Food Poverty

Debate between Stephen Doughty and Roger Williams

Wednesday 12th December 2012 Westminster Hall

[Roger Williams]

All I can say is it was a bit of a surprise when I turned up to the debate and I was the only coalition Back-Bench Member who had come to make a speech; but let that be as it may.

We have heard about the Trussell Trust. Giving out food is not a simple thing; there are all the hygiene regulations that go along with it, and the trust does a lot of work to support the banks to ensure that their work is properly organised.

Poverty is distressing wherever we see it, and food poverty never goes alone. The question whether to eat or heat has been asked for many years, and Parliament has addressed fuel poverty since 2001, when I was first elected. Food poverty is not a new issue, either. In February 2009, I asked a parliamentary question about the proportion of income spent on food by the poorest 10%. The answer that came back on 5 February 2009, as published in column 1451W of Hansard, was that they spent 22% of their income on food. The hon. Member for Liverpool, Wavertree gave a figure of 15%, which may be the result of a different form of statistics; I am not trying to make a point of that. The point that I want to make is that the issue is a growing one, which has had to be addressed for many years.

From about 1995 to about 2005, we were in a halcyon period for food prices, which reduced in real terms, and the amount that families spent on food as a proportion of their income was reducing, but we have had a change since 2005 and food prices have gone up for many reasons. Other countries have become more economically capable and have achieved higher incomes. There has been greater demand for meat and dairy products, for instance, from countries that previously relied on grain and rice. That has had a huge effect on the price of food over the period in question. There has also been an increase in world population. According to the Foresight report, which is an excellent book about food and food prices, if we have a world population of 9 billion people by 2050, we can expect even more pressure on food prices.

The hon. Member for Liverpool, Wavertree set out today’s problem comprehensively, and she is right that it has two aspects, the first of which is obviously lower incomes in a time of economic problems. People are on lower wages and salaries. Many people’s salaries have been pegged for three, four or more years, and there have been problems with benefits as well; but I believe that we could also deal with rising prices. My speech, which will last just a few minutes, is mainly intended to tell the Minister that this country must play its part in ensuring that global food production can feed the world at a price that people can afford.

The period 1995 to 2005 was typified by low food prices, on the back of a huge amount of agricultural research done from the 1960s to the 1980s that gave us the capability to produce food. As food prices fell during that time, Governments and commercial organisations did not invest as much as they could or should in agricultural research. We have lost that driver, which would have ensured a secure supply of food to keep prices reasonably low and certainly affordable for the poor around the world as well as in this country. The Government need to play their part to establish such research once again.

I want to mention that the fluctuation of food prices can be very damaging for not only consumers but producers. The Foresight report states:

“High levels of volatility in global food markets are an issue because of the adverse effects they have on consumers and producers, because of the disruption they cause to the global food system, and, when particularly severe, because of the general economic and political instability that can occur. These effects will be most severe for low-income countries and the poor”—

in more developed countries—

“and spikes in food price can be a major cause of increased hunger.”

[Stephen Doughty]

The hon. Gentleman is making important points, which I welcome, about the wider challenges of food prices in the world. Does he have any thoughts about the impact of speculative commodity trading on food prices and biofuel targets driving up the price of certain foods both here and abroad?

[Roger Williams]

If I had more time, I could deal with those issues. I was going to speak briefly about speculation and food prices. Some people say that forward buying and hedging on foods may lead to more level prices, but others argue exactly the opposite. The Government need to find out the exact effect of speculation on food prices.

The Government should also consider, certainly in a global context, having strategic reserves of staple foods. For instance, the amount of wheat now in store has been greatly reduced from what it was 10 years ago. It is not surprising that wheat costs about £220 a tonne on the market today, whereas 10 years ago the cost was certainly less than £100. Huge spikes and fluctuations have caused real difficulty for people on low incomes.

I again congratulate the hon. Member for Liverpool, Wavertree on her speech. We must see food banks as a temporary measure—I hope that it is only temporary—to address food poverty in this country. In the longer term, we must look to more strategic approaches in playing a part to ensure that global food production is sufficient not only for this country, but for the whole world.