Food Prices and Food Poverty

Nia Griffith Excerpts

Monday 23rd January 2012 Commons Chamber

[Mrs Spelman]

The hon. Lady needs to understand the contributory factors. The depreciation of sterling makes imports of food in other currencies stronger than ours more expensive. It is important to read the figures in the context of exchange rates and the other factors that drive up inflation.

The Government are, of course, actively finding ways to help mitigate the rises. But the Government cannot do it all, and they should not pretend that they can. Since the removal of production linked support in 2005, crops and livestock are traded on a global market. It is those markets that dictate food prices. As has been pointed out, the key drivers of domestic retail food price inflation include world agricultural commodity prices.

I hate to have to tell the hon. Member for Wakefield, but if she is to have this brief she needs to learn that the wheat price has not been stable; it has fluctuated in recent years from £60 a tonne to more than £200 a tonne. There are also oil prices and exchange rates. In 2008, although the price of wheat fell in dollar terms, it increased in sterling terms because of the relative weakness of sterling to the dollar. To understand the causes of food price inflation, one has to analyse correctly the underlying drivers.

World commodity prices are the key driver and we are working hard internationally to ensure the better functioning of commodity prices at the global level. That, in turn, will affect food prices at home. The depreciation of sterling has made dollar-denominated commodities more expensive. Furthermore, global weather extremes have caused shortages that drive prices up.

[Nia Griffith (Llanelli) (Lab)]

I assure the Secretary of State that the Opposition fully understand which things Governments can intervene on and which they cannot. What is she doing to help the poorest families in the country to make sure that they get enough food and do not have to rely on food banks? How many food banks would she regard as a measure of success, and what is she aiming to do by the end of her stay in office?

[Mrs Spelman]

The hon. Lady clearly was not listening to what I said about the continuation of the Healthy Start campaign, for example. Of course, in any big society, there is no finite amount of contribution that each of us might make to the more vulnerable; there is no need to put a limit on it.

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[Nia Griffith (Llanelli) (Lab)]

I pay tribute to the excellent work done by my hon. Friend the Member for Ynys Môn (Albert Owen) through his private Member’s Bill, the Grocery Market Ombudsman Bill, which, as many Members will know, had a long history spanning several years. He said—this is the most important thing to remember about the Bill—that it was about fairness to all those involved, whether they were farmers, small producers, local suppliers, suppliers from developing countries, small shops, convenience stores, supermarkets or, most importantly, consumers.

The Bill led to the proposal for a supermarket ombudsman or groceries adjudicator being in all three parties’ manifestos for the 2010 election, but what has happened since then? The hon. Member for South Staffordshire (Gavin Williamson) secured an Adjournment debate on the groceries code adjudicator last April, and in May we had the Department for Business, Innovation and Skills document, “The Government’s policy for a Groceries Code Adjudicator”, but it is now January 2012 and we do not seem to be any further on.

I should like to ask the Secretary of State why we are waiting so long for the Bill and when we are going to see it. Is it going to contain the proper sanctions that we all want to see—sanctions that will actually make a difference and make people change their behaviour? Will the adjudicator be able to carry out proactive investigations? One thing is certain: if, as the hon. Member for South Thanet (Laura Sandys) has explained, we need to increase food production, farmers are not going to be able to do that if they are being squeezed on prices. Many Members have cited the dairy industry as an obvious example. If the price of milk is squeezed, people inevitably go out of business and we produce less, which means we end up importing even such things as milk, which one would think we could produce very easily in our climate.

[Philip Davies]

Here we are being offered again this painless panacea in which everyone benefits from an ombudsman. Will the hon. Lady explain how getting the supermarket to pay more to the supplier and the farmer, fining it more and getting it to pay for the ombudsman will result in reduced costs for the customer? I am absolutely fascinated to hear how that will work.

[Nia Griffith]

This is about fairness. It is about paying a fair price to farmers for what they produce, having a fair price for consumers, and stopping sharp practices. It is about protecting the good businesses—the good guys if you like—and creating a level playing field, which is extremely important.

Let me address what happens to people when they go into supermarkets, particularly when they buy fruit and vegetables. We should not forget that there has been a dramatic drop of 30% in fruit and vegetable purchasing by the poorest families, so that the poorest children now get only 2.7 of the five portions of fruit and veg they should have each day. Is it small wonder that when people go into supermarkets they are quite worried about what will end up on their bill at the till, given that they are absolutely dazed by the displays of fruit and veg and the ways of pricing them? Sometimes they are priced by the item, sometimes by the packet—in fours, eights or tens—and sometimes by weight. For example, there are many varieties of tomato, from cherry tomatoes to beef tomatoes, and there is a range of different pricing mechanisms, which is extremely confusing. There should be a very simple formula that allows us all to compare prices easily, because it is very difficult with loose items such as fruit and veg, which can be packed in so many different ways, to work out exactly what one is being charged. Last September there was a bumper crop because of that fabulous spring we had last April, but did we see prices drop? No. Could we have told if they had dropped? No, because unlike at the petrol pump where we can all see the sign displayed very clearly and can tell when prices go up, one cannot see when prices for fruit and veg go up—it is easy to disguise and to pull a fast one on the consumer. Those issues need to be addressed.

As my hon. Friend the Member for Bolton West (Julie Hilling) has explained, the number of people needing help from food banks is increasing and it is set to increase further. Why? Because some of this Government’s taxation policies are hitting the poorest hardest and squeezing their income. For example, some of the changes being introduced mean that those on low wages who are trying to do the right thing and go out to work are going to find that their tax credits will be cut. They would like to top up with more work hours, but those hours simply are not available. Sometimes that is because supermarkets prefer to have people on low hours; it gives them more flexibility for the Saturday and Sunday shifts that they want worked.

What about the cuts to housing benefit? They are going to leave many families who currently receive the amount they need to pay their rent having to use what should be food money to pay the rent. That is why we will see dramatic drops in the amount that people have to pay for their food. There will also be more and more families relying on food banks. What about the cuts in winter fuel allowance? They will leave some of our pensioners with less money to spend on food.

[Simon Hart]

Does the hon. Lady accept that obesity is increasing, particularly among young people and people from poor backgrounds? Despite the efforts of the previous Government and this Government, that does not show much sign of changing. Does she accept that, in reality, the issue is about a lot more than just the current Government’s tax system? It is much wider and much more complex than she portrays it.

[Nia Griffith]

Obesity may very well be on the increase because unhealthier foods are the only type that some families can afford; they cannot afford the healthier alternatives. That is a real issue. People look at the different pricing mechanisms and go for what can fill them up. That is the type of food that they rely on now. They do not have the luxury of choice.

Let me move on from pricing in supermarkets and our adjudicators Bill to my worry about families who cannot afford something very basic: enough food to eat. That is very serious. It is nothing to be proud of that we need food banks; that is something that we do not want to see. We do not want anybody to have to rely on charity for something that every family should be able to afford. We want proper policies that will put money in the pockets of the people who need to spend it on food. No one in this country—one of the richest countries in the world—should have to look to charity for food. We need to make absolutely certain that the policies put in place deliver fair prices for consumers and farmers, and that the distribution of income levels is fair, so that those who have the least can make the purchases that they need to make to feed their family. It is an absolute disgrace to rely on food banks to do something that everyone should be able to afford to do: feed their family.