Food and Drink: UK Economy

Nigel Mills Excerpts

Wednesday 1st December 2021 Westminster Hall

[John Stevenson]

I am interested to hear what the Minister has to say on that point. How can the Government help our industry both domestically and by creating greater opportunities in the export market? We need to continue to see the success of the industry and exploit the opportunities in both our domestic market, as my hon. Friend the Member for Bury North (James Daly) just said, and in exports.

The development of new products, the competitiveness of the sector and the opportunity to export are vital to our country. However, there is sometimes a feeling that other countries promote this sector far better than we do. I am interested to hear what plans the Minister has to improve that.

The Minister knows that hers is a sponsoring Department for the food and drink sector. Therefore, will the Department with such responsibility challenge in a more constructive way some of the unreasonable pressures that sometimes emerge from the health lobby? As I said, the sector has made great strides on the health issue and does work with Government. Everybody accepts that more needs to be done, but a realistic approach is fundamental.

The supply chain is critical to all industries and the food and drink sector is no different. The appointment of Sir David Lewis as the new supply chain adviser is welcome. I know that the Food and Drink Federation will fully engage with the new supply chain advisory group. It is an outstanding advocate for the industry that works well with Ministers. I am sure the Minister will comment on that in her remarks.

None the less, there are concerns about the supply of food and the inflationary pressures in the supply chain. Those will undoubtedly have an impact on the consumer in due course. That leads on to issues surrounding our trading relationship with the EU. There are concerns about the border controls on exports, but also the very real issue of shortage of appropriate labour. As we know, there is a shortage of HGV drivers, farm workers and factory workers. I can easily give local examples of the firms I have already mentioned and the issues they have with securing employment. We also have pressures in the tourist industry, which compounds the problem in places such as Cumbria.

[Nigel Mills (Amber Valley) (Con)]

I agree with my hon. Friend on this point: the shortage of labour is a real problem for employers in my constituency at this time of year, as they are quite busy in the run-up to Christmas. Does he agree that the industry needs help to increase its productivity and invest in the new machinery that it needs, and that in the short term it probably needs some access to additional labour to help it produce the products that we all want to see in the shops?

[John Stevenson]

I very much agree with my hon. Friend; it is about striking a balance between the two. Clearly, at this moment in time there is a shortage of labour, and the industry needs to secure that labour if at all possible. However, I think the industry itself would accept that driving productivity is equally important, and that through productivity it can quite often end up needing fewer employees while being a much more productive sector. My hon. Friend will know from our visits to factories that the food and drink sector is an incredibly innovative and productive sector overall. It is therefore vital that industry and Government work together, so I would be interested to know what actions the Government are taking on the issues I have already mentioned.

As I have already said, the food and drink sector is a hugely important part of our economy. It employs a large number of people and contributes significantly to our economy, but there is the danger that the Government add more and more cost and regulation, which endangers its success. A small but significant example is the definition of “small and medium-sized enterprise” in the Health and Social Care Bill, which could have a huge impact on UK businesses and give a competitive advantage to foreign competition.