Oral Answers to Questions

Mark Spencer Excerpts

Thursday 8th September 2022 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

14. What recent assessment he has made of the impact of rising costs on (a) food producers and (b) the cost of food for consumers.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

I draw the attention of the House to my declaration in the Register of Members’ Financial Interests. I also pay tribute to the previous Department for Environment, Food and Rural Affairs team, who did fantastic work supporting UK agriculture, the environment and rural communities.

I can report to the House that Vladimir Putin’s invasion of Ukraine has caused huge ripples around the world in spiking energy and food costs. Food costs rose by 12.7% in this year to July, but the Government have already taken action to support farmers, pulling forward this year’s basic payment scheme payments and making sure that consumers are supported with their energy bills, with a huge package to support people with the cost of living.

[Marion Fellows]

I welcome the Minister to his new place. National Farmers Union of Scotland president Martin Kennedy has urged the new Prime Minister to immediately, on behalf of all food producers and consumers,

“address the brutal ‘here and now’ facing farming and food production whilst delivering an unequivocable commitment to the importance of food security across the UK”.

Given that the Prime Minister was formerly a DEFRA Minister, what funding support is being considered for Scottish and UK food producers, and what plans are there to ensure that affordable food is secured for consumers?

[Mark Spencer]

I hope the hon. Lady will recognise the contribution of UK farmers across generations to keeping the UK and Europe well fed for decades, which will of course continue. The Government are committed to supporting UK farmers through the use of taxpayers’ money, and I am sure that will also continue, but this is a challenge that we take very seriously and she will see that support over the coming months.

[Chris Stephens]

I welcome the Minister to his new role. Will he encourage the large supermarkets to enable community food projects such as Threehills Community Supermarket in Glasgow South West to purchase much-needed top-up supplies in bulk from their depots at as discounted a cost as possible, and can he assure the House that community food projects will be given top priority in his Department?

[Mark Spencer]

The hon. Gentleman is right to draw attention to the fact that retailers will play a huge part in solving the challenges we face, not only in the United Kingdom, but across the whole world, with the price of food going up. The Government continue to engage with those food retailers, and we will support them in any way we can to try to help our consumers. He also highlights community projects, which have a huge part to play in meeting the challenge.

[Caroline Ansell (Eastbourne) (Con)]

Local food partnerships could play an important role in providing resilience and healthy, cost-free produce to the local community. In this time of drought and water restrictions, however, South East Water has not made an explicit exemption for such partnerships, and that will really curtail their activity. Will the Minister join me in calling on the company to revisit its position—in line, I believe, with other water companies?

[Mark Spencer]

Of course those water companies have other responsibilities as well, but the use of water for agricultural food production will be fundamental to our success. My hon. Friend may be aware that there is a debate in Westminster Hall later today on food infrastructure, and she may want to come and contribute to that debate.

[Fay Jones (Brecon and Radnorshire) (Con)]

I warmly welcome the new Farming Minister to his place. I am delighted to see that he has been appointed during Love Lamb Week; he certainly knows his way around a lamb dinner. The sheep farmers in my Brecon and Radnorshire constituency produce world-class food that is good for our health, our environment and the rural economy. Will he take this early opportunity to restate his commitment to the red meat sector, and may I invite him to visit one of the seven livestock markets in my constituency?

[Mark Spencer]

I contemplated denying liking a lamb dinner, but I do not want to start by misleading the House. We recognise the huge contribution that Welsh farmers make not only to lamb production, but to food supplied to our country, and I would be delighted at some point, if my diary allows, to visit Brecon and Radnorshire to see one of those livestock markets.

[Mr Speaker]

I think there will be a lot of nervous lambs in Wales awaiting that visit. Let us come to the shadow Secretary of State, Jim McMahon.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

First, may I welcome the new Secretary of State, the hon. Member for North East Hampshire (Mr Jayawardena), 54and his Ministers to their place? I look forward to a constructive relationship, but it will be a testing relationship, as we work through the catalogue of failures left by his predecessor.

Rocketing food costs have pushed inflation to a 40-year high and, according to the Bank of England, households and food producers are set to face harder pressures yet. Last week, I received a letter from a family bakery who are extremely worried that their energy bills are increasing by 380%, potentially risking the viability of some of their stores. An energy crisis, a food security crisis, a labour crisis and an import cost crisis—how much worse is it going to get for businesses and the 7 million people already in food poverty?

[Mark Spencer]

I thank the hon. Gentleman for his question and look forward to working with the Opposition Front Bench. I would strongly push back at his comments about the previous Secretary of State. The work he did to support rural communities and UK agriculture was fantastic, and we should pay tribute to him for that. Of course, Vladimir’s invasion of Ukraine has caused massive ripples. It is a global challenge, but we are in a position where the UK economy is fit, and that puts us at an advantage compared with some of our competitors around the world. We will be able to intervene to try and assist people. We have already committed to £37 billion of support for consumers, and if the hon. Gentleman waits, he will be able to listen to the Prime Minister at the Dispatch Box later today setting out her plans to support those businesses and people across the country.

[Mr Speaker]

May I welcome the SNP spokesperson, Pete Wishart, to his new position?

[Pete Wishart (Perth and North Perthshire) (SNP)]

Thank you ever so much, Mr Speaker. It feels like business questions. I thought I was getting away from the right hon. Gentleman, but there is seemingly no escape. May I welcome him to his new role and congratulate the new Secretary of State? I know they have a huge inbox—they do not have to seek problems. As we have heard, there are rocketing prices for the rural economy and astronomical price rises for the consumer, and on top of that there is a fertiliser crisis, agflation in the sector and a harvest that remains unpicked because of the lack of seasonal labour. So is this the right time to pick a fight with the EU over the Northern Irish protocol, with the real risk of tariffs being introduced for the sector? Is now not the time to climb down, negotiate properly and get the best possible solution for our farmers, our producers and our consumers?

[Mark Spencer]

I thank the hon. Gentleman for his question; I, too, thought I had escaped him. He will be surprised to know that there is another method available to us, which the SNP does not understand. We do not have to pick a fight with everybody; we can actually talk to people and negotiate, and that is what we are doing with the EU. We are trying to build relationships rather than pick a fight with the whole world.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

2. What recent assessment he has made of the impact of the cost of fertiliser on food producers.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

Fertilisers make up around 9% of input costs into food production. Cost increases may be absorbed at various points within the supply chain, but of course we should recognise that there has been a huge spike because global energy prices are going up. The Government recognise that input costs have increased and are challenging cash flow. That is why we brought forward the direct payments to try to help people with their cash flow, and we will continue to monitor that as we move forward.

[Justin Madders]

Last month my constituents at CF Fertilisers were made redundant. Within days of that happening, the company announced that it was halting CO₂ production at its plant in Billingham. I know that the Minister is new in place, but I warned his predecessors again and again that we could not afford to be in such a vulnerable position and that we should have got the company sold to the many people who are interested in purchasing it. I am so disappointed that we have got to this point, because it was completely avoidable. Will he, on behalf of his Department, apologise to my constituents who have lost their jobs unnecessarily and to everyone in the country who will be paying more for their food as a result of this very short-sighted decision?

[Mark Spencer]

I thank the hon. Gentleman for his question. Of course, we do not want the company to be able to exploit the monopoly position it holds within the marketplace. It has ceased the production of ammonia at the plant, but it will continue to produce ammonium nitrate and nitric acid. The Government continue to engage with the plant to make sure we can secure supplies of fertiliser and other products.

[Mr Speaker]

We now come to the Chair of the Select Committee, Sir Robert Goodwill.

[Sir Robert Goodwill (Scarborough and Whitby) (Con)]

I do not think the situation could be any more serious for farmers in this country, both grain farmers and grass farmers. The UK requires around 2.2 million tonnes of nitrogen fertiliser, and about 1 million tonnes of that came from the Ince plant and the Billingham plant. The Ince plant is shut and the Billingham plant is paused while waiting for deliveries of ammonia in order to switch from North sea gas. In welcoming the Minister to his place on behalf of the Committee, may I ask him to say when the first load of ammonia will arrive at Billingham and when production will commence? There is a real fear that the plant might not start, and then we will really be in serious trouble.

[Mark Spencer]

I thank my right hon. Friend for his question. That is something that we take seriously. We recognise the huge challenge to not only UK agriculture, but other sectors around the country. He will be aware that AdBlue, which many diesel cars up and down the country use, is also dependent on products of a similar nature. We will have to work together as an industry to look at other alternatives. We may have to look back at our ancestors and how agriculture operated in the ’30s and ’40s, with nitrogen-fixing crops and other agriculture methods, to solve some of the challenges that we face.

[Mr Speaker]

We now come to shadow Minister Daniel Zeichner.

[Daniel Zeichner (Cambridge) (Lab)]

I, too, welcome the right hon. Gentleman to his place. I am sure that we will work constructively together, and I look forward to swapping Benches at the earliest opportunity. He knows the effect that high input costs have on farmers, whether that is fuel, fertiliser or labour. I am sure that one of the first questions he put to his civil servants was about the CO₂ impacts of the shutdown of those facilities. Rather than just reassuring us, will he publish the Department’s assessment of the CO₂ consequences of any shutdown at those plants?

[Mark Spencer]

Of course, we recognise the challenge. I have been in post for 12 hours, so I hope that the hon. Gentleman will forgive me if I have not been able to make a full assessment of the position.

[Hon. Members]

Resign!

[Mark Spencer]

It is tempting to resign, to be honest, but I will resist at this moment. We continue to have those conversations. We recognise the size of the challenge. If the hon. Gentleman gives us a small window, we will be able to make a full assessment of where we are at.

[John Nicolson (Ochil and South Perthshire) (SNP)]

3. What recent discussions he has had with Cabinet colleagues on tackling labour shortages in the (a) food and drink sector, (b) agricultural sector, (c) fishing industry and (d) supply chains for those sectors.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

11. What recent steps the Government have taken to help ensure an adequate labour supply for the (a) agricultural and (b) fishing industries in Scotland.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

The Government are working to ensure that UK agriculture and fishing sectors secure the labour that they need. We know that there is a shortage of labour and it is difficult for businesses across the food sector. That is why the Prime Minister committed during the leadership campaign to looking at expanding seasonal worker schemes. The Government have already expanded the number of people in the seasonal worker route to 40,000 for horticulture and poultry in 2022; we have commissioned an independent review into labour shortages in the food supply chain in England; and we launched a £10 million skills and training scheme in August 2022 to support new entrants in the fishing sector.

[John Nicolson]

Ending the freedom of movement has been a catastrophe for constituencies such as Ochil and South Perthshire, with labour shortages in every sector, especially food production. The lack of seasonal workers and the food rotting in the fields are evidence of yet more Brexit chaos. We all must surely agree that food waste is a scandal. Given that the new Prime Minister pledged to expand the seasonal worker scheme if she was elected, when will that be done?

[Mark Spencer]

I think we need to give the Prime Minister longer than 48 hours to deliver on that commitment. The hon. Gentleman would have kept us in the common fisheries policy by remaining in the EU. The country requires an immigration system that benefits the United Kingdom; we should not just have an open door to anybody who wants to come. We need to be able to select the people who will assist the UK economy and make sure that the people who come to the United Kingdom benefit the United Kingdom.

[Martyn Day]

Key sectors are facing acute labour shortages because of a Brexit that Scotland did not vote for. Salmon Scotland has reported very low unemployment and extremely limited labour availability in rural areas, with processing factories 20% light on staff. What steps will the Minister take to ensure that fishing communities and processing sites have the necessary supply of workers?

[Mark Spencer]

I thank the hon. Gentleman for his question. As I set out, the seasonal agricultural worker scheme is a huge opportunity for people to come to the United Kingdom to support the sector, but we need to make sure that we get the right people coming to support our economy. The last thing that we should do is erect a border between Scotland and the rest of the UK—that would be a tragedy for Scotland. I hope he will reflect on trying to take Scotland out of the United Kingdom.

[Helen Whately (Faversham and Mid Kent) (Con)]

I welcome the new Secretary of State and the new farming Minister to their places. The seasonal worker scheme is essential to the fruit sector in my constituency of Faversham and Mid Kent, so can my right hon. Friend assure me that it will be not only extended, but improved—and sooner rather than later—so that British consumers can continue to enjoy British fruit?

[Mark Spencer]

My hon. Friend is a strong advocate for rural businesses in Kent. I hope she will be aware that in December 2021 the seasonal worker visa route was extended to 2024. This visa route allows overseas workers to come to the UK for up to six months each year to harvest edible and ornamental crops. In June, the Government announced that the food strategy will see the release of an extra 10,000 visas for the seasonal worker route, and this is something the Prime Minister committed to in the leadership election. We recognise the challenge, and we will do all we can to provide support.

[Craig Williams (Montgomeryshire) (Con)]

I welcome the new Secretary of State and the Minister to their positions, and I look forward to working with them. A number of those at Montgomeryshire agricultural shows raised the issue of labour shortages, and while it is great to have record levels of unemployment in Montgomeryshire, we need people in our dairy farms, our abattoirs and across our food sector. Can I implore the Minister, if he is indeed enjoying a lamb dinner in Brecon and Radnorshire, to venture up to the other half of Powys and come to the biggest Welsh lamb market in the United Kingdom to talk about these important labour shortages and what we can do?

[Mark Spencer]

I realise what I have started here. Of course, I recognise the contribution that Welsh farmers are making. I think we should celebrate the fact that unemployment is so low, but in sectors such as the one my hon. Friend describes, that does bring its own challenges. We recognise such challenges, which is why we have the seasonal agricultural worker scheme, and we will be continuing to expand that as we negotiate with the Home Office to make sure the scheme works.

--- Later in debate ---

[Alex Cunningham (Stockton North) (Lab)]

5. What steps he is taking to ensure that rivers, inland waterways and the sea can sustain fish stocks and other marine life.

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

The UK’s rivers and seas boast some of the greatest biodiversity and marine life anywhere in the world. The Government have prioritised protecting species, not least by leaving the common fisheries policy that did so much to damage fish stocks. We have also announced plans to reduce the sewage being discharged in our seas and rivers, and we have recently taken action to protect our precious chalk streams against drought.

[Alex Cunningham]

I hope that the Minister is aware of the ecological disaster off the coast of Teesside and North Yorkshire that has had a devastating effect on the fishing industry. Catches are now less than 10% of what they were, and it appears that a large part of our sea is dead or dying. When will Ministers recognise that they cannot rely on the conclusion that an algal bloom was probably the cause of this disaster, order a more comprehensive study into what is happening and come up with solutions to save our sea?

[Mark Spencer]

I pay tribute to the Tees Valley Mayor, Ben Houchen, who has done a lot to highlight the issue. We do have to listen to science and the scientists who have done investigations, and one of their conclusions was that the algal bloom was a huge factor. We continue to talk to bodies in the north, including the Centre for Environment, Fisheries and Aquaculture Science, which is continuing to carry out tests on material from the north-east coast. It is a challenge that we recognise, and we will continue to work with the authorities in that part of the country.

[Mr Louie French (Old Bexley and Sidcup) (Con)]

6. What discussions he has had with Cabinet colleagues on the progress of the Animal Welfare (Kept Animals) Bill.

--- Later in debate ---

[Michael Fabricant (Lichfield) (Con)]

T6. Rob and Sally Mercer, in their farm near Lichfield, each week provide fresh meat, eggs, fruit and vegetables to around 250 families. They run an education project, too, and they have an established charity. I have nominated them for a National Farmers Union community farming hero award, so my challenging question to the Minister is this: does he agree with me that they should get it?

[The Minister of State, Department for Environment, Food and Rural Affairs (Mark Spencer)]

I pay tribute to Rob and Sally. Staffordshire farmers are second only to Nottinghamshire farmers in their delivery for UK food production.

[Mr Speaker]

And the great county of Lancashire.