Manufacturing (East Midlands)

Debate between Mark Spencer and Chris Heaton-Harris

Tuesday 12th February 2013 Westminster Hall

[Chris Heaton-Harris (Daventry) (Con)]

If he has a mid-life crisis.

[Mr Spencer]

I am sure the Minister is more than comfortable with his own life, but should any Member decide to purchase a sports car, I highly recommend one manufactured in the constituency of Sherwood.

Next door is a company called Jonam Composites, which is at the other extreme. It manufactures high-tech composite bicycle spokes that have the same tensile strength as steel but are much lighter. That is a real indication of the progress we have made in manufacturing in Nottinghamshire and the east midlands. We are going in a high-technology direction. We are at the cutting edge of what is possible in manufacturing. As a country we must acknowledge that we will probably not become the great shipbuilders of the world that we were, but there are lots of opportunities to be right at the cutting edge, as we always have been. We were at the cutting edge of the industrial revolution, and we can remain there by looking to new technologies and using our skills, so that we can once again trade with the rest of the world and ensure that we are at the right place.

One area we often overlook is food and drink. Again, Nottinghamshire has a great tradition of producing food and drink with companies such as Home Ales and Mansfield brewery, which sadly have been bought up and gone to other parts of the country. Food manufacturing makes an enormous contribution not only to the east midlands but to the UK as a whole. Mr Hollobone, I know your constituency has an interest with companies such as Weetabix.

Smaller manufacturers have been mentioned. Every butcher in my constituency adds value to their product. They produce their own burgers, pasties and pork pies. Given the issue that is right at the top of this week’s political agenda, anyone who wants a top-quality burger or pork pie and wants to know exactly what has gone into it can buy one from their local butcher. [Interruption.] The hon. Member for Leicester South (Jonathan Ashworth) tempts me to mention farm shops, but I would have to declare an interest if I did. By going down the chain to smaller manufacturers, people can get the high-quality products that consumers are keen to purchase.

However, we can do more. The east midlands is ideally placed. We hear a lot about our country’s north-south divide, but the east midlands are smack bang in the middle. Geographically, we are ideally positioned to trade with the rest of the country. We have great connections with the A1 and M1, fairly good railway links, the possibility of High Speed 2, and East Midlands airport and Robin Hood airport. We have lots of good communication links and the ability to get products in and out.

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[Mr Spencer]

I agree, and it is important that we as a Government address those concerns, but the hon. Gentleman will recognise how difficult it is to strike a balance between energy prices to consumers and to industry. It could be argued that logically, the more energy one buys the more cheaply one should get it; that would have a knock-on effect on our consumers and constituents. It is difficult to strike that balance and ensure that energy-consuming industries get a reasonable price, as well as our constituents who are struggling to pay their energy bills.

It comes down to energy security as well as price. Within the east midlands, the Trent valley provides a lot of electricity generation, so at least we are not far away from a power station, but we need to do more. The Government particularly need to consider carbon leakage. Energy-intensive industries are under pressure and looking to relocate elsewhere in the world. We talk about reducing the carbon footprint of industry and manufacturing, but it would be wrong to push out industries to other parts of the world where energy is probably bought from higher-carbon sources than in the UK, and then to import the goods. We should be aware of that.

[Chris Heaton-Harris]

I congratulate my hon. Friend on securing this debate. On the point about energy, we are now in the midst of global competition on a scale never seen before, and it is a threat to UK manufacturing. In the US, gas has fallen to one sixth of the price of four or five years ago, while our energy prices continue to rise, partly because of the contribution made to bills by wind energy. It is causing great concern in businesses such as Tata and Cummins, in my constituency. Does he have any views on that?

[Mr Spencer]

I recognise those challenges. Energy supply will be vital if we are to see our way through and ensure a thriving manufacturing sector. The Government need to address it and are addressing it. We must ensure that we have energy security as we move forward.

Food Prices (Planning Policy)

Debate between Mark Spencer and Chris Heaton-Harris

Wednesday 17th October 2012 Westminster Hall

[Chris Heaton-Harris (Daventry) (Con)]

It is a pleasure to serve under your chairmanship again, Mr Streeter. I congratulate my hon. Friend the Member for Sherwood (Mr Spencer) on securing this timely debate. As anybody who has canvassed recently will know, cost of living is the big issue on the doorstep. Whether it involves fuel prices or food prices, someone at every door has a view and a proper concern about the direction of travel of the cost of living.

Unlike everybody else, I cannot declare an interest. I used to have one; that is as good as I can get. In a former life—when I had a proper job, as my mum would say—I used to wholesale fruit and veg for a living in New Covent Garden market. I worked nights for 11 years and dealt with farmers daily. They were a joy and a pleasure. Never could there be a nicer group of people to do business with. At the other end of the equation, because it was a pure market—supply, demand and information—I dealt with buyers from very big companies as well as high-street grocers. I know how the demands of ordinary punters can change the market for farmers. They can grow one type of lettuce one year and lose a ton of money, and then grow a different type of lettuce the next year and make a ton of money. I understand the supply and demand issues of food, or at least I did when I worked in the business.

The Minister will be pleased to know that the business was set up by four Lincolnshire farmers in the late 1970s, and thrived through the days of the supermarket boom. The four farmers who helped set up that family business all diversified; in fact, in my lifetime, I have never known a farmer not to diversify. One went into transport. Two went into building things: one built homes, the other built offices that he rented out to local businesses. One ended up building a karting track, and people now hurtle on go-karts around fields that used to produce good-quality cauliflowers. It is difficult to find a farmer who has not diversified due to the market over the past three or four decades. Although food prices are now high, that cannot be said of food prices in our short-term history, which is why we started subsidising farming in the first place. We needed food, but there was not enough return on the goods being produced, so the Government started to subsidise it so that we would have enough.

Anyone considering a planning policy to encourage the production of good-quality food on a large enough scale to feed the nation would not start from where we are now, and I do not think we should try. We should support farmers a bit, but our planning policy should be much broader than simply worrying about food production. We live in a world market. If we want to encourage farmers in Africa to trade themselves out of poverty, they need a market to supply. I am not overly concerned about some of the issues raised, but we should paint the picture in historical terms.

[Mr Spencer]

I am grateful to my hon. Friend for giving way; I am conscious that I have had more than my say. Does he recognise that although the market will flow when there is enough product, the product may cease? For example, on the wheat market, Russia basically said a year ago, “That’s it, we’re not going to export another grain of wheat.” It does not matter how much money we have; we cannot buy something that is not for sale. That is when there starts to be an impact on the UK.

[Chris Heaton-Harris]

I completely recognise that, but we still produce a decent amount of wheat. Five years ago, lots of the farmers who grow wheat were diversifying into an energy crop, miscanthus. There was simply not enough value in the market for them, so they decided there would be better value in growing miscanthus, which is pelleted for biofuels, trucked up to Drax and chucked into the coal-fired plant up there. Again, the market responded. Now fewer people in the United Kingdom are growing miscanthus, or seeking to grow it, than five years ago, because the market price of wheat is rising, not exponentially but rapidly, and there seems to be no basis for it to fall. However, that is not necessarily a planning policy issue; it is a different policy issue affecting the use of land. Ultimately, it is an energy subsidy, which is different.

As far as the Minister is concerned, though, we have a dilemma. We are an island nation with roads, homes and businesses, and we need to supply energy and food for them, but we have traditionally had a broad-based food production economy. We were very good at providing for ourselves until 30 or 40 years ago. The Minister must consider his portfolio in the broadest possible sense. There are legitimate concerns about food security, which have been mentioned by my hon. Friend the Member for Suffolk Coastal (Dr Coffey). People worry, properly, that if foreign supply of a particular good dries up, we will be priced out of the market, but we are fortunate in being a relatively rich western country, and we will almost always be able to buy the goods that we require. However, that diverts goods away from developing countries. There is a concern, but I am not convinced that it is the concern highlighted at the start of the debate.

The Minister must consider some areas that are within his remit. It is significant that one part of his Department incentivises farmers not to produce food through a policy enabling renewable energy production that is way more financially beneficial to farmers than the hard graft that goes into producing a decent arable or livestock crop annually. In my last couple of minutes, I want to bang on about something that I regularly bang on about, namely the delights of onshore wind energy, how it fits within the Minister’s portfolio and how it directly affects food prices, as my hon. Friend the Member for Sherwood said. Any farmer who has not considered diversifying into renewable energy is slightly mad. The gains from doing so are phenomenal. Even the £1 million investment for a small 325-MW turbine, which is about 40 m high, might well be paid back in three or three and a half years, and subsidy is guaranteed for 25 years. A farmer who wants to put their kids through school and ensure that they can go to university will find a field—they do not care which one it is—and stick turbines on it.

The Minister will know because numerous local planning authorities have written to him—including at least one that I represent—as well as from his own experience of policy in Lincolnshire that local planning authorities are hugely concerned. They feel slightly under the cosh having to allow turbines and other renewable energy projects even when they know that the projects are not suitable for the land, whether for food production reasons or because of their proximity to dwellings. Will he help planning authorities around the country by advising us, them and the Planning Inspectorate how he intends to deal with the conundrum of super-subsidised energy production replacing less subsidised food production in areas where few people want it? Even where the parish council, local residents, the district council and maybe the local MP and MEP all object for good, solid planning reasons, a decision can be foisted on them, even though the energy production unit might be close to dwellings and so on.

Finally, I want to tell the Minister that the Planning Inspectorate that he directly controls, even though it is an arm’s length body with delegated powers, needs direction on this issue, which is causing great upset across the countryside. There is only one man who is made for the job of sorting it out, and I would like to think that it is my hon. Friend the Member for Grantham and Stamford (Nick Boles)—the Minister himself.