(10 years, 8 months ago)
Commons ChamberMy hon. Friend has hit the nail on the head. She is most astute. One of the problems is that we do not have the capacity to pump into the river below a certain level. I am talking about the area on the border between my constituency and the constituency of my hon. Friend the Member for Somerton and Frome (Mr Heath). What happened was that the river backed up. We could not get the water around. We have two points into the sea; one is through the River Parrett and the other is through the King’s Sedgemoor drain. Both are not able to take what we need to pump into them. Nearly 60 square miles of land are underwater, which really focuses our minds on the problems faced by our constituents. Although we have not lost many properties, it has devastated the tourism industry and many other things in the local area. My hon. Friend the Member for Tiverton and Honiton (Neil Parish) knows from his long experience of farming nearby how dangerous these areas can be.
The Minister has made it quite clear that local input is needed. The internal drainage boards and the local Environment Agency—I am not suggesting asking Lord Smith for one second, nor would I—have an enormous input to make, but that must be done in conjunction with local people. That is why the meetings that we have been holding in Sedgemoor or Somerton and Frome have been so important; we have been able to use that local input. I was rather worried when the EA sent John Varley, whom I have met a few times. I find him the most impossible man, although I am sure that my hon. Friend the Member for Newbury would disagree with me. It is obvious that a lot of people have others’ best interests at heart.
We must do three things. First, we must look at the Bridgwater barrage. That will cost an enormous amount of money, but it is vital. Secondly, we must look at the pump system.
My hon. Friend talks about the barrage across the River Parrett, which is absolutely essential. The £200 million cost of raising the railway across Sedgemoor starts to make the barrage look extremely cost-effective. The railway would not be flooded if that barrage were there to stop the sea going up the Parrett.
I absolutely agree with my hon. Friend. This year, we managed to shut the main railway line and the A303, and water was lapping against parts of the M5. We really could have stopped tourism in most of the west country. I am glad that that did not happen; it is obviously good news.
(11 years, 1 month ago)
Commons ChamberI started my political life in both district and county council—this is going back to the ’80s—and the formula was just as complicated then. Under successive Governments we have made it even more complicated. I think, dare I say it, that it is all done because if the formula is made complicated enough, no one will understand it and those in government can do what they like. The Government spend a lot of time talking about the spending power of councils. It is not only about that spending power, but about how we get to that spending power and who pays for it. I shall discuss that issue later.
Urban councils are still receiving 50% more per head than local authorities in rural areas, despite the fact that residents in rural authorities, such as Devon county council, pay 15% more council tax, and many public expenses are more expensive to deliver in sparsely populated rural areas.
West Somerset, which my hon. Friend knows well, is the most sparsely populated part of England, with the smallest council. As he knows from his days in Somerset county council, we have never been able to catch up with the deficit, simply because the rurality of the area means that there is no way, with our ageing population—it is the same in Axminster—to do that. Perhaps we should look at the future size of these councils to see whether they could provide a joint service to make more efficient use of funding made available through the Government.
I remember West Somerset well from my local government days. The problem is that it has a population of about 28,000 or 30,000, and if it is necessary to have a raft of chief officers to run a council, it becomes extremely expensive. We must come up with a system whereby some of the very small rural authorities can share their chief officers or combine them, because in this day and age it is difficult to deliver with very small authorities.
(11 years, 9 months ago)
Commons ChamberI shall go on to mention the damping, but it seems to have achieved the worst of all worlds. The funding issue was looked into, and the Government listened to rural authorities and said that they would move money across, but the so-called damping process has been added to the system and it seems to have made the settlement even worse than it would have been without it. That is where the Government must look again.
(12 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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Thank you, Mr Walker, for calling me to speak. It is a great pleasure to speak in this debate.
I thank the hon. Member for Dunfermline and West Fife (Thomas Docherty), because he and I have secured this debate. He has a great knowledge of the retail trade, so perhaps with that knowledge, my own knowledge of farming and some cross-party support we can get a really good price for milk. We want this debate to be about the price of milk, and the fact that we have nearly 40 Members in Westminster Hall who want to speak in this debate shows how important the issue is to everyone in this House. In fact, I suspect that at the moment there are probably more people in Westminster Hall than there are in the main Chamber. I thank all Members who are present for coming, and the number of Members who are here shows the seriousness of this matter. I also thank the Backbench Business Committee for granting this debate; it is a very important one.
Confidence in the dairy industry has been at an all-time low this year, not only because of the prices for its products but because we have had probably some of the worst weather that we have ever seen in the UK. As a result, we have had some of the worst May silage, and all those types of things, coupled with the high price of cereals, have meant that farmers are being crushed between low prices and the high cost of feeding animals.
Ten years ago, there were more than 26,000 dairy farmers; now we are down to fewer than 15,000 dairy farmers. That shows how many dairy farmers have been forced out of the industry, and how things have become more and more competitive.
It is good to see the new Minister here in Westminster Hall today and it is also good to see my hon. Friend the Member for Thirsk and Malton (Miss McIntosh), the Chairman of the Environment, Food and Rural Affairs Committee, here.
The voluntary code of best practice on contracts between milk buyers and dairy farmers is an important settlement. It will prevent producers from being trapped in unfavourable contracts and it will add much-needed transparency to milk contracts. I pay great tribute to my right hon. Friend the Member for South East Cambridgeshire (Mr Paice), who worked absolutely tirelessly with all parties to reach that agreement. It is a great legacy and I know that Members from all parts of the House are grateful to him for his profound knowledge of farming and for his support.
I welcome the new Minister to his post, and I hope that he can pursue the voluntary code as quickly as possible. The contract between producers and purchasers should set out a clear price. It should also set out that in future producers must receive at least 30 days’ notice of a price change; that retrospective price adjustments will not be accepted; that dairy producers are allowed to supply more than one processor when their primary milk buyer seeks to cap their production; and that supermarkets setting farm prices must engage meaningfully with farmers and their representatives, rather than just driving farmers into a corner and every now and again adding a sop, when what farmers need is a long-term future. The code must be implemented and then monitored for compliance and effectiveness. If it is not working, the Government must consider what statutory powers and mandatory powers can be added to it.
The Government have also made a very welcome and long-overdue move to introduce the Groceries Code Adjudicator Bill. It was presented to the House of Lords only last week and we now look forward to its Second Reading.
This issue is about fairness. It is also about supermarkets, particularly the few large ones that dominate the retail market and that have been able to increase their profits at the expense of food producers by using—
There is one issue that my hon. Friend forgot to mention just now. He lives in Somerset and I represent a Somerset constituency. However, he forgot to mention the Wiseman dairy at Bridgwater, which is one of the processors, and the processors are equally culpable in this matter.
I thank my hon. Friend for his intervention. I will be talking about processors shortly, but he is absolutely right to make that point. However, we should not forget that processors, especially when there is a fixed price with the supermarkets, are very often the ones that get squeezed, because there is a guaranteed price to the farmer and then the farmers enter into a trade war with their supermarket friends—or enemies—and at the end of the day it is probably the processor that actually pays the price.
We must move more swiftly to make the Groceries Adjudicator Code Bill law, so that supermarkets play by the rules, producers have confidence that their complaints will be taken up and third parties can also raise issues with the buyers. If the supermarkets and other larger retailers are not doing anything wrong, they have nothing whatever to fear from the groceries code adjudicator. However, some supermarkets and other large retailers are less than enthusiastic about the adjudicator, so I feel that there is much to answer for.
It is also very important that third parties, such as unions and trade associations, are able to submit complaints to the groceries code adjudicator on behalf of producers, so that producers are able to benefit from the legal advice and support that those third parties may be able to offer.
All supermarkets can and should do more when it comes to responsible sourcing of all dairy products. The pursuit of ever greater margins, coupled with a short-termist approach to sourcing British dairy products, is jeopardising the future of the British dairy industry. Marks & Spencer, Waitrose, Tesco and Sainsbury’s should be acknowledged for introducing more transparent pricing mechanisms into their milk groups but, as the hon. Member for Dunfermline and West Fife said earlier, they have got to do much more about the cheese market. Retailers that have promised to do more, such as the Co-op, Morrisons, Lidl, Farmfoods, Iceland and Spar, have got to be brought to the table actually to do something, rather than just promising to do something, because let us not forget that all the time they are driving the price of milk down.
The point that I want to make very strongly to everybody here in Westminster Hall today is that consumers already pay enough money for their milk. The problem is that many of the large retailers are taking 16p in profit out of that money. That is where the problem is, and therefore some percentage of that profit needs to go back to the farmer. It is not just a case of farmers breaking even; they need to be able to make a profit to reinvest.