2. Questions to the Minister for Rural Affairs and North Wales, and Trefnydd – in the Senedd on 28 September 2022.
4. What is the Government doing to promote food security? OQ58445
Thank you. The food system operates at a UK-wide level, and the Welsh Government works with the UK Government and other devolved administrations to identify risks, and engages with stakeholders to manage them. In Wales, we promote security through investment in the food manufacturing industry, supporting agriculture and providing significant support to a wide variety of community projects.
Thank you for the answer.
The rising cost of essential items is something that we're all too familiar with. The current rate of inflation, at about 9.9 per cent, is causing people in Wales dire financial problems. In agriculture, the rate of inflation is running at a staggering 23.5 per cent annually, but I think in certain places that that is even higher. This is causing many farmers to question their future in the industry. As one hill farmer in my region said, 'Farmers may hold on and produce food at a loss for one year, but they won't do it for two years. We need long-term security, as this is a worrying time'. Minister, I know that there is still time to shape the proposed sustainable farming scheme until the end of October. I'd like reassurances from the Government that there is recognition that the challenges that face agriculture have changed dramatically in recent months. I'd also like an undertaking that farming will have a sustainable future in Wales, at a time when the need for increased food security has taken on a greater urgency.
Thank you. I don't disagree with anything that you say. I think you're right; the figure I've heard from some farmers is 30 per cent, so I think you're quite right to say that, probably, 23.5 per cent is low. It is a very uncertain and worrying time for our farmers, and I absolutely recognise that. I have tried to provide some certainty for them with the continuation of the basic payment scheme, for instance. I haven't reduced it in the way that they have in England—year on year, actually, in England. I will be making a statement about BPS—normally, at the winter fair, I do a statement there.
Obviously, the whole sustainable farming scheme is just that: it's to make our agricultural sector as secure and as sustainable as possible. Obviously, you'll be aware that, over the last two days, I've started the process for the Agriculture (Wales) Bill here in the Senedd. Again, that's about keeping our farmers on the land, because, as you say, they cannot produce food at a loss and, of course, we rely on them to feed us. But, it is very hard to be able to provide the certainty that I know they need when I don't know what my budget is going to be next year. So, it is really difficult for me to be able to talk about the support they would get, in the way that they did when we were in the European Union, now we've left the European Union and we're not able to rely on that figure every year, even though the UK Government said we would be able to if we left the European Union.
But, everything that we're doing in relation to the sustainable farming scheme is to ensure that our farmers are kept on the land, and I'm glad you said that there's still an opportunity. Yesterday, I said that it'd be really helpful for every farmer, and for us as Members to encourage our constituents, to help us with that co-design of the scheme, going forward.
The Social Partnership and Public Procurement (Wales) Bill, which will enshrine the principle of socially responsible procurement into law, establishes that procurement should be about more than simply who provides the cheapest product, but also the best. One way you can achieve this is through localised food supply chains, which, of course, provides opportunities for growth for local producers, as well as the fact that it's generally better for the environment and reduces the need to import food. Another way that you could achieve that aim, of course, is by backing Peter Fox's food Bill. But, the Welsh Government could do more to support producers to be ready to access opportunities to supply more of their produce within their local areas, such as scaling up businesses or accessing funding that they need to purchase equipment. So, with that in mind, Minister, how are you looking to help ensure that local producers are ready and willing to take advantage of such opportunities?
Well, we are doing a great deal to ensure that's the case. I absolutely agree with you that it shouldn't always be about the cheapest; there is a social value, and you'll be aware, as you say, of what we are doing in relation to procurement to ensure that happens. I don't disagree with a lot that's in Peter Fox's food Bill, as he knows. I think a lot of that we can do without legislation, and we are currently doing. Again, some of Peter's suggestions you will see in the agriculture Bill, because I think that the two go hand in hand, along with our community food strategy, which is part of the co-operation agreement with Plaid Cymru, and I'm having discussions with Cefin Campbell, the designated Member, to see what more we can do there. There are also the free school meals—again, part of the co-operation agreement—where we are using local food producers far more than we certainly did before. I'm very pleased with the investment and the support that we as a Government give to our food and drink manufacturers, and we've had our money returned, I think, many times. We're the only part of the UK that increased the exports significantly, and, again, the foundational food sector here in Wales is worth over £8.5 billion, so we absolutely support our Welsh food and drink producers.