Food Price Inflation Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Bob Blackman
Main Page: Bob Blackman (Conservative - Harrow East)Department Debates - View all Bob Blackman's debates with the Department for Environment, Food and Rural Affairs
(1 year, 11 months ago)
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George Eustice
I would simply point out that the ferocity of retail competition in this country at the moment means that two of the big companies, Sainsbury’s and Tesco, are in a price match war with Aldi. That will actually do far more to constrain prices in some of those categories—not all, but in some of them—than any regulation the Government can bring in. I would point out that the last time we saw a spike in food prices of this size, with household spending on food exceeding where it is today, was 2008. The Labour party did not choose at that point to introduce price controls.
Bob Blackman (Harrow East) (Con)
My right hon. Friend has set out for the House the complications involved in price rises of food and other substances, and supply is clearly one of those. Will he therefore take action to encourage our farmers to produce more, and then make sure that our supermarkets pass on the profits they make to farmers to encourage them to grow and develop more product?
George Eustice
Confidence among farmers to sow next year’s winter wheat crop and to continue to put down flocks of broiler chicken and so on really does matter. In the case of poultry and pigs, many of the contractual arrangements automatically pass on some of the costs—for instance, the costs of feed. With fertiliser prices easing down, I think we will see confidence returning, but my hon. Friend is absolutely right. In England we have chosen to bring forward 50% of the annual subsidy payment to July this year to help farmers with cash flow during a difficult time.