Brexit: Trade in Food

James Gray Excerpts

Thursday 14th June 2018 Westminster Hall

[James Gray (in the Chair)]

We start the afternoon in this great Chamber, Westminster Hall, with a debate on the recent report by the Select Committee on Environment, Food and Rural Affairs entitled “Brexit: Trade in Food”. It is normal on these occasions for the Minister to be present at the beginning of the debate, although that is not required under Standing Orders. I suspect he may be approaching the Chamber quite quickly. There being no further intelligence on where the Minister might be, I know the Parliamentary Private Secretary will take a keen interest.

[Dr David Drew (Stroud) (Lab/Co-op)]

The PPS can do it!

[James Gray (in the Chair)]

Order. I know the PPS will take a keen interest in how the Chair of the Environment, Food and Rural Affairs Committee approaches the motion.

--- Later in debate ---

[Neil Parish]

That is a very good apology. The Minister elevated our debate to the Chamber when we are actually in Westminster Hall. I appreciate his explanation and thank him for arriving. I am sure his officials will fill him in on the start of my speech.

We have a great farming industry and high-quality products, and it is important that that is supported over the coming years. Continued trade with the EU is essential to ensuring our farming sector thrives after Brexit. We must have an outward-looking, global Britain. That will be key to seeing our agricultural sector flourish, but we must also maintain a good share of our home market and home production. I feel strongly about that. We buy 70% of our food and drink imports from the EU, and we sell 60% of our food and drink exports back to the EU. We can see that trade to the EU is extremely important, and that that means that a farming-focused free trade agreement with the EU is essential. We have always sought reassurance from Ministers that as the deals are done, DEFRA, DEFRA Ministers and the Secretary of State will be at the forefront.

If we do not reach a free trade agreement with the EU, our agricultural goods might well be subject to tariffs once we have left. EU tariffs are high. Tariffs on dairy products are over 30%, and they can be as high as 80% on frozen beef. Reverting to World Trade Organisation rules would be even worse, as tariffs there are far higher for agricultural goods than for many other products. In addition, all countries must be treated equally under WTO rules. For example, Irish beef would need to have the same tariff as Brazilian beef, which could be devastating not only for us, but for Ireland. That is why our report recommends that the Government undertake work as a matter of urgency to evaluate the impact of any deal that they negotiate.

We are calling on the Government to publish a sector-by-sector analysis on the impact of Brexit so that we can better understand how tariffs will affect our farmers. For instance, in the dairy sector we import a similar amount to what we export. We are often importing yoghurts and cheeses, and we have the ability to produce more of those ourselves. We could therefore reduce the need for imports, as we could in other sectors, such as the pig and lamb sectors.

We export some 40% of our lamb, and import some 35%. On the face of it, we could say, “That’s okay. Stop the exports and the imports and we can eat all our own lamb,” but in reality we are exporting fifth-quarter joints and importing legs of lamb from New Zealand. We can see that the trade in lamb backwards and forwards, and with France in particular, is incredibly important.

The Secretary of State assured us on the sector-by-sector analysis yesterday in Committee, and I seek your assurance, Minister, that that work is under way and will be published. In my view, it should have been done already. We have seen, rightly in many respects, many more extra staff being taken on in DEFRA, but I have to say bluntly to you, Minister—

[James Gray (in the Chair)]

Order. It is not me that the hon. Gentleman is addressing, but the Minister. You are speaking to “him”.

[Neil Parish]

I beg your pardon, Mr Gray. I say to the Minister, what is happening with the sector-by-sector analysis? When can we expect the analyses to be published? In all the evidence we took for our report, we found that the trading arrangements affect different sectors in very different ways. We need to know exactly what those trading arrangements will be to ensure that we maintain our food production.

A farming-focused free trade agreement is not the only way that the Government can support farmers. I am sure that you, Minister—

[James Gray (in the Chair)]

Order. I do not mean to be stiff and pompous, but the reason for the convention is that referring to all other Members in the Chamber in the third person removes the directness from the debate. It is not “you”, but “he” or “the Minister”.

[Neil Parish]

So I can say “Minister”?

[James Gray (in the Chair)]

It is perfectly reasonable to say, “As the Minister will know,” or, “As I hope the Minister will say in replying to the debate.” It is not in order to say, “As you know, Minister,” or, “As I hope you will say in your reply.” You may not use the word “you” apart from when you are referring to me, and I have no part in the debate beyond chairing it.

[Neil Parish]

Thank you, Mr Gray, for that clarification.

Farmers offer vital support to the rural economy, with the food and farming industry generating more than £110 billion a year, and employing one person in eight in the country. Food and drink, much of it produced in this country, is a vital industry, and the way our food is produced is so important for our natural environment, as we can see in many parts of the country.

The Secretary of State was in Exmoor and Devon last week, where the farming of sheep and cattle produces that lovely landscape with many natural features. Within those natural features is a managed farm landscape, which is why the profitability of food and agricultural production is so necessary. We can look at environmental payments, but they will not be able to replace the profitability of agriculture and food production entirely. The two need to go hand in glove, which we are really keen to see happen.

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[Neil Parish]

I thank the Minister for giving way again. This is important and we have plenty of time, hence I will take up a bit more. When you say “sector by sector”, are you talking about the food and drink—

[James Gray (in the Chair)]

Order. I am not talking about anything—the Minister is.

[Neil Parish]

When the Minister says “sector by sector”, is he referring to the food and drink sector? Our report naturally referred to the individual sectors of agriculture—dairy, sheep, beef and so on. This issue is linked not only to trade, but to the support policies that will be needed. An extensive beef and sheep farmer perhaps needs the basic farm payment much more than a dairy farmer due to the overall income from that business. That is what we are particularly interested in.

[Neil Parish]

Just to be facetious, Minister, does that mean you are going to re-establish deficiency payments? Do not forget that deficiency payments were coupled with that.

[James Gray (in the Chair)]

Order. Two points. First, interventions must be quite short. Secondly, I am sorry to pull the hon. Gentleman up again, but it is an absolute rule in this place that hon. Members must refer to one another as “the hon. Member”, “him”, “the Minister”, “she” and so on. Hon. Members may not refer to the Minister as “you”, because whenever you use the word “you”, you are referring to me. Please make an absolute habit of using only the third person.

[George Eustice]

I am interested in history, but I am not necessarily interested in implementing all historical policies. To extend the history lesson, there was also a view in the 1960s that we should not have subsidies but we should have tariffs. Obviously, we have moved some way since then.

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[George Eustice]

My hon. Friend makes an important point. In a trade negotiation we are talking about food standards, not just food safety. Some people misleadingly try to divert the debate, but it is about food standards, and issues such as animal welfare and the approach taken to farm husbandry are integral to those standards. We should not be shy about saying so.

A number of hon. Members mentioned IT systems. We—in the European Union—currently use the trade control and expert system, but we are doing a detailed piece of work to build a replacement system, should that be needed, and that work is well advanced. My hon. Friend asks in his Committee’s report for the Government to set out clarity about the future of the agriculture Bill. I am aware that this week the Secretary of State appeared before my hon. Friend’s Committee, where he was given that reassurance. The report also raised the potential impacts of tariffs on food prices. Again, as with the sectoral impacts, the Government are looking at this area, but we are not in a position to publish details. However, I recommend those hon. Members interested to look at work done by, for instance, the Resolution Foundation, which identified the fact that the impact on domestic food prices would be quite marginal, even under a most favoured nation scenario.

We have had a comprehensive debate covering a wide range of issues. I welcome the Committee’s interest and it bringing its report to the House for debate.

[James Gray (in the Chair)]

The question is, That this House has considered the Third Report of the Environment, Food and Rural Affairs Committee, Brexit: Trade in Food, HC 348, and the Government response—

[Neil Parish]

rose—

[James Gray (in the Chair)]

I beg your pardon. Mr Parish can indeed conclude if he wishes. That is quite right.