Thursday 23rd February 2023

(1 year, 2 months ago)

Lords Chamber
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Baroness Hayman of Ullock Portrait Baroness Hayman of Ullock (Lab)
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My Lords, this situation is not exactly an exception. Before Christmas, there were empty supermarket shelves and real public concern, and the head of the NFU, Minette Batters, ended up calling out the Government’s inactivity and lack of responsibility. The Secretary of State is saying that the UK has a highly resilient food supply chain, but just this morning the former head of Sainsbury’s said that the Government’s lack of energy and support for domestic producers means that we did rather bring this problem on ourselves. Does the Minister agree with Justin King’s assessment? With supermarket shelves apparently fully stocked across Europe, is he really standing by his assertion that others are facing similar supply issues and that the current shortages in UK shops are predominantly caused by seasonal weather in the Mediterranean?

Lord Benyon Portrait Lord Benyon (Con)
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I do not quite know what Justin King is suggesting. Is he saying that the Government should tell him as a retailer how to construct his supply chain models? No. I think the Government’s job is to step in where there is market failure, support homegrown producers and ease the burdens of what one hopes are one-off events, such as the impact of the war in Ukraine on gas and electricity prices. It is the Government’s job to resolve those sorts of issues. Where we can create diversity of supply for importation through trade agreements, we should.

I would pick the noble Baroness up on one point: this is not just affecting the United Kingdom. There are similar problems in Ireland, including in Tesco Ireland, Lidl and SuperValu, which say they are experiencing availability issues with certain fruits and vegetables. Other than Ireland, there are cases in Belgium, where there are some minor issues relating to tomatoes—there are no empty shelves as yet, but prices have increased. In Finland, there is some short-term reduction in supply because of the same issues relating to Spain.

I repeat: UK growers are able to access the energy bill relief scheme. A planned reduction of government support for energy costs in the UK’s industrial horticultural sector will challenge domestic production for some of the items in question, with a likelihood that domestic yields will fall. I could, if I had time, give a great long list of how we are supporting our agricultural sector and intervening where Governments can. If noble Lords are suggesting that we should have a command and control economy that mandates supply chains, I would be interested to have a debate on that here in the House.