Food Price Inflation

John McDonnell Excerpts
Thursday 19th May 2022

(1 year, 11 months ago)

Commons Chamber
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George Eustice Portrait George Eustice
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My hon. Friend raises an important point. Ukraine is a very large producer and in particular it is the world’s biggest producer of sunflower oil, which is the principal agricultural commodity we were importing from Ukraine. On cereals, Ukraine accounts for around 9% of wheat exports, a lower percentage of global production. In answer to his question, as I said in my statement we have a very high level of food security in this country, with high levels of self-sufficiency in wheat, producing 88% of the wheat we need. Of course, we are also mindful of the impacts on other countries around the world, in particular those in north Africa that import significant quantities from Ukraine.

John McDonnell Portrait John McDonnell (Hayes and Harlington) (Lab)
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In crises on this scale, Governments of all complexions, Conservative and Labour, have looked at ensuring people have the resources coming in so that they can afford basic foods. At the moment that means inflation-proofing benefits, pensions and wages, but they have also looked at price controls. The Government are looking at price controls for energy. Will they now look at price controls on a basketful of basic food stuffs, so that we do not see what we have seen in recent surveys, which is people actually now on the edge of hunger?

George Eustice Portrait George Eustice
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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.