Thank you, Mr Deputy Speaker.
We know the origins of the code came from the Competition Commission report in 2008; we have already discussed the excessive risks to suppliers, particularly overseas ones. The practices behind that would have had the potential to harm those producers overseas who
are the most vulnerable and to be an obstacle to progress on the pay and conditions of, and innovation by, farmers and farm workers in developing countries. UK shoppers rightly enjoy the widest range of choice, via large retailers. The outstanding quality of produce cannot be in doubt, but the Bill has the opportunity to ensure that there is protection for all territories and to make a large contribution to the development of other countries. Amendment 30 asks for the code to be extended to other territories and asks the adjudicator to look at this matter when making recommendations to the OFT.
The subsidiaries issue is also worth exploring, as it shows clearly that the large retailers have different arrangements in place. That has to be taken into account, which is what the amendment seeks to achieve. It would be good to get clarity from the Minister on what the process would be if difficulties were identified with regard to the code in these subsidiaries or other territories. The relationship of the code in the complex matrix of buying and production is from the large retailer to the immediate supplier. As the Bill stands, that means that the large retailer is able to set up subsidiaries to buy apples from X Ltd rather than directly from the supplier.
Amendment 34 stands in my name and that of my hon. Friend the Member for Ogmore (Huw Irranca-Davies), and it goes to the heart of some of the main issues that have been discussed in the House over the past few months. Our amendment calls on the Government to ensure that the GSCOP, which the adjudicator referees, covers the issue of commercial pressures that can be put on suppliers and that drive down quality and safety, creating possible food scandals, such as the recent revelations around horsemeat in beef products.
The amendment would explicitly enable the adjudicator to include in its annual report details of any incidents where it had become aware that commercial pressure had been applied to suppliers to drive down costs, standards and health and safety, resulting in a drop in food standards or authenticity. To answer some of the criticisms that will probably come from the hon. Member for Shipley and his like, I should say that the amendment is directly related to clause 14 and the annual report to the OFT, not necessarily in the sense of the issues arising where someone takes a case to the adjudicator to deal with in terms of the code.
Amendment 35 would require the adjudicator to send its annual report to the Food Standards Agency. That would create an important link between the adjudicator and the FSA in terms of some of the issues related to the horsemeat scandal that we have seen in recent weeks. As has been reported, the UK’s National Beef Association has blamed what it called the “bullying culture” that retail buyers have used for decades for the presence of horsemeat in beef products. Its national director, Chris Mallon, has said the public and retailers were paying the price for
“short-sighted, price-led purchasing tactics”.
He said that buyers had
“adopted a bullying culture aimed exclusively at securing as much farm food as possible, for as little cost as possible, and the result is tortured supply chains that add so much unnecessary cost that short cuts on quality and traceability, and even cheating by some suppliers, was inevitable.”
That quote shows how important it might be to include the amendment in the Bill.
Consumers must have confidence that the food they buy is correctly labelled, legal and safe, but over recent weeks that confidence has been hit hard. Many of the problems in this particular scandal have been outright criminal, and, of course, the criminal courts will deal with those, but Ministers have been slow to act, as has been shown in our debates in this House. The Food Safety Authority of Ireland has been ahead of the UK every step of the way. By having an annual reporting requirement on food safety and hygiene through the adjudicator, some of the issues that have been raised eloquently by the national director of the UK NBA could be dealt with.
The amendment has another link with the Food Standards Agency, as its budget has been cut from £143 million to £132 million. Although we should not get into a debate today about budgets of particular Government agencies or Departments, it would be an important step to say that the adjudicator, in its report to the OFT, could refer some of these cases. That might help to soften the blow caused by the reduction in resources.