Food and Drink: UK Economy

Geraint Davies Excerpts

Wednesday 1st December 2021 Westminster Hall

[Geraint Davies (in the Chair)]

Before we begin, I remind hon. Members that they are expected to wear face coverings when they are not speaking in the debate, in line with current Government guidance and that of the House of Commons Commission. I remind Members that they are asked by the House to have a covid lateral flow test twice a week if coming on to the parliamentary estate. That can be done either at the testing centre in Portcullis House or at home. Please also give each other and members of staff space when seated, and when entering and leaving the room.

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the contribution of food and drink to the UK economy.

It is a pleasure to serve under your chairmanship, Mr Davies. I am delighted that we have the opportunity to debate the importance of the food and drink sector for the UK economy. I also mention that I am the chair of the all-party parliamentary group for food and drink manufacturing.

During the pandemic, we rightly clapped and acknowledged the work and dedication of the medical staff, who did so much for the many people affected by covid. We rightly recognised the commitment of those who continued to work in supermarkets and the many drivers who ensured that the deliveries actually got through. However, there were many other unsung heroes in many different industries and sectors who also helped to ensure that our society continued to function and that life continued in a manageable way.

One such group was the food and drink manufacturing sector. Hon. Members may recall that, at the beginning of the crisis, there was some concern that our food shelves could become empty or the supply of food would be greatly reduced. The adage is that if there was no food available, it would not be long before there was a major crisis, panic buying and potentially something rather worse. That did not happen. Indeed, the factories, sometimes in very difficult circumstances, continued to produce the food and drink that we as a country needed. The deliveries continued to be made, the supermarkets were supplied, the shelves remained full and families continued to shop in the knowledge that there would be food to buy.

There was no panic buying, except—interestingly enough—of toilet roll and pasta, which to this day I do not understand. Nevertheless, that did seem to be something that exercised many people up and down the country, but even that was short-lived. We therefore have a lot to thank the food and drink sector for and, very importantly, all those who work in it. At the time, there was some recognition of their work, and clearly there was a greater awareness of the importance of the food and drink sector, of the vital need to ensure the supply of foods to shops, and of the overall significance of the sector to our society. In many respects, that awareness has sadly disappeared. I believe this is extremely unfortunate. We should be far more aware of the nature of the sector, how important it is, its many strengths, and also its weaknesses. This is about not just the basics in life, such as the supply of food, although that is extremely important, but the real and substantial contribution that the sector makes to our economy, both nationally and locally.

I have a few statistics and facts about the sector. The food and drink sector is the largest manufacturing sector in the United Kingdom. I am amazed at the number of people who are surprised by that. They often think that pharmaceutical, automobile or aerospace would be the largest manufacturing sector, but in reality the food and drink sector is our leading manufacturer.

It has a turnover of more than £104 billion, representing 20% of all UK manufacturing. It contributes over £29 billion to the economy, and directly employs over 440,000 people and thousands more indirectly. Think of the many brands, a large number of which are iconic and international—the very best of British products. Exports exceed £23 billion, going to more than 220 countries and territories, with a huge potential for much more.

We should also be aware of the contribution the sector makes to the local economy. It is often a substantial local employer, which has a significant impact on the performance and growth of local economies, and offers employment and training opportunities to local people.

My constituency of Carlisle is a prime example. Nestlé employs 400 people. It is the largest food and drink company in the world, a significant exporter and a purchaser of much of the milk that is produced by local farmers. The 2 Sisters Food Group employs nearly 1,400 people, and if I were to have a ready-made meal from Marks & Spencer, it would probably have been produced in the factory in Carlisle. McVitie’s, part of Pladis Global, employs nearly 800 people. Talking of brands, Carlisle produces the iconic Carr’s water biscuits and, of course, 6 million custard creams every single day.

These businesses make a huge contribution to the Carlisle economy and the wider regional economy. Think of the spending impact that 2,500 directly employed staff have on the local economy, and those are just the larger employers, as these figures do not include the many smaller businesses.

Indeed, the sector as a whole is incredibly diverse, with over 10,000 manufacturing businesses, most of which are small and medium-sized enterprises. In reality, there are very few large players, which can be both a strength and a weakness for the sector. It means it is a dynamic sector, with much innovation, but at times it also means that the voice of the sector is not heard as much as it should be.

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[Several hon. Members rose—]

[Geraint Davies (in the Chair)]

Order. I call James Daly first, as not everybody had previously indicated that they wished to speak, but we will make a note.

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[Geraint Davies (in the Chair)]

I will take the Front-Bench speakers at around a quarter past 5. I invite Navendu Mishra to contribute.

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[Dave Doogan (Angus) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Davies. I thank the hon. Member for Carlisle (John Stevenson) for calling the debate. Going to Strangford for the ultimate British Isles culinary experience? Well, we will see about that in the course of the next five minutes.

It is a pleasure to sum up the debate. We sometimes get those calls from the Whips where they rhetorically ask whether we would mind going to Westminster Hall to sum up a debate on anything from synthetic fuels to the shape of clouds, but this one is a shootie-in for a Scottish MP, much less the MP for Angus. I like to explain to English colleagues that if Kent is the garden of England, Angus is very much the garden of Scotland, and it is in that context that I will sum up.

Food and drink manufacturing is the largest manufacturing sector in the UK. I am grateful to the hon. Member for Carlisle, who secured the debate, for highlighting that point, because it is often lost in the noise of other, more prominent industries. There is a footprint of food manufacturing and production in every single constituency across these islands, and the sector contributes more than £120 billion to the UK economy. If that sounds good for the UK, we have bells on it in Scotland, because exports of Scottish food and drink make a vital contribution not only of many billions to the Scottish economy but therefore, for the time being, to the UK economy.

We export to countries worldwide: Scotland, with 8.2% of the UK population, delivers almost 20% of the food and drink exports—doing the heavy lifting once again. It is little wonder, with iconic produce such as Scotch lamb, Aberdeen Angus beef and Scotch whisky. I could go on—[Interruption.] You want me to go on, Mr Davies? Okay. I will add to that list Irn-Bru, haggis, shortbread, smoked salmon, porridge, Scotch broth and steak pie, and let us not forget that the iconic Skull Crushers sweets were invented in Scotland.

That is just Scotland’s produce, and I have not started on Angus—specifically our world-famous Arbroath smokies, of which I know the Minister is a fan, and the supreme champion of savoury pastries, the Forfar bridie. Looking around Westminster Hall this afternoon, I see a lot of potential Marks & Spencer customers, so let me assure them that their summertime Red Diamond strawberries from Markies come from Angus too, because Angus is the leading soft fruit producer across these islands—[Laughter.] That is uncontroversial.

Scotland delivers 80% of the valuable seed potato sector, and Angus is at the forefront of that, which is why McCain has its Pugeston facility in Angus. On the drinks side, to name just a few, we have Ogilvy vodka, made from potatoes in Charleston; the Gin Bothy up the road in Glamis; the Glencadam distillery in Brechin; and the Arbikie Highland Estate distillery at Lunan, not far from Lunan Bay Farm, which produces Scottish asparagus and pasture-fed goat meat just down the road from the lobsters landed at Ferryden. If anybody is looking for directions to Angus, I can provide them after the debate.

So it is all well and good, then? No, I am afraid it is not. Remember that seed potato sector? Thanks to the UK’s hard Brexit, the sector has lost not only its European Union market access, but its Northern Ireland market access. The hon. Member for Strangford (Jim Shannon) can no longer buy seed potatoes from Angus, and that is much to be regretted at both ends of the transaction. Neither can his farmers take their bulls to Stirling to be sold any more, because if they do not sell, farmers will have to pay to keep them there because they cannot take them home as they used to.

The jute sacks that seed potatoes need, which are imported from India and Bangladesh, were tariff-free while we were in the EU, but now they come with tariffs. That is a matter for the Department for International Trade to intervene on, but it seems unable or unwilling to do so. Similarly, I have asked the Foreign, Commonwealth and Development Office to intervene, along with Department for Environment, Food and Rural Affairs and the Department for International Trade, on the proscription of pork exports to China—I know the Minister is aware of this—from the Brechin pork processing plant in Angus, and they are unable to help with that either.

It is interesting listening to right hon. and hon. Members today. If Hansard were to do a Wordle of today’s debate, the big word in the middle would be “labour”. There can be no doubt about the crippling labour shortages and how they threaten to undermine the great strides made in market development—[Interruption.]

[Geraint Davies (in the Chair)]

Order. We need to suspend for Divisions.

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On resuming—

[Geraint Davies (in the Chair)]

Right—I have had my Angus steak. Dave Doogan, to finish off.

[Dave Doogan]

Thank you, Mr Davies. Before we were interrupted, I was talking about the crippling labour shortages that threaten to undermine the great strides made in the market development and process efficiencies of the food production sectors.

Industry experts are being undone by Whitehall Departments and Ministers with little knowledge of, much less regard for, this industry, although I would not apply that to the current Minister, who will be answering today and—in my estimation, at least—gets the industry and has its best interests at heart. However, she is part of an Executive who are putting substantial problems in front of the industry.

In closing, I will mention the Home Office, with its arbitrary £30,000 figure, which has deliberately made it as difficult as possible for the industry to access those figures. The United Kingdom Internal Market Act 2020 is an extremely problematic piece of legislation, which does nothing to enhance the devolution settlement or relationships between the industries north and south of the border. I met with the National Farmers Union of Scotland this morning, which described a perfect storm coming down the road, and we need to protect this valuable industry at all costs.

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[Daniel Zeichner]

I see the Minister nodding. I wonder whether she could tip us off about when we might expect that.

We also need fairness within the supply chain. We have heard about the power of the retailers, and the imbalance of power. What we are seeing at the moment, I fear, is that although consumers may be benefiting from the price competition between retailers, they are just pushing the pressure down the supply chain harder and harder, which is not sustainable. Perhaps she could tell us something about where the Government have got to on those supply chain contracts, and on dairy contracts, the consultation on which was, of course, a while ago. She may need the opportunity to once again comment on competition laws, and suspension and relaxation, which has happened a number of times.

In the interest of time, I will not make any further points on farming and environmental land management, but we are hoping for some more information soon. Finally, I praise and thank all those in the British food and drink sector. We are fortunate to have a sector that can produce food to such good standards and to such excellent quality, and we cherish it. That is why we want a plan from the Government. We have repeatedly called on the Government to produce a plan for the sector: a plan for food, a plan to get to net zero and a plan to buy British. If the right hon. Member for South Holland and The Deepings were here now, I would tell him, “There is a party that will do that!”, if he is dissatisfied with his own side. We want to get to a situation where people can buy our food with confidence as part of that strategy, but that strategy must also improve conditions for the workers throughout the sector who have given so much. There is plenty to celebrate, but much to be done.

[Geraint Davies (in the Chair)]

Over to you, Victoria Prentis. We need to end at 6.5 pm.

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[Geraint Davies (in the Chair)]

Hungry for John Stevenson to wind up—we need to end by 6.5 pm.