English Wine Industry

Edward Leigh Excerpts

Wednesday 16th November 2016 Westminster Hall

[Sir Edward Leigh (in the Chair)]

Before I call Mr Parish to move the motion, I should say that no fewer than five Government Members have asked to speak. I am sure that Mr Parish will introduce the debate with his customary eloquence and brevity and allow his colleagues to get in.

[Neil Parish (Tiverton and Honiton) (Con)]

I beg to move,

That this House has considered the English wine industry.

It is a great pleasure to serve under your chairmanship, Sir Edward, and I am glad you have such confidence in me. I am very pleased to have been asked to be an English wine champion in Parliament by the United Kingdom Vineyard Association. I am also glad that my hon. Friend the Member for Monmouth (David T. C. Davies) is my counterpart for the Welsh wine industry.

Ever since Roman times, UK landowners, monks and noblemen have all tried to cultivate a domestic wine industry, but to little or no avail. During the Norman era, almost 1,000 years ago, the Domesday Book recorded vineyards in 42 separate locations. However, the colder and wetter weather of the middle ages soon put an end to that, and so our Norman conquerors continued this country’s long tradition of importing wine. In fact, to this day we still import more of our wine from France—more than £900 million worth every year—than from any other country.

In 2008, when I was in the European Parliament and we were talking about the wine regime, I said in one great moment of bravado that we will actually produce more wine than the French. I rather fear that I may not live long enough to see that happen, but we do know that English wine production is going in the right direction.

--- Later in debate ---

[Neil Parish]

I very much commend the Sharpham vineyard, because, once again, it is reaching out. It is producing a good wine, and then we can have good local food and bring more and more tourists down to the south-west, provided that we dual the A30 into Honiton while we are at it and along the A358 to Taunton—that was not part of my speech.

English wine is now of such a good standard that our Government and embassies are confident of promoting English sparkling wine across the world—I am sure we will hear much more about that from the Minister. I even heard on the grapevine—sorry about that—earlier this year that Chapel Down in Kent had become Downing Street’s official wine supplier. Unfortunately, however, less than 1% of wine drunk in the UK is from our shores, so for a start let us ensure that a variety of English and Welsh wines are sold in Parliament, Government buildings and our embassies, and are not just found in Downing Street.

Parliament’s bars and restaurants are selling French champagne and Italian prosecco, as well as wines from Chile to New Zealand. It is great to have these wines here, but we really must have our English wine here. Even worse, the House of Commons-branded wine is not actually from the UK. If we are going to promote English or Welsh wine globally, we really should get our own House in order first.

It is true that English wine is generally a little more expensive, so the Government must look at what can be done to create a level playing field. In the UK, as much as 60% of the cost of an average bottle of wine goes on tax—so I expect our great Minister here to reduce the tax on our wine immediately. That 60% in this country compares with about 21% in France. Excise duty is too high in this country and punishes domestic wine producers the most, who pay duty even before the wine is sold. At the last Budget in March, all other drink sectors received duty freezes, but the wine industry saw a duty rise. There is therefore a serious point to be made: our growers of wine and grapes should be treated fairly. If wine continues to go unnoticed and unprotected by Government, there will be a growing impact on the industry right across the board, from small to large producers.

It is also vital that the UK rejoins the International Organisation of Vine and Wine, the OIV, which is the global organisation for science and technical standards in the wine trade. The British Government left the organisation in 2005, citing cost, but all the big wine producers are members, including most of Europe. OIV members account for some 80% of global production. We need a seat at the top table to help to construct the rules covering this global trade. Will the Minister commit to the UK rejoining the OIV? In addition, the English wine industry reports that there are not enough approved pesticides. The green book of UK-approved pesticides gets thinner every year. Any assistance or reassurance that the Minister can give us and the industry that the issue will be given close attention will be much appreciated. We need a level playing field with our European counterparts.

I want English wine to be a big Brexit success story. The Government are committed to boosting British exports to growing markets around the world. Where better to start than English wine, where many of the top export markets are in Asia? When negotiating a new trade deal with the EU, the Government should look to secure tariff-free access for wine produced in the UK. That should also be a priority for trade deals with other nations. We also need a national scheme equivalent to the EU’s protected geographical status. We must protect our names and the particular association of English sparkling wines as being a high-quality product. The protected geographical indications currently cover British products such as west country lamb and Exmoor Jersey blue cheese. I was pleased therefore to hear that the Government were considering registering the name “Sussex” as a kitemark brand for sparkling wine. What progress has been made on that registration? Where does Brexit leave the opportunity to have protected regional brands? We also need to focus on training and skills. Vineyards must get the necessary labour post-Brexit to realise their full potential.

Finally, if we allow our producers equal competition against subsidised wine industries in other countries, we will definitely need a new farming support regime. We must help and encourage those who produce and export the very best English wine. Minister, there are a lot of them. There is so much more we can do to encourage this growing industry, whether through promotion, name recognition or making tax changes to help exports. English wine can be an even better success, so let us uncork its great potential.

[Sir Edward Leigh (in the Chair)]

We have five Members wishing to speak. I want to get everyone in. I will start with Nick Herbert, but I want every speech to be a brief sip and not a long swill, please.

--- Later in debate ---

[Mary Glindon (North Tyneside) (Lab)]

It is an honour to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Tiverton and Honiton (Neil Parish)—my friend and, his new title, the wine champion—with whom I served on the Select Committee on Environment, Food and Rural Affairs in the previous Parliament.

We started and continued the debate with some history lessons, which showed how important wine is in this country and worldwide. It is something to be enjoyed, as well as being an important industrial product. From the excellent speech made by the hon. Gentleman, I picked out the importance of skills and how we hone and grow them, as well as the tourism on top of the wine trade.

Many hon. Members spoke about this good news story and, indeed, it is nothing but a good news story: a growing industry that makes high-quality products for national and international markets, exporting to countries around the world, including those with their own wine production. We can be proud of our wine industry and of the fact that it has achieved international accolades, including those that show English wines to have a quality that can be enjoyed worldwide. We are fortunate, but the industry is growing because it is being developed by people with skills and talent. As has been emphasised in the debate, we need to foster that and to hone the skills. As was asked for in the symposium earlier this year, the Government need to support the increase in skills and the colleges that want to provide the opportunity for people to develop them.

Hitherto, I have had little knowledge of English wine, like many other people I know, but I can say to the right hon. Member for Arundel and South Downs (Nick Herbert) that my only experience has been drinking Nyetimber. It was two or perhaps three glasses—it was so enjoyable that I cannot remember—but I had a very nice afternoon in the wine bar in Selfridges. That was an experience that I will always remember—I managed to get back down the stairs though, which is a good thing.

I was also ignorant of the difference between British wine and English wine, which was highlighted in particular by the hon. Members for East Worthing and Shoreham (Tim Loughton) and for North Cornwall (Scott Mann). That is clearly a particular issue for our wine producers, who rightly believe in the need for a clear distinction to be made between the quality of British wine, which is industrially fermented from imported grapes, and their own home-grown, high-quality produce. That distinction must be made clear not only in this country, but abroad, where it can be equally confusing for wine drinkers. I hope that the Minister will discuss how that confusion can be cleared up, considering that the reputation of our home-grown produce and our home-grown wines depends on their excellence and quality.

According to the British Beer and Pub Association, wine accounts for a third of all alcohol consumption in the UK, with 12.8 million hectolitres of wine being consumed last year alone. As pointed out by the hon. Member for Tiverton and Honiton, only 0.1% of that was produced in the UK. Although well-known retailers such as Waitrose and Marks & Spencer stock English wines, and the Co-op is beginning to do so, in my area in the north-east—in North Tyneside—I have not noticed any promotion of English wines in the aisles of the stores. That might be due to the fact that there are no vineyards north of Yorkshire, because one important factor in the retail world seems to be the sustainability of locally produced wine. It is a big hit with consumers when they know it is a local product.

With the hectarage of planted vines set to increase and production of wine due to double by 2020, I hope that we see a commensurate rise in wine sales in the domestic market. Members have referred to the roundtable event hosted earlier this year by the former Secretary of State, the right hon. Member for South West Norfolk (Elizabeth Truss). That proved very positive, especially as she committed to helping the wine industry to meet its expansion and export goals via the Government’s Great British Food unit and facilitating access to data on soil types, water resources and infrastructure networks to ensure sustainability. I expect the recently appointed Secretary of State to continue that commitment and go even further with some of the things that have been asked for today.

Good weather conditions have ensured good vintages in recent years, but there is little that the Government can do to ensure good weather in future years, although reference was made to what the American President-elect may do to influence that. However, the Government can help the industry in other ways, as many Members have stated. UKVA representatives and UK wine producers want the Government to commit to rejoining the International Organisation of Vine and Wine, which, as has already been stated, the Government left in—

[Sir Edward Leigh (in the Chair)]

Order. Mrs Glindon, will you please leave time for the Minister? You have been going for six minutes.

[Mary Glindon]

Sorry, I will jump ahead. It is really important for the Government to rejoin the OIV, as Members have asked, and to promote the sale of wine in shops here, in embassies and in the House. In promoting English wines, will the Minister bear in mind everything that Members have asked for today?