Select Committee on Agriculture Appendices to the Minutes of Evidence


APPENDIX 5

Memorandum submitted by Mrs Pippa Woods, Vice Chairman, The Small and Family Farms Alliance (S 8)

  I have sent you memoranda before on behalf of the Family Farmers' Association.

  I am now writing for the Alliance named above, whose members have all agreed this statement.

  It is our belief that further food trade liberalisation will be disastrous for UK, and probably also for EU, agriculture. This is for two main reasons:

  1.  Economic.  Allowing the free importation of temperate foodstuffs which can be produced much more cheaply elsewhere will put severe economic pressure on the EU. Consumers' money, which could and should be recycled within the EU, will be exported, causing a potentially serious trade deficit, as well as causing poverty in rural areas.

  2.  Welfare and Public Health.  Consumers should not be offered food the production methods of which are so unsatisfactory as to be illegal in Britain. The sale of cruelly or unhygienically produced food should be equally illegal, be it of British or foreign origin.

ECONOMICS

  We are well aware that to question the sanctity of the concept of Free Trade amounts to heresy. However, we feel that it is time orthodox economists and international businessmen were challenged by ordinary people who put common sense before unproven and unprovable economic theory.

  Free trade has destroyed the coal, steel and shipbuilding industries. Our Minister himself has said that he is not prepared to see agriculture go the same way. He recognises, as we all do, that agriculture is not just another industry. The fact that most of the land of Britain is farmed, and how it is farmed, has a profound effect on the quality of life of nearly all the inhabitants.

  The world has discovered how to produce food intensively in the last few decades and surpluses have been building up. As farmers know by bitter experience, it only takes a small surplus to reduce the market price of any commodity. This reduction in farm prices which followed increased world production has been countered in many nations, and to a greater or lesser extent, by tariffs and other regulations. These have been designed to discourage the importation of food at below the local cost of production. This was possible because food was outside the scope of the GATT.

  Unfortunately trade in food is now controlled by the WTO. (The undemocratic nature and unaccountability of this organisation is not something we are qualified to elaborate on, but we suggest that it is a seriously relevant field for investigation.)

  The WTO's intention to remove all, or most, of the restraints on world trade in food commodities has apparently been accepted by the Brtish government without question. We believe there are many less powerful governments, and many worldwide NGOs which do not share this acceptance. We hope that the committee will be seeking views other than that of the British Establishment on this point. (Via Campesina is the, or one of the, world leaders in the campaign against WTO control of food.)

  The reduction in farmgate prices caused by cheap imports is now causing serious problems in the countryside. Increasing amounts of public money are being given to farmers in an attempt to prop up the rural economy. Total commodity support to UK agriculture now amounts to 170 per cent of Total Income from Farming (MAFF, August 1999). This is a manifestly ridiculous state of affairs, especially in view of the fact that many formerly viable farms are now operating at a loss.

  If farming is allowed to continue on this downward course, there will quite literally be chaos in the countryside. All enterprises operating in rural areas depend to some extent on reasonably prosperous farmers with whom to do business—all will be poorer. In view of this, it will be difficult to find employment for all the redundant farm workers and farmers, many of whom are already depending on charity or state benefit for survival.

  Supporting an unemployed family costs nearly £10,000 a year, whereas a farm worker of craftsman grade pays over £3,000 a year in income tax and NHI. When food production was profitable many medium sized farmers paid about the same in income tax as they received in subsidies.

  For wildlife there will be gains and losers if land is abandoned, according to species. But if the whole countryside assumes an unkempt and neglected air, many people's quality of life will be diminished.

  Taking support from all farmers and redirecting it to the environment will only be a partial solution—it will not compensate for total lack of profit in food production. Modulation, in the form of reducing the very large payments to very large farmers will, of itself, be useful. Reducing the buying power of the largest enterprises will give smaller ones a better chance to grow to a viable size. The money so saved could be used for conservation, but care will be needed to modulate environmental payments so that they do not encourage further agglomeration of land by already large landowners.

  Although it may not yet admit it, the government is now faced with a stark choice: it must either find means to bring food production back into profitabiity or it must pour funds (whether or not matched by the EU) into other economic countryside activities to take the place of farming. (While paying out large sums in benefit meanwhile to keep families fed.) If there is no profit in food production it will gradually diminish. It will be difficult to find a substitute activity which can finance the countryside on the scale which farming did formerly.

  There are two other important considerations:

  Food Security. A nation which abandons the ability to produce the food it needs puts itself in a very vulnerable position. At present much more food is produced in the world than the world can afford to buy. Who knows how long this situation may last? If a generation grew up not knowing how to produce our own food, we would be in a very awkward position indeed if/when food becomes scarce and expensive on the world market.

  Food Sovereignty. Many NGOs champion the right of underveloped countries to keep out cheap food which undermines their ability to develop their own agriculture. This right of protection from an un-needed foreign food should apply equally to all nations.

  We believe that protection will have to be seriously considered in order to make food production profitable once more and save rural Britain from disaster. If there is no threat of imports, home production can be regulated so as to match demand. In general, and in the absence of surpluses, farmers can expect rewards from consumers sufficient to keep them in business (and look after the countryside). This does, of course, assume fair play on the part of processor and retailer, who may need to be regulated.

WELFARE AND PUBLIC HEALTH

  If sub-standard food is imported in large quantities this could damage the nation's health, as well as ruining a large proportion of farmers. Our hygiene laws are extremely strict, not only in abattoirs but also in milk production and many other matters, such as the use of pesticides. Either these hygiene laws, which add to farmers' costs, are necessary and important, or they do not matter and could be ended. If they are truly essential it behoves our government to make sure that all imported food is subject to the same laws. If they are not important, our farmers should not have to bear the expense of complying with them. BST, hormones and antibiotics are routinely used in many countries to lower costs. The import of products containing them is banned, but monitoring is extremely difficult and leads to endless disputes. GMOs will cause similar problems—the wrangling has begun.

  The same applies to welfare. Many aspects of welfare are now matters of law. Battery cages must be a certain size, calves may not be kept in crates or sows in stalls or tethered, cows tails may not be cut off. The latter practice is fairly common in New Zealand for ease of handling large numbers of cows in each herd and is said to have reached Ireland. It is common knowledge that many of our laws on the treatment of animals are in advance of those in the rest of the EU. Do we seriously suppose that animal production in Africa, South America or the Far East is subject to equivalent laws to ours? It is also alleged that pesticides long banned here are still in use in less developed countries.

  The British public must not be able, unwittingly or otherwise, to obtain foodstuffs produced in ways that are illegal here. There must be power to exclude them. Labelling will not be sufficient. If apparently equivalent, but cheaper, items are displayed alongside our highly regulated food, poorer and less discerning people are bound to buy them. The cheapest available product will always be used in manufacturing made up food and it would obviously be impractical to declare the country of origin for every one of a long list of ingredients.

  By far the simplest solution to a multitude of problems will be to take food out of WTO jurisdiction entirely. Every country would then have equal right to restrict entry of any food it wished. Countries would have to regulate their own food production to that which they needed for home consumption, plus any commodity for which there was a genuine world need. There would have to be a law against any export subsidies of any kind.

  Such an international agreement would do nothing but good to Britain and the whole of Europe. We would regain control of our own food and food production. Total EU exports of food are not great and to reduce our production to the level of true need would not be difficult. Low input/low output farming could become the norm, which would be much better for the environment than the present pursuit of ever higher yields from both crops and livestock.

  The Cairns group and North America would be most affected. But they also could relax their quest for ever greater output and practice more conservation. They might be in the best position to provide food to countries unable to grow enough of their own. Food miles/global warming would be reduced. Tropical countries would concentrate on tropical foods, which all temperate areas need to import. If they ceased trying also to produce temperate foods for the world market, this might help indigenous peoples to maintain their own sustainable farming methods.

  We now have the opportunity to get food out of the clutches of the WTO; to free food from being a source of constant wrangling between nations. All nations must accept that all other nations have the choice to admit foreign food freely, or to tax or regulate it as they wish. No doubt all the world traders will scream, mistakes will be made and anomalies created. But things will settle down and any country which is capable of it will be free to feed itself in a sustainable way, caring for its countryside in the process. Farming will continue as a successful occupation worldwide and there will be no bullying, at least in agriculture, by any pseudo international power.

27 October 1999


 
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