Brexit: Trade in Food

John Grogan Excerpts

Thursday 14th June 2018 Westminster Hall

[Neil Parish]

I thank the hon. Lady for her intervention and for the excellent work that she does on the Select Committee. She makes a very good point about geographical indicators. Interestingly enough, when the Secretary of State visited Exmoor and Devon last week, there was talk of giving protected geographical indication status to Exmoor, where we can sell lamb from both sides of the border—from Somerset and from Devon.

All those things are intricately linked to the need for a future food policy, so that people know where their food has come from and so that we can market it better and, hopefully, get a better price for the producer. That money can then be linked back to the landscape. I cannot emphasise enough that the landscape and the food production, especially in certain parts of the country such as big livestock areas and more marginal land, are intricately mixed.

We must also ensure that we have high-quality vegetable production. Where we can produce organic vegetables, we should; where we can produce vegetables with fewer pesticides and fungicides, we should. We must be very positive about a food policy. I am worried that in the recent Command Paper on health and harmony, the only real talk of food production was very much at the high end. The high end of food production is great—from local restaurants, to tourists buying food and to everything linked to the countryside. However, we also need affordable food that the whole population can eat.

At least 90% of our food business goes through our major retailers, and people often buy on price. As we move forward, we have to be assured that our vegetable production not only is of good quality, with high welfare standards, but comes at a price that the average consumer can afford to—and will—pay. Whatever we buy in life, it is a choice, so not only do we want to have good, high standards, but it needs to be affordable.

We have a managed landscape with many natural features, as I said. The onus is on the Government to engage more closely with the industry to provide the food and farming sector with greater clarity. Tit-for-tat tariffs will do more harm than good—just look at the situation in America. The Americans have started putting tariffs on steel and aluminium. That might well help the steel and aluminium industries in America, but it will drive costs up for the industries in America that need to use those products. Food, a commodity and a manufactured product, does not need tariffs on it. In the end, that will only create more costs and could well lead to higher prices to consumers. I do not believe that those tariffs will ever come back to the producer.

It is imperative that we have a farming-focused free trade agreement with Europe. I repeat what has been said day in and day out in this House: two years since the referendum, all sectors—not just the farming sector— need some clarity on the direction in which we are going. People in all lines of business need to make investments, but those in the beef and dairy sectors in particular need to have a long-term view of where the world is going in order to make investments.

[John Grogan (Keighley) (Lab)]

On that point, it is worth mentioning Northern Ireland, which the Select Committee considered. There is a particular need for as much certainty as we can give regarding Northern Ireland, because I think 45% of all sheep produced there go south of the border. We made a specific recommendation on Northern Ireland, as any change in trade arrangements could be more disruptive there than anywhere else in the kingdom.

[Neil Parish]

I thank the hon. Gentleman for that intervention. He is also a very good member of the Committee. He raises a good point regarding the border between Northern Ireland and the Republic of Ireland. The lambs go south and the pigs go north to be processed—and the milk goes round and round in circles, as far as I am aware. A lot of processing goes on across the border. If anywhere in the whole of the United Kingdom is essential, it is that border, for obvious political reasons—reasons of peace and many others. We must get that border right. I am sure it is not lost on the Minister that we need to do more regarding that border.

The various systems we are putting in place are interesting. I am quite happy for the Government to look at having a new system. It does not have to be the single market and the customs union, but we have to ensure that the new system we devise is recognised by the EU, because the Republic of Ireland, obviously, is an EU member state. Those are the great challenges, and I am sure that that is not lost on the Government.

If tariffs were imposed, I believe that consumers would suffer. Tariffs would also make it more difficult for our farmers who produce food to our world-renowned high standards to compete and properly export, inhibiting the building of “Brand Britain”, which is going to be even more important in the future than it has in the past. We will be able strongly to market not only regional produce, but the British product. We have only to go back to horsegate, when horsemeat was being put into burgers because it was a lot cheaper, and look at the food cycle, the provenance of food and the food processing industry, to find that food travels all across Europe. Provenance, branding and the confidence that the world—and those in our own country—has in our products are going to be more important than ever.

As I said, the Government have struggled with their post-Brexit policies. I am hoping that we are seeing some clarity; we have had some interesting votes this week. I believe that will bring forward a clarity, so that we can move forward; the industry needs to have confidence to invest and to address the opportunities and challenges that Brexit will offer. We must go into this with our eyes open.

That is not all. We have dealt with the cross-border situation in Northern Ireland; investing in an IT system to support a more efficient export certification process could minimise delays, and we need to make sure, whether through the Agriculture and Horticulture Development Board, the Food Standards Agency or our veterinary services, that we have the necessary personnel to be able to get the licences up and running quickly, especially if we are going to have a change in the system as we cross the border. It is very important that we move quickly where we are talking about perishable products, which include not only agricultural products but fish.

It is possible to design a bespoke support system that encourages greater productivity and further strengthens our animal welfare standards, which are already among the highest in world. To do that, we need clarification from our Government. It is good to have very high welfare and environmental standards, but the quid pro quo is that the standards of imported products should maintain our high standards, through the free trade arrangement with Europe—which should not be difficult because our standards are currently the same—and free trade arrangements with other countries across the world. Otherwise we will put our producers and farmers out of business.

Our food and drink sector needs a reinforced trade deal. “Brand Britain” must become a national advertisement to the world, showing what an outward-looking, open nation we are. The new farming policy we call for in the Select Committee report is about creating a “Brand Britain” that delivers high-quality food that is affordable for all. British agriculture should be front and centre of all our negotiations, not left to feed from the crumbs under the table.