Oral Answers to Questions

James Paice Excerpts

Thursday 5th July 2012 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

13. What steps she is taking to promote agricultural exports.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

In January we published the joint Government-industry action plan, “Driving Export Growth in the Farming, Food and Drink Sector”. Since then we have worked closely with a number of organisations, including the Agricultural and Horticultural Development Board, to promote UK agriculture in a number of target markets, and we are pursuing all opportunities to export fine British food.

[Mr Walker]

May I thank the Secretary of State for supporting the recent Worcestershire day in Parliament, to which all six Worcestershire MPs invited local food and drink producers? Does the ministerial team agree that there are many other producers in the county who could join the legendary Lea and Perrins in becoming known around the world?

[Mr Paice]

My hon. Friend puts his finger on an important point: the value of brands. The Lea and Perrins brand is obviously extremely well known and Britain has a great tradition of good food brands from Worcestershire and elsewhere, so we are taking every opportunity and doing everything we can to support the British food industry to export and build on those excellent brand reputations.

[Stephen Mosley]

My right hon. Friend will be aware that we export more food and drink to Belgium than we do to Brazil, Russia, India, China and Mexico combined. I am aware that he has recently been to China. What action is he taking to encourage more exports to some of these fast-growing, emerging economies?

[Mr Paice]

My hon. Friend is entirely right to use that statistic, which I have used many times. He is also right to say that I recently took a food trade mission to China, representing a number of sectors of the British food industry. The most important result was that we opened up the Chinese market to British pigmeat exports, which the industry believes could be worth some £50 million a year. What is interesting is that the industry would not just be exporting the conventional cuts that we eat in this country, because China has an appetite for other parts of the pig, sometimes called the fifth quarter, which will add value to many pigs, not just those exported as full carcasses. He is absolutely right about there being plenty of other opportunities. In particular, we are targeting the Russian market to complete the process of opening it up for the British beef industry.

[Mr Andrew Turner (Isle of Wight) (Con)]

2. Under what circumstances the Forestry Commission may decline to comment on proposed developments on land for which it is responsible.

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[Stephen Phillips (Sleaford and North Hykeham) (Con)]

4. What steps her Department is taking to support food producers in Lincolnshire.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

The Government are determined, as I have already described, to support British food and farming. Much of our support for businesses in Lincolnshire, including food producers, will be available through the local enterprise partnerships in the county and, of course, through the rural development programme. As I said earlier, the Government will do all that we can to encourage such businesses to export their excellent products.

[Stephen Phillips]

My right hon. Friend will be aware of the application for protected geographical indication status for Lincolnshire sausages. The application has overwhelming public support, particularly in Lincolnshire, but it has recently been rejected by his Department, despite the acceptance of similar applications for Cornish pasties and Melton Mowbray pork pies. There is an appeal, for which new evidence has been submitted. I hope that my right hon. Friend can reassure me and the people of Lincolnshire that our compelling case for the Lincolnshire sausage will now be recognised.

[Mr Paice]

Obviously, I am aware of the disappointment throughout Lincolnshire at the application’s rejection. However, given my hon. and learned Friend’s expertise, I am sure that he knows it was on valid grounds.

First, the sausages have been made outside Lincolnshire for more than 20 years. We found—[Interruption.] This is all on the public record. We found considerable variation in the recipes being used and a large proportion of so-called Lincolnshire sausages are made outside the county. If the appeal brings forward new evidence, that, of course, will be properly taken into account. I will write to my hon. and learned Friend with the final decision.

[Mr Edward Leigh (Gainsborough) (Con)]

Is the Minister aware that Lincolnshire is in revolt on this issue? The last time we rebelled, it was against Henry VIII, who called us his “most brute and beestelie” of counties. This is not good enough. The Minister must support the people of Lincolnshire in this great campaign.

[Mr Paice]

My noble Friend Lord Taylor of Holbeach has assured me, within the Department, of the concern expressed throughout Lincolnshire, but we have to be consistent in our application of the criteria. As I have just described, we felt that the whole application was rather too loose. We have an appeal to consider and if Lincolnshire people come forward with a variation on the application, that will also be considered.

[Julie Hilling (Bolton West) (Lab)]

5. What steps her Department is taking to ensure universal availability of flood insurance.

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[Andrew Griffiths (Burton) (Con)]

6. What steps she is taking to support the dairy industry.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

This week’s announcement of further price cuts for many dairy farmers, especially those who are not aligned to supermarkets, is a heavy blow, especially when global commodity prices seem to be rising again. I will be meeting industry representatives next week to hear their concerns. In the meantime, I remain committed to persuading the industry to develop its own code of practice regarding contracts and, as the House will be aware, the Bill to introduce a groceries code adjudicator is in the other place.

[Andrew Griffiths]

I thank the Minister for that answer, but he will know that the dairy industry is in crisis. Dairy farmers in my constituency faced a 2p cut in June and face a further 2p cut in August. That is unsustainable. Is it not time that he intervened to impose a code of conduct, so that our dairy farmers get a fair price?

[Mr Paice]

I fully understand the anger; it has been expressed to me by many farmers in the past few days. I am as concerned as my hon. Friend. However, as he knows, Ministers cannot and should not set prices. A compulsory code is provided for in the EU dairy package and we have said that we will consult on it. However, that would exclude a number of aspects that could be included in a voluntary code. That is why I still believe that a voluntary code is the better way forward.

[Huw Irranca-Davies (Ogmore) (Lab)]

A year ago, our sympathies went out to the Secretary of State, who said that she was having sleepless nights over the plight of dairy farmers—no one wants to see a Cabinet Minister with bags under her eyes at the Dispatch Box. However, Ministers have slept soundly while milk processors, one after the other, have slashed farm-gate prices to dairy farmers below the cost of production. Will the Government act urgently on the calls from Labour and the National Farmers Union to allow farmers to exit contracts when price changes are made; do more to bring farmers together in producer organisations; and either bang heads together to strengthen the voluntary code and enforce it, or consider regulation of this dysfunctional supply chain? No more sleeping on the job, please.

[Mr Paice]

I think the House will recognise synthetic anger when it sees it.

I am absolutely determined to do everything in the Government’s power to put things right. I have already explained that we want a voluntary code, on which I am more than prepared to bang heads together, and that we will consult on a compulsory code. We have also made it clear that we strongly support the idea of producer organisations, but I have to point out to the hon. Gentleman that the biggest cut announced this week was by a producer organisation.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Dairy farmers in Cumbria and across the country are being exploited appallingly by supermarkets and milk buyers of all kinds. They are now getting an average price per litre of 6p less than the cost of production. I am sure we all welcome the introduction of the groceries code adjudicator, which is real action to tackle the problem in the long term, but will the Minister take immediate action to call in the supermarkets and other buyers and tell them that the current situation is not only morally reprehensible but massively counter-productive? The low cost of milk under the Labour Government saw 50% of dairy farms close.

[Mr Paice]

We have to look at the picture in the round. The reality is that most farmers on aligned supermarket contracts have not had their prices cut. The problem is with supermarkets and the other big retailers that operate in the middle ground, whose processors have continued to invest in new bottling plant and undercut each other for contracts instead of attacking growing markets both overseas and in import substitution.

[Ian Murray (Edinburgh South) (Lab)]

The Gangmasters Licensing Authority is very important to the dairy industry, and the recent ministerial statement on the GLA has given the supermarkets grave concern. Has the Minister had any discussions with the supermarkets about that matter and the potential suspension of the supermarket protocol?

[Mr Paice]

No supermarket has approached my Department with any concerns about the GLA or the changes that I announced a few weeks ago, so frankly, I think the hon. Gentleman is whistling in the wind. If supermarkets have evidence that there are problems, I am happy to listen, but I am not aware of any concerns.

[Graham Evans (Weaver Vale) (Con)]

7. What steps she is taking to ensure rural areas have access to reliable and high-speed broadband.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

DEFRA is working with the Department for Culture, Media and Sport and Broadband Delivery UK to meet our target to have the best superfast broadband in Europe by 2015. The Government’s £530 million rural broadband investment will provide 90% of premises with superfast broadband, and everyone else with standard broadband of at least 2 megabits per second. The Government’s £20 million rural community broadband fund provides grant support to enable communities on that basic 2 megabit speed to increase it for the last 10% of people in hard-to-reach locations.

[Graham Evans]

I am grateful to my right hon. Friend. High-speed internet access is essential for rural areas to take part in a growing digital economy. When will my constituents, and people in greater Cheshire, see reliable high-speed broadband rolled out for them to access?

[Mr Paice]

I can give my hon. Friend some good news. DCMS has approved all the local broadband plans covering north-west England, and Broadband Delivery UK has allocated £3.24 million to the plan for Cheshire. BT and Fujitsu have now signed the delivery framework, and the first projects to use it have commenced procurement. Cheshire’s will be among the group of projects to commence procurement in October.

[Mr Charles Kennedy (Ross, Skye and Lochaber) (LD)]

Given that so much Scottish broadband funding is UK-provided, although the Scottish Government provide the delivery, what follow-through does the Minister’s Department have with Edinburgh once that funding is allocated? From reading the publicity, if not propaganda, north of the border, people would think it was all Scottish Government funding, which it manifestly is not.

[Mr Paice]

As my right hon. Friend suggests, of course not all the funding is from the Scottish Government. As I have just described, the lion’s share is from the UK Government. As he well knows, it is not unusual for such claims to be made in Scotland, and we all have a responsibility to ensure that the Scottish people know the full facts. The £530 million that I mentioned is to roll out superfast broadband to 90% of the population of the whole UK, and as I have said, there are measures to address the other 10%. That is all a UK policy.

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[Alex Cunningham (Stockton North) (Lab)]

10. What recent progress she has made on banning the use of wild animals by travelling circuses.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

My written statement to Parliament on 1 March 2012 confirmed our intent to ban wild animals in travelling circuses on ethical grounds. There are a number of issues to consider in developing the ethical case and the exact nature of the ban. We therefore hope to publish a draft Bill and full legislation as soon as parliamentary time allows. In the meantime, we aim to lay regulations shortly to introduce a new licensing scheme that will protect the welfare of such animals in the interval.

[Alex Cunningham]

In June 2011, the House of Commons unanimously passed a Back-Bench motion calling for all bans to be in place. We do not need to discuss it; we need to get on with a ban. DEFRA Ministers have failed to show any political leadership. They are just messing about, fiddling about. When will the Minister bow to the will of both the House and the public and bring forward the legislation?

[Mr Paice]

I can only repeat what I have just said. We have said we will introduce a ban on ethical grounds. We have also made it clear that we cannot introduce a ban on welfare grounds, because we believe that is legally flawed—

[Alex Cunningham]

Why not?

[Mr Paice]

I have explained several times why not. We believe that such a ban would be wide open to judicial challenge, which we might well lose, hence we are using ethical grounds. That will be done as soon as parliamentary time allows.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

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[Mr Edward Timpson (Crewe and Nantwich) (Con)]

T2. Dairy farmers in my constituency told me at a recent meeting of their continued frustration with the number of duplicated farm inspection visits, which are both costly and time consuming. What progress has the Minister made in addressing that, and will he go further in helping to alleviate some of these unnecessary burdens on our farming industry?

[The Minister of State, Department for Environment, Food and Rural Affairs (Mr James Paice)]

I am happy to say yes, we are determined to reduce the number of unnecessary inspections, and we have committed ourselves to doing so as a result of the farming regulation taskforce. Progress has been made, but I want to go further, and I can assure my hon Friend that, this year and next year, farmers who demonstrate one way or another that they are at low risk will see a significant reduction in the number of inspections.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

T3. Last Friday, I met farmers in my constituency and was shocked to hear about the nature of the milk contracts in the dairy industry that many of them face. I appreciate what the Minister has just said about a voluntary arrangement, but I think he would acknowledge that there is great scepticism about whether it will be enough for colleagues on both sides of the House and farmers themselves. What can he say to reassure me that it will be enough?

[Mr Paice]

We have to be realistic, and I want to be: no code of practice or compulsory contract will solve all the woes of the dairy industry. I believe that a voluntary code is better because the EU legislation on a statutory code restricts what can be in it to only a certain list of headings. A voluntary code would allow a wider range of headings. The stumbling block in negotiations appears—obviously I am not integrally involved, as this is a matter for the industry—to be over the period of notice that a farmer can give to leave a contract, if they do not like a price or other change, and over the period of notice that a processer can give the farmer. That is the point of difference, and the point on which I encourage both sides to find a compromise.

[Mr Edward Leigh (Gainsborough) (Con)]

T4. I was horrified to learn recently that three Departments, which will remain nameless, have actually increased their operating costs over the past two years. Will my right hon. Friend assure me that she has reduced operating costs in her Department?

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[John Mann (Bassetlaw) (Lab)]

The Youth Hostels Association does a brilliant job of getting kids from the cities out into the countryside. Will the Secretary of State look at how her Department can assist the organisation in expanding that vital work?

[Mr Paice]

I assure the hon. Gentleman that DEFRA regards the issue of building bridges between people from our cities and the countryside as extremely important, which is why we are involved with a number of different schemes. I cannot give the hon. Gentleman a direct answer about links with the Youth Hostels Association, but I assure him that I or one of my colleagues will be happy to have a meeting with the YHA.

[Duncan Hames (Chippenham) (LD)]

12. I congratulate the Government on deciding to go ahead with mandatory reporting of carbon emissions for stock exchange listed companies. Can the Secretary of State tell us whether the reporting arrangements she will put in place will provide an open but consistent platform, so that other companies can join it on a voluntary basis, in order to be fairly judged against others on their achievements in this field?

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[Mr Paice]

My hon. Friend puts his finger on a very important thing. I referred earlier to my visit to China, which has a massive market of 1.4 billion people, who are rapidly increasing their dairy consumption. I was disappointed that neither I nor my colleagues could find any British dairy produce on the shelves, yet there was plenty from other European countries. That demonstrates to me that there is great export opportunity. I would very much exhort our processors to target those growing markets.

The hon. Member for Banbury, representing the Church Commissioners, was asked—