Agriculture Bill (Ninth sitting)

Kerry McCarthy Excerpts

Tuesday 13th November 2018 Public Bill Committees

Requirement must specify purposes for which information may be processed

[Kerry McCarthy (Bristol East) (Lab)]

I beg to move amendment 113, in clause 14, page 9, line 45, at end insert—

(ia) achieve a reduction in food waste of no less than 50 per cent by 2030, from a 2015 baseline”

This amendment would require the provision of transparent data of food wasted in agri-food supply chains to meet the UN’s Sustainable Development Goal (SDG 12.3) of halving per capita food waste from farm to fork by 2030, against 2015 baselines.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 114, in clause 14, page 10, line 5, at end insert “(including terms of employment and pay for persons within the meaning of section 13(3)(b) or (c))”

Amendment 116, in clause 14, page 10, line 7, at end insert—

“(ca) promoting the welfare of creatures of a kind kept for the production of food, drink, fibres or leathers”

This amendment would ensure there is provision in clause 14 for the processing of data for the promotion of animal welfare.

[Kerry McCarthy]

Amendment 113 revisits the issue of food waste, which we discussed last week. I declare that I am chair of the all-party group on food waste. We submitted a response to the “Health and Harmony” consultation paper, along with organisations involved in food waste campaigning—This is Rubbish and Feedback. I am pleased to see that the Government have made some progress recently, particularly in the food waste reduction road map, but their approach still seems to be based on voluntary action. It is important that we see something more specific that binds the Government to future action.

There are powers in the Bill that could be used to require those in the agri-food supply chain to supply information on waste in the supply chain. The explanatory notes state that clause 14(4)(f)

“allows data to be collected for minimising waste from agri-food supply chains, which may include food waste”.

Mandatory food waste audits are crucial if we are to get any idea of the scale of the food waste problem and who is responsible for where it occurs in the supply chain. We said last week that too often there is a focus on the consumer end, and I am keen to ensure that it is not just the farmers who are blamed for this. Many of the problems are caused by what happens in the middle—the pressures that supermarkets and food manufacturers put on farmers, and the way that products are marketed and sold to consumers .

[Sandy Martin]

We had a debate yesterday about plastic packaging. One of the barriers to the reduction of plastic packaging in supermarkets is that they are very reluctant to let anybody know exactly what is happening. If we are going to reduce food waste, we need to make sure that supermarkets give that information.

[Kerry McCarthy]

That is true. Some supermarkets have been a lot better than others. Tesco has taken quite significant steps in auditing the waste in its supply chain; others have only paid lip service. One of the problems with the way that the Courtauld commitment works is that everyone is bundled in together and they report in aggregate, so we do not know who is making progress and who is not. We are also committed to meeting sustainable development goal 12.3, and I believe we should make that a binding statutory target, which must be done in legislation.

[Mr Goodwill]

Obviously, crop yields vary according to the season and often farmers need to grow plenty to ensure that they can supply their contracts. Would the hon. Lady define stock feed potatoes or carrots used to feed livestock as waste, or would that be exempted from her definition?

[Kerry McCarthy]

Let us be clear: this is a discussion we have had in part about whether, if certain produce is ploughed back into the field, it should count as waste. This is not about pointing the finger at farmers and blaming them for what happens on their farms; it is about trying to ensure that the data is there, so that we can see what processes are needed to reduce avoidable waste. In the food waste hierarchy, the aim is to ensure that any food produced that is fit for human consumption is consumed by humans, and then, working our way down the hierarchy, by livestock, and then used in processes such as anaerobic digestion. At the bottom of the hierarchy is landfill—an absolute no-no, I would say.

Although there is a legal obligation for that food waste hierarchy to be enforced, we know that it is not and there are no consequences if people do not follow it. One of the reasons it is not enforced is that we do not have the data on where food waste is occurring. I say clearly that this is not about blaming farmers for anything; it is about trying to reward farmers for doing the right thing. We need the information to be available.

[Mr Goodwill]

May I press the hon. Lady further? On our farm, we used to grow swedes, which by and large were for livestock, but we would harvest and net up one in 10 or one in 20 for human consumption. It would be hard for any farmer to collect data on her description of food that is fit for human consumption but then finds its way into the animal food chain.

[Kerry McCarthy]

I am trying to get at where the policies of the supermarkets and the buyers lead to food waste on farms. We are talking about when food is produced and supermarkets reject the produce—sometimes on spurious cosmetic grounds, but usually because of poor predictions of when they will need it. Perhaps it is a bad summer and the supermarkets are not selling as many salads or other summertime foods as they otherwise would. That is what we are trying to get to the bottom of.

This is not about farmers choosing to do certain things with their produce; it is about trying to get to the bottom of the unfair relationship. We have the Groceries Code Adjudicator, but although there are measures in the Bill to strengthen that role, they still do not go anywhere near far enough. The Groceries Code Adjudicator has said that she does not believe she needs any more powers, whereas I know that farmers and a significant number of people throughout the supply chain are crying out for that relationship to be made fairer and be more firmly enforced.

[Martin Whitfield (East Lothian) (Lab)]

Is it not the case that the data is not with the farmers, but with the supermarkets through the buyers’ decisions on what they take and what they reject? Surely we cannot expect the farmers to differentiate the uses made of their crops?

[Kerry McCarthy]

Yes, that is entirely the case. This is about the food supply chain. If we are only to look at our food system in relation to farming and treat that as something segregated, we cannot help farmers in the way they need to be helped.

[Mr Dunne]

I am listening carefully to what the hon. Lady is saying; perhaps I could illustrate to her, with a current example from my farm, the difficulty with what I think she is suggesting. We have a potato crop, and the very dry conditions through the summer, followed by some rain in August, have led to a large proportion of the potatoes in unirrigated fields developing what are called “dolly heads”, where there is an extra spurt of growth, and the potato, instead of being a single shape, has a misshapen bit alongside.

To get buyers to accept loads that contain those shapes, we have to send samples off to them. They decide whether to accept or reject them; sometimes, we send the entire load off and it is rejected on sight and sent back to the farm—we cannot anticipate precisely how the supermarket or intermediary will react until they see the load. What is being suggested can lead to extreme complication for the farmer in deciding what should happen to the particular product. What happened to the product is not their fault, but is to do with the climatic conditions.

[Kerry McCarthy]

There is certainly evidence that, whereas under the Groceries Code Adjudicator regime produce should not be rejected because supermarket buyers have just decided they do not actually need what they are contracted to buy, they are increasingly using cosmetic reasons as an excuse, because they are still allowed to reject on cosmetic grounds. A crop of potatoes in one period might be entirely acceptable to the supermarkets because they need those potatoes, but then, on cosmetic grounds, they will reject produce that looks almost identical, because they have got their predictions wrong and do not actually need the potatoes they thought they would. Sometimes this produce is not going to be sold as nicely smooth and rounded baking potatoes packaged up in the supermarket; it will be going into products where the shape does not matter, but the supermarkets have got their predictions and buying calculations wrong and do not actually want it, so they use cosmetic reasons as an excuse.

The memorandum on the delegated powers in the Bill says that clause 20 provides powers for new marketing standards that could be used to

“reduce food waste (for example, by having the flexibility to change any standards that are purely visual)”.

That picks up the contention about EU marketing specifications being responsible for some produce being rejected. As I understand it, the supermarket standards are actually much higher than the EU marketing standards, so the fault does not lie with EU standards; the issue might be supermarkets trying to employ them as an excuse. I think that having more flexibility in relation to marketing standards is unlikely to make a difference, and I hope that the Minister addresses that point.

My key point is this. When we discussed amendment 85, I think, the Minister said we should not make farmers responsible for meeting the food waste target, as most of the time they are not responsible for food waste, and I absolutely agree. That is why the mandatory target should sit in this part of the Bill, where we are talking about the supply chain.

I have said that the Courtauld 2025 commitment is a helpful tool, but it is not ambitious enough. The fact that participation is voluntary means that it will never achieve as much as we would like and will certainly not get us towards the sustainable development goal. However, when Courtauld 2025 was announced, the Waste and Resources Action Programme was meant to be generating a baseline for primary production by the end of 2018. Can the Minister update us on that? My understanding is that it might now be only an estimate rather than a set figure. The fact that there have been funding cuts to WRAP and the industry is still being secretive with its data means that we cannot come up with the baseline that we would like to see.

Finally on amendment 113, I just reiterate the point that we want to see a level playing field. At the moment, 89 businesses have signed up to the food waste reduction roadmap, but that is fewer than half of the top 250 food businesses. Again, the good guys will sign up and get a lot of credit, and then the Government can say, “This is really working. We’ve got companies that are doing their best to reduce food waste.” But what about those companies that have not signed up? I will leave the food waste side of things there.

Amendment 114 is a probing amendment to follow up on a debate that I had a few weeks ago, on international Anti-Slavery Day, about modern slavery and labour exploitation in supermarket supply chains. We know that the sector has a really serious problem with that. The International Labour Organisation estimates that agriculture, if grouped with forestry and fishing, is the sector with the fourth highest proportion of victims of forced labour worldwide. Other sectors, such as apparel—the fashion or clothing industry—seem to be getting to grips with the problem, but the food sector does not appear to be. I mentioned many examples during that debate, so I will not go into detail now, but they ranged from organised crime in the Italian tomato-growing sector to workers in the Thai seafood industry—cases of torture, enslavement and workers being kept at sea and passed from ship to ship for years at a time, with 59% of workers, I think, saying that they had seen the murder of a fellow worker. In this country, we still very much have an issue with gangmasters and poor conditions in the sector.

Oxfam has sent up the Behind the Barcodes scorecard, which rates supermarkets on their transparency, accountability and treatment of workers and farmers. There is also a gender element, because women tend to be more likely to be victims. On that scorecard, Tesco again comes out best—at 23%. It did actually come along to a meeting of the all-party group on human trafficking and modern slavery, which I thought was good. It listened to the clothing industry talk about what it had done, and it seemed keen to do more. So Tesco was on 23%. Morrisons and Lidl are on 5%, and Aldi is on 1%, so we have a discrepancy between the supermarkets trying to do the right thing and others not taking it seriously at all.

[Sandy Martin]

Does my hon. Friend share my frustration that, when supermarkets or anyone else involved in the agri-food supply chain do not want to give information that would enable some of the problems to be dealt with, they can hide behind the cloak of commercial confidentiality? Amendments 114 and 113 would enable the Secretary of State and people engaged in the purposes of the Bill to overcome the commercial confidentiality blanket used by some.

[Kerry McCarthy]

Supply chains can be so opaque and so long. I am very much in favour of shorter supply chains so that we know where the produce comes from. Again, as I mentioned in the debate in the Chamber, when the horsemeat scandal broke and we were discussing lasagne that might contain horsemeat, it was astonishing to discover that it had been on an around-Europe trip to at least a dozen different countries—perhaps more—before it ended up as a finished 99p lasagne in the frozen food section of a supermarket. It is amazing how something so cheap can be produced by going on that journey. Some products have dozens and dozens of ingredients, and it becomes almost impossible to trace the origin of those ingredients. I am all in favour of shorter supply chains and less-processed food.

The key point with both amendments, as my hon. Friend the Member for Stroud said, is that it is all well and good for the Government to put transparency provisions in the Bill, but we would like to know a bit more about how they intend to use them to ensure that we root out not only food waste but labour exploitation in supply chains. The information I was given—in a new briefing from the Independent Anti-Slavery Commissioner and the University of Nottingham—is that only 19% of companies in the agriculture sector abide by the terms of the Modern Slavery Act 2016. It is not enough to say that we already have the legislation when fewer than only one in five adheres to it. We need a wider definition of supply chain liabilities, so that participants in that supply chain cannot feign ignorance or rely on real ignorance. The companies are huge, and they need to know what is going on in their supply chain.

I also want to ask the Minister about the EU’s unfair trading practices directive and how we will seek to replicate that in the UK supply chain. We have been told that the UK supports the broad aim of the directive but that we want to do our own thing. I am interested to know how that will relate to the supply chain provisions in the Bill.

[Dr Drew]

I thank my hon. Friend for this group of amendments, which are important in terms of both food waste and how our food chain operates. This is the Agriculture Bill, rather than a waste Bill, but it is appropriate for us to look to amend and improve it. I strongly concur with what amendment 114 is trying to do. We clearly welcome the reintroduction of an Agricultural Wages Board. We always thought it was a real loss when the coalition Government got rid of it. There are reasons why it is difficult to attract people into the agriculture sector, including the employment limitations caused by that change, so we would always concentrate on reintroducing that body.

--- Later in debate ---

[George Eustice]

We have had an interesting discussion on a range of issues in this collection of amendments. I want to touch on each in turn.

First, I turn to amendment 113 in the name of the hon. Member for Bristol East. The amendment attempts to insert an additional paragraph in clause 14, adding to the list of purposes for which information can be collected, to cover a target for food waste. I think this may be a probing amendment; we had a discussion of a similar nature last week.

Food waste is incredibly important and the Government recognise that, which is why later this year we are going to publish a new waste and resources strategy that will cover the issue. As I explained in a debate on an earlier amendment, WRAP is doing a piece of work at the moment looking at waste in the primary sector. Between 2007 and 2015 we have seen a 19% reduction per capita in the amount of food that is being thrown away that could have been eaten. As the hon. Lady pointed out, the quartal 2025 commitment is a commitment for a further 20% per capita reduction by 2025. There are ambitious targets already set through quartals, and we are working with WRAP, which is a DEFRA-supported agency, to deliver that objective.

In terms of the specific amendment, I draw the hon. Lady’s attention to clause 14(4)(f), which states a purpose as

“minimising waste arising from activities connected with agri-food supply chains.”

My contention would be that we already have a clear purpose stated in the clause, which enables us to collect information. It is about minimising waste arising from activities. I think her amendment is unnecessary because it duplicates what we have already provided for in clause 14(4)(f).

[Kerry McCarthy]

I have given my notes to Hansard now, but I think I am right in saying that the clause I cited says that it could be used for that purpose. I am trying to make sure that it is used for that purpose.

[George Eustice]

It is a point that we have often heard here, about the powers or the duties. We have set out our commitments and our targets, such as through the quartal 2025 and our waste and resources strategy, and we have the power here to do what is necessary to collect data, so that we can minimise risk in the supply chain. It is there, listed with all the other purposes, so I believe that the hon. Lady’s amendment is unnecessary. It is an inappropriate place to introduce a target. We can have a debate about targets and whether there should be targets of this nature in a future environment Bill, for example, or whether we should continue to work with the quartal commitments. As I said, they have already made solid progress. This particular clause is about the collection of information and I do not think it is the appropriate place to set a target in the way that the hon. Lady has outlined.

I turn to amendment 114, also in the hon. Lady’s name. Again, it links to an earlier discussion we had about the Agricultural Wages Board, which was removed. Fairness of employment contracts is an important issue, but it is dealt with in other ways. We have the national living wage, introduced by this Government. It is currently £7.83 per hour for over-25s and in April next year it is due to rise to £8.21 per hour. The regulations are already set out and are enforced by Her Majesty’s Revenue and Customs, which enforces all the national minimum wage legislation. In addition, we have the Gangmasters and Labour Abuse Authority, which deals with some of the practices that I know the hon. Lady is concerned about, such as modern slavery and abuse in the labour market. We have the GLAA already, which has powers to tackle and investigate that issue.

[George Eustice]

The hon. Gentleman has strong views on this. We debated this at an earlier stage of the Committee. Our view is that the Agricultural Wages Board became redundant, first with the introduction of the national minimum wage and then, more importantly, the introduction by this Government of the national living wage, which provides new protections, so the Agricultural Wages Board was no longer required.

[Kerry McCarthy]

I appreciate that there are problems with enforcement of the living wage, such as people trying to get around it by offering accommodation at extortionate rates. The Gangmasters and Labour Abuse Authority—I have looked at the figures for prosecutions—could do more. I am not so concerned about what is happening in this country as about the supply chain. None of the measures the Minister talks about make any difference to rooting out exploitation and modern slavery in the supply chain. We import millions of pounds’-worth of seafood from the Thai sector, which we know is rife with slavery and exploitation. They come into our supermarkets and are sold on our shelves. The legislation the Minister talks about does not help us deal with that, which is why we need transparency, and to put an obligation on the supermarkets and food processors, to know what is going on and who is doing what. If we have cheap food on our shelves it is cheap for a reason, and I think the Government have an obligation to find out why.

[George Eustice]

I understand that point, but there is obviously a limit to what we can deliver internationally. We have international forums through which we argue for such issues to be addressed.

Coming back to this particular clause, which links to another point that the hon. Lady raised about unfair trading practices in the EU dossier currently under discussion, the purpose of this part of the Bill around collection and sharing of data, and this requirement in clause 14 for people to provide information, is linked to unfair trading practices. The purpose of subsection (4)(b) is to promote transparency and fairness around the price of goods, and it is about the terms and conditions that individual purchasers or processors might have for farmers. The purpose is to improve fairness for producers, so that they have better transparency and can make more informed choices about who they sell their goods to.

--- Later in debate ---

[George Eustice]

It is because we have taken quite a large power to require the disclosure of information and we think it is important that we give people clarity and certainty about the purposes for which that will be used. Animal welfare is an incredibly important issue, which is why it is addressed in many other parts of the Bill—not least in clause 1, where it belongs.

To come to the hon. Gentleman’s point, if we were to have, for instance, a scheme requiring labelling on method of production, that could be done under other legislation. We already have the Food Safety Act 1990, for instance, which provides powers regarding labelling of food. There are other powers in other pieces of legislation that would enable labelling to be addressed. We do not believe that it is required in this clause of the Bill.

We have a joint passion about the importance of animal welfare, so I hope I have been able to reassure the hon. Gentleman that it is addressed elsewhere in the Bill, and that it would not be appropriate to include it in this clause, for the reasons I have explained. I hope that, on that basis, he and the hon. Member for Bristol East will withdraw the amendment.

[Kerry McCarthy]

My amendment was a probing one, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 14 ordered to stand part of the Bill.

Clauses 15 and 16 ordered to stand part of the Bill.

Clause 17

Declaration relating to exceptional market conditions

[Dr Drew]

I beg to move amendment 46, in clause 17, page 12, line 35, leave out “may” and insert “must”.

This amendment would require the Secretary of State to make and publish a declaration if the Secretary of State considers that there are exceptional market conditions in accordance with Clause 17.