Energy Support for Farms

Gregory Campbell Excerpts

Tuesday 21st March 2023 Westminster Hall

[Carla Lockhart]

I think the hon. Member has been reading my speech. A cliff edge certainly is coming for this important industry, which is the backbone of our economy.

Another example is poultry. There has been an increase of approximately £87 a day, which equates to about £32,000 a year. That is a phenomenal amount, and only so much of that can be passed on.

Ahead of the Chancellor’s spring statement last week, our farming unions, alongside Members from across the House, had been lobbying to bring about a change in mindset from the Government in relation to support for farmers with energy costs. The Government must recognise the key role of the agriculture sector in feeding the nation. The industry needs support in the face of energy price pressures.

The current support from the energy bill relief scheme is due to expire at the end of March. It will be replaced by the energy bills discount scheme, which will run for 12 months. That scheme offers far less protection and support to businesses, with the removal of the price cap and its being replaced by a token discount. A pre-defined selection of industries has been identified for additional support under the energy and trade-intensive industries scheme. However, farming sectors have been left off this scheme, leaving them literally out in the cold without support. In the face of that cliff edge, the ask of the Government was straightforward. Our farming unions, on behalf of their members, sought the extension of the energy and trade-intensive industry scheme to include energy-intensive sectors, such as horticulture, poultry and pig production. That was a reasonable ask that the Government should have listened to.

Poultry businesses are reliant on gas and electricity to rear poultry and store fresh produce safely. Without sufficient support, there is no doubt that those farmers will struggle to absorb the huge hikes in energy prices that they will face. The same can be said for pig producers.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate my hon. Friend on securing the debate. As I am sure is the case across the UK, small farm holdings in Northern Ireland have shown great adaptability and diversification over recent years, as times and legislation have changed. Does she agree that the campaign and the pressure she is applying to the Government, to which I hope they will respond positively, needs to get them over the hump of the next 12 months, after which we hope things will improve regarding prices and the war in Ukraine, so that a more normalised structure can return?

[Carla Lockhart]

I absolutely agree with my hon. Friend. The point is well made that there needs to be a short-term injection for those farmers, so that they can continue to produce at the same levels. We will see farming families and farms going out of business, which will not help the overall industry or the nation’s requirement for food produced locally.

Horticulture’s exposure is significantly greater not just for gas for glasshouse heating but for electricity used for lighting, chilling and storage. Without sufficient support, that sector will be under huge strain to remain viable. Yet the evidence-based appeal was ignored by the Chancellor. That reasonable ask of the farming community to extend the ETII scheme was ignored. There was no extension of ETII to support energy-intensive farms. A range of other industries continue to receive support. High-level energy relief continues to several sectors, including food processing and manufacturing, but the primary producer is forgotten. The Government once more ask the farmer to do more with less, and that is simply not possible.