World Food Prices

My Lords, I, too, would like to thank the noble Lord, Lord Taverne, for moving the debate today on the effects of the rise in world food prices. It has been an important and fascinating debate on an important and topical issue. I always think that these debates demonstrate the very high quality of your Lordships’ House. The effects of these rises in food prices have undoubtedly pitched the world into what has been described by several of your Lordships as nothing less than a crisis. There has not been, and probably never will be, enough attention given to this most pressing problem. Yet, as we all know, attention is not enough. We need action too. When it comes to action, there is a distinct split in the way to proceed. It is a matter of timing. The crisis demands both immediate and long-term action. The immediate course of action is more or less clear. From March 2007 to March 2008, the price of corn has risen by 31 per cent, rice by 74 per cent, Soya by 87 per cent and wheat by 130 per cent. The UK needs to play its part in a worldwide effort to deliver swift emergency assistance to help those in countries hit hardest by these price hikes. This sudden increase in the price of staple foods is often spoken about as an aberration. What work did the Minister’s department do to prevent the current crisis? Did the rapid increase in prices take the Minister by surprise? One factor in the rapid price hike is the allocation of land to meet western demand for biofuels, a matter mentioned by many noble Lords. Arable soil that could be producing staple crops is being used instead to produce supposedly green fuel alternatives. I fear that the Government rushed headlong into biofuels without checking that systems were in place that would make certain of their sustainability in the truest sense of the word. We, on this side of the House, appreciate the role that biofuels can play in reducing carbon emissions—reductions that could help mitigate the effect of climate change on the developing world. But, I hope that the Government appreciate the seriousness of the effect of biofuels on food shortages. Indeed, the Government's answer was to announce yet another review of the economic and environmental impacts, which will be ““taken into account in the formation of the UK policy beyond 2010””. Does the Minister not agree that this is perhaps a little too late? As we heard in a fascinating and forceful speech from the noble Lord, Lord Grantchester, concentrating on the plight of farmers in the UK—a dire indictment on the present Government’s attitude towards the countryside—they have not addressed the problem, as mentioned by the noble Lord, Lord Haskins, of urban poverty being bad, but rural poverty was worse. I could not agree with him more. There needs to be a policy on the sustainability of biofuels for the future. Could more action be taken now to address their manifest impact on food shortages? Indeed, it is very important that we realise a long-term approach will be required if we are going to address food shortages in a meaningful way. While immediate assistance is important, it can provide only temporary and incomplete relief. Thus, the focus must be placed on measures that will have lasting impacts. We on this side of the House feel that emphasis should be placed on increasing global agricultural production by encouraging more research into new farming techniques and crops. In fact, it was the Conservative Globalisation and Global Poverty Policy Group which recommended last year that DfID focus more on agriculture. The group noted that, "““It is crucial to learn the lessons of the Green Revolution in Asian agriculture … The UK and other donors must help fund the research needed to promote a ‘Turquoise Revolution’—combining the neglected blue technologies of rain water harvesting, drip fed irrigation etc with green technologies to develop drought resistant, fast maturing varieties of crops suitable for semi-arid areas””." I applaud the work of FARM-Africa, mentioned by the noble Lord, Lord Taverne, and the noble Earl, Lord Sandwich. This is our position, and it does not seem to chime with the Government’s. In 2007, the National Audit Office found that, "““the proportion of DfID expenditure specifically for traditionally rural sectors such as agriculture has declined””." Does the Minister think that this decreased emphasis on agriculture has contributed to the current crisis? As several of your Lordships have stressed, it is important that in the short and long terms the approach needs to change. My noble friend Lord Selborne and the noble Earl, Lord Sandwich, rightly stressed the importance of water, infrastructure and new technologies. A renewed commitment to agriculture, infrastructure and helping developing countries with emerging technologies will be a main way to address food shortages and malnutrition. Any delay will exacerbate the current problems. We urge the Government to act swiftly. Yet swift action may not be enough. Unless we plan for long-term improvement, the problems that the developing world now faces will persist. As the noble Lord, Lord Bilimoria, said, unless there is a considered approach, we consign people in the developing world to a future of starvation and economic stagnation. However, an opportunity for progress has arrived. Soon, the G8 and the WTO will meet. It is essential that the Government avoid the temptation of continuing trade protectionism. The noble Lord, Lord Haskins, spelt out clearly that protectionist tariffs, especially across the EU, will only exacerbate the current crisis. That said, there needs to be a cohesive approach. Does the Minister not agree that there should be some EU consensus on the type of trade approach to be taken before the meeting of the World Trade Organisation? Will the Minister give us assurances that the Government will fight to preserve free-trade arrangements and resist protection which will only fuel the current crisis? It is an old debate, but it strikes at the heart of the matter. I hope that at the coming international meetings, our Government will be on the side of those who really need their help most.