Market Failure?: Can the traditional market survive? - Communities and Local Government Committee Contents


Examination of Witnesses (Questions 1 - 19)

MONDAY 2 MARCH 2009

ANN COFFEY MP

  Q1  Chair: Good morning. We are at the very start of our oral evidence sessions of our inquiry on markets. It is trying to get a general feel of it really, obviously, from your position as the Chair of the All-Party Parliamentary Markets Group. Can I start off by asking why you think that national politicians should be interested in local markets anyway?

  Ann Coffey: Thank you very much for inviting me to give evidence. The All-Party Markets Group is very excited about this inquiry and we hope there is going to be a very good outcome for us. I think it is very important for national politicians to be interested in markets because local markets need national policies to support them. Without the interest of national politicians, it is very difficult for local markets to get the attention of government and the decision-makers in government. We recently sent a survey form out to all 646 Members of the House of Commons, and I was quite amazed at the response we got; 200 Members of Parliament replied, which, as you know, is quite a big response to a survey. It was quite clear that they were very keen on giving support to the markets. When we analysed the replies, they had expressed support for about 534 markets across the UK, including the traditional markets, private markets, farmers' markets, specialist markets. There was a big range of markets that they were supporting and they were very supportive of the role they thought markets played in their communities in offering vibrancy to the town centres.

  Q2  Chair: We are going to explore that in more detail and, indeed, the contribution to national policy goals in a second. Before we get on to that, did you get any indication from your feedback from MPs that certain sorts of markets are doing well and other types of markets are doing less well?

  Ann Coffey: It is quite clear from a variety of evidence that it is a very mixed picture. A study in 2005 concluded that general markets, the core of most market operators' business, are in decline but there has been significant growth in farmers' and other specialist markets. A lot of the replies to the surveys actually mentioned the growth of specialist and farmers' markets. That is clearly the case. I understand, for example, as far as farmers' markets are concerned, there are now about 800, which is a big rise in the last 10 years. A lot of the Members of Parliament who replied to us represent rural constituencies.

  Q3  Chair: That is interesting. Was it mostly them who mentioned farmers' markets?

  Ann Coffey: No. If you look at the farmers' markets, what the other MPs were mentioning was the importance of fresh produce in the traditional markets. It was not so much the farmers' markets versus traditional markets. It was the interest in selling fresh produce, locally grown, and that was in the traditional markets as well as the farmers' markets.

  Q4  Chair: Just briefly, did you get any evidence about the way the recession may be affecting markets?

  Ann Coffey: Again, it is quite anecdotal. I would imagine that if you have a market in a town centre and that town centre is suffering from less shoppers because less people are shopping, it will have an impact on that market. We think that the markets are in a good place to deal with the recession because, again, studies that have been done indicate that produce sold in markets is sold a lot more cheaply than in supermarkets. One study mentions 32 per cent cheaper. That enables families who want to spend less on food to shop in their local markets and still get the same quality of food but for less. So I think the markets are in a very good position to take on the challenge of the recession.

  Q5  Anne Main: Could I just ask if there is any symbiosis between what is on offer, the provision of the market, and the shops nearby to wherever the market is placed? You mentioned that traditional markets are declining but farmers' markets are not and I just wondered if there is any wider evaluation as to why that might be.

  Ann Coffey: I think you would have to look into the context of the problems that markets are actually facing. What markets do and their role for a thousand years has been providing food and commodities to people in towns and villages. Today, of course, what is happening is that they are experiencing a lot of challenges. Consumers have more choice, consumers are more mobile, consumers have higher expectations; they are quite attracted to modern centres and supermarkets. There is a big trend to online shopping. Regeneration of the towns and cities has often meant that the commercial centre of the town has moved away from where the market is. So when you are talking about a symbiosis, one of the great challenges is to centre the market once again where people go to shop and also to take account of the change in shopping habits. For example, if we want more young people to shop in markets, we have to take account of the fact that perhaps they like to shop where there are cafes, bars, where they can sit and eat food and enjoy themselves.

  Q6  Anne Main: So did comments come through via MPs or anyone else presented to your group on parking issues associated with city centres, traffic flows, for example, rents for market stalls? Those are the sort of things I was hoping you might give us a bit more feel as to why you think markets may or may not do well in a recession.

  Ann Coffey: I think it depends, as I said initially, on where the markets are. There is an advantage if you are in a town centre and there is a slight disadvantage. The advantage of a market being centred in a town centre is that people can see what they can buy and make a comparison; they can move in and out of the shops and the market itself. Again, I think it would be very anecdotal just to try and say such and such a thing is happening to markets because of the recession, because markets are so hugely diverse in their variety and location. I would rather suspect it was a lot to do with a range of factors as to how individual markets fared but, again, the positive thing that there is in their favour is that they are cheaper, and the evidence corroborates that. So if you want fresh produce at a lower spend, the market is the place to do it.

  Q7  Sir Paul Beresford: I have to declare an interest. I am a member of the NFU and the success of farmers' markets counts with my farmers. Do you have any evidence of disquiet from the standard shops which fear the competition, particularly as the situation at the moment economically for them is a bit tight?

  Ann Coffey: I do not know. For myself, as the MP for Stockport, there have been some issues with the standard shops, who do feel that the market is a threat. I think that is actually part of the challenge for markets, getting town centre shops and town centre regeneration to understand that they are not in competition with each other. They are actually something that can add to the success of each. For example, it is not detrimental to one electrical shop to have another electrical shop open business. It attracts people there if they are looking for electrical equipment because they know they can go into two or three places to compare and see what they can buy. I think that is part of the challenge, convincing shops that it helps because you bring in more people. The more people you bring into a centre, the more likely they are to spend money in your shop as well as in your market.

  Q8  Anne Main: Could I ask you a series of specific issues and ask you whether or not markets contribute to the social developments. I will read each one as a headline. How would you feel that markets contribute in terms of social inclusion?

  Ann Coffey: Again, market traders often come from a great diversity of backgrounds. In my market in Stockport we have longstanding traders and we have traders from a range of the ethnic communities. Often people who shop in towns come from a diversity of communities. It brings people together in the oldest interchange in the world, which is buying and selling goods. Often older people come to markets. Often older people are very isolated at home but they will return again and again to buy from a particular stall because they know the stall and they know the trader. It helps people feel less isolated. It helps them feel that they have somewhere to go that feels to them as representing the community of the town that they live in.

  Q9  Anne Main: Are you saying there is something specific about the bustle and the social interchange of a market that is different to a normal shop?

  Ann Coffey: Yes, I think there is. It may be something that is attached to the past, because it has been there and you are very conscious that you have experienced a thousand years of history. Stockport market was the last market where somebody managed to sell their wife. It is certainly a link with the past. It is just knowing that this market has been there a very long time. Of course, that would never happen these days!

  Q10  Anne Main: Leaving aside wife selling, you did mention traders from different ethnic backgrounds and so on. Does a market maybe, particularly in a high shop rental area, offer a very welcome opportunity for a group who could not afford a high rental every day of the week to be able to offer their goods, their diversity of service? Would you say that is the benefit of a market, that you only pay for two pitches a week or whatever it is?

  Ann Coffey: Yes. I am very conscious you are asking me a series of specific questions. We recently did a markets policy framework document which sought to address what markets could do through a range of policies. It might help if I go through some of them because I think they will answer some of your questions.

  Q11  Anne Main: If I give you the headlines: economics, environmental, health and regeneration; if you can work your way through, we would be grateful. Economic.

  Ann Coffey: As you said, economic: 46,000 market traders provide something like 96,000 jobs across the UK. So they are an important contribution to the economy of the country. They can also provide, as you said, business start-up opportunities. Some of the very big names like Marks & Spencer and Morrisons actually started in markets. They can give somebody who has a very good idea to sell something an initial place to sell it.

  Q12  Anne Main: Do you think that could happen now?

  Ann Coffey: Yes, I think, more than anything, it could happen now, because people are getting much more interested in how they do different things in their lives. For example, I think it would be possible for a woman who perhaps had responsibilities for young children but perhaps made jewellery or craft items to sell that on a market two or three mornings a week and fit that in with her family responsibilities. It would be possible for somebody to work part-time in a market and pursue further training perhaps at a training college. In its flexibility, it actually fits in with people's changing views of how they work, how they pursue education through their life and things like that. They also provide, of course, locally produced fresh seasonal food, which fits into the whole thing about healthy eating. Food does not tend to be as packaged as in the supermarkets and does not tend to be taken from such long distances.

  Q13  Anne Main: So you are saying it is a sort of greener footprint to a market stall than, say, to a shop?

  Ann Coffey: I suppose it depends on where the produce in the shop comes from and obviously some shops do encourage local produce.

  Q14  Anne Main: I was thinking of the packaging, lighting, substantial shop fronts, heating.

  Ann Coffey: I think so because, obviously, there does not tend to be that sort of thing. That is true. I think it is very important. People forget that it can be very important for the promotion of culture and tourism. When a market stall is not there, the marketplace is there and is maintained. You can have theatres, shows, entertainment. Again, it is giving the idea of this public space, which is a flexible public space, which sometimes is a market and sometimes is a place of entertainment. We were looking in our market framework document at how we could take advantage and how we could fit the developing role of markets into what we see as a very good future for markets with the necessary support from local and national governments.

  Q15  Anne Main: So what are you saying? That entertainment space, perhaps alternative cultural space, that they are offering a community cohesion or enrichment or cultural opportunity that a range of shops just could not do?

  Ann Coffey: You can move stalls. You can put stalls up and move them around.

  Q16  Anne Main: You can change the feel of it?

  Ann Coffey: You can change the feel, and they can move and change with the time, as indeed markets have over a thousand years. The stalls of a thousand years ago have gone and they have been replaced. When the stalls are not there, it is still a public space which can be used in another way. You are right; that gives the wider community that sense that it is their space, that it is a community place, it is a social space, it represents what markets represented for hundreds of years. It is very important. Once it is gone, that has gone as well.

  Andrew George: Regarding the economic development issues, do you think that particularly the smaller high-street traders feel that there is unfair competition with regard to the markets, particularly given that they do not face the same bills as far as rent and rates—I am sure you must have heard these arguments before—the perception that the markets themselves do not perhaps have as much—

  Chair: We had this question just before you came in.

  Andrew George: On the regulatory burden? Right. In that case, my apologies.

  Q17  Mr Betts: We talked about how markets can contribute to these important national policy goals. Do you think there are obstacles in the way of them doing an even better job in contributing and, if so, what those obstacles are and how we might try and get rid of them?

  Ann Coffey: I think there are obstacles. If I go through some of the things that I think could be done to help, the first thing is a lack of investment in local markets by local authorities. There probably are very good reasons for that. Local authorities have had higher priorities of investment, and often they have approached market management in a regulatory way. They have not seen it as investment for the future. I think that has been one of the obstacles to it. I think there could be a great deal more innovation in terms of looking at how you manage markets, maybe looking at much more private-public partnerships which could bring in money. There has been evidence that local authorities are going down that line and bringing that kind of investment. I think there is an issue, as I touched on before, of getting much more innovatory management, that it is not simply the old markets department managing it. It should be part of what we are trying to do with our town centre. In fact, the government Planning Policy Guidance 6, which I am sure you are all very familiar with, which was issued in 2006 by the Department, made this clear, that they thought that local authorities should invest more, had an obligation to look at how they make markets more attractive and invest in them. I think that investment and the way that they are managed and how they are seen can be a barrier to it. The other big barrier that markets have, again, if we go back to central government, is getting access to central government decision-making. If we go to our market documents, at least seven government departments were involved: if you are looking at innovation, if you are looking at entrepreneurship, you are looking at BERR, you are looking at Defra. In fact, we have had about five ministers from different departments come to speak to us. We think one of the ways that we could support markets locally is to have a Markets Minister who would have responsibility for ensuring that support was given to markets across government departments and obviously could be a focus for government departments to send policy initiatives to, to check that they included support for markets. Otherwise, I think the problem is that you are trying to join up these things, you are trying to move the market into the future without being clear what your access point in government is, because everybody has a bit of responsibility for bits of things. We feel that having a Markets Minister would help overcome some of those barriers.

  Q18  Mr Betts: You are talking about local authorities taking a slightly different approach in terms of looking at their markets as an investment. Do we know if local authorities have used their prudential borrowing powers at all with regard to markets, in terms of looking at long-term investment?

  Ann Coffey: I do not know, Clive. That is a very good point. I would think it goes back to the priorities thing. I would be interested. I do not think we know actually.

  Q19  John Cummings: Perhaps I could ask one question: is there a case for a stronger national policy on markets?

  Ann Coffey: I think there is a case for government departments recognising the very central role that local markets and all their diversity could have in delivering a wider social agenda.


 
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