Agriculture Bill (Tenth sitting)

Kerry McCarthy Excerpts

Committee Debate: 10th sitting: House of Commons
Tuesday 13th November 2018 Public Bill Committees

[Dr Drew]

I agree. Perhaps we just know a lot more about allergens nowadays and people are more willing to be overt in coming forward to say what should happen. This is a simple amendment that gives the Government the opportunity. The Government, through the Minister, may want to say there is a different way of doing it, but here we have an Agriculture Bill that is about food production.

I will be interested to hear what my hon. Friend the Member for Bristol East has to say about her new clause, but clause 20 is a place where we could put a measure that will be immensely important to people who have allergies, so they know that they are being protected. We have various assurances from the Food Standards Agency that it is able to pursue cases; it is just not able to pursue cases because of the gap in the law, which should lead to criminal proceedings when someone been wilfully negligent.

Again, we are having to learn. In a post-Brexit situation—if we get to that situation—the British Government must have fool-proof security in how they deal with food standards and food safety. Given the a huge call on the Government to do this, I hope they will respond positively. If the Government will not remedy the problem at this stage, it would be interesting to know when they will act. Having stated that they intend to address a legislative gap, they are obliged to do so. Clearly, we cannot do this via a specific bit of legislation because we are waiting for Godot. You have to grab the opportunity when it comes around.

I hope the Minister will consider amendment 118 to be helpful. It will save lives, while also telling people who have lesser conditions but who want to know, if they are allergic to nuts or whatever, that a product has been properly labelled. If food is not properly labelled, the law should take its full effect.

[Kerry McCarthy (Bristol East) (Lab)]

I endorse what my hon. Friend says about amendment 118. There are so many calls now for better labelling of food and more information that we run the risk of getting to the point where the information is in such tiny print that it becomes meaningless, particularly for people who, like me, have reached the age where their eyesight is not as good as it used to be. It is important that consumers get as much information as possible.

New clause 15 would strengthen the Bill by requiring the Secretary of State to make labelling regulations that require meat, milk, dairy and egg products, including those that have been produced intensively, to be labelled as to farming methods. Eggs are not included in the legislation because they are already labelled. Surveys show that eight out of 10 consumers in the UK would like to know how farm animals are reared.

The Government have a role to play in ensuring higher animal welfare. We talked about that in the context of public money for public goods and the definition of higher animal welfare that will come out in 2020, and on that basis farmers will be rewarded, but the market also has a role to play. Consumers only shop around for the higher welfare products if they know what higher welfare is and is not. That includes how meat and dairy products are being reared.

[Sandy Martin]

Does my hon. Friend agree with me that the clearness of labelling on eggs has resulted in a massive increase in the number of eggs from higher welfare sources, rather than from caged hens, and that that is a good indication of how effective this sort of legislation can be?

[Kerry McCarthy]

I agree entirely with my hon. Friend. The EU introduced a law in 2004 that required eggs and egg packs to be labelled as to farming methods. That was the result of consumer demand. It did not ban anything, but it gave consumers the information they needed to shop in the way that they wanted to shop. It led to a substantial shift away from cage eggs and 50% of UK egg production is now free range, but in other respects information on method of production is not available. Unless food is organic, it is quite difficult for higher welfare farmers to get the information across, so that shoppers will be prepared to pay a premium. There are some voluntary and assurance schemes, but it is all a bit of a muddle.

[Mr Goodwill]

Of course we are all keen to ensure that animal welfare standards are maintained and indeed improved. On eggs, the public easily understand the difference between a caged bird and a bird that has had access to the outside, but it is much more difficult for milk production. Can the hon. Lady explain how, for example, cows that are housed in winter for good welfare reasons would be characterised in her way of describing type of production?

[Kerry McCarthy]

I have spoken to dairy farmers and organisations such as the Pasture-Fed Livestock Association about the number of days animals would have to be outside grazing to meet the criteria. Nobody is suggesting that they would have to be outdoors year round, round the clock, no matter the weather. That is something that could be addressed in the guidance. The problem with milk is that, at the moment, most milk is pooled together, so it is impossible in most cases to distinguish the source of the milk when it comes to be marketed, so consumers are in the dark—unless it is organic of course.

[Mr Goodwill]

I understand the point the hon. Lady is trying to make, but would this provision not just hand the market on a plate to the New Zealanders, who can keep their cows outside for very long periods, and in that way freeze out British farmers who, because of the weather we have in winter, have to house their livestock for the best of reasons?

[Kerry McCarthy]

That depends on the criteria set. I have heard 120 days mentioned as a possible benchmark.

The problem is not just that the information is not being made available; one of the main reasons I tabled the amendment is that there is quite a lot of misleading marketing that gives consumers the impression that goods are higher welfare when they are not. A pork product from a factory-farmed pig may carry a label that says something like “farm fresh” or “all natural”. Packaging can carry images of green fields or woodlands. I was praising Tesco this morning for its work on food waste and modern slavery, but there was an issue, either earlier this year or last year, where Tesco meat and fresh produce had been labelled with the names of British-sounding farms, such as Boswell Farms beef steaks and Woodside Farms sausages, and it transpired that not only did those farms not exist, but in some cases the produce had been imported. That is certainly misleading the public, and I might use stronger language to describe that behaviour.

[Simon Hoare]

I have concerns about an arbitrary number of days being set. Broadly, farmers bring stock in and out as the weather permits. If there is an arbitrary number of days, it is the target that dictates the welfare, not the requirements of the animal. There is a tendency in the narrative of veganism to focus, perfectly properly, on animal welfare. Would the hon. Lady agree that, in that drive for transparency, many consumers would be very interested to know the health of the soil in which their vegetables were grown and how much insecticide and pesticide was used on them during production?

[Kerry McCarthy]

I have no idea why the hon. Gentleman is bringing vegans into the debate, as they do not eat any of this produce and, therefore, I would imagine, are not particularly concerned with where it comes from. The Environment, Food and Rural Affairs Committee, chaired by one of his hon. Friends who is a dairy farmer, recommended twice in 2018

“that the Government introduce mandatory method of production labelling”

to support the existing market for higher welfare products and to encourage more producers to move into that higher value market.

I met various members of the National Farmers Union in Gloucestershire during the mini recess. Most were higher welfare beef and dairy farmers who struggled to get a decent price and to get recognition of the fact that they put more care into producing their products. They are keen to support this proposal, so the idea that it is some sort of vegan crusade is a bit tedious, to be honest, but also wide of the mark.

[Simon Hoare]

I was not intending to be tedious; perhaps my tedium was unintentional. I was trying to tease out the hon. Lady’s answer, which I presume be “yes”, on whether clear and relevant information about the type of food production is of use to consumers. That was the point I was driving at. I was slightly concerned to hear the hon. Lady say that because vegans do not eat meat, they have no interest in the conditions in which animals are raised. I would have thought that would unite everybody in this country, whether they eat those animals or not.

[Kerry McCarthy]

Of course vegans are interested in that, but they are not the consumers who are trying to decide between one pack of sausages and another—unless they are Linda McCartney vegetarian sausages, for example.

I think that the hon. Gentleman is trying to take this whole thing off on a tangent. During the referendum campaign, the Government blamed the European Union for tying their hands, making them unable to move further on production labelling. The Farm Produce (Labelling Requirements) Bill was introduced by the hon. Member for St Albans (Mrs Main)—I remember it well. Making progress on production labelling was put forward as one of the reasons why we should leave the European Union, and that Bill was supported by a number of Brexit-supporting Tory MPs.

At the beginning of this year, the Secretary of State announced at the Oxford farming conference that the Government were considering extending mandatory labelling, and when that issue was highlighted in the “Health and Harmony” Command Paper, it received very positive feedback. Respondents to the question, “Should government set further standards to ensure greater consistency and understanding of welfare information at the point of purchase?” were overwhelmingly in favour: 72% either said “Yes” or “Yes, as long as it does not present an unreasonable burden to farmers.” As I said, we need to have a discussion about what producers need to do if they are to be deemed higher welfare, pasture fed, and so on. No matter what sort of scheme we have, some hurdle will have to be met, but setting those rules is obviously a matter for the Government.

[Colin Clark (Gordon) (Con)]

The hon. Lady is making a powerful point, and in many ways, I sympathise with her. As I have said to the Committee, I am an organic and a conventional farmer, and once upon a time, I had interests in a vegan food company, which, strangely enough, made sausages and bacon out of soya, which I never quite understood. However, I am a bit concerned. My cousins are organic dairy farmers, and their cows spend quite a lot of time inside, because they are in the north of Scotland, so obviously the weather is pretty cold. Lambs spend most of their time outside, because farmers cannot really farm sheep inside a building; they tend to die, although they die outside as well, as it is a pretty harsh climate. Many Members have constituencies where sheep are kept in the hills.

The United Kingdom almost certainly has the highest food standards in Europe; we definitely have the highest standards in the whole of Europe for pigs, for example. I am concerned about trying to differentiate by saying that one thing is a significantly higher standard and another is a lower standard, and therefore is unhealthy, not good for people, or bad for farming. I am concerned that the vast majority of consumers, who spend only 10% to 15% of their income on food, are going to be told that a £2 chicken is an unnatural and unhealthy thing to eat. Chicken is the main source of protein for the majority of people on lower incomes.

[Kerry McCarthy]

The hon. Gentleman might want to make a speech after I have finished, rather than an intervention. Nobody is proposing anything like the traffic light system that was suggested for food containing lots of sugar, which I know the Government have not backed. Nothing will be labelled “bad”, but when farmers have put in more effort and spent more money, they want to get a higher price. That has happened with eggs, and the market has responded. As I said, eight out of 10 people want to know how their food is produced, so this is about rewarding the good, rather than badging the bad.

[Colin Clark]

What is the difference between organic dairy cows that spend some of their time inside and some outside, and conventional dairy cows? Why is that a higher standard?

[Kerry McCarthy]

If people want to choose to buy organic, they can do so. They can do that at the moment. There is not going to be any judgment as to whether organic is better; it is a personal choice. I thought the Conservatives were all in favour of personal choice.

On the non-meat varieties of bacon and sausages, we do not object to the taste of things; we object to the fact that animals are killed to make them. If they are made from plant-based sources, all well and good and we can all have a nice bacon sandwich without worrying about the little pigs and other creatures. I hope that explains to the hon. Gentleman why we might want to have a veggie-burger occasionally, if he struggles with the concept.

[Mr Goodwill]

On that point, does the hon. Lady think we should follow the lead of France, which, following an initiative by French MP Jean-Baptiste Moreau, has banned misleading words such as “sausage” and “steak” unless they are attached to produce actually containing meat?

[Kerry McCarthy]

No, I do not. I am aware of that move, but I do not think that people are remotely misled. Nobody is going to buy a vegetarian sausage thinking that it has pork in it. It is the same with soya milk and almond milk—everyone knows perfectly well that they have nothing to do with dairy cows. We are underestimating the intelligence of the British consumer if we think that they are going to be misled by things like that.

[Simon Hoare]

Can I share with the hon. Lady my absolute speechlessness when a set—if that is what you call them—of vegetarian sausages arrived on a lunch plate that I had ordered? The menu only said “Glamorgan sausages”; it did not say that they were vegetarian, so one can be misled through the use of the word “sausage.” I think that the French are on to something here.

[Kerry McCarthy]

Perhaps that says more about the hon. Gentleman’s ability to read a menu.

[Tonia Antoniazzi (Gower) (Lab)]

It is an interesting but futile debate to talk about vegans in this way. The hon. Member for North Dorset talks about Glamorgan sausages. Given his Welsh heritage, I would have thought he would have known better.

[Kerry McCarthy]

I seem to be here to provide light entertainment, basically by giving the lads over there the chance to do a little bit of vegan bashing in the afternoon.

[Martin Whitfield]

In no way should my hon. Friend’s amendment offer anybody light entertainment. It simply offers to give the information to those people who are purchasing the produce so that they can make a decision, as she has rightly expressed in relation to eggs, which has been so successful. The amendment does not define how many days cows are kept or otherwise; it simply provides a vehicle for giving customers the information they need to make a choice.

[Kerry McCarthy]

I thank my hon. Friend for bringing the debate back to a more serious note. Basically, consumers are being misled. They would like more information, and farmers would like to give them more information so that when they have put more effort into producing their produce, they can be rewarded for that. That is all the new clause is about.

[George Eustice]

This group contains two important amendments that have touched on some interesting issues, on which I will update the Committee. The first is amendment 118, tabled by the shadow Minister, which relates to an incredibly important issue. As he pointed out, the problem of allergens leading to deaths has been in the news most recently with the tragic story of 15-year-old Natasha Ednan-Laperouse, who died due to an allergy to sesame in a baguette that she bought from Pret a Manger. This is an important area and we are going to look closely at the review of food law, particularly for the labelling of allergens. We intend to publish our proposals around the turn of the year, to update colleagues further.

It is important to say that there has been a growth in food allergies in recent decades. Nobody is quite sure why that is, but it is real. If we look at the number of people who have allergies, particularly to nuts and sesame, we see that it has grown considerably in the past 20 to 30 years. Another change is that chains such as Pret a Manger, and many others, are increasingly making their sandwiches on-site, which is a relatively new model. That has happened in the past 15 to 20 years. The combination of the growth in the prevalence of allergies and the growth in the practice of preparing sandwiches on-site means that there is a gap in the law. A simple, small derogation that was intended to be used by small family bakers, for instance, so that they did not have to label foods being produced, is now being used on a much larger scale, which had not been envisaged at the time.

--- Later in debate ---

[Dr Drew]

We are making some progress. I blame the hon. Member for North Dorset; he has been holding us up, but now that he has gone we are racing through. These are quite important amendments. I will not labour the point on “must” and “may”—I think the Minister will be keen on that—but I do want to talk particularly about amendments 93 to 95, which stand in my name and those of my hon. Friends. I know that my hon. Friend the Member for Bristol East also has amendment 111 in this group, so we will take a little bit of time going through this, because it is quite important.

Amendments 93 to 95 would remove the requirement restricting new statutory codes to first purchasers at the farm gate, addressing unfair dealings along the whole supply chain—beyond first purchasers—to ensure that that regulation applies to all stages of the supply chain not currently covered by the Groceries Code Adjudicator. I must say that we feel the Bill has been somewhat hurried here. We have made the point of who we did not hear evidence from, one of whom was the Groceries Code Adjudicator, whose powers we feel very strongly have been somewhat hamstrung by the Bill. We either value the Groceries Code Adjudicator’s work or we see it as fairly irrelevant.

This matters because it has been a bone of contention that producers can only ever take action through the Groceries Code Adjudicator relating to certain parts of the food chain, principally improprieties at the retail stage. I understand that the farming organisations have always wanted to extend those powers—powers, not duties—so that they can take action against intermediaries in the food chain. This is important, and we want clarity on this at the very least.

There is this thing about whether they are able to derive evidence of harm. The Government have noted that smaller suppliers—including the majority of farmers— growing our food, both in the UK and overseas, are vulnerable to abusive treatment by their buyers; that is why we have a Groceries Code Adjudicator in the first place. That behaviour can involve: paying invoices late, which is the classic one; changing orders at the last minute; cancelling orders, because we all have examples in our constituencies of particular producers feeling that they have been hung out to dry by the way in which certain buyers are able to manipulate the market; and charging suppliers unexplained fees to keep their food on the shelves.

We know that food supply chains are complex, with behaviour in one part of the chain obviously having an impact in another. Again, we want clarity here, because we think that this part of the Bill could be improved; we are trying to help the Government, not damn them. Limiting the clause’s focus to the relationship between a farmer and their immediate buyer sadly misses out what happens in the intermediary parts of the food chain. It will be interesting to know whether the Government see this as a role for the Groceries Code Adjudicator, or whether they are unhappy about it.

There was widespread support for putting the Groceries Code Adjudicator in place; it was a cross-party arrangement. It took longer than some of us would have liked, given that we started talking about it when I was last a Member, but eventually it came to fruition. The sad thing is that there is still a belief that the Groceries Code Adjudicator’s powers are too limited and that it is too constrained in where it might want to intervene to right wrongs. On these three amendments, we are asking the Government at least to be clear about what they see as the role of the Groceries Code Adjudicator in relation to the Bill.

At the crux of this are the circumstances in which the body might need to appropriate precise costs and take a more forensic approach when indirect suppliers request adjudication on a case in which unfair dealing had been perpetrated by other parts of the supply chain. It is about looking at whether we can improve the powers of the Groceries Code Adjudicator, and at the very least we want clarity on how the Bill will either do that or not. Again, we may want to revisit this on Report if we do not feel confident that the Government have listened and acted.

Regulations are about how this will be implemented in relation to the supply chain—of course, this is largely about statutory instruments—but the Government need to say something in the Bill about their priorities, and their willingness to listen and act on what many of our producers have identified as a serious issue. In terms of primary legislation, it is important not to leave out what those trading relationships are and could become if there was a more level playing field.

The enforcing body, which presumably is the Groceries Code Adjudicator, needs not only the powers to act but the resources. From talking to producers and from my knowledge of the Groceries Code Adjudicator, I know that cases are often not pursued because there are not the resources to do it. These are terribly complicated issues. Again, it is not something that the law has ever embraced, because it is so complicated. We set up the Groceries Code Adjudicator to get away from that particular legal quagmire.

It is worth noting that the EU, blighted as it might be, is currently passing a law that would set up an enforcement authority. At the very time that we are leaving the EU—supposedly—it now recognises that it has to take additional powers to deal with these unfair trading practices along the whole of the agriculture supply chain, from the farmer to the retailer. That received support from Conservative and Labour MEPs.

This is an important issue, which we make no apology for bringing up at this time in order to look at where we are in terms of the powers invested in the Groceries Code Adjudicator, whether those powers should be increased on the face of the Bill—something we could do here—and whether that would deal with some of the intermediary abuses that, at the moment, are not within the aegis of the Groceries Code Adjudicator. I look forward to the Minister’s response.

[Kerry McCarthy]

I hope to be fairly brief. I will address amendment 111 first, because it links directly to amendments 93 and 94. In the event that amendments 93 and 94 are unsuccessful, and therefore the fair dealing measures in the Bill cover only the relationship between a farmer and the first buyer, amendment 111 has been tabled to address a potential unintended consequence of imposing these obligations on first purchasers, namely that producers who act as aggregators for their neighbours could potentially be classified as purchasers.

It is common practice here and overseas that if one producer has the infrastructure, skills or time, they may collate the produce on behalf of local farmers. A farmer with a big barn or storage facility may aggregate apples in a packhouse for neighbouring growers in his or her part of Kent or East Anglia. A bean grower in Kenya may do the same for neighbouring farmers. Amendment 111 ensures that those aggregators will still be classed as producers, and that they are then within the scope of protection.

Amendment 112 is about the sector-specific statutory codes. We have been told that they will initially be introduced in sectors where voluntary codes have been unable to significantly improve contractual relationships. I know that in evidence it was suggested that dairy would be the first sector to have the code applied, because it is seen that the current arrangements are not working that well. There is concern that certain sectors will have priority and that the Government will never get around to actually bringing other sectors into the scope of the statutory codes, for example for the fruit and veg sector. There would then be powers to support fair purchasing in the dairy sector, but not other sectors. Amendment 112 is simply about ensuring that the codes are not confined to certain sectors but apply to all sectors. I have lengthy notes on the rest of it, but I think I will leave it at that.