1. 1. Questions to the First Minister – in the Senedd on 10 January 2017.
6. What plans does the Welsh Government have to encourage Welsh consumers to buy Welsh-produced goods and services? OAQ(5)0357(FM)
A number of actions to support growth across the whole of the Welsh economy—direct support through Business Wales, and we’re also working alongside the National Procurement Service to increase the amount of Welsh produce coming into the public sector. Of course, in the food and drink industry, Welsh produce is far better labelled now than it certainly was 15 years ago. He may have the experience that I have of going into local shops and seeing, fortunately, that Welsh produce is first off the shelves.
Norway, which, as we heard, he visited recently, the Republic of Ireland, the German region of Hesse, and others, all have an official, widely recognised country-of-origin brand that, in large part, is aimed at domestic consumers. Now, if, as it seems, we are going to be ejected out of the single market by that regressive alliance of Corbyn and May, import substitution will be even more important to us in the future. So, can we have a made-in-Wales brand as the first line of defence from the economic lunacy emanating from Westminster?
This has been looked at in the past as to whether there’s a need for a brand for Welsh produce, or whether it’s better approached through having a strong brand recognition for individual products, Welsh lamb being one of those products. These days, most food producers, for example, do label their products as Welsh. That is seen as a great advantage to them; for some less so, but certainly it’s much more prevalent than it was 15, 16 years ago, and people are far more likely now to buy Welsh products. I remember, at the time of the foot and mouth crisis, that at that time one of the big supermarkets didn’t label anything as Welsh. Everything was generic in every single store. That has long changed, and things are the better for it.
The domestic market in Wales is important, but it’s a small market, and that’s why, of course, we continue to make sure that we have an emphasis on exports, and having Welsh-branded products going to export. When we look at Welsh food, the one thing we must avoid is the Norwegian situation, where there is a tariff on food. They were saying to me that the tariffs are so detailed that there is one tariff for smoked salmon and another tariff for fresh salmon, which gives you an idea—he will know this anyway—of how complicated trading negotiations actually are. But, for Norway, they do have tariffs imposed on their agricultural produce going into the European market. The very last thing we need is to see the same thing happen to Wales.
I was pleased to hear the First Minister, in his response, refer to the role of Welsh public bodies in supporting not just Welsh producers and suppliers, but also they have a role in proactively supporting their local economies. What a difference it would make if all Welsh public bodies, or, indeed, all bodies in Wales in receipt of Welsh public funds, acted deliberately, proactively and collaboratively with one another to support their local economies, and including fostering the development of local suppliers and local supply chains. What steps can the Welsh Government take to bring that about?
Well, we do continue work on marrying the risk-based and proportionate SQuID approach, as it’s called, simplifying the process for suppliers in bidding for public sector work and helping to ensure that all suppliers have a fair chance of winning that work. One of the issues, particularly in the food and drink sector, that was a problem at one time is that they were too small. Companies were too small to supply big organisations like the NHS day in, day out, week in, week out, with what they produced. That was overcome through the procurement initiatives that were put in place and we’ve seen far more procurement now taking place locally than was the case certainly 15 or 16 years ago. Moving local authorities away from compulsory competitive tendering took some time, even as the concept disappeared. When we talk of best value to local authorities, we say to them that it’s not just about getting the cheapest possible quote, it’s about making sure that as much money as possible is retained in the local economy.
I’m pleased that Adam Price has raised this question. Only you could make Corbyn and May sound like a 1960s folk group, Adam. I’d rather focus on the food and drink issue that the First Minister mentioned in answering you. I agree with you, First Minister, that Wales does have a great story to tell in terms of our home-grown food and drink, and you’re right to point out labelling as an important tool. Would you agree with me that food festivals and models such as that are also a very important way for us to sell Welsh produce, not just to Welsh consumers, as Adam Price’s question originally said, but also to English consumers coming across the border?
Abergavenny, I’m sure, is well respected as a food festival, as he will know. But he’s right, because the events showcase Welsh produce. The food hall at the Royal Welsh Show, at one time, was too small. It was rebuilt and is now probably too small again. That’s an indication of the success of the Welsh food and drink industry in its diversification, in its variation, and the fact that so many of the businesses that were set up over the past decade are still there and are still able to go into the supermarkets. There’s been a change of heart amongst a number of the supermarkets as well. Whereas in the past they preferred to purchase from large suppliers, they have become more interested in smaller suppliers and in local produce, which is something that I very much welcome. But what we have to avoid more than anything else is our biggest market, which is Europe, being either closed to us or the terms of trade with that market being less advantageous to us. The US will never replace the European market. The US is very protectionist when it comes to agriculture. So, keeping Welsh farmers being able to sell on the current terms of the European market is absolutely vital to the future of Welsh farming.