No-deal EU Exit: Public Sector Catering

Matthew Pennycook Excerpts

Tuesday 5th March 2019 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to make the winding-up speech for the Opposition with you in the Chair, Mr Hollobone. I congratulate my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) on securing this important debate. As other hon. Friends have said, she does a huge amount of work in this area, not least through her chairpersonship of the all-party parliamentary group on school food. She has done the House a real service by focusing our attention on the likely impact of a no-deal exit from the EU on public sector catering, and on all those who are looked after by public sector institutions. Her warnings were all the more powerful for being delivered with her customary frankness and thoughtfulness.

This is not the first debate in which hon. and right hon. Members have raised concerns about the implications of a no-deal exit from the EU and it is obvious why that is so. An exit from the EU on 29 March or any date thereafter without agreement would be nothing short of a national disaster, affecting every facet of our national life and every region and nation of the UK. It would end, at a stroke, the whole body of legal arrangements we have with the EU, built up over many decades. Its effects would extend far beyond the absence of a trade deal, leaving the UK without rules to govern trade in a range of crucial areas, from financial contract clearing to medicines regulation. It would threaten the complex law enforcement and judicial co-operation arrangements that keep Britain safe. It would almost inevitably result in infrastructure being placed on the Irish border, place untold strain on the Good Friday agreement and Anglo-Irish relations more generally, and exacerbate the political instability in Northern Ireland.

In short, such an exit is the hardest and most chaotic of departures possible. To be honest, no one knows for sure how extensive the negative impact would be, yet among Brexiters, brimming with the misplaced confidence that has defined their approach to this process, the fantasy of a cost-free, no-deal exit lives on.

The most cavalier among the Brexiters dismiss any concerns out of hand as the latest round of “Project Fear” alarmism; others concede that there will be disruption, but insist it would be only temporary and would be outweighed by the new legal freedoms and opportunities arising from being completely outside the EU’s orbit. In debates in the House, they exhort us to have faith that the British people would make the best of it. I have no doubt that they would make the best of it, but why would any Government force the British people to cope with an entirely avoidable act of self-harm, which opinion polling suggests only a minority of the public support?

No Government in their right mind should countenance a no-deal exit from the EU, especially when the other party to the negotiations knows full well that that is an empty threat. The tragedy is that instead of simply announcing that under no circumstances will the UK leave the EU without a deal, this Government have adopted such an outcome as their official plan B, endlessly repeating over many months the mantra that no deal is better than a bad deal. They have spent significant sums of public money trying—I emphasise that word—to ensure they are prepared for it.

The Government have kept alive the possibility of a no-deal exit in spite of the stark conclusions of their internal assessments of the implications. From the no-deal impact assessment summary, which was forced out of the Government two weeks ago, we now have a clearer idea of what a no-deal Brexit would entail in specific sectors and for different regions and nations of the UK. The impact summary makes it absolutely clear that the UK is simply not prepared for a no-deal exit on 29 March, with Departments on track for just over two thirds of the most critical projects. The summary is honest about the fact that in the event of a no-deal exit the UK would be at the mercy of the actions of the European Commission, EU member states and EU businesses. In other words, the Government would not be in control of the situation. The summary admits that there is little evidence that businesses are preparing in earnest for a no-deal scenario, and the readiness of small and medium-size enterprises is particularly low.

The impact summary plainly restates the UK Government’s estimate that, compared with today’s arrangements, the economy would be 6.3% to 9% smaller over a 15-year period, which brings me to the subject of this debate. The summary makes it clear that the anticipated effects of a no-deal scenario across a range of areas would include the UK’s food supply being affected by delays in goods crossing the channel and a likely rise in food prices, and many businesses in the food supply industry are simply unprepared.

Disruption to food supplies and an increase in food prices would affect every single one of us. My hon. Friend the Member for Washington and Sunderland West is absolutely right to draw attention, by way of this debate, to the significant implications of a no-deal exit for people who rely on public sector catering for their meals, especially if the UK exits without a deal on 29 March—a time of year when we import a large proportion of our fresh food from Europe, and in the run-up to the Easter weekend.

My hon. Friend is right to make it clear that we are talking about 10.5 million people potentially affected—hospital patients, care home residents, prisoners and school pupils—of whom I think she said 1.5 million are children who are eligible for free school meals. I want to emphasise concerns about the impact of a no-deal exit from the EU with regard to the cost and availability of meals; the quality, quantity and safety of food available to public sector providers; and the issue of how we ensure that we recruit and retain a workforce to deliver the service. In saying that, I very much echo the comments made by the SNP spokesperson, the hon. Member for Motherwell and Wishaw (Marion Fellows).

I was particularly struck by the revelation that many caterers have been advised by Government to stockpile food, and that one local authority has already spent £1 million on doing so. My hon. Friend the Member for Washington and Sunderland West is right to point out that most schools and hospitals lack the money and the necessary storage space to stockpile food. She set out in painstaking detail how tight the margins are on the meals these institutions supply, and how sensitive they are to price increases. She rightly drew our attention to the fact that the implications of any food disruption, particularly with fresh fruit and vegetables, and an increase in food prices would be especially stark for the 1.5 million children in this country who are eligible for free school meals, and, in a wider sense, for people who rely on the social security system and find themselves in deprivation.

My hon. Friend also raised a series of important points, not least the deficiencies of the Civil Contingencies Act 2004 with regard to food. I will not go over all of them. However, in the light of the concerns she raised, may I press the Minister to set out in detail what specific contingency planning the Government have undertaken, or are currently undertaking, to ensure that public sector caterers can cope with food disruption and/or food price increases? Will he explain precisely what his Department is doing to ensure that public sector institutions of the kind we have discussed do not find themselves in competition with the private sector or private consumers for food essentials in the event of a no-deal exit?

I expect the Minister to ignore the following question, as his colleagues in the Department for Exiting the European Union have done repeatedly in the past week, but it would be fantastic if gave me an answer. Will he tell us whether the Government intend on 13 March to whip against a no-deal exit, should the House once again vote down the deal on the preceding day? It is simply not good enough to dismiss the question on the basis that it is a hypothetical decision on a hypothetical vote. There is a high likelihood that next week we will confront this issue and that of extending article 50, and the country really deserves to know the Government’s intentions on whipping their Members of Parliament on that vote.

There are now only 25 days until 29 March. By my calculation, there are 16 sitting days. Although an extension to the article 50 process is now almost certain, it is not guaranteed. Even if the House votes for an extension on 14 March, we could simply end up facing a much sharper cliff edge if the Government insist only on a short, one-off extension and recklessly continue to run down the clock in the hope that the failed strategy to which they have adhered for the 49 days since 15 January will pay off.

The possibility of a no-deal exit—whether by accident or design—is still very real. On 29 January, a clear majority in the House voted against a no-deal exit by backing the amendment tabled by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) and the right hon. Member for Meriden (Dame Caroline Spelman). I have no doubt that the House will do so again on 13 March if the Government’s deal goes down to a second defeat.

It is time that the Government responded to the will of Parliament and announced that under no circumstances will the UK leave the EU without a deal. To do otherwise risks the Government finding themselves responsible for a disastrous outcome that, as we have heard today, would endanger the health and wellbeing of people who can least afford it.

--- Later in debate ---

[David Rutley]

I look forward to it with glee. I am sure that I will get more of that treatment. We can talk in more detail then, but I hope the hon. Lady understands the reassurances given consistently in various settings in the House.

I will move on to health and social care. The DHSC is confident that its contingency plans for ensuring the seamless supply of products and services after we leave the EU are comprehensive and robust, and that food supply for patients will be protected in a no-deal scenario. The Department is working with food providers and suppliers to understand their contingency planning and mitigation activities. That work covers both social care and NHS providers.

The DHSC is working closely with Public Health England and nutritional specialists to ensure that nutritional standards are maintained in hospitals and care homes. Standard guidelines are being finalised for health and adult social care providers to support the continued provision of a balanced diet, in line with the Government’s “eatwell” guide. The DHSC is also working to ensure that it has the necessary resources and contingencies in place to continue to protect patients and to have uninterrupted supplies of any specialist nutritional products, including infant formula. It is important to note that, because a lot of the focus has been on ensuring the continued supply of vital medicines—or vet meds, for that matter—but we will also protect key nutritional products such as infant formula.

We are working very closely with the Ministry of Housing, Communities and Local Government to ensure that local authorities are able to support vulnerable people such as the elderly and vulnerable families. Hon. Members are probably aware that we are working very actively with local resilience forums. Local authorities need to work with their local resilience forums to plan and prepare for localised incidents, identify potential risks and produce emergency plans to prevent or mitigate the impact of any incident on their local communities. We are doing that at a local level. We meet regularly with key contacts in LRFs to share intelligence on the impacts that a no-deal EU exit would have on local areas. DEFRA and MHCLG have provided advice to LRFs on food supply impacts, to support their preparedness for a no-deal exit, and particularly to consider any impacts on vulnerable groups if they should arise. We are working closely to mitigate issues with vulnerable groups at a local level.

The hon. Member for Washington and Sunderland West was assiduous in mentioning workforce retention, which is vital across Government. We rely very heavily on those citizens in many public services, and in services that are provided in the public sector for the public. I share her concern; we want to continue to make them feel welcome, whatever the scenario might be.

The Government have been clear that we will protect EU citizens’ rights, including in a no-deal scenario. All EU citizens resident in the UK by 29 March will be able to stay. They will have until 31 December 2020 to apply for settled status. We want them to feel welcome and we recognise the contribution they make. DEFRA will continue to work with the Home Office as the future immigration system is fully developed, to ensure that we have a clear strategy for those who work so hard in the food supply chain, often in critical sectors—slaughterhouses, meat processing and vets. It is uppermost in our mind.

As we leave the EU, the Government are committed to securing the best possible deal for Britain that works for farmers, food producers and consumers, and ensures strong public services. Although we do not want or expect a no deal, the Government are taking sensible measures to prepare for all scenarios.

[Matthew Pennycook]

The Minister will know from the no-deal impact assessment summary that one particular concern is that, despite communications from the Government, there is little evidence that businesses are preparing in earnest for a no-deal scenario. Does the Minister have a sense of whether the public catering industry suppliers and providers are responding to the Government’s call to prepare themselves, or whether the industry is lagging behind, as others clearly are?

[David Rutley]

The hon. Gentleman asks a good question. I meet the National Farmers Union, the Food and Drink Federation, UKHospitality and the British Retail Consortium every week to review their concerns and considerations. We have established a good dialogue at a senior level with those trade bodies and their members, but it is fair to say there is still more work required with small and medium-sized enterprises, particularly our smaller and microbusinesses. Some are prepared and some need further information. I hope that he recognises that across Government a far greater weight of activity is being put out to encourage people to find out more about what is going on and to engage in the processes. We are working very hard on that but there is more work to do.

The UK has a high degree of overall food security, and that will remain the case, deal or no deal. As well as DEFRA’s work to support contingency planning by the food industry, and the industry’s proven capability to respond to supply chain disruptions, steps are being taken by my colleagues across other Government Departments. We are all working to ensure the resilience of food supplies in the public sector. Across Government, Departments are putting into place the necessary steps to ensure that patients, school children and others who are reliant on the public sector will be supplied with nutritious, high-quality and safe food in all exit scenarios.