Oral Answers to Questions

George Eustice Excerpts

Thursday 23rd June 2022 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

3. What steps he is taking to help increase farm profitability.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

We will spend over £600 million on farm-based innovation over the next three years. Our recent food strategy outlined how we intend to use grant support to help businesses invest to improve their profitability and increase their agricultural output. While we will not tell farmers what to invest in, we will support the investment decisions that they judge to be right for their own businesses.

[Mrs Sheryll Murray]

My farmers are seeing rising production costs, from increases in fertiliser costs, feed prices going up, the price of red diesel agriculture fuel doubling and increasing labour costs because of low availability of labour in the south-west. Those pressures will increase food prices further or see farms go to the wall. What more can be done?

[George Eustice]

My hon. Friend makes an important point. It is true that farmers are facing increased input costs, particularly for fertiliser, fuel, animal feed and energy. Some farm-gate prices are also at record highs, and that is helping to mitigate the impact of those increased costs. The Government have already announced a package of measures to support farmers with the availability of fertiliser. To help with cash flow, we have brought forward basic payment scheme payments to July, and we have also announced an additional 10,000 visas through the seasonal worker visa route to help with labour shortages.

[Mr Ben Bradshaw (Exeter) (Lab)]

What is the Secretary of State’s latest assessment of the impact on farm profits of plunging exports, new red tape and the labour shortage caused by the Conservative Government’s Brexit deal?

[George Eustice]

Farm incomes have seen a strong recovery since the 2016 referendum. Land prices are running at record highs and the price of milk has also increased. Farm profits have been on the rise in recent years. In the current year, it is true that the increased input costs caused by the spike in gas prices will put pressure on margins, but it is in the context of a successful post-Brexit boom for agriculture generally.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

While the other place’s International Agreements Committee report broadly welcomed the Australia-UK trade deal for sectors such as financial services, it was concerned about the deal’s impact on UK agriculture, highlighting that it will allow the importation of beef from deforested land, crops grown with pesticides not permitted in the UK or the EU, and often no protection from copies for products such as Scottish whisky and Cornish pasties. The Committee fears that that will continue with other trade deals that the Government pursue and criticises their refusal to involve the devolved Governments. How can farms and our food and drink sector remain profitable in the face of such free trade agreements? Does the Secretary of State accept that his failure to achieve protections from untrammelled competition for farmers and food producers will ultimately have an impact on their businesses and livelihoods?

[George Eustice]

In the context of the free trade agreement with Australia, we secured staging protections for the sensitive sectors of beef and lamb for a decade, and then a very strong special agricultural safeguard thereafter, set against volumes. We judged that that would be sufficient to manage any risks to the market. It is important to recognise that Australia cannot compete with the UK on the vast majority of agricultural products, including dairy. In lamb, New Zealand cannot compete with the UK and does not use the quota it already has. Beef is an issue that we are watching, but we believe that we have the right protections in place.

[Mr Richard Holden (North West Durham) (Con)]

4. What steps the Government are taking to help to protect and enhance peatlands.

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[Kerry McCarthy (Bristol East) (Lab)]

5. What discussions he has had with Cabinet colleagues on the implementation of the Government food strategy published in June 2022.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Before answering this question, I would like to take this opportunity to correct the record. In an urgent question to which I replied on 19 May, I stated:

“We are largely self-sufficient in wheat production, growing 88% of all the wheat that we need.”—[Official Report, 19 May 2022; Vol. 714, c. 839.]

In fact, we produce 88% of the cereals that we need and the figure for wheat is a little lower, at 81%.

In answer to the hon. Lady’s question, let me say that the food strategy has themes that are cross-cutting and have effects on policy in many other Departments. I can therefore confirm that the process of securing collective agreement meant that this issue was discussed exhaustively with Cabinet colleagues and other Departments.

[Kerry McCarthy]

I thank the Minister for that response. Henry Dimbleby’s national food strategy was an

“excellent plan to help people escape the ‘junk food cycle’”.

That is what the former Conservative leader William Hague said when he was writing in The Times a few weeks ago. He went on to describe the Government’s U-turn on implanting any of the recommendations in that strategy as

“intellectually shallow, politically weak and morally reprehensible”.

Was he right?

[George Eustice]

No, he was wrong, because we have implemented new point-of-sale restrictions, which take effect later this year, in October. That is already driving reformulation; so we have put in place policies that deliver on the issues highlighted in Henry Dimbleby’s report. As for advertising and bans on promotions, we do not believe that that is the right thing to do in the context of rising food prices.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

I am grateful to my right hon. Friend for issuing reports on food strategy, but I am still not entirely convinced that we have a long-term sustainable policy on the production of indigenous fertiliser in this country. Will he put into the House of Commons Library additional information for us to share with our farmers on this very important issue? Given the rising costs of fertiliser and the concerns about potential closures of fertiliser plants, may we have these assurances?

[George Eustice]

Although CF Fertilisers has confirmed its intention to close the Ince plant, it is maintaining production at the Billingham plant, which is the largest of the plants, and I understand that it has full order books until later this year.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

On CF Fertilisers, may I thank the Secretary of State for the time he took yesterday to discuss the future of the site? I am pleased to see that there is interest in purchasing the plant. Does he agree that despite the ongoing challenges that the industry faces, with a parent company that increased its dividends by 33% in the first quarter, there is no reason why the plant cannot be sold as a going concern?

[George Eustice]

I entirely agree with the hon. Gentleman; although CF Fertilisers has chosen to consolidate its UK operations into Billingham, the Ince plant remains viable and the best commercial exit from that plant for CF Fertilisers would be to progress an offer based on selling it as a going concern. There are many skilled people in his constituency who have been working at that plant, and the best outcome for all concerned would be for it to be sold as a going concern.

[Sir Edward Leigh (Gainsborough) (Con)]

The Secretary of State has just mentioned that we lack total self-sufficiency in wheat production. Presumably, given the skyrocketing prices in the wheat market because of what is happening in Ukraine, the Government food strategy is more about producing more of our own wheat. I do not ask him to comment on a particular planning application, but what does he think of an application to build a solar farm covering 7,000 acres of good agricultural land in my constituency? I am not asking him to comment on that proposal around Gainsborough, but will he consult his colleagues to ensure that we maximise food production on our farmland?

[George Eustice]

My right hon. Friend makes a very important point. Some years ago, we changed the planning guidance from the chief planning officer in the then Department for Communities and Local Government to make it clear that there should be a powerful presumption against the construction of field-scale solar on the best and more versatile agricultural land—that is defined as grade 3b land and above. I am aware that there are concerns that in some parts of the country that advice is no longer holding and applications are being approved, and we are discussing that across Government.

[Margaret Greenwood (Wirral West) (Lab)]

6. Whether he is taking steps to make it easier for people to travel abroad with their pets.

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[Damien Moore (Southport) (Con)]

T1.   If he will make a statement on his departmental responsibilities.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

I take this opportunity to welcome the confirmation this week that the UN convention on biological diversity, COP15, will now be going ahead at the end of this year in Canada under China’s presidency. This week, in preparation for that, the UK will lead ambitious calls to protect nature at Nairobi in the run-up to building ambitious biodiversity targets.

This week I met the US Deputy Secretary of Agriculture to discuss many issues around sustainable agriculture and trade. I am pleased to announce today that the UK will join the Sustainable Productivity Growth Coalition convened by the United States. I look forward to working with our international partners in this dialogue on innovation, science and sustainable agriculture.

[Damien Moore]

The wine trade, and particularly wines produced in the UK, plays an increasing important role in Southport’s food and drink industry. Will my right hon. Friend meet some of these businesses to listen to how the proposed duty reforms will affect their trade?

[George Eustice]

My hon. Friend will know that duty and tax is a matter for the Treasury, but I am more than happy to meet his constituents. The English wine industry has been a fabulous success story in recent decades.

[Mr Speaker]

We now come to the shadow Secretary of State.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Given the impact covid has had on mental health and wellbeing, for many, access to the outdoors was a vital escape, but the Secretary of State will know that access is not equal. Research by Wildlife and Countryside Link highlights that the poorest communities are twice as likely to live in a neighbourhood without access to nature. What are the Government doing to ensure that every neighbourhood in every corner of England finally has access to a green and pleasant land?

[George Eustice]

We have set out some detailed proposals on this, both in our response to the Glover review, but also under the Environment Act 2021. Local authorities will be required to have local nature recovery strategies in future, and that will include commitments around public access in particular locations. We have also opened a new farming and protected landscape scheme, which is all about supporting public access to the countryside.

[Tom Randall (Gedling) (Con)]

T2. Residents in Gedling have recently received letters regarding a nearby outbreak of avian flu, and I am grateful for the work of DEFRA officials in combating that, but might my right hon. Friend be able to offer any update on when restrictions are likely to be lifted? I am particularly thinking of my constituents who race pigeons. There is a short pigeon racing season from April to September, and they are currently prevented from doing so. They would like to get on with their hobby.

[Chris Stephens (Glasgow South West) (SNP)]

T3. Almost 343,000 meals were redistributed in Glasgow South West thanks to FareShare and other charitable organisations, yet FareShare says that its Government funding has been cut. Does the Secretary of State intend to meet FareShare and concerned Members of the House to discuss its funding, so that we can support its #FoodOnPlates campaign?

[George Eustice]

I met FareShare recently to discuss a particular proposal it had around trying to ensure that waste on farms was redistributed where possible. We did increase the funding for FareShare temporarily during the coronavirus pandemic, and we continue to support it, but obviously I will look into the specific case he raises.

[Mohammad Yasin (Bedford) (Lab)]

T4.   The UK’s dependence on food imports makes it vulnerable to food insecurity and soaring prices. I know that the Minister will be joining me next week to welcome Infarm, which is bringing one of Europe’s largest vertical farming facilities to Bedford. Can she reassure me that these innovative urban farming methods will supplement, not replace traditional farming methods to ensure that Britain and indeed the world is more food secure?

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[Gareth Davies (Grantham and Stamford) (Con)]

With prices spiking for fertiliser and vital fuels such as tractor diesel, farmers in Lincolnshire face extreme pressure on cash flow. Does my right hon. Friend agree that giving farmers the support and confidence they need to plan for the future is vital to our food security?

[George Eustice]

My hon. Friend makes an important point, and that is why we have decided this year to give the industry the confidence needed by bringing forward half of the BPS payment to July from December. That will help ease those cash-flow pressures. In the context of Lincolnshire, which has a particularly strong horticultural background, we have increased the number of visas so that farmers can have access to the labour they need.

[Kerry McCarthy (Bristol East) (Lab)]

T6. On Tuesday, at Foreign Office questions, the House paid tribute to the activists Dom Phillips and Bruno Pereira, who were killed while working on the book “How to Save the Amazon”. Does the Secretary of State agree that our food chain is contaminated by products linked to deforestation, in particular livestock feed from imported soya that is grown in the region, and that we need to do much more to stamp that out and protect the work of activists seeking to expose this?

[George Eustice]

The hon. Lady raises a sad and tragic case, and our thoughts are with the affected families. On her specific question, she will know that we have introduced legislation to push for due diligence in supply chains; that will require producers in the UK to ensure there is due diligence right through their supply chain, in particular for forest-risk products.

[Mr Speaker]

We welcome the new Chair of the Select Committee, Sir Robert Goodwill.