It is a pleasure to serve under your chairmanship, Ms Ghani. I congratulate the hon. Member for North Devon (Selaine Saxby) on securing this important and timely debate.
I do not think it is, strictly speaking, a declarable interest, but the House may be aware that I come from farming family. My family still farm on the south-east corner of Islay. My wife is a partner in a veterinary practice in Orkney, serving a diverse range of farming interests: beef and lamb production, and, sadly, a decreasing
number of dairy farmers. I declare that interest with some pride; it contributes directly and indirectly to the Carmichael family mortgage payment every month.
Food production has always been at the heart of the local economies in Orkney and Shetland. The designation of Orkney beef and Shetland lamb as protected geographic indicators is an indication of that and, indeed, of the quality of the produce for which we have been responsible over the years. In recent decades, we have seen a growth in producers who have been able to add value in a blossoming food and drink sector, which, in turn, has fed into a growing visitor economy, so it remains as important to the northern isles today as it always has been.
In Orkney, we have a long history of producing finished cattle for Orkney beef. In Shetland, traditionally we produced cattle for the store market, but in recent years, by a bit of creativity and a lot of effort, local farmers in Shetland have also been able to produce finished cattle, which have been slaughtered for local consumption in our good, well operated local abattoir. It is an exemplar of how agriculture can feed into a rural or island economy such as ours. Crucial to that operation, however, is the existence and operation of a thriving network of local shops. My concern today is that many of those local shops are currently under threat.
We have had supermarkets in Shetland for decades, like everybody else—we have a big Tesco and a fairly big Co-op in Lerwick and a smaller but still sizeable Co-op in Brae—but recently the Co-op Group lodged applications for planning permission for two further Co-ops, which would be bigger operations, in communities in Scalloway and Sandwick, which are currently served by a variety of small, thriving local independent shops. Those shops are quite clear that if the applications are granted, the future for them looks to be pretty bleak. That network of rural shops, however, is absolutely critical to food production in the Northern Isles, and the farmers I spoke about, who now produce finished cattle for slaughter and sale in the local retail sector, will struggle if that network of local shops is not there.
One of the local shops that will be most directly affected told me last week that it reckons that it takes goods from no fewer than 80 different local suppliers, which are all small and medium-sized enterprises that will never sell in the same quantity to a big outlet such as the Co-op Group. We know, and the Co-op will tell us, that it takes from local producers to put local lines into its shops. That is true. However, the beef and lamb farmers and those food producers who add some value to our local products will tell us that the Co-op, like all supermarkets, will take their products, but only on its terms. Therefore, even if a product does end up on the shelf, the supermarket will determine the price, the quantity, the regularity of supply, the delivery and often even the labelling. The hard commercial reality is that these local suppliers cannot survive on the margins that the supermarkets give them, so the existence of that network of local shops is critical to the future viability of agriculture in Orkney and Shetland.
The Co-op does have a long tradition of being at the heart of highland and island communities, and I am sure I am not the only one who spent many happy—or not so happy—childhood evenings licking stamps to be put in the Co-op book for the dividend, but the Co-op Group today is a very different beast. It operates effectively in the same predatory manner as we would expect of
any other supermarket, bearing down on suppliers in communities such as mine. It is a trail that many communities the length and breadth of the country have seen over the years, but for a company such as the Co-op Group that has always prided itself—and, dare I say it, marketed itself quite effectively—on being the supermarket that was somehow different, to have this change in its culture is unfortunate to say the very least. I hope that it understands the damage it risks doing to the delicate and complex economic ecosystem that communities such as ours rely on. Once an economic ecosystem such as that is lost, it can never be easily recreated.
I do not wish to hold the House, but I want to mention one other matter of supreme importance to the production of food in the Northern Isles: the ability to export it to other parts of Scotland and the United Kingdom. It comes to the point made by the hon. Member for Tiverton and Honiton (Neil Parish). The Scottish Government are currently undertaking a consultation on the transportation of animals within Scotland. For us, with a 12-hour journey from Shetland to Aberdeen, that could have very serious implications. Even the shorter journey from Orkney to Aberdeen would be severely affected. If, in the last year, we had operated under the wind speed and temperature restrictions that are currently under consultation by the Scottish Government, there would only have been two sailings allowed from Orkney to Aberdeen. It is the law of good intentions and unintended consequences in operation. The people who designed the system, which is currently regarded as being blue-chip, with industry-leading standards, were the farmers at the turn of the century, and they are the people who should be involved in the recreation of that system now.
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