Trade (Australia and New Zealand) Bill

Richard Foord Excerpts

Report stage
Monday 12th December 2022 Commons Chamber

[Richard Thomson]

I thank my hon. Friend for that. It is quite clear that the objective was to get chalk on the board rather than to get any trade deal in place that might actually improve on or even equal or replicate that which was there. The thing is, the Government did not need to travel far to get the feedback that this was not a good deal. Scottish sheep and beef farmers could have told them that it was not a good deal; indeed, they tried to do so from the outset. They knew fine well that these deals would undercut UK farmers while delivering next to no benefits for the agrifood sector at large. It was clearly far more important for the then Prime Minister to be seen to be getting Brexit done and forging on with deals—whether they were any good or not—than to secure positive outcomes for consumers and producers in this country.

As there is clearly nothing quite so liberating as the loss of ministerial office, there is evidently nothing quite so constraining as the gaining of ministerial office. While I am glad to congratulate my constituency neighbour, the Under-Secretary of State for International Trade, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), on his elevation to his new post—this is the first chance we have had for exchanges across the Floor since he took that role—I will take him back to comments he made on the BBC’s “Debate Night” programme in March 2021. I am sure that he is already pulling that out of the memory banks. In response to a question from the audience, he said that young people are not reaping the benefits of Brexit. Surely that is a candidate for understatement of the year. I think we can now add the Scottish food, drink and agrifood sector to that, for whom there are absolutely no benefits.

[Richard Foord (Tiverton and Honiton) (LD)]

Will the hon. Member give way?

[John Spellar]

Will the hon. Gentleman give way?

[Richard Thomson]

I am spoilt for choice. I think I heard the hon. Member for Tiverton and Honiton (Richard Foord) first. I will then come to the right hon. Member for Warley (John Spellar).

[Richard Foord]

I thank the hon. Member for giving way. Mary Quicke from my part of Devon has become an export mentor, but she has indicated that exporting cheese to the Indo-Pacific is becoming more difficult. She said that

“we’ve had cheese that’s taken four weeks to leave here, with a vet’s certificate to Japan and then it sits at customs at Tokyo for three weeks.”

Given that it is now more difficult for cheese sellers to sell to the UK’s biggest market in the EU, does he agree that that is a disgrace?

[Richard Thomson]

Absolutely. As I was listening to the hon. Gentleman’s intervention, I was working out what my punchline was going to be, and I see that he already had it there. It certainly is a disgrace that those barriers have been put in place to hinder the exports of what I am sure is fine produce indeed.

Tourism Industry: Devon and Cornwall

Richard Foord Excerpts

Wednesday 23rd November 2022 Westminster Hall

[Kevin Foster (Torbay) (Con)]

I beg to move,

That this House has considered the tourism industry in Devon and Cornwall.

It is a particular pleasure to serve under your chairmanship, Sir Gary.

Why this debate? Although our two counties might be bitterly divided over how to best eat a scone—our friends across the Tamar do not recognise that cream first is the only way to do it—we are united in a shared interest in seeing our tourism sectors thrive. After all, Devon and Cornwall are the most popular destinations for domestic tourism. That means tourism is a key employer for our two counties, representing 10% of all employment in Devon and 20% in Cornwall, with many jobs in other sectors relying on the trade created by providing services to that vital sector.

The scale of the visitor-related spend should not be underestimated; across the wider south-west peninsula, it was an estimated total of £7.3 billion in 2019. It is not only visitors from across the UK who make a big impact on Devon and Cornwall’s tourism sector. International travel contributed £2.5 billion to the south-west’s regional economy in gross value added, equivalent to 3.8% of total gross value added in the area. Given those numbers, it is encouraging to note that international travel in the south-west region is forecast to grow 15% by 2027 compared with 2019 levels.

Such debates often just list the problems, so I should mention the positives before I turn to the challenges. Today is not about asking for a Government subsidy for a failing business or an industry that has not adapted to changing markets and consumer choices. It is about how we can take forward a positive future for the tourism industry in our two counties and not lose it to some short-term challenges. For example, Torbay is seeing a level of private investment in building large new hotels that has not been seen for decades. Last year, a large new hotel opened on Torquay’s harbourside. Large new purpose-built hotels will shortly open on Paignton’s esplanade, the first to be built there since the modern borough of Torbay was formed in the late 1960s.

Other large hotel projects are either planned or already under construction, with the Fragrance Group alone investing approximately £140 million in Torbay—a real vote of confidence in our bay’s future. We are also seeing new businesses opening on our harboursides to serve customers looking for both traditional and more contemporary dining experiences, plus our attractions are innovating to attract new customers and respond to the challenges of the last two years, driven by the pandemic along with changing demand such as for online ticketing.

Tourism businesses can also have wider social impacts beyond the employment and business activity they create. For example, the Wild Planet Trust, which runs Paignton’s and Newquay’s zoos, is dedicated to helping halt species decline. Zoos that in decades past were simply attractions where, for a fee, we could see exotic animals or plants collected from the wild are now places that aim to inspire their visitors to think globally and ecologically while using the revenues generated to provide a vital safety net from extinction for many endangered species as well as, we hope, the reintroduction of some that have been lost to war, hunting or destruction of habitats globally. Similarly, Torbay’s status as a UNESCO geopark not only helps attract those who wish to have a holiday in a unique space but provides a superb location for the study of its detailed geology, with accommodation and services provided by our tourism sector to support it.

It would be odd not to at least briefly mention Torbay’s famous queen of crime writing, Dame Agatha Christie, whose legacy across south Devon still sees many sites visited by her fans to see the locations that inspired her, including the Paignton Picture House, one of Europe’s most historic cinema buildings, which, after a generation lying derelict, is now being revitalised by a combination of the passionate team at the Paignton Picture House Trust and about £4 million of support from the Government.

All that positivity must be seen against the challenges faced by existing and new businesses across our two counties, while bearing in mind that those challenges follow the impact of the pandemic, which saw an average decrease of 52% in turnover of tourism businesses in the south-west, with many businesses still facing repayments on loans taken out simply to survive. Only today we have heard news that the Devon Valley holiday park in Shaldon, south Devon, will not be opening for the 2023 season. Several factors behind the decision have been cited, including significant increases in the electricity bill.

Let me outline some of the challenges. The obvious one to start with is energy and rising prices. For many businesses, Putin’s attack on Ukraine and the resulting spike in energy prices have had a big impact—costs that cannot be recovered simply by increasing prices. Earlier this year I heard from many local businesses, big and small, that faced dramatic increases in their energy bills, with the price of gas potentially up more than tenfold compared with their previous fixed price.

The energy price guarantee has made a big difference; one business owner said that it meant that they would be staying open. However, the Government must look at the realities of the sector as they consider the review of the EPG, due in early 2023. Take, for example, the Meadfoot Bay hotel in Torquay. To compensate for an increase of £80,000 in utility costs, it would need to sell another 550 bed nights, or 1,700 covers in its brasserie, over the coming year. In a buoyant market, that would be a big target for a hotel with 14 bedrooms; in the midst of a recession, it is simply not going to happen. In short, the hotel could face making a loss not because it is not innovating or providing good services to its customers, but because a bill for a basic need of its business has increased dramatically for reasons well beyond its control.

Energy bills are not the only ones that are rising. Food and maintenance bills and other costs are also increasing, presenting a real challenge for hospitality businesses. The next challenge that I want to highlight is business rates; I doubt whether the Minister will be surprised to hear that I am bringing up a tax on doing business from a premises. Trading from a premises is something that tourism and hospitality businesses across Devon and Cornwall have to do by default—a night out online with a computer is not likely to be as attractive as a night out at the pub or a physical business. Fundamentally, such things cannot be moved online. Often it is the business rates bill, enforced through the magistrates court, that finally tips a business over. Landlords might offer a rent cut if necessary and suppliers might cut a payment deal—it is often business rates, which must be paid simply to exist, that are the final blow for a business.

The moves by the Chancellor last week are welcome—extending and increasing from 50% to 75% business rates relief for eligible retail, hospitality and leisure businesses, for example. I note that that will benefit 230,000 retail, hospitality and leisure properties, which will be eligible to receive increased support worth a total of approximately £2.1 billion. Yet more is needed to ensure that businesses that must operate from a premises have a level playing field.

On the subject of buildings, it is worth starting to reflect on the impact that competition from Airbnb-style operations can have, particularly when short-term holiday lets are created in what were long-term homes for families. Although a certain level of such property is welcome and provides customer choice, there is now a real danger that unregulated growth is bringing negative effects—for example, working families being effectively evicted from a house that has for many years provided a home for rent, to allow a landlord to offer short-term holiday lets instead. The issue is not about avoiding competition. Unrestricted growth not only endangers the local housing supply, but undermines those holiday accommodation providers who, for sensible reasons, must comply with a range of safety regulations that do not apply in domestic properties.

[Richard Foord (Tiverton and Honiton) (LD)]

I must say that I agree with the hon. Gentleman that the unrestricted growth of the short-term holiday let is of some concern, including to my constituents working in the tourism industry. Katie Parsons, who runs Blackdown Yurts, welcomed the Government review into short-term tourism accommodation announced in June, particularly as safety regulations apply differently. However, there are more than 8,000 Airbnb properties in Devon. Does the hon. Gentleman, like me, want to hear from the Minister a date by which that Government review will be published?

[Kevin Foster]

I agree entirely with my friend from Tiverton and Honiton. It is good to see him here taking part in the debate. We would like to hear a date. I have probably given away slightly where I think the review should go by signing new clause 22 to the Levelling-up and Regeneration Bill, which is before the House at the moment. I believe that it would be right to move to a position where converting a residential property into a short-term holiday let comes under the remit of planning. It seems rather bizarre that a whole street could effectively be converted into a holiday park, removing that accommodation from the local housing market.

I think a proportionate response would be to move to having a separate category, which would also allow more appropriate consideration of things such as the balance of regulations that should apply. My uncle served in the Plymouth and then the Devon fire service for 20-odd years, so I know there are very good reasons why we have the fire safety regulations that we have for holiday accommodation, and I know that the legislation was brought in as a result of hard experience, particularly back in the 1960s and 1970s.

It would certainly be good to have a date for the review’s publication. I will leave the Minister under no impression that my mind is not already rather made up on at least one of the outcomes that we probably need to see, and potentially on a registration process, but I very much look forward to hearing from him. I appreciate that planning is probably outside his precise remit, but it is a challenge that we face.

The final challenge is consumer confidence. We must not underestimate its impact. Booking a holiday will be the last thing on anyone’s mind if they are worrying about how they will pay their heating bill. Moves to stimulate confidence and growth in the economy are needed to build confidence in potential tourism customers, including local residents, who can provide vital year-round trade to local tourism businesses.

Let us reflect on what these challenges can result in. Holiday accommodation will not simply lie unused, and the challenges I have set out can result in pressure to use it for other things. A hotelier faced with a relatively light booking sheet can find it all too tempting to take on long-term guests, be they asylum seekers from the Home Office or those owed a housing duty by their local council.

I have been supporting Torbay Council’s efforts to challenge the conversion of properties in our key tourism locations to longer-term accommodation on planning grounds. The objective is to prevent precedents from being set for the conversion of tourism-based accommodation that was designed for short stays into poor-quality longer-term accommodation. That often brings issues of housing standards and antisocial behaviour, while sometimes also helping to block regeneration efforts by giving a building that could have been acquired for a needed rebuild an income stream in its current poor condition. I hope that the Minister will engage with his colleagues in the Home Office and the Department for Levelling Up, Housing and Communities about how we can move away from such uses, which affect not only local communities but the tourism sector overall.

I know from responding to this type of debate myself that it is always good to provide a summary of what we are looking for. The first thing is business rates reform. The recent moves by the Chancellor were welcome, but how does the Minister see longer-term reform of business rates being taken forward? What representations are being made about how we end what is effectively a tax penalty for investing in sectors that require bricks and mortar?

The second thing we are looking for is real engagement on energy costs and future support schemes. It is welcome to see hospitality recognised, alongside traditional energy-intensive industries, as a sector that will need continuing support with energy prices. How does the Minister see engagement being done with the sector over the next four months to identify the specific requirements of businesses both small and large, along with how a package could be appropriately targeted at them?

Then there is work to encourage consumers and local residents to use hospitality and tourism businesses where they can. I will be interested to know how the Government will work with the sector to promote its opportunities not only to potential domestic and international visitors, but to investors who could fund the future of our tourism sector. Finally, I am conscious that the Minister is still a relatively recent appointment, but how does he plan to engage with the sector on the range of issues affecting it?

I am delighted to have secured this opportunity to highlight both the opportunities and the challenges facing the tourism industry in Devon and Cornwall. I look forward to hearing from the Minister how the Government will play their part in ensuring that the sector has a bright future in our region and, in due course, to welcoming him to see for himself what our two counties have to offer visitors.

Australia and New Zealand Trade Deals

Richard Foord Excerpts

Monday 14th November 2022 Commons Chamber

[Richard Foord (Tiverton and Honiton) (LD)]

Farmers across the UK, but particularly in my part of Devon, are deeply concerned by how the Government have approached these new trade deals. Let us cast our minds back to 2016, when we were told that a veritable land of milk and honey awaited us and that new trade deals would be easy to sign. Since 2016, the Government have signed a number of trade deals, but let us look at the detail of that apparent success. Almost all those deals have been roll-overs aiming to maintain the terms we already had. Only four of the trade deals are new, including the Australia and New Zealand deals that we are discussing today—hardly the boom in export trade we were promised.

The Government’s approach during negotiations with Australia and New Zealand seems to have been to sell out British farmers left and right—and then some—to try to clinch a deal. These trade deals are more about attempting to garner positive headlines than supporting our world-leading agriculture and fishing industries. Both deals will see farmers across the west country undercut as produce made to lower standards will be allowed to flow into the UK.

The Government claim they will not water down our food and animal welfare standards—and on paper they may well not—but where does that leave farmers in reality? It will be almost impossible for our farmers to continue to compete on such an unequal playing field, particularly given the increased costs that are making everyone cut back. It is frankly ludicrous to suggest that UK farmers will benefit from these deals when they tie not one, but two hands behind their backs. Add to that the Government’s botched implementation of the payments with the new environmental land management scheme, which is already pushing many farmers to the brink with cuts to the basic payments, and we have a recipe for disaster for our farmers.

The upside in exchange for all this pain and misery set to be inflicted on rural communities by both these trade deals is a whopping 0.11% increase to our GDP. That is a drop in the ocean compared with the turmoil it will cause here at home. Many farmers across Devon are already struggling to make ends meet, yet with these deals, this Conservative Government have shown that they either do not get it, or simply do not care. More than 64,000 people across the south-west work in agriculture, and many are seeing their future put at risk owing to botched trade deals such as this. The New Zealand free trade agreement gives the opportunity for tariff-free import volumes to rise to 165,000 tonnes by year 15. That, combined with 125,000 tonnes from Australia, is almost the entire volume of lamb consumed annually in Britain. As the chief executive of the National Sheep Association said earlier this year,

“neither does it win on our aspiration for high standards, climate change targets, or reliable food security.”

Farmers across my part of the world will never forgive this Government if they continue down this deeply destructive path. As mentioned by Members previously, this debate today is not even a full debate. We are not discussing a substantive motion, as requested by the International Trade Committee, so everything we say here will not prevent the Government barrelling ahead with these plans anyway. We must ensure that this House and its Members have the final say on the trade deals we are discussing, and we must ensure that our aim is always to negotiate deals that protect and support UK farming and fishing, rather than bartering away those arrangements.

Trade (Australia and New Zealand) Bill

Richard Foord Excerpts

2nd reading
Tuesday 6th September 2022 Commons Chamber

[Richard Foord (Tiverton and Honiton) (LD)]

The chairman of the Farming Community Network in Devon wrote a column last year for the Devon Churches Rural Forum. John Wibberley wrote that he had collected agricultural postage stamps from around the world since he was a child, and one Australian stamp proclaimed that Australia should “produce food”. It seems that there is no such focus on food security from the UK Government, who are requiring British farmers to compete with exporting countries while eating away at the basic payment. The west country is home to more livestock than any other region of the UK. Can the Minister assure farmers in Devon that the Trade (Australia and New Zealand) Bill will not trade off the benefits for professional services firms with farmers’ livelihoods when we see a significant increase in the imports of Australian beef and New Zealand dairy products next year?

Australia-UK Free Trade Agreement: Scrutiny

Richard Foord Excerpts

Tuesday 19th July 2022 Commons Chamber

[Mr Jayawardena]

I sometimes fear that some Opposition Members have a permanent sense of humour failure. The facts about the deal are these. It will deliver the benefits of trade to people, businesses and communities in every corner of our United Kingdom: this is how we level up the country. As I have explained, it is expected to increase trade with Australia and put money into people’s pockets, including the pockets of people in Scotland. It means that 100% of tariffs on British exports have been eliminated—and that includes Scottish businesses, which now have guaranteed access to the Australian market, and indeed the ability, across industry, to bid for public sector contracts worth about £10 billion. This is a great opportunity for businesses across Scotland and our whole United Kingdom; and let me just remind the hon. Gentleman that we have secured the best deal that the European Union has ever secured with anyone—a zero-quota, zero-tariff deal.

[Richard Foord (Tiverton and Honiton) (LD)]

Jilly Greed farms near where I live in Devon. She is a co-founder of Ladies in Beef, and this is what she wrote about the trade deal:

“This is like Christmas all over for Australia. There are currently 3,700 tonnes of product coming in from Australia. The agreement will increase it to 45 times that in 15 years.”

Are the Government afraid that the true extent of the damage to west country farmers from this trade deal would be laid bare by full parliamentary scrutiny?

[Mr Jayawardena]

I welcome the hon. Gentleman to this place, even though I perhaps disagree with some of his principles. None the less, I hope that I will convert him to the cause, because of the opportunities that lie ahead for farmers in the west country and beyond. The truth is that this deal secures new opportunities for those farmers to export to the world. It is part of a plan, as my hon. Friend the Member for Peterborough (Paul Bristow) mentioned, that secures access to the CPTPP, and that involves the new trade deals that we are negotiating right now in the Gulf, which the NFU has welcomed, and India.