Food Prices and Food Poverty

Simon Hart Excerpts

Monday 23rd January 2012 Commons Chamber

[Laura Sandys]

I do apologise, Madam Deputy Speaker.

To address the bigger problem of food insecurity, we should look to the energy model. This Government’s strategy on energy insecurity aims to manage a valuable resource, to address the waste in the system and to build greater UK resilience to international price fluctuations. With some tweaks, several of those policy mechanisms could and should be adopted for food. Security of supply is an example. The previous Government cannot claim much credit in that area. Imports of food increased by 52% under the previous Government and agricultural land was diverted away from production. Thank goodness, today we have Ministers who understand the issues of production.

To build greater security of supply, domestic production must, in my view, increase. We must build a hedging mechanism against global volatility and realise not only that food imports will become more expensive but that the level of imports, with a weak pound, is having a negative impact on our balance of payments and placing inflationary pressure on benefits and entitlements.

We must address food waste with a similar tenacity to that with which we are addressing energy waste through the green deal. We need to reverse the indulgent years that deskilled the consumer in food preparation and supported profligacy in the supply chain. Customers—we, the consumers—are often accused of being responsible for such waste, but I disagree. The system is designed to create waste and the consumer is merely responding to how the supermarkets and other retailers sell their products. The waste in procurement is terrifying and I hope that the grocery code of practice will ensure that we reduce some of it. As I have mentioned before, my campaign through Ugly Food is one way of addressing some of the waste embedded in our system.

Waste is also embedded in the design of consumer-facing products. The hon. Member for Stoke-on-Trent South (Robert Flello) talked about the packaging and presentation of food. People blame the customer, but is it their fault? Servings of food are often too big and processed foods are heavily advertised. Although the Government have made a great deal of progress on display dates, safety dates mislead the consumer about the longevity of products. Point-of-sale displays draw consumers to larger packages rather than smaller units of food and BOGOFs—buy one, get one free offers—neither help single item shoppers nor reduce the bills for family shoppers.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

Will my hon. Friend add an additional item to that long and rather depressing list, which is country of origin?

[Laura Sandys]

I believe that EU regulations are changing and that country of origin labelling will have to be much clearer, but we certainly have an issue with knowing and understanding exactly where food comes from and, when it comes to meat, where the animal was born rather than where it was reared.

Our system is designed around cheap disposable food and the UK, more than any other country other than the US, must embark on a culture change. We should re-engineer our food system to place value on food and to stop regarding it as disposable. That is why I am calling for a food security obligation—similar to the energy company obligation—for supermarkets and large food producers so that they record and reduce waste through their procurement process and commit to designing their products with the aim of delivering real value for money for the consumer, which is quite different from cheap food.

Both 2008 and 2011 were shocks to the system, but the price rises we have experienced will be the norm in the future. We had better get used to it. Food will not be cheap, but with the right policies in place, feeding our families need not be more expensive.

--- Later in debate ---

[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.