Meeting of the Parliament 20 November 2014
After that, the chances of Mike MacKenzie keeping the increase in his waistline to less than 2 inches in the next few months are limited. The advisability of at least three drams before lunch time is also open to question.
Like others, I welcome the debate. I welcome the sentiments that the cabinet secretary expressed, not least in pointing up the paradox of the natural resources that we have at our disposal and the issues that we face on diet—I include myself in that.
The cabinet secretary is right—we are all right—to acknowledge the success of the Government and the strategy. It would be slightly disingenuous to adopt a year-zero approach; it is fair to acknowledge the work of his predecessor, my colleague Ross Finnie, in developing the strategy for agriculture, which was a necessary precursor to the valuable strategy on food and drink. I will perhaps touch on that later.
Those of us who were at the VisitScotland reception last night had not only a demonstration of the interconnection between tourism and the food and drink sector but an indicator of the quality, confidence and success that characterise the sector. I see evidence of that locally, as Mike MacKenzie mentioned—I will come on to that—but it is evident at a national level, too.
It is not difficult to see why that is the case. Other members have commented on the briefing from the Bank of Scotland, which illustrates the extent of the success against a backdrop of challenging economic circumstances. The sector has weathered the storm. It grew to £13.1 billion last year, and everyone expects 2014 to be a highly successful year.
The food and drink sector is the largest manufacturing sector and is clearly ambitious to grow further, not least through the export market. That applies as much to microbusinesses and SMEs as to the largest manufacturers. The signals are all very good.
As I said, it is difficult to see how we could have a food and drink strategy without an agriculture strategy. The National Farmers Union Scotland’s briefing suggests:
“without farmers, a Good Food Nation simply would not exist.”
I do not think that any of us would dispute that. Farmers and crofters across the country grow the crops, fruit and vegetables and raise the livestock that underpin our food system. They are working to improve the environmental and welfare standards. As Claire Baker suggested, it is hoped that increased consumer awareness about those issues will translate into greater success for quality-assured produce, whether through the Scotch beef, Scotch lamb and red tractor marks or whatever else.
There are challenges, too, as we would expect. In tough economic times, it is perhaps no surprise that consumers revert to buying on the basis of price. Alex Rowley made a number of pertinent points on that. One hopes that, as wages start to rise, that issue will begin to be addressed.
The NFU has pointed to concerns that the proposed food commission risks duplication and overlap with other regulators and advisory bodies, but we will wait to see the details. There are challenges, too, for the retail sector. As the NFU makes clear, our supermarkets’ actions
“can influence consumer behaviour, diet profiles and also the sustainability of supply chains.”
The good food nation requires sustainable pricing to be embedded in supply chains.
Unfairness in the supply chain not only hurts businesses but runs the risk of stifling investment. The setting up of a grocery code of practice and appointment of an adjudicator are welcome innovations at UK level, not to promote a confrontational relationship between retailers and primary producers but, I hope, to encourage a more positive and constructive relationship. It would be wrong of us to lay all the blame at the supermarkets’ doors. They help to promote and sell upwards of £10 billion-worth of Scottish food and drink to the rest of the UK, which remains our largest market.
I turn briefly to the local situation, which is a microcosm of what is happening nationally. I commend Orkney Food and Drink’s work and particularly Edgar Balfour’s personal efforts. The food and drink awards in Orkney have been initiated. I hope that they continue and that success is celebrated locally. Exemplars include top-quality beef, lamb and seafood; Orkney cheese and ice cream; Stockan’s oatcakes; fudge; Orkney preserves; Highland Park whisky and Scapa whisky; and the Orkney brewery and Swannay brewery. All are award winners and are ambitious to grow and to meet the demand locally, nationally and internationally.
The cabinet secretary was right to say that he would not rest on his laurels and that he would look at what further support could be provided. I welcome that and I offer examples. The high costs pointed out in the Bank of Scotland briefing are an all-too-evident challenge that faces isles-based businesses. Transport and energy, as well as poor broadband connections, come up repeatedly.
On ferry services, there are concerns that Orkney producers are not entitled to access the road equivalent tariff, unlike those in the Western Isles. As Edgar Balfour said:
“we do not benefit from RET and find it hard to understand why there is this distinction between island communities.”
On air services, we have seen cuts to the air discount scheme. Orkney Food and Drink points out:
“The cost, for Orkney food and drink businesses, of doing business in the UK is expensive in any case—without making the first leg of the journey even more expensive.”
The cabinet secretary might want to reflect on and take on board those issues.
On postal services, we need to take seriously the Royal Mail’s warnings. On skills, Claire Baker’s amendment points to issues that not only young people but people of all ages face, which involve attaining the skills to keep them in and raise the quality of the sector, which they might need to go off-island to secure.
On food labelling—the Bank of Scotland raised that—perhaps I can follow up the issues with the cabinet secretary.
Locally and nationally, the food and drink sector is a success story. We should recognise and celebrate that and thank and support all those across the sector who are achieving that success. In the year of food and drink 2015, and to fall foul of the cabinet secretary’s paradox, I very much look forward to microbrewery month.
15:29