Skip to main content

Proceeding contribution from Edward Timpson (Conservative) in the House of Commons on Monday, 15 June 2009. It occurred during Opposition day on Rural Communities (Recession).


Rural Communities (Recession)

I am grateful to my hon. Friend for raising that point. It is true that farmers who were part of a co-operative and invested in it lost their May payments for the supply of milk that they provided, and there is also concern about their future investment. Fortunately for many farmers in the Crewe and Nantwich area, they had managed to opt out of the co-operative before the state of affairs had worsened to the extent of receivership, but nevertheless many farmers who rely on a certain level of cash to keep themselves going now find themselves with a great black hole in their finances and very little support to see them through the crisis. Some of what we have heard from the Government today is welcome, but it is still a case of shifting sands. We need more concrete answers to give farmers who find themselves in such difficulty. If I had one word of advice for the official receivers, it would be to liaise with Members whose constituencies contain affected sites and to keep them abreast of the position so that they can support their constituents as much as possible as and when such support is required. Let me say something about the members and ex-members of the co-operative. As I have said, in Crewe and Nantwich many left when they saw that the writing was on the wall, and they did that in order to maintain a regular income from their milk. However, their investment in the co-operative has not been returned, and they are listed simply as unsecured creditors under the Insolvency Act 1986. I ask the Minister to look at the position as a matter of urgency. We understand that talks will resume on Wednesday in an attempt to find a solution. I believe that assistance may be available from organisations such as the Royal Agricultural Benevolent Institution, but it will be no substitute for the tens of thousands of pounds invested by farmers in DFOB. To many of them, that money represents their pension pots. My hon. Friend the Member for South-West Norfolk (Christopher Fraser) raised the issue of pensioners earlier. I welcome the update from the Minister. I too have liaised with the receivers this week, and I shall be meeting the president of the National Farmers Union. I am also grateful to the Secretary of State, who, although he did not have time to come to the Chamber today, has found time to meet me on Wednesday to discuss the future of DFOB. What am I asking for on behalf of DFOB and all who have been affected by its current crisis? I simply ask the Government to take a considered and detailed view of how they can best help non-agricultural staff and farmers in my constituency, and the others who have been mentioned. What financial assistance can the Government provide to alleviate the anguish caused by lost investments and pensions? What assistance can the Minister provide through Jobcentre Plus for those who lose their non-agricultural jobs at such short notice? Can he ask his Cabinet colleague in the Department for Work and Pensions to ensure that these hard-working people are assessed immediately for entitlements and retraining when that is required? As my hon. Friend the Member for South-East Cambridgeshire (Mr. Paice) will know all too well, having kindly visited and spoken to dairy farmers in my constituency twice in the past 12 months, between 2001 and 2006 48 dairy farms closed in the Crewe and Nantwich area. According to the Royal Association of British Dairy Farmers, whose representatives I met last week, the number of dairy farmers in England and Wales fell from 28,000 in 1995 to 11,700 this year. That is a drastic fall. More recently, despite the uplift in milk prices in 2008, the average cost of production has reached 26.93p per litre, while the average price is 24.37p. Those figures speak for themselves. We can see how desperate the situation is for dairy farmers and the industry, and why the Government should act as soon as possible. That leads me to my final, and brief, point about the need to support British agriculture and—unsurprisingly—the need to support the British dairy industry. I asked what three things a local farmer would say to Parliament if given the chance. The answer was "Give us a fair price, assist us with nitrate vulnerable zones by not gold-plating the legislation, and cull the badgers. I'm surprised I haven't seen more suicides." DEFRA knows those issues, and knows them well. It is time for DEFRA to act.


Secondary information

Type
Proceeding contribution
Reference
494 c76-7 
Session
2008-09
Chamber / Committee
House of Commons chamber
Subjects
Agriculture Business Broadband Farms Insolvency Fuels Government assistance Internet Economic situation Public houses Post offices Milk Tourism Rural areas Unemployment Diversification Dairy Farmers of Britain
Link
View this Proceeding contribution on www.publications.parliament.uk