Groceries Code Adjudicator Bill [Lords]

Lindsay Hoyle Excerpts

Tuesday 26th February 2013 Commons Chamber

We must remember that there is a strong international perspective to this issue. ActionAid and Traidcraft have been active and strong supporters of not only the Bill, but its strengthening in this regard. They were seeking a resolution to ensure that retailers trade fairly with overseas producers well before the code was envisaged or indeed delivered. UK supermarkets buy a significant volume of their products from overseas and produce a considerable —[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr George, I am sure that you are not listening to a message while you are in the Chamber. I hope that we do not see a repeat and that your phone is completely switched off.

[Ian Murray]

Thank you, Mr Deputy Speaker.

We know the origins of the code came from the Competition Commission report in 2008; we have already discussed the excessive risks to suppliers, particularly overseas ones. The practices behind that would have had the potential to harm those producers overseas who are the most vulnerable and to be an obstacle to progress on the pay and conditions of, and innovation by, farmers and farm workers in developing countries. UK shoppers rightly enjoy the widest range of choice, via large retailers. The outstanding quality of produce cannot be in doubt, but the Bill has the opportunity to ensure that there is protection for all territories and to make a large contribution to the development of other countries. Amendment 30 asks for the code to be extended to other territories and asks the adjudicator to look at this matter when making recommendations to the OFT.

The subsidiaries issue is also worth exploring, as it shows clearly that the large retailers have different arrangements in place. That has to be taken into account, which is what the amendment seeks to achieve. It would be good to get clarity from the Minister on what the process would be if difficulties were identified with regard to the code in these subsidiaries or other territories. The relationship of the code in the complex matrix of buying and production is from the large retailer to the immediate supplier. As the Bill stands, that means that the large retailer is able to set up subsidiaries to buy apples from X Ltd rather than directly from the supplier.

Amendment 34 stands in my name and that of my hon. Friend the Member for Ogmore (Huw Irranca-Davies), and it goes to the heart of some of the main issues that have been discussed in the House over the past few months. Our amendment calls on the Government to ensure that the GSCOP, which the adjudicator referees, covers the issue of commercial pressures that can be put on suppliers and that drive down quality and safety, creating possible food scandals, such as the recent revelations around horsemeat in beef products.

The amendment would explicitly enable the adjudicator to include in its annual report details of any incidents where it had become aware that commercial pressure had been applied to suppliers to drive down costs, standards and health and safety, resulting in a drop in food standards or authenticity. To answer some of the criticisms that will probably come from the hon. Member for Shipley and his like, I should say that the amendment is directly related to clause 14 and the annual report to the OFT, not necessarily in the sense of the issues arising where someone takes a case to the adjudicator to deal with in terms of the code.

Amendment 35 would require the adjudicator to send its annual report to the Food Standards Agency. That would create an important link between the adjudicator and the FSA in terms of some of the issues related to the horsemeat scandal that we have seen in recent weeks. As has been reported, the UK’s National Beef Association has blamed what it called the “bullying culture” that retail buyers have used for decades for the presence of horsemeat in beef products. Its national director, Chris Mallon, has said the public and retailers were paying the price for

“short-sighted, price-led purchasing tactics”.

He said that buyers had

“adopted a bullying culture aimed exclusively at securing as much farm food as possible, for as little cost as possible, and the result is tortured supply chains that add so much unnecessary cost that short cuts on quality and traceability, and even cheating by some suppliers, was inevitable.”

That quote shows how important it might be to include the amendment in the Bill.

Consumers must have confidence that the food they buy is correctly labelled, legal and safe, but over recent weeks that confidence has been hit hard. Many of the problems in this particular scandal have been outright criminal, and, of course, the criminal courts will deal with those, but Ministers have been slow to act, as has been shown in our debates in this House. The Food Safety Authority of Ireland has been ahead of the UK every step of the way. By having an annual reporting requirement on food safety and hygiene through the adjudicator, some of the issues that have been raised eloquently by the national director of the UK NBA could be dealt with.

The amendment has another link with the Food Standards Agency, as its budget has been cut from £143 million to £132 million. Although we should not get into a debate today about budgets of particular Government agencies or Departments, it would be an important step to say that the adjudicator, in its report to the OFT, could refer some of these cases. That might help to soften the blow caused by the reduction in resources.

--- Later in debate ---

[Huw Irranca-Davies]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am sure that we do not want to continue this debate and that the hon. Gentleman is desperate to get back to the subject of the amendment.

[Huw Irranca-Davies]

Absolutely. I make the point to illustrate how important this amendment is in terms of food safety and provenance. I just want to correct the record. The Minister said that it was one in 20,000, but it is roughly one in 2,000. I repeat to the Minister that the advice given directly to the Government was that there is a possibility of adverse effects—

[Mr Deputy Speaker]

Order. Do not test my patience any more. We can both agree that you are desperate to speak to the amendment and now you are going to go back to it. We do not want to have to bring someone else in just yet, do we?

[Huw Irranca-Davies]

I am happy that I have made the case extensively.

--- Later in debate ---

[Mr Chope]

My hon. Friend anticipates the argument that I am going to put. I was in discussion about whether an amendment referring only to “outside the United Kingdom” would be in order and selectable. On advice—obviously, I am responsible for deciding whether to act on advice—I decided that my new clause was much more likely to be selected if, instead of referring to the United Kingdom, I referred to the European Union. That is because of single market and European Union rules. Obviously, I wanted to ensure as far as possible that my new clause would be selectable, but my hon. Friend makes a good point. He is saying that the whole public debate is about why cannot we buy British—buy UK food and thereby avoid the risk associated—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. May I gently remind Parliamentary Private Secretaries —[Interruption.] Order. A Member is speaking, and unfortunately every time a PPS walks past, it is at eye-level of the camera. The first time it is not too bad, but it is happening constantly. We all want to hear Mr Chope, and I am sure the PPSs would like to hear a little more from him.

[Mr Chope]

The only comfort that I take is that my remarks are evidently creating such confusion on the Front Bench that Ministers need an enormous number of messages sent to them from the Box. I take some consolation from that.

It is incumbent upon the Minister when she replies to explain how the Bill will help UK producers while not giving benefits and privileges to producers from the rest of the European Union, let alone from outside the European Union. I should like to give the Minister the maximum amount of time to respond to the debate.

Amendment 27 seemed to be warmly endorsed from the Opposition Front Bench. I do not understand why the Opposition did not table such an amendment themselves in Committee or on Report. The amendment proposes that the Bill come into force two months after Royal Assent. Then it would be clear on the face of the Bill when it would come into force. If this is such fantastic legislation, why do we not bring it in in the normal way—the whole Bill, two months after Royal Assent? I hope the Minister will respond to those points and particularly to the powerful argument advanced by my hon. Friend the Member for Shipley (Philip Davies) in relation to new clause 2.