1. 1. Questions to the Cabinet Secretary for Environment and Rural Affairs – in the Senedd on 14 September 2016.
9. Will the Minister provide an update on the potential implications of the EU referendum vote on support for the food and drink industry in Wales? OAQ(5)0031(ERA)
I am currently considering the implications with stakeholders. Ninety-five per cent of Welsh food and drink is sold domestically, and 5 per cent is exported. Ninety per cent of this 5 per cent is exported to the EU. It is my intention to safeguard and grow this trade by maintaining access to the single market and through Welsh Government support.
Llywydd, I should apologise to the Chamber, because, when I put this question in, I didn’t realise that we would be having not one but two Brexit debates on opposition day.
Cabinet Secretary, you’ll recall that, in July 2015, the UK Government announced that it wanted to see the number of British foods protected under European law increase from 63 to 200. Of the applications put forward to the European Commission, nine were from Wales, and, with the support of the Welsh Government, one was the traditional Welsh Caerphilly cheese. Caerphilly cheese has a long history. As a local Assembly Member—it is a rite of passage as the Assembly Member for Caerphilly; you have got to ask a question on Caerphilly cheese—I want to bring that production back to my constituency. However, it’s important to the production and export of Caerphilly cheese that it has special protection under the protected geographical indication or traditional speciality guaranteed mark on the EU protected food register. Would the Cabinet Secretary therefore update me on the progress of Caerphilly cheese’s application and give me assurances that our impending withdrawal from the EU will not affect the product’s potentially obtaining this highly sought-after protected status?
Thank you. It is good to see the Member for Caerphilly carrying on the tradition of his predecessor in relation to Caerphilly cheese. I think protected food names have huge benefits for Welsh products. As you say, we are actually supporting eight new applications, one of which is traditional Caerphilly cheese. The EU referendum result makes no difference to the processing of applications. So, we’re working very closely with the Department for Environment, Food and Rural Affairs, because, obviously, they have overall responsibility for all UK applications, and the Commission, to ensure that these applications are both supported and are successful. Until the UK actually leaves the EU, protected food status will remain with that status, and I am very keen to ensure that we have access to that status or, if we don’t after we come out the EU, we have our own or a UK food status, because I think it’s really important that we do have that equivalent status or that protection for our Welsh produce.
I was very pleased to hear that Halen Môn, which does have European protection, of course, was one of the last five pieces of Welsh produce that the Minister bought. I have been discussing with Halen Môn this idea that I’ve been seeking support for of developing a food production park on Anglesey. I am very concerned about what will happen to the RDP in years to come. I did hold discussions with the Minister’s predecessor on the possibility, perhaps through RDP funding, and almost certainly through the use of European funding, of establishing such a food production park on Anglesey, and I was very grateful to her and her officials for responding positively to that idea. I would appreciate confirmation that the Government, under the new Cabinet Secretary, continues to support that concept in principle and is willing to hold further discussions. Will the Cabinet Secretary make a comment on the dangers of Brexit to the future of such schemes and how to overcome that, including the possibility of moving forward very quickly with such a scheme?
I was very pleased to visit Halen Môn over the summer; I managed to harvest some sea salt myself in a very fetching hairnet, but it was great to see such a wonderful company, and the owners are just so dynamic. Again, it was they who told me how much they value that protected food status. I'm very happy to continue to support the concept to which you refer. Brexit has thrown up lots of challenges. You know, it's very early days, but what we need to focus on is the opportunities that Brexit is bringing forward also, and maybe we could have further discussions in that sort of light in relation to your idea for a food production park.
Cabinet Secretary, one of the ways that the food and drink industry can be supported, in particular the red meat sector, is by the promotional levy that is taken on livestock at the point of processing. Now, many Cabinet Secretaries and Ministers, and other Cabinet Secretaries and Ministers from around the UK, have grappled with this promotional levy, because it is at the point of slaughter it is raised, and lots of Welsh livestock go to England to be processed. There is a will and an understanding, as I understand, to review the regulations around this. Have you had an opportunity to familiarise yourselves with the past discussions and, indeed, discuss with DEFRA how the levy could be repatriated to Wales where much of the livestock is finished in its live form but not processed for the market?
I have had the opportunity to familiarise myself with previous correspondence. I've also had discussions with officials about it. I haven't discussed it directly with DEFRA, but my officials have and it's something we're looking at. You will also be aware that my predecessor brought forward a review of Hybu Cig Cymru, and, again, we're looking at the levy in aspects of that as well.
Thank you, Cabinet Secretary.