Oral Answers to Questions
Debate between Neil Parish and Marcus Jones
Mr Jones
I think this is the sixth time that I have answered the hon. Gentleman’s question; his question has been put with a considerable amount of faux rage each time, although it is an important issue. I say to him again that we are absolutely committed to what we said in our manifesto: we will give local authorities greater control over the money they raise. When his Government were in power, they only ever gave local authorities a year’s certainty—a one-year settlement. We have given a four-year settlement, which 97% of councils have taken up. That enables us to have time to bring forward a sensible solution that works for local government, and we will work with local government to deliver that.
Neil Parish (Tiverton and Honiton) (Con)
10. What steps his Department is taking to support the building of high-quality, high-density housing.
Oral Answers to Questions
Debate between Neil Parish and Marcus Jones
Mr Marcus Jones
I can reassure the right hon. Lady by telling her that we have a ministerial working group that covers a multitude of different issues in relation to homelessness, and one of the Ministers around the table is from the Department for Education. I can also tell her that we are looking to change the way in which the temporary accommodation management fee works, which should lead to a far better situation in which local authorities can plan with regard to temporary accommodation to make sure that people are not in such accommodation for so long.
Neil Parish (Tiverton and Honiton) (Con)
Over the years, planning has not taken enough notice of local and regional designs, so will Ministers get planning authorities to concentrate on that? A great garden village is being promoted at Cullompton—it has a water park and everything—which will be a very good design.
Dairy Industry
Debate between Neil Parish and Marcus Jones(12 years, 3 months ago)
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Neil Parish
I thank my hon. Friend for his intervention. I will be talking about processors shortly, but he is absolutely right to make that point. However, we should not forget that processors, especially when there is a fixed price with the supermarkets, are very often the ones that get squeezed, because there is a guaranteed price to the farmer and then the farmers enter into a trade war with their supermarket friends—or enemies—and at the end of the day it is probably the processor that actually pays the price.
We must move more swiftly to make the Groceries Adjudicator Code Bill law, so that supermarkets play by the rules, producers have confidence that their complaints will be taken up and third parties can also raise issues with the buyers. If the supermarkets and other larger retailers are not doing anything wrong, they have nothing whatever to fear from the groceries code adjudicator. However, some supermarkets and other large retailers are less than enthusiastic about the adjudicator, so I feel that there is much to answer for.
It is also very important that third parties, such as unions and trade associations, are able to submit complaints to the groceries code adjudicator on behalf of producers, so that producers are able to benefit from the legal advice and support that those third parties may be able to offer.
All supermarkets can and should do more when it comes to responsible sourcing of all dairy products. The pursuit of ever greater margins, coupled with a short-termist approach to sourcing British dairy products, is jeopardising the future of the British dairy industry. Marks & Spencer, Waitrose, Tesco and Sainsbury’s should be acknowledged for introducing more transparent pricing mechanisms into their milk groups but, as the hon. Member for Dunfermline and West Fife said earlier, they have got to do much more about the cheese market. Retailers that have promised to do more, such as the Co-op, Morrisons, Lidl, Farmfoods, Iceland and Spar, have got to be brought to the table actually to do something, rather than just promising to do something, because let us not forget that all the time they are driving the price of milk down.
The point that I want to make very strongly to everybody here in Westminster Hall today is that consumers already pay enough money for their milk. The problem is that many of the large retailers are taking 16p in profit out of that money. That is where the problem is, and therefore some percentage of that profit needs to go back to the farmer. It is not just a case of farmers breaking even; they need to be able to make a profit to reinvest.
Mr Marcus Jones (Nuneaton) (Con)
On that point of reinvestment and making milk production more efficient, does my hon. Friend think that there has been an absurd situation in recent years whereby the regional development agencies have been distributing Government funding to try to support farmers in that regard, but in my constituency farmers on one side of the A5 have been unable to access that funding whereas on the other side of the A5, and under a different RDA, farmers have been able to access it? Does he agree that we need to have a more transparent system, a more level playing field and a sensible amount of funding from Government to try to help our farmers to become more efficient?
Neil Parish
Yes. My hon. Friend raises an interesting issue. It is not only a question of RDAs and which side of the A5 they are on; it is also a question of which side of the border people are on, because there are probably different policies in Wales and Scotland too. At the end of the day, all these things distort the market and we should not distort the market with public money. We need a level playing field, so that farmers can compete very well together.
I want to ask the Minister for an update on the milk package proposals, particularly on the establishment of producer organisations that will be able jointly to negotiate contracts, collaborate over price and adapt the production of their members to market demands. I hope that the farmer-owned co-operatives will be able to work more together to drive the price up, rather than compete with each other, which sometimes drives the price down in the liquid market.
It is also vital that farmers are given more bargaining power. Today, 87% of milk comes from just five companies, resulting in an effective monopoly in some regions.