Oral Answers to Questions

Nicholas Dakin Excerpts

Thursday 5th May 2016 Commons Chamber

[Mr Speaker]

The Minister is a veritable mine of information, is he not? We are deeply obliged to him, as I dare say the constituent of the hon. Member for Corby (Tom Pursglove) will be, to boot.

[Nic Dakin (Scunthorpe) (Lab)]

12. What recent assessment she has made of the potential effect on the agricultural sector of the UK leaving the European Union.

[The Secretary of State for Environment, Food and Rural Affairs (Elizabeth Truss)]

I can tell the hon. Gentleman that 60% of our food and drink exports go to the EU—that is worth £11 billion to our economy. That is vital income for our farmers and fishermen. If we were to leave, exporters would face crippling tariffs when selling their goods to Europe, such as up to 70% for beef products, which would cost £240 million per year.

[Nic Dakin]

I agree with the Secretary of State, the National Farmers Union and the Food and Drink Federation about how vital the EU is to our farming industry. The Secretary of State has given quite a full answer, but would she like to put a figure on what the lost trade would cost our farmers each year if we were to leave the single market?

[Elizabeth Truss]

What we know is that no country that is not a full member of the EU has full access to the agricultural market. Whether it is Norway, Canada or any other of the countries whose models the out campaign have talked about, none of them has full access without quotas or tariffs. I have given the example of beef, with a cost of £240 million a year. The sheep industry would be even harder hit because 40% of all the sheep that we produce here in the UK are exported to the EU.

--- Later in debate ---

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

My hon. Friend makes the important point that the Russian trade embargo has exacerbated the challenges facing the dairy sector and others, such as the pig sector. However, we put in place sanctions against Russia because of its totally unacceptable conduct against Ukraine and its incursions into Ukrainian territory. It is important that we show solidarity with other European countries and do not accept how Russia has behaved towards Ukraine.

[Nic Dakin (Scunthorpe) (Lab)]

T3. We have already heard about the £1.6 billion profits of water companies and their £1.8 billion payout to shareholders. They are rich organisations, and some, to their credit, are already living wage accredited. Does the Secretary of State therefore back Unison’s campaign for the current living wage to be paid throughout the industry?

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rory Stewart)]

We have to tackle such issues directly with Ofwat. As the hon. Gentleman will know, it is extremely important for the industry to ensure that there is a predictable future in which politicians are not micromanaging. We are going through a price review process and dealing closely with Ofwat, but we must ensure that neither I nor the Secretary of State try to micromanage an independent regulator from the Dispatch Box.