Oral Answers to Questions Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
George Eustice
Main Page: George Eustice (Conservative - Camborne and Redruth)Department Debates - View all George Eustice's debates with the Department for Environment, Food and Rural Affairs
(2 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Secretary of State for Environment, Food and Rural Affairs (George Eustice)
Over the past 18 months, I have held regular discussions with both the current Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and her predecessor, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), regarding the negotiating mandate for the free trade agreement with New Zealand, which includes protections for British agriculture. Tariff liberalisation for sensitive goods, including beef and lamb, will be staged over time.
Mr Carmichael
The Secretary of State’s decision to seek advice from the Trade and Agriculture Commission is welcome, but the questions on which he seeks advice all seem to revolve around standards. Important though standards are, they are not the full story as far as the crofters and farmers in my constituency are concerned. Will the Secretary of State encourage his right hon. Friend the Secretary of State for International Trade to take a more farmer and crofter-focused approach? This week the Government’s own figures indicated that that trade deal risks taking £150 million out of British agriculture.
George Eustice
It is important to recognise that New Zealand has always had access to the UK market under an existing World Trade Organisation schedule of around 114,000 tonnes, but in recent years New Zealand has used only half its quota, because long before the quota is filled it is unable to compete with the great UK producers, including those in the right hon. Gentleman’s constituency.
Jane Hunt (Loughborough) (Con)
Kate Osborne (Jarrow) (Lab)
The Secretary of State for Environment, Food and Rural Affairs (George Eustice)
International commodity prices are heavily influenced by factors such as energy costs and exchange rates. Recent pressures have been sustained and we have seen food price inflation rise to 4.4% in January, up from 4.2% in December. Events in Ukraine and the effect of that on energy prices are likely to have further impacts, which we are monitoring closely. Our UK food security report, published in December, included analysis of food security at household level.
Kate Osborne
The cost of living is rocketing and the price of food has risen by 3.9% year on year. Food banks such as Hebburn Helps and Bede’s Helping Hands in my constituency tell me that they are as busy as ever, as more and more people are being driven into poverty, having to choose between eating and heating. Does the Minister agree that the time has now come for the Chancellor to commit to ending food poverty in the UK by including in his forthcoming spring statement all the measures set out in the “Right to Food” campaign of my hon. Friend the Member for Liverpool, West Derby (Ian Byrne) to achieve the permanent eradication of hunger in the UK?
George Eustice
The hon. Lady will be aware that the Government have put in place a number of measures to help households, particularly with the sharp increase in energy costs that they face. The Chancellor and the Secretary of State for Business, Energy and Industrial Strategy have set those out previously. In addition, we have other schemes such as the holiday activity programme to support those suffering from food insecurity and additional food costs, and we have given local authorities additional measures to help them with those struggling to afford food.
Neil Parish (Tiverton and Honiton) (Con)
With Putin’s murderous regime wreaking havoc on Ukraine and murdering innocent women and children, there is a direct impact on food and grain prices. Ukraine has stopped exports, as have many other countries. What will the Secretary of State do to protect grain supplies in this country? Secondly, what talks will he have with the retailers to ensure that we can share some of the pain of the costs, which pig and poultry just cannot stand? Thirdly, how are we going to create greater food security and grow more grain in this country, which we are in need of?
George Eustice
On my hon. Friend’s final point, we published a highly comprehensive analysis of our food security, including a focus on the production to supply ratio, which showed that we produce roughly three quarters of the food that we are able to grow and consume here. On his specific point, we were aware of the risk of these events in Ukraine and set up a dedicated group within DEFRA at the beginning of January to do contingency planning for the possible impacts on food. We do not import wheat from Ukraine, or only very small quantities; we are largely self-sufficient in wheat and we import the balance from Canada. However, we are looking at the cost of inputs, particularly for the livestock sector, such as poultry.
Ben Lake (Ceredigion) (PC)
The Secretary of State will be aware of widespread concern that the rising cost of fertiliser will add further inflationary pressures to the price of food. Indeed, I have been told by one farmer of a quote for £930 a tonne plus VAT for a shipment that last year cost about £280. What steps can the Government take to address this crisis and ensure that our food security is not undermined?
George Eustice
The hon. Gentleman raises an important point. Fertiliser prices had spiked even before current events in Ukraine, because the cost of ammonium nitrate is heavily dependent on the cost of gas, as he knows. We have been working closely with our own domestic producer in the UK to ensure that it maintains production. Most farms will now have purchased their fertiliser and have it on farm for the current growing season or the beginning of it, but we are setting up a special group with industry to work on this challenge and to identify better long-term solutions that rely less on the price of gas.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
Price rises are having an adverse effect on the household budgets of people across my constituency, perhaps none more so than those people who are off the gas grid and must buy heating oil or gas in bulk. They are not protected by the Government’s energy cap. Can my right hon. Friend tell me what he is doing and what work he is doing with BEIS and the Treasury to help to protect my constituents from bills that may have more than doubled?
George Eustice
I have had conversations with the Business Secretary on this matter. The disruptions we are seeing, particularly following events in Ukraine, are having some impact on the supply of household heating oil for those who are not on the grid. I know he is well aware of these issues and his Department is working closely on it.
Deidre Brock (Edinburgh North and Leith) (SNP)
Russia’s appalling invasion of Ukraine clearly drastically affects Ukraine’s ability to produce grain and many other foodstuffs, threatening not only price increases, but global famine and disease spread. Domestically, our farmers are experiencing increased seed, fertiliser and transport costs, and the UK, lacking the leverage it once had as part of the EU, is now a small player on the global market. The Secretary of State mentioned a food security review and summits. Exactly what actions is his Department taking to ensure food security in the UK and stabilise food prices, and what plans are the Government making to assist developing countries to meet their needs?
George Eustice
Tomorrow, I will attend a special session of the G7 where, with other like-minded countries, we will discuss some of those issues and the impact on international commodity prices. It is inevitable that when a country such as Russia under Putin takes such steps, there will be some turbulence in the market. It is essential that the world community shows solidarity in taking tough action on sanctions, which we will do. It is inevitable that there will be some collateral damage to our own interests and prices, but nevertheless we must see that through and impose those sanctions where they are needed in order to bring the regime to its senses.
Anna Firth (Southend West) (Con)
Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
The Secretary of State for Environment, Food and Rural Affairs (George Eustice)
The harrowing events following the invasion of Ukraine have touched us all. The Department for Environment, Food and Rural Affairs has received inquiries from many farmers, food producers and water companies that want to offer help to the people of Ukraine. We are co-ordinating with the Foreign, Commonwealth and Development Office and aid agencies to ensure we target those offers through the right channels.
There has also been some turbulence in international commodity markets, with agricultural commodity prices strongly correlated to the price of energy. My Department established a dedicated team to plan contingencies for this eventuality early in January. While the UK is largely self-sufficient in wheat and imports some, predominantly from Canada, we do import certain vegetable oils from Ukraine. Tomorrow, I will attend a special meeting of the G7 to discuss these issues further.
Jonathan Edwards
The amount of meat imported to the UK as a result of the trade deals with New Zealand and Australia will vary considerably, depending on whether it is in carcass form or deboned. Are there any nuances in those trade deals stipulating that the meat coming in should be in carcass form, which will not only limit the amount of meat imported but ensure that the added value of the produce is obtained here?
George Eustice
There is a convention in the sheep meat sector that these international agreements are based on something called the carcass-weight equivalent. That does not always apply to beef. However, the special agricultural safeguard that operates from years 10 to 15 will be based on a carcass-weight equivalent mechanism.
Stephen Hammond (Wimbledon) (Con)
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
It has been two weeks since I submitted this parliamentary question. Russia and Ukraine account for 29% of global wheat exports and are significant in fertiliser supply. Cereal, bread and pasta are household staples for millions of homes across this country. Even before the war in Ukraine began, we were in the midst of a supply chain and cost of living crisis, with gaps on the shelves and food left rotting in the fields. Labour has a plan to buy, make and sell more of our great British produce, but what is the Secretary of State’s plan to address our weakening food security?
George Eustice
As the hon. Gentleman will know, we are working on a food strategy that will address all these issues across the food supply chain and some of the other challenges around the food industry, too. On his specific question, as I have said, we are largely self-sufficient in wheat production. We import some wheat from Canada. Most of our bread manufacturers therefore have British or Canadian wheat in their bread. We have modelled the impact of the increase in commodity prices on the price of a loaf of bread, and because wheat only represents about 10% of the cost of a loaf of bread, the impact is actually quite modest. A much bigger impact is likely to be the increase in fuel costs, since the cost of delivering bread is the biggest cost they face.
Jim McMahon
Many food banks have raised concerns that they may face having to turn away hard-working families struggling to get by. Some have reported that donations are down as families feel the cost of living squeeze, but demand for services is rocketing. It cannot be left to charities and retailers such as the Co-operative and others to fight this alone. What will the Government do to step up and deliver food justice, especially given that this cost of living crisis originated in Downing Street?
George Eustice
The big drivers of household financial insecurity are energy costs, housing costs and so on, and that is why the Chancellor and the Secretary of State for Business, Energy and Industrial Strategy have already announced schemes to try to help households with the cost of energy. When it comes specifically to food, we have a household support fund worth around £500 million, and at a DEFRA level we support projects such as FareShare.
Tom Randall (Gedling) (Con)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
George Eustice
Yes, we are doing that in fertiliser. We are also exploring options to identify alternative sources of animal protein.