Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Elfyn Llwyd Excerpts
Wednesday 21st January 2015

(9 years, 3 months ago)

Commons Chamber
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Stephen Crabb Portrait Stephen Crabb
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First, I commend the work my hon. Friend does on the dairy sector in Wales; he is a powerful voice on behalf of dairy farmers in his constituency and throughout Wales. We strongly support the work of the Groceries Code Adjudicator. Its jurisdiction is currently limited, but a review will take place next year. I take my hon. Friend’s point about the short-term pressures, so we look forward to receiving information and updates from him on action we can take.

Elfyn Llwyd Portrait Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
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As a Member representing Pembrokeshire, the Secretary of State will be well aware that the dairy industry in Wales still contributes about 10% to the whole of the UK’s production, but that since 1999 its level has fallen by 51%. Will he look at yesterday’s report by the Select Committee on Environment, Food and Rural Affairs, which says exactly what the hon. Member for Ceredigion (Mr Williams) says: give the adjudicator greater teeth to tackle unfair pricing?

Stephen Crabb Portrait Stephen Crabb
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I thank the right hon. Gentleman for his question, and we are looking exactly at that report. A very severe short-term crisis faces the dairy sector at this time. Nobody pretends that expanding the role of the adjudicator will fix the global problems—big market challenges need to be addressed—but we are doing everything we can to work with the dairy industry and protect the supply base.

Elfyn Llwyd Portrait Mr Llwyd
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On the market challenges that the right hon. Gentleman refers to, what steps is he taking to urge his Government to work with the Welsh Government to implement policies we have suggested—for example, the dairy equivalent of Hybu Cig Cymru to market Welsh milk, the use of rural development funding to develop supply chains to counteract volatility, and procurement in the local Welsh sector?

Stephen Crabb Portrait Stephen Crabb
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The right hon. Gentleman might be surprised to hear that we do follow the policy recommendations of Plaid Cymru and I have looked at the recommendation for that new body. When huge global imbalances are putting such severe pressure on dairy farmers throughout Europe, reaching for a bureaucratic solution and setting up a new quango probably will not make that much difference, but we will look at the proposal in further detail and have that discussion.