Food Prices and Food Poverty

Julie Hilling Excerpts

Monday 23rd January 2012 Commons Chamber

[The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)]

Let me start by welcoming the opportunity to debate this important matter. World food prices are volatile and the Government should do all they can to help families, but if we are to have a grown-up debate we need to start by acknowledging what the Government can and cannot do. Contrary to the rather Dickensian impression the hon. Lady seeks to convey, food price increases are not a direct result of the Government’s political composition, and a Government cannot be held responsible for what the hon. Member for Bridgend (Mrs Moon) cited: the abandonment of families by the main breadwinner, the misfortune of a house fire or domestic violence perpetrated in the home. Food prices are the product of many complicated and interrelated factors, many of which are globally driven.

In order to have a fully informed debate, I will turn first to the specific issue of the groceries code adjudicator, which this Government, unlike the previous one, are introducing, and put the current situation in context. No one underestimates the difficulties families face in balancing household budgets when bills are high. As a veteran of the weekly shop, I see at first hand the impact of food price rises, as I am sure many of us do. Let us set the record straight. Last summer food price inflation overtook general inflation, but by November the reverse was true. In the coalition Government’s first year in office, food prices increased by less than the average annual increase in Labour’s last five years. Between 2007 and 2008 food prices rose twice as fast as they did between 2010 and 2011. Although the hon. Member for Wakefield (Mary Creagh) has a new-found interest in food prices, which is to be welcomed, it comes a little late.

[Julie Hilling (Bolton West) (Lab)]

The right hon. Lady says that food prices are not rising as fast as they had been, but does she acknowledge that wages have not gone up over that period, which means that people are suffering huge food poverty?

[Mrs Spelman]

I am challenging the hon. Member for Wakefield to consider the fact that during her party’s 13 years in power, which saw steep rises in food prices, it introduced neither a groceries code adjudicator nor the other measures called for in the motion. Despite claiming today that the adjudicator would be some sort of panacea, the hon. Lady seems to feel that doing nothing about this for 13 years is a credible basis on which to criticise us for not having completed the process in just over 18 months.

--- Later in debate ---

[Mrs Spelman]

That is a shame, Madam Deputy Speaker, because there is a long list of things relevant to household budgets; there was a wider definition of that earlier. Freezing council tax is but one example of what frees up the budget to buy more food.

Last year, the Government’s Foresight report on the future of food and farming concluded that Governments across the world must take action now to ensure that a rising global population can be fed. It is a chilling fact that in only 13 years there will be 1 billion more mouths to feed on this planet. Increasing demand for water, land and energy means that food security is one of the world’s greatest challenges. The report identified five challenges for all nations to act on: balancing future demand and supply; ensuring that there is adequate food price stability and protecting the most vulnerable from volatility; achieving global access to food and ending hunger; managing the contribution of the food system to mitigating climate change; and maintaining biodiversity in our ecosystems. To take on those challenges, we need international reform. To address global food security, we need an increase in agricultural productivity, which means a move away from subsidy. To address the risk of climate instability disrupting production patterns, we must have open world trading systems.

In June last year, G20 Agriculture Ministers met and agreed to the creation of an agricultural market information system, which aims to stabilise food price volatility through better transparency in the marketplace. In November, I attended the climate change conference and helped the South African Agriculture Minister to get agriculture included in the work stream for the next climate change convention. We are now preparing for Rio plus 20, where we will push for international policies to help the most vulnerable in our society. We will lobby for the sustainable intensification of agriculture, climate-smart agriculture and the reduction of post-harvest losses. The Afghan Minister whom I met in Berlin this weekend at green week said that the reduction of harvest losses would make one of the greatest contributions to combating famine.

The challenges present an opportunity for the UK, and we need to be the first out of the blocks and embrace it. British food producers must make the most of international markets. That is why I have announced that I will publish an action plan at the end of the month to help export the best of British food and drink across the world. It is through global trade that the UK can secure its future food supply and help keep food prices down. We already contribute to global food supply. We provide 2% of global wheat exports, 4% of global barley exports and 1% of global cereal exports. That demonstrates that the UK has a major role in food production. By expanding production and exports, we can contribute to the overall economic recovery.

The food and farming industry is a high performer with great potential. The food chain contributes £88 billion per annum to the economy, which is 7% of GDP. It is responsible for 3.7 million jobs. The Government are acting across the food chain to stimulate growth, facilitate international trade and drive fair competition, because a thriving and competitive economy, where our products are freely traded on an international market, will deliver resilient, stable and affordable food supplies to our consumers.

The Government are working with industry and environmental partners to see how we can reconcile our goals of improving environmental protection and increasing food production. I am grateful to the hon. Member for Wakefield for welcoming the green food project. The Government are spending £400 million on food and farming research, which addresses productivity, environmental performance and resilience along the food chain.

Nobody is under any illusion about the pressures that high food prices put on all our constituents. However, it would be wrong to pretend that there is a “silver bullet” solution when there is not.

[Julie Hilling]

I have not heard in the Secretary of State’s contribution any mention of what she will do for the most vulnerable in this country, who are dependent on a hugely increased number of food banks. What will she do to feed those families who cannot feed themselves?

--- Later in debate ---

[Robert Flello (Stoke-on-Trent South) (Lab)]

Listening to the Secretary of State’s final comments, I thought for a moment that I had stumbled into some sort of parallel universe, because I did not recognise any of her claims about what the Government are doing. She talked about the freeze in council tax. First, some of the families we are talking about are so poor that they do not pay council tax. Secondly, in Stoke-on-Trent, as in other areas, the council has been so hammered by the cuts in support from national Government to local government that it cannot accept the bribe of a 2% freeze and will have to make increases to try to get back some of the money that has been ripped away from it.

I welcome this debate because it provides the other side of the “heat or eat” coin. We recently discussed in this House the situation whereby people have to make the choice between heating their home and having food to eat. Sadly, many people do not have that choice because they cannot afford to heat their homes or to eat properly. Many families cannot afford to put proper food in their stomachs, let alone heat their homes.

The problem is going to get worse. To be fair to the Secretary of State, she touched on this area, to a small extent. Back in the 1960s, ’70s and ’80s, we had cheap oil and we encouraged farmers, not only in this country but globally, to turn that oil into food by using machinery—whether milking pumps, tractors or heated greenhouses—to produce more food. The UK imports a huge amount of food—even things that we grow well in this country, such as tomatoes. We seem to have a fascination with buying imported tomatoes even during our tomato season. On imported foodstuffs, we bring into this country a large amount of soy to feed our cattle because of the ever-increasing demand for more milk production. As a result, oil prices are rising and will continue to rise further. As the years go by, the built-in link between the price of oil and the price of food means that the food prices that we have been used to will continue to increase as the price of oil goes up.

We need to wean our farmers off oil. Back in the ’70s, companies decided to produce ever-better strains of seeds. That was linked to the oil industry, because in order to grow those better strains, the farmers needed fertilisers linked to oil. As the weeks, months and years stretch out ahead of us, if we cannot reduce the constant link with oil, we will face an inexorable increase in the cost of food. We need to act now, and the Government need to act now, to start to break that cycle.

Food banks such as that at St Clare’s, Meir Park, in my constituency are doing fantastic work and helping the vulnerable in our society, and they have started only in the past year. In the 13 years of the Labour Government, for which the Secretary of State tried to berate us, they were not needed. I would like to see a country in which there were no food banks, of course—everybody would—but while we have the need for them, we must have them.

[Julie Hilling]

Is my hon. Friend aware that the Trussell Trust estimates that 60,000 people got food from food banks last year, and that 100,000 will this year? It estimates that by 2015, half a million people will depend on them.

[Robert Flello]

Absolutely, my hon. Friend is correct: that is the scale of the problem we face. By 2014-15 half a million people will be looking to food banks, so how many people will by 2020, and how many by 2025, if action is not taken soon?

People do not want to go to food banks. They do not think on a Saturday afternoon, “Oh, I know, let’s pop to the food bank.” They do it because they have no other choice. They are people with pride and self-esteem, but they think, “Well, hang on, it’s that or starve.” What a contradiction it is that at the same time we are throwing away 7.2 million tonnes of food every year. It is unbelievable that we are wasting food on such a level. It is appalling, and a national disgrace.

Why is that happening? The hon. Member for Shipley (Philip Davies) rallied to the defence of the supermarket industry. I will make further points about that industry in a moment, but when it has food promotions such as two for one or three for one, it causes problems for families at the poorest end of the scale, who do not have a freezer and cannot store so much food. However, most of the problem comes from people such as—dare I say it?—us in the House. Mea culpa: at the end of Christmas and its excesses, we look at our own fridge or freezer and see that it is still full of food that was not needed. That food ends up going in the bin, at the same time as people—[Interruption.] Well, actually, I do not throw food away, but there are people who do.