be substantial if they are to mean anything at all.

I referred to the dairy industry. The problems are not unique to Wales—they are across the board—but since 1999 the number of Welsh dairy farmers has halved. This week’s tuppence cut by Dairy Crest has wreaked havoc on many people in north, mid and south Wales. It is said that a cut of between 3p and 4p, for example, means a loss of £65 million to the Welsh dairy sector. I would like the EU dairy package on contracts introduced on a compulsory rather than a voluntary basis, and I hope that DEFRA Ministers will hold a full and frank discussion with devolved Ministers on that basis.

This issue does not only concern dairy farmers, however; suppliers in general are being hammered by the unfair contract terms and pressures being applied. I remember seeing several Ministers about this matter, including Lord Bach, who said, candidly, “I need six or seven names and examples of pressure being applied”, but dairy farmers, concerned about being victimised and losing their contracts, were not prepared to put their heads above the parapet. As one said to me, “Half a loaf is better than no loaf at all.” So, there we are. I understand that there will now be a right to complain anonymously.

I will give the House the example of a farmer in the constituency whom I have the privilege to represent who bottles water—the purest water in Wales, apparently. On occasion, I have even drunk it.

[The Parliamentary Under-Secretary of State for Justice (Mr Crispin Blunt)]

When desperate.

[Mr Llwyd]

Well, with something else. [Interruption.]

The farmer came to an agreement with one of the large supermarkets. Believe it or not, it came out like this: the supplier was allowed 1.5p profit per litre of water, but the water was sold by the supermarket for more than 80p. He declined to do it. That 1.5p included travelling from mid-Wales across to Shropshire to deliver the water every day. It simply was not worth his while, yet apparently those terms are typical. We need to get to grips with these issues, otherwise all our home producers —of good vegetables, apples and so on—will say, “Well, it’s not worth it. We’re packing up.” That is the last thing we want.