It is a pleasure to follow the hon. Member for Hackney North and Stoke Newington (Ms Abbott). In many ways, I shall continue the theme that she has introduced, albeit possibly from a different perspective. There are many other Members who know a lot more than I do about traceability and supply chain management, but I have done quite a lot of work on the food system as a whole.
Let us be frank: we are facing a crisis in the food system. The crisis relates not to the replacement horsemeat that we are discussing today. That is just one of the symptoms of the crisis relating to the cost of food. The food system, particularly in this country, is designed around cheap food. That is a business model that has developed over many decades, and it is because that model is changing that we are now seeing fraud within the system.
In the UK, food prices have risen dramatically over the past five years. The 32% increase in that period is double the EU average, and the problem is going to get worse. In April, we are likely to see a significant price increase due to the American drought. The Russians have been imposing intermittent restrictions on exports, and it is extremely worrying that Ukraine, which has signed a debt swap with the Chinese, is seeking to secure that debt swap with its food commodities. Ukraine has been acting as Europe’s traditional hedging supplier for cost reduction in raw commodities.
The crisis is that the era of cheap food is now over. We all need to put in place policies and strategies to achieve the difficult result of smoothing the transition to a higher-priced food sector and ensuring that, despite the price rises, the families the hon. Member for Hackney North and Stoke Newington was talking about will be able to feed themselves with quality food and be sure that the food they are putting on their tables is what it says on the package.
I have not heard the Opposition put forward any strategies to address the fundamental issue that we are facing globally. Let me put some thoughts on that to the Minister of State, Department for Environment, Food and Rural Affairs, my hon. Friend the Member for Somerton and Frome (Mr Heath). First, the supermarkets —and possibly we politicians—must start to be straight with the public about rising food prices. Maybe after this disaster we will start to face up to the realities. It is not the supermarkets or the manufacturers that are absorbing the price rises; it is the consumers. Horsemeat replacement products are the result of a flawed business model, in that that has been seen as the only way to square the ludicrous circle of having cheap food in the shops and rocketing food prices in the supply chain.
Consumers are suffering not only from fraudulent food but from the substitution of the best ingredients with what some people call “arterial Polyfilla”. The £1 cottage pie in the local freezer shop that the hon. Member for Hackney North and Stoke Newington mentioned might have been the same price for the past five years, but will it still have the same contents? Will it contain less meat and have more high-fructose corn syrup, which some people call “heart attack central”? Packaging is also absorbing more price rises. Are people aware of how much fresh air they are buying in their cereal packets? Also, 60% of all products in supermarkets are now on promotion, but some of those promotions are misleading, as Which?, published by the Consumers Association, has rightly highlighted in its report on food promotions.
I am sure that the Government are now taking a new look at food policy. Over the past 15 years, they have more or less devolved the relationship between the consumer and food to the supermarkets. That has never been right, but it cannot now continue. We need to re-engineer our food policy around consumers, not around producers or retailers. We need to move from a “cheap as chips” model to one in which we value food. The new food cost reality might ultimately be better for the public and for our producers, but the transition is already very painful.
When I talk to the poorest families in my constituency, they tell me that they cannot afford to go to the supermarket any more. I might as well ask them whether they go to
Harvey Nichols or Harrods. They get their food from pound shops, Aldi, Lidl, corner shops and street markets. Chips from the takeaway with ketchup or brown sauce will be dinner for the family.
Some of our strategies are interesting. They cover cooking and eating more healthily. Change for Life is a fantastic health programme in this country. The problem is, however, that Change for Life as a message is difficult when some of my families do not have enough time to change their clothes and they are in many ways intimidated by the thought of that type of proposition.