Food Price Inflation

Debate between George Eustice and Stephanie Peacock

Thursday 19th May 2022 Commons Chamber

[George Eustice]

These matters are often covered in the Barnett formula and the complexities of Treasury settlements with the devolved Administrations, so I advise the hon. Gentleman to write to the Chancellor or the Secretary of State for Wales to raise his issue.

[Stephanie Peacock (Barnsley East) (Lab)]

The Governor of the Bank of England has described food inflation as “apocalyptic”. Instead of telling people to work harder, buy cheaper or cook better, why do the Government not think again about raising national insurance, cutting universal credit and putting a windfall tax on the oil companies?

[George Eustice]

Again, these are matters for the Chancellor, but I would simply say that, as we emerge from this pandemic, there are challenges—challenges to global supply chains, challenges to the global economy and, domestically, challenges to our NHS. The NHS has had two years of wrestling with the pandemic, and it now has a backlog in some areas that it needs to get on top of. The national insurance rise and social care levy that we have put in place will bring in the resources that will help the NHS to get back on its feet after the pandemic.

UK Shellfish Exports

Debate between George Eustice and Stephanie Peacock

Monday 8th February 2021 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab) (Urgent Question)]

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on the EU ban on UK shellfish exports.

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

We have a long-standing trade in live bivalve molluscs to the EU from UK waters. This has benefited both our own shellfish industry and EU restaurants and retailers, which rely on these premium products from the UK.

Recently, concerns have emerged for our trade in live bivalve molluscs to the EU coming from UK class B production waters that have not been through purification or have not cleared testing. The European Commission has changed its position in recent weeks. It advised us in writing in September 2019 that the trade could continue. We shared the Commission’s view and worked with the industry on that basis, and that included explaining that for one small part of the industry—wild harvested molluscs from class B waters—there would need to be a pause while we awaited new export health certificates to become available in April, but that, in line with the guidance from the EU, trade in the molluscs from farms could continue uninterrupted.

We continue to believe that our interpretation of the law and the EU’s original interpretation is correct, that the trade should be able to continue for all relevant molluscs from April, and that there is no reason for a gap at all for molluscs from aquaculture. However, last week the Commission gave us sight of instructions that it sent to all member states on 3 February, stating that any imports into the EU from the UK of live bivalve molluscs for purification from class B waters, such as the sea around Wales and the south-west of England, are not permitted. Exports from class A waters, such as we find around parts of Scotland, may continue.

Bringing an end to this traditional and valuable trade is unacceptable, and I recognise that it is a devastating blow to the businesses that are reliant on the trade. While we do not agree at all with the Commission’s interpretation of the law, we have had to advise traders that their consignments may very well not be accepted at EU ports for now. I am seeking urgent resolution to this problem and have written to Commissioner Kyriakides today. I have emphasised our high shellfish health status and our systems of control. I have also said that if it would assist the trade, we could provide reasonable additional assurances to demonstrate shellfish health, but that this must also recognise the existing high standards and history of trade between us. It is in the EU’s interests to restore this trade. Many businesses in the EU had invested in depuration equipment and are configured around managing the export of molluscs from class B waters.

We have met the industry several times, and it is of course extremely concerned. We are working well with the Shellfish Association of Great Britain, which is taking up the issue in meetings with European counterparts. The molluscs affected include mussels, oysters, clams and cockles. In general, the scallop trade is less affected. Scallop exports may instead undergo pre-export testing, as was the case before exit. However, we know some businesses have not traditionally been working in that way, and we are discussing with them how we may help. The issue does not affect molluscs landed in Northern Ireland. It does, however, affect movements from GB to Northern Ireland.

I know that this issue will be of great concern to many exporters around the country. The Department for Environment, Food and Rural Affairs will continue the technical discussions with the European Commission, and I will update the House with any developments in due course.

[Stephanie Peacock]

Whoever is to blame, the fact is that shellfish farmers and fishermen are not able to export their most valuable product to their most important market. The rule banning imports from third-party countries of untreated shellfish from class B waters has been in place for decades. The Secretary of State claimed in front of the House of Lords EU Environment Sub-Committee last week that the EU had changed its position on how the rules would affect the UK. He had originally told the industry that the ban would be lifted in April, but we now hear it will not. On that basis, will he publish and put in the Library all the correspondence between his Department and the EU that demonstrates why he believed a change would occur? Can he explain to the House today what mechanism he expected the EU to use to make that change?

The letter that the Secretary of State has published today is welcome, but it does not answer those questions. It refers to contact in September 2019, when the UK’s future trading agreement still was not clear. Many fleets are unable to sell their catches and exporters unable to ship and trade. What assessment has his Department made of how many businesses and employees are affected by the situation? What provision has his Department made to use some of the £23 million compensation fund that the Government recently announced to support the businesses who are unable to trade and how long will that support last? A multimillion pound industry has ground to a halt overnight. Jobs and communities are at risk. Unless this situation is resolved, the UK shellfish industry will not survive.

[George Eustice]

The hon. Lady refers to the evidence I gave to the House of Lords, and indeed that is entirely in line with what I have just set out. It is the case that in September 2019 the European Commission told us that for wild caught molluscs there would be a need for a new health certificate and, when that was discussed more recently, indicated that that could not come on stream until April. The Commission said that the existing trade in farmed molluscs could continue under existing export health certificates, so it has indeed changed its position. The hon. Lady asks whether I would be prepared to put that correspondence in the Library; I am happy to do so, including the letter I have written to the Commission today and that earlier letter from 2019.

The hon. Lady asks what we wanted to have changed. The answer is that we do not really want anything to be changed. We simply want the European Union to abide by its existing laws. The export of molluscs is governed by the animal health regime, and falls under directive 2006/88/EC and regulation 1251/2008. The directive and regulation are clear that the export of bivalved live molluscs is indeed lawful.

The Commission now seems to be pointing to separate public health regulations, namely regulation 853/2004 and regulation 2019/628, and suggests that they are the reason for a prohibition on sale. Again, that is incorrect, because legislation is clear through article 12 of the Commission implementing regulation 2019/628, which makes it clear that it does not apply where the molluscs are exported to a depuration centre. That is because when they are sent to a depuration centre, they are not yet food for sale. Therefore, the reason given by the European Commission for this change in position is not consistent with the EU’s existing law. That is why we will continue to raise these issues with the Commission because under both the aquatic animal health regime and the public health regulations that the EU has cited, there is no legal justification for a bar on this trade.

Oral Answers to Questions

Debate between George Eustice and Stephanie Peacock

Thursday 21st January 2021 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab) [V]]

Many parts of the country are currently facing severe flood warnings, and our thoughts are with those who have been flooded overnight. We need a proactive rather than a reactive approach to this crisis, so will the Minister today commit to holding an emergency flood summit that brings together agencies and regional leaders to make sure that we have a co-ordinated response to support local communities?

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

We held a flood summit covering the south Yorkshire area shortly before Christmas later last year. I have also said that we want to hold a series of roundtable meetings around the country covering individual water catchments.

Oral Answers to Questions

Debate between George Eustice and Stephanie Peacock

Thursday 25th June 2020 Commons Chamber

[George Eustice]

This week, we announced new measures on exports, with export champions to lead the way in opening new markets and to get more of our fantastic food and produce in those overseas markets. I have in recent years attended exhibitions such as Gulfood in the Gulf, where there are indeed many opportunities, particularly for our lamb sector.

[Stephanie Peacock (Barnsley East) (Lab)]

Last November, after the devastating floods, the Prime Minister committed to holding a summit to improve flood defences in the north of England. Can I ask the Secretary of State why, six months on, this summit has not taken place? Can he set a date, and can he confirm that the Prime Minister will honour his commitment and be in attendance?

[George Eustice]

The reason that we have not yet had that summit is quite simple: it is that the coronavirus outbreak has taken up quite a lot of our time and obviously made it very difficult to physically travel to areas. I think it would be better to have a summit such as that physically in the location, rather than it being yet another Zoom meeting. However, I can give the hon. Lady a guarantee that that summit will indeed take place. I gave that commitment and it will happen.