Dairy Industry

Thomas Docherty Excerpts

Thursday 13th September 2012 Westminster Hall

[Mr Charles Walker (in the Chair)]

A lot of hon. Members want to take part in the debate, so I will make myself immediately unpopular by saying that, outside the two opening speeches and the ministerial and shadow ministerial speeches at the end, you will have a six-minute limitation. You can take less time, but you will have six minutes. We will give you one injury time for one intervention.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

It is a pleasure to serve under your chairmanship this afternoon, Mr Walker. To put a time limit on speeches was a courageous decision for someone who is currently running for office.

I welcome the new Minister to his post. He may know that the last Liberal Minister to hold the farming brief was Auberon Herbert, who was President of the Board of Agriculture between 1914 and 1915. However, that does not bode well for the current Minister because Herbert only held his post for one year and did not survive the forming of a coalition Government. None the less, I wish the Minister well in the post.

I am sure that hon. Members wish to pay tribute to the outgoing Agriculture Minister, the right hon. Member for South East Cambridgeshire (Mr Paice). While he and I may not always have agreed, he did his best and will be sadly missed by the farming industry and by members of the Environment and Rural Affairs Committee.

I pay tribute to the hon. Member for Tiverton and Honiton (Neil Parish). We served together on the Select Committee, and as many Members know, he is a mine of information on agriculture. He and I have combined on more than one occasion to ensure that our farmers’ voices have been heard in Parliament. He is a real champion of Devon farmers and regularly makes the case that Devon cream is far superior to Cornish cream. With your permission, Mr Walker, he will sum up at the end of the debate.

A number of important debates are taking place in the House today, and I appreciate that Members might not be able to stay for the whole of this debate. None the less, I thank everyone for coming along.

Members will know that despite the favourable market conditions, the UK dairy sector has been a source of dispute for a number of years. During the summer, the public campaign led by dairy farmers to protest against large cuts in milk prices captured the British public’s imagination. The profile generated by that campaign combined with the lobbying and overwhelming support from all parts of the House have resulted in some significant progress. Indeed, more than 70 parliamentarians went to the National Farmers Union’s dairy summit in July. Several retailers that were identified as not doing enough to support the dairy farmers took belated steps to address some of the unsustainable prices that they paid for their milk. That has helped processors either rescind or reverse the effects of their proposed August milk price cuts. Many of the same retailers have made commitments to address their long-term pricing models for liquid milk. That is very welcome.

In recent days, Arla Foods has committed itself to a 2.5p per litre rise, and today Müller-Wiseman has announced that it will raise its price to 29p per litre. Agreement has been reached between farming unions and Dairy UK on a voluntary code of practice for dairy contracts. However, the industry still suffers from systemic problems that need to be addressed. As the NFU has warned this week, if we do not take action, recent progress will be nothing more than a sticking-plaster solution.

The milk supply industry is not made up simply of producers and processors. Supermarkets also have an important role to play in ensuring fair prices. It is simplistic to portray all retailers as the villains of the piece; the situation is much more complex. Some retailers, such as Tesco and Sainsbury’s, have taken progressive steps in the liquid milk sector, with dedicated pools of producers, and they should be congratulated.

The cheese market remains much more challenging for farmers, however. I hope that one outcome of the code will be to increase transparency in the pricing of milk going to make cheese. Last year, the Select Committee took evidence from Tesco for our report on the dairy industry. We found dishonest its arguments on why it does not provide the same support for farmers who produce milk for the cheese market. It is ludicrous to suggest that there is not enough stability in demand for a workable contract for cheese.

The Select Committee was clear that if supermarkets such as Tesco continue to rip off farmers, the Government should be prepared to step in. Tesco is by no means the worst offender, and I am disappointed to have to report that we are repeatedly told that the Co-op provides the worst deal to dairy farmers. It is vital that customers and Co-op Members apply pressure to those retailers to provide a fairer share of the retail value to their suppliers.

The recent crisis was brought about by the reckless actions of Asda, which was selling milk at a loss-leading price of eight pints for £2, which is less than the price of bottled water. That in turn sparked a price war, which inevitably led to a cut in the price being paid to farmers. While supermarkets have seen quarter on quarter rises in their profits, many farmers have been pushed to the brink. Although I welcome moves by Morrisons, Asda and the Co-op belatedly to increase their price, they have a responsibility to ensure that we have a sustainable dairy industry now and in the future.

[Dan Rogerson (North Cornwall) (LD)]

I congratulate the hon. Gentleman on securing this debate. Although he has been making a good case, he made some rather strange assertions about cream, which we will brush over. Does he agree that when looking at how the price is passed on to the various people in the chain, the trends that have emerged are that the processors’ share seems to have been relatively static, the retailers’ share has grown and the farmers’ share has shrunk? Anything that we do to look at the relationship between the processor and the farmer must also take account of the relationship between the retailer and the processor.

[Thomas Docherty]

The hon. Gentleman is correct. I will touch on the role that the groceries code may play in that process in the future. I did not say that I necessarily agreed with the assertions about Devon, but they have been forcefully made on more than one occasion.

I say well done to those retailers who have belatedly got on board, but why did it take them so long? The actions of the House and the dairy industry forced the retailers to take those steps. Members on both sides of the House will look to the Minister to hold all elements of the supply chain to account. We all want the groceries code and the voluntary code to work, but it is vital that he takes the lead on pushing through these issues.

On the specific case of the adjudicator, the previous Government gained cross-party support for a supermarket ombudsman to ensure a fair deal for farmers and food producers from the major retailers. Following a Competition Commission inquiry in 2008, Labour introduced a new groceries supply code of practice in August 2009, which came into effect in February 2010. The Competition Commission also recommended the creation of an ombudsman to enforce and monitor the code of practice.

This Government presented their Groceries Code Adjudicator Bill in the House of Lords before the summer recess. However, the Bill grants only limited power to the adjudicator to tackle the issues in the dairy industry. It will be limited to tackling the direct supply between the processor and the supermarket, or the farmer if they have a direct contract with the supermarket, and will not be able to deal with a three-party contract. I hope that the Minister will reflect on that and listen to the Select Committee’s cross-party advice.

[Mr William Cash (Stone) (Con)]

It would be highly desirable, would it not, if the milk that is used in the Houses of Parliament came from UK sources at a fair and sustainable price? Does the hon. Gentleman agree that if we gave a lead in the Houses of Parliament, it would send out a big message?

[Thomas Docherty]

The House of Commons Commission has urged the catering and retail services to ensure that we operate within the European rules—I am conscious that I am now setting off a whole new avenue for the hon. Gentleman—but perhaps the Minister will set out what steps he will take to ensure that all Departments buy their milk from British farmers.

The issue that we have faced time and again during this dispute is that retailers have argued that the cuts on farm-gate prices were being implemented by the milk processors and not by the retailers. The reality is that, as the hon. Member for North Cornwall (Dan Rogerson) mentioned earlier, the downward pressure has come from the supermarket shelves, and that pressure is passed on to the milk processors, who then pass it on to the producers.

We have urged Ministers in the Lords to keep open the option of extending the powers of the groceries code adjudicator. I hope that when the Bill comes to the House of Commons, the Minister will consider talking to his colleagues in the Department for Business, Innovation and Skills about the potential of extending the GCA’s powers if necessary.

In closing, I have a few questions to put to the Minister.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

Before the hon. Gentleman finishes, I hope that he will give us an indication of what the Labour party’s position is with regard to bovine tuberculosis, which of course is the other great threat to many of our dairy farmers.

[Thomas Docherty]

I do not speak for the Labour party; I think that my hon. Friend the Member for Ogmore (Huw Irranca-Davies) will have an opportunity to set out whatever issues he wishes to when he speaks, if he has time to do so.

I am conscious that other Members wish to speak, so I will conclude very briefly by asking the Minister some questions. If the voluntary code does not deliver, will he step in and consider regulatory action? Will he tell us when he expects the code to be published? I understand that it is waiting for clearance from the Office of Fair Trading, but I am sure that he will try to ensure that it is published as soon as possible, so when will that be? What assurance has his Department been given about the full implementation of the voluntary code by all milk processors? As the signatory to the code is Dairy UK and not all the players, how will the Department for Environment, Food and Rural Affairs ensure that all the processors play fair? When do the Government expect to bring forward a consultation on the dairy package? I would be grateful to him if he gave us an indication of some of those timings. Finally, when will the Government publish the framework that will underpin the establishment of producer organisations?

I am very conscious that a large number of Members wish to speak today; I am sure that this will be an excellent debate; and I commend everyone who is taking part.

--- Later in debate ---

[Mr Heath]

I think it can make a contribution. All of these things are cumulative, but we should encourage collaboration within our dairy industry because it would make a significant difference.

The biggest single factor, and many Members have talked about this, is the voluntary code of conduct. This is the dairy industry’s first code of practice on contracts and it is a significant step from the beginning of the chain. I congratulate the industry, and I congratulate my predecessor on bringing the industry together. The agreement on the code’s detail is potentially momentous and provides all parties with greater clarity on contractual terms and conditions, particularly on farm-gate prices. I hope the code will start to open trusting relationships between the parties, because they need each other. We cannot have war within a mutually dependent industry.

I have been asked many times what happens if the code does not work. That is the wrong question; I want to ask what happens when the code does work, because I am strongly optimistic that this is the best way forward for securing a sustainable arrangement. Under the EU dairy package, we have the option of legislating on contracts. I make it clear that I will seriously consider making contracts compulsory if the code fails to deliver the necessary changes. I have already announced that we will be consulting so that, if such changes are necessary, we can make swift progress. Having said that, it is vital that the industry gives the code its full support and the time needed to take effect.

I confirm that additional funds are being made available to dairy farmers. We are opening the skills and knowledge transfer framework specifically to provide workshop events for dairy farmers from late autumn this year. That should help dairy farmers identify and access emerging market opportunities such as exports; strengthen their position in the supply chain through more effective co-operation and collaboration; develop new products and add value; and establish benchmarking.

The £5 million rural economy grant scheme for high-quality projects in the dairy industry should continue that focus and add, in the new year, the development of a capital investment programme to target infrastructure projects. That is a significant advance in Government support to the industry, which should reap dividends.

[Thomas Docherty]

Will the Minister give way?

[Mr Heath]

I will, but this is possibly the last time.

[Thomas Docherty]

I am most grateful to the Minister. Will he clarify whether the two funds will be open only to English farmers or will all four nations be able to benefit?

[Mr Heath]

I am responsible only for farming in England. However, I have already contacted the analogous post holders in the devolved Administrations. I am keen to work with them to establish, as far as possible, common practice across the nations of the United Kingdom to ensure we do the best for our farmers.

I will continue the work of my right hon. Friend the Member for South East Cambridgeshire in the dairy supply chain forum, which is a crucial element in keeping a secure domestic market as a strong base from which to innovate, explore and expand the horizons. There are opportunities for replacing imported goods with British dairy products. I am glad that the hon. Member for Isle of Wight (Mr Turner) has done such work in his constituency.

There are clear openings for sending out British dairy products for the world to enjoy. I have already started that process. My right hon. Friend the Secretary of State and I are committed to opening those markets, which I hope will expand the interests and reach of the British dairy industry to all parts of the world, including emerging markets.

Bovine TB

Thomas Docherty Excerpts

Wednesday 14th December 2011 Commons Chamber

[Mrs Spelman]

As I made clear, the two trials that will take place next year—probably at the start of the autumn—will cover a six-week period, after which we would expect the evaluation of those trials to take approximately another four weeks. The evaluation will be undertaken by an independent panel, the composition of which will be announced in the new year. Of course, we will keep that under very close review, as we will all the parts of our package of proposals to eradicate TB.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

May I press the Secretary of State to say a little more about these trial areas of 150 sq km? Will all the landowners within that trial area have to sign up? If they do not, will the shooters be allowed to go on to their property to shoot?

[Mrs Spelman]

What is required for the pilots is access to 70% of the land, in line with the evidence from the randomised badger culling trial. We need access to 70% of the land. There is no element of compulsion on all landowners in the area, but 70% is needed as part of the limited liability company that a group of farmers would set up.

Water White Paper

Thomas Docherty Excerpts

Thursday 8th December 2011 Commons Chamber

[Richard Benyon]

One of the core principles that motivates us in DEFRA is food security. We are deeply indebted to the farming community for the innovation that it has shown and for its ability to cope with changing weather patterns, while continuing to produce quality food. During the drought last year, we engaged with abstractors, many of them from the farming community. We found that the Government have many tools at hand to deal with the problems now. There was some very innovative work by the Environment Agency, the National Farmers Union and other organisations on that. The White Paper addresses the urgent and available methods, but also considers a new, changeable abstraction scheme for the long term that encourages farmers to continue to produce food.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I think that there will be concern at the failure to separate the retail arm of competition for non-domestic customers. May I press the Minister to set out the timetable for the introduction of a zero-threshold market for all non-domestic customers?

[Richard Benyon]

That is a clear priority. We hope to have a water Bill to take those methods forward. We looked closely at the recommendations of the Cave report and those from a number of other quarters about retail separation. We are making substantial changes on competition, but we were not persuaded of the need for wholesale reorganisation and separation. We want to ensure that the water sector remains open to increased investment. We hope to make changes with a water Bill in the next Session of Parliament.

Oral Answers to Questions

Thomas Docherty Excerpts

Thursday 24th November 2011 Commons Chamber

[Mrs Spelman]

I have had two in particular. I met Brazil’s Environment Minister, Izabella Teixeira, during negotiations in Nagoya, and as Brazil is the host nation I went down there to help the Brazilians with preparations for Rio plus 20 next year, and most recently, as the House will be well aware, we had a visit from the Colombian President and the Environment Minister, Frank Pearl, whom I met at the Department with a proposal for sustainable development goals, to which we have given our support in principle.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

T3. When the Government’s long overdue water White Paper finally comes out, will the Secretary of State confirm that small businesses, not fat cat water utilities, will be at the centre of deregulation?

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

The water White Paper will be published in the next few weeks. It will set out a way forward for the water industry that will encourage new entrants.

Bovine TB

Thomas Docherty Excerpts

Tuesday 19th July 2011 Commons Chamber

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Can the Secretary of State confirm whether those who carry out the cull will have their names published?

[Mrs Spelman]

The locations will be made public, but the identities of those contracted to undertake the operation will not, for their own safety.

Common Fisheries Policy

Thomas Docherty Excerpts

Thursday 14th July 2011 Commons Chamber

[Richard Benyon]

The good news is that there is much better technology now. I have sat in the operations room of the Marine Management Organisation looking at vessel monitoring systems data on where every vessel is. One can tell precisely what those vessels are doing, and that is improving with e-log books. I went out with a Fishery Protection Squadron patrol the other day and saw the work it does, and I was really impressed by its professionalism. I can give my hon. Friend a commitment that we will work extremely hard to continue to be experts in what we do. We are respected throughout the world for our work on monitoring fisheries, and technology is on our side.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

The Minister will be aware of concerns that the proposals might allow an international trade in quotas to result in Scottish fishermen’s not being able to fish in Scottish waters. Will he find time to meet me and other MPs to discuss this matter during the consultation?

[Richard Benyon]

I would like to meet hon. Members from both sides of the House during this process and to keep up a regular dialogue. I think there are misunderstandings about the possibility of creating a market mechanism in tradeable quotas. I want to make sure that they are retained in member states, that there is no possibility that more fishing opportunity can be grabbed by fewer and fewer people and that there is a social dimension to our fisheries policy. I want to try to get UK-wide agreement on this.

Oral Answers to Questions

Thomas Docherty Excerpts

Thursday 17th March 2011 Commons Chamber

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Given the Secretary of State’s remarks, can she clarify whether she will be proposing a ban on shell, liquid and powdered egg from countries such as Poland that will not meet the deadline, and if so, will she also be banning products such as quiche and cakes from those countries?

[Mrs Spelman]

I can give the hon. Gentleman an assurance that the Commission is looking at this. He might be interested to know that the Minister of State and the Commission will both appear before the Select Committee on Environment, Food and Rural Affairs on 22 March, when there will be ample opportunity to debate in detail the application of measures to ensure that the deadline is respected.

--- Later in debate ---

[Mr Speaker]

We are now much better informed and thank the Secretary of State.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

We saw this week that the Department has been slapped down a second time by the Prime Minister—this time over CAP payments. Does that explain why we still do not have a water White Paper?

[Richard Benyon]

We expect to have a water White Paper in the summer.

Flood Defence Allocations

Thomas Docherty Excerpts

Wednesday 9th February 2011 Commons Chamber

[Richard Benyon]

We have visited places that have been flooded since we came into government. The hon. Gentleman must understand that I have waded through houses reeking of sewage and have looked into the eyes of families whose houses have been flooded. He does not have to tell me about the misery that flooding causes those communities—2,500 households in my constituency were flooded in 2007. We understand how important this issue is and he knows that we cannot protect every house. There are 5.2 million houses at risk.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Will the Minister take this opportunity to correct the record and confirm that my right hon. Friend the Member for Leeds Central (Hilary Benn), when he was the Secretary of State for Environment, Food and Rural Affairs, ring-fenced flood defences so that in the last round of cuts there was no cut in the funding? That is why this year’s cut is a 27% cut.

[Richard Benyon]

A 50% cut and ring-fenced funding for the future could not have been defended. That is absolutely impossible. I honestly urge the hon. Gentleman to look at the realities of the situation. There is a 50% capital cut. Whichever party had been in government now would have had to take difficult decisions. We have protected the floods budget as best we can, and he should recognise that.

Flooding (West Cumbria)

Thomas Docherty Excerpts

Wednesday 17th November 2010 Westminster Hall

[Tony Cunningham]

There are things we can do. I mentioned the Pitt report, which I hope will be implemented. That will give a statutory role to all this planning. I am not saying that lack of maintenance caused the floods—they were created by the huge amount of rain—but dredging needs to take place, and we need to maintain our rivers. Part of the reason why the tree trunks and the branches came thundering down the rivers was that the rivers had not been cleaned out. If the Environment Agency has to make dramatic cuts in its budget, I am worried that one thing it will not do is all the general physical maintenance—the cleaning and dredging. That concerns me, and I am sure it concerns others.

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Will my hon. Friend give way?

[Tim Farron]

rose—

[Tony Cunningham]

I will give way to my hon. Friend, and then to the hon. Gentleman.

[Thomas Docherty]

I congratulate my hon. Friend on securing the debate. He will probably share my concern that the Government are cutting by a minimum of 20% the flood defences budget—I remember that from the Environment, Food and Rural Affairs Committee. Does he agree that that will do nothing except increase the likelihood that we will see such tragic events in Cumbria and elsewhere in the country?

[Tony Cunningham]

I agree, and the best example I can give, if you will bear with me, is Carlisle. The flood defences created there cost about £35 million, and at the time of the Cockermouth floods, those defences held—only just, but they held. The estimated cost to the Exchequer—the state—of cleaning up if we had not invested that money was about £70 million or £80 million. Cutting back on flood defences and resilience measures is a short-term approach and does not value the long-term benefits accrued by investing now and in the near future.

--- Later in debate ---

[Tony Cunningham]

I agree with my hon. Friend. Sue Cashmore and Brian Watson’s group in Cockermouth has looked again at what happens when they get a flood warning—who goes where and to which high ground and which buildings, and how many people there are. It is all organised and sorted, so if that is what the big society is, they are doing it and have been for some time.

I mentioned the footbridge, which was vital, but we needed a road bridge, and the only bridge that existed was the railway, so we needed a new railway station and a train to run between Maryport and Workington, because that was the only way of getting across the river. I pay tribute to my right hon. Friend the Member for Tooting (Sadiq Khan), because whenever I went to him and said, “I need”, he said, “You can have”. There was rarely a hesitation. I said, “Look, the need is desperate. We need a road bridge quickly”. I think we got a road bridge in about three months, which cost about £5 million. That is a lifesaver for people on both sides of the river. The free train cost about £1.5 million, and sometimes it was full and had to do extra journeys, but it kept the wheels oiled and turning. I am delighted that my right hon. Friend is here.

[Thomas Docherty]

On that point, would my hon. Friend care to comment on the roles of Network Rail and the train operating company, and on how they responded to the situation?

[Tony Cunningham]

The team of companies that got the new rail station up in, I think, six days, which is an incredible record, won a national award at Grosvenor House. We have all seen when travelling by train the people at the ends of platforms taking the numbers, and one of the funniest things was that they flocked to west Cumbria. There was a new train and station, and they were there taking photographs, which helped the tourism industry enormously. Strangely enough, the chief executive—the top man—of Direct Rail Services Ltd lives in Seaton, so it was useful for him to be able to get backwards and forwards.

Sustainable Livestock Bill

Thomas Docherty Excerpts

Friday 12th November 2010 Commons Chamber

The Deputy Speaker declared that the Question was not decided in the affirmative because fewer than 100 Members voted in the majority in support of the motion (Standing Order No. 37).

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

On a point of order, Mr Deputy Speaker. Most hon. Members will not have had a chance to see the written statement that the Under-Secretary of State for Justice, the hon. Member for Reigate (Mr Blunt) slipped out this lunch time. I understand that he found the time to be in the Chamber earlier. The written statement says that the Government have abandoned their plans to introduce defence anonymity in rape cases. Can you clarify whether the Under-Secretary sought an opportunity this morning to make an oral statement so that hon. Members could have a chance to question him? If not, what are my options as a new Member, if I want the Minister to come to the House next week and give hon. Members a proper chance to scrutinise the announcement?

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you for that point of order. No Minister has approached the Speaker to ask to make a statement today. However, as the hon. Member knows, it is for the Government to decide how they wish to make the announcement, whether through an oral or a written statement. Clearly, in this case, they have decided to make a written statement. Members on the Treasury Bench will have heard the hon. Member’s remarks and I am sure that, if the Under-Secretary wants to make an oral statement next week, the hon. Member will see on the Annunciator screens that that is what the Government wish to do.