I sat on the Groceries Code Adjudicator Bill Committee, so I can tell the hon. Gentleman that they did. They conceded only under pressure from Members on both sides of the Committee. They argued against giving it those powers, which perhaps explains why it has taken so long to introduce the regulations. I and others have repeatedly raised that delay in Parliament.
I ask the Minister to clarify what the Prime Minister meant when he was pressed on extending the role and remit of the GCA to the dairy industry at Prime Minister’s questions on 21 January. He said:
“I also think it is time to look at whether there are ways in which its remit can be extended to make sure it looks at more of this vital industry.”—[Official Report, 21 January 2015; Vol. 591, c. 217.]
We all welcome the sinner who repents, but that issue was discussed ad nauseam in the Groceries Code Adjudicator Bill Committee two years ago, and the Government rejected it. We had the opportunity to
extend the powers along the whole supply chain, including processors and intermediaries, but that was dismissed as disproportionate. We also had the opportunity to enable the GCA to investigate abuses, but that was dismissed as allowing “fishing expeditions”.
I seek clarity, so let me ask the Minister directly. When the Prime Minister referred to extending the remit of the GCA to look at more of the industry, did he mean that it should include intermediaries? Did he mean that the GCA should have the power to instigate proactive investigations into abuses, which the Environment, Food and Rural Affairs Committee asked for?
The current pressures on the dairy industry go beyond the UK. They reflect reduced demand in China due to the economic slow-down and the closure of the Russian market. The recent increase in production in the EU due to confidence in higher milk prices in 2013, good grazing and good weather, and increased yields in the UK conspired to lead to an over-supply. Arla suggests that global production is increasing by 5% per year, while demand is growing by only 2%. There is no single answer, but there are several areas in which we need to take action in the face of continuing long-term global price volatility and predicted continuing falls in farm-gate prices in the near future.
Will the Minister update us on the progress on country-of-origin labelling, on the establishment of producer organisations in the dairy sector, on the futures market for dairy and on what the uptake and interest in it has been? How much of the countryside productivity scheme money—the £141 million—has gone directly to dairy farmers, and what measures has it funded? What progress has been made with banks and lenders to deal with the immediate cash-flow problems? What discussions has the Minister had about the resilience of the dairy sector in the face of increased volatility that could follow the ending of milk quotas on 1 April this year? Most of all, we would like to know what the Prime Minister meant on 21 January. Was he serious, was he committed or was he deluded? Was he misinformed? Did he misspeak? Was he off piste and off message? Was it a soundbite in the run-up to the election to make the farming community think he is listening? The Minister has the chance to clarify whether the Prime Minister knew what he was talking about, or whether he was just spinning out of control.
It is over to the Minister to sort out the confusion from No. 10. Here we are again, three months to the day after the previous dairy debate, and three years after the previous dairy crisis. Our dairy farmers need and deserve some straight answers.
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