The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Elliot Morley): In discussions with the representatives of the British pig industry, we have developed an action programme aimed at helping pig producers through this very difficult period.
Mr. Woodward: Every week, I visit in my constituency pig farmers who are suffering and in danger of going bankrupt--some have gone bankrupt. Two of them, Jamie Bell and Christopher Maughan, have given me their figures, which show the serious nature of the problems that they face. Mr. Maughan has a pig farm that produces 5,000 pigs a year. Last year, he lost £25,000. He cannot go on in business for much longer. He will very probably have to make three members of his staff redundant. He is aware that the Government have introduced regulations to help with disposal that allow £5.26 per pig. He urgently requires compensation to stay in business, but he feels that the Government are ignoring his protestations and the problems of everyone else in the pig industry who need help from the Government now before they go bankrupt. What do the Government intend to do?
Mr. Morley: There is no doubt that the pig industry faces serious problems. The regulations on offal control were introduced in 1996 for an important reason: they were one of the BSE control measures. The Government have introduced measures to assist the industry. We have talked to retail groups about progress on their labelling commitment. We have also proposed new standards of labelling, which have gone out for consultation. An extra £5 million of marketing aid has been provided on top of the £1 million already made available. It has been made clear that we expect the pig industry to have first call on that marketing aid. We are discussing meat and bonemeal controls with the Spongiform Encephalopathy Advisory Committee and also what impact they have on the pig
Mr. Dale Campbell-Savours (Workington): Is not the simple truth that, if the British consumer started buying British pigmeat in the form of bacon and other pig products, the crisis would end? It is in their hands. They have a good excuse for buying British, which is that British pigmeat is produced to higher welfare standards.
Mr. Morley: I entirely agree with my hon. Friend. At one stage in the current down cycle, British pork and pig products were attracting a 25 per cent. premium compared with other European prices. That was undoubtedly due to the premium for higher welfare and quality standards. We believe that the way forward is through labelling and marketing. It is important to ensure that consumers have that information, so that they can use consumer choice to support our industry and the standards that it applies.
Mr. Malcolm Bruce (Gordon): Following the point made by the hon. Member for Workington (Mr. Campbell-Savours), does the Minister accept that supermarkets are not showing clearly the source of pigmeat from this country, or, indeed, from where it comes? Unigate, which is the biggest wholesaler of pigmeat, is manipulating the market to depress the price and, in effect, destroy home production by controlled management of imports, which it says it will increase to 50 per cent. of its entire supply. Is that fair competition, and should it be investigated?
Mr. Morley: As the hon. Gentleman may be aware, the issue of supermarkets and competition is being investigated by the Office of Fair Trading, and a report will be published in due course. On the wider issue, we do not want labelling used in a way that misleads the public on the origin of pigmeat. That is why we have put new regulations out for consultation. The proposed regulations would make it clear that misleading labelling will not be tolerated. We have also seconded a full-time member of staff from the Ministry to work with the pig industry, to evaluate and monitor labelling claims and see how retailers are doing it.
Mr. Malcolm Moss (North-East Cambridgeshire): After telling the House back in July that he had letters on his desk ready to send to local authorities exhorting them to buy British pork, why did the Minister wait four months before sending them? Has not his incompetence and inaction contributed to the continuing losses in the pig industry now running at over £2 million a week?
Mr. Morley: I welcome the hon. Gentleman to the Opposition Front Bench. We look forward to discussing a range of issues with him. My right hon. Friend the Agriculture Minister has been dealing with this issue for a long time as part of a co-ordinated campaign to raise the profile of the welfare and quality standards of UK pigmeat. I do not think that any other Minister in any other Government has done as much as my right hon.
Mrs. Diana Organ (Forest of Dean): What assessment has my hon. Friend made of the impact of the proposed introduction of the integrated pollution prevention and control directive in 2002 on pig farmers and other intensive white meat producers?
Mr. Morley: My hon. Friend raises an important issue affecting the meat industry, pig farmers and poultry units. Discussions are taking place within Government about the implications of those IPPC charges.
Miss McIntosh: Farmers in my constituency are rapidly losing patience with the Minister. They are perfectly entitled to compensation. I know that farmers have taken up the matter personally with the Minister. Can he now tell the House which agency, or which member of his Department, is dealing with it--or is he going to tell us that the love-in between Britain and France has extended to the point at which our farmers will be denied the compensation to which they are entitled? It should be borne in mind that the French are notoriously slow to accept that they must pay compensation, and even slower to pay the compensation to which our farmers are entitled.
Mr. David Drew (Stroud): I certainly do not condone the action of the French, but is it not a question of rebuilding confidence, and is not the best way to rebuild confidence to rebuild the local food chain? Would my right hon. Friend care to comment on ways in which we can seek local marketing solutions?
Mr. Brown: I am strongly committed to helping the industry to market its way through the present difficulties, and I believe that joining up the food chain is one way of achieving that. Like other Ministers, I have made a number of visits to distributors, retailers and producers to demonstrate our commitment to that approach.
Mr. Colin Breed (South-East Cornwall): The Minister is right to pursue compensation claims. I hope that he will continue forcefully to do so, and that the matter will ultimately be resolved. What farmers now want more than anything, however, is the opening of their export markets in other spheres, such as the Commonwealth. Has the Minister engaged in any discussions with his colleagues in the Department of Trade and Industry about a specific export drive to those markets? If not, what measures is he
Mr. Brown: The first thing that we must do is ensure that the decision made last November to introduce the date-based export scheme is implemented properly throughout the European Union, and that is an immediate objective of mine. Next Wednesday, the Prime Minister will host a meeting of all who have an interest in beef exports to discuss strategies and, in particular, to explore ways in which the Government can help.
Mr. Barry Jones (Alyn and Deeside): Does my right hon. Friend recall my bringing to him recently a deputation of representatives from four farms in my constituency? We are very grateful for the hour that we spent with him. Does he recollect that my constituents told him of their fears for the beef industry, as well as for the sheepmeat and dairy industries? That conversation emphasised the difficulties of the family farmer. How has my right hon. Friend attempted to help family farms so far, and how might he do so in the future?
Mr. Brown: I am pleased that my right hon. Friend was able to bring a delegation of farmers to see me. I consider my contacts with ordinary working farmers to be extraordinarily important to my stewardship. Those farmers did raise the question of support for family farms, and we explored the possibility of support measures under the common agricultural policy, which is the overarching policy instrument. But I also look to the rural development measure, which may provide new ways of producing income streams for family farms.
Mr. Dafydd Wigley (Caernarfon): Does the Minister agree that, although compensation may be necessary to deal with what has happened in the past, we should consider other measures, when no compensation questions arise, so that our farmers can export not only beef but lamb to France and other European Union countries with no let or hindrance? Is progress being made to ensure that lamb exports, in full-body form, are able to reach all destinations, including France?
Mr. Brown: The right hon. Gentleman is right: far and away the best solution for the livestock industry is to return trading conditions to normal as quickly as possible, and that is the objective of my strategy. We need to be able to market our way through the present difficulties, and the Government will do all that they can to assist. That includes dealing with the matters raised by the right hon. Gentleman.
Mr. David Curry (Skipton and Ripon): I refer the Minister to the explanatory note which is attached to his press release of two days ago--in which he refers to the Commission's declaration on the labelling of exports of British beef--and in particular to the sentence which says:
Mr. Michael Jabez Foster (Hastings and Rye): I congratulate my right hon. Friend on his constructive approach and, in particular, on the fact that he has agreed to the labelling of British beef. Can that be reciprocated by our clearly labelling French products in our shops so that our consumers can decide whether they wish to buy products that are of a lower standard or have not been produced to the same welfare standards?
Mr. Brown: The Meat and Livestock Commission's assured British meat schemes provide a way for domestic consumers to consume to the highest United Kingdom standards. Under consideration in the EU is a beef labelling regime which would apply throughout the EU. The United Kingdom, French and German Governments are supporters of that regime, as is the Commission.
Mr. Tim Yeo (South Suffolk): Now that the European Commission has confirmed that country of origin labelling within the EU is lawful, why does the Minister think it right to require British beef to be labelled as British when it is sold in France, but wrong for French beef to be labelled as French when it is sold in Britain?
Mr. Brown: I have just answered that question. If Conservative Members listened to the answers instead of just trying to work out how to ask the same question, we might make a bit more progress. I thought that the hon. Gentleman was in favour of labelling schemes. He has wobbled about on this issue like a demented political yo-yo.