Carmichael challenges “mistake” of excluding food and drink from industrial strategy

Orkney and Shetland MP, Alistair Carmichael, has today in Parliament highlighted the “mistake” of excluding food and drink producers from the government’s industrial strategy. The exclusion has meant that food and drink producers have fewer options to access support with input costs, even as fuel and energy prices rise as a result of the conflict in the Middle East.

Speaking in the House, Mr Carmichael said:

“The largest sector of our manufacturing base is food manufacturing, but that was deliberately left out of the industrial strategy. As a consequence, food manufacturing is now facing rising input costs, especially energy, and they are not able to get the assistance that the Minister just referred to. The Food and Drink Federation think that food price inflation could get to 9 or 10% this year.

“With the benefit of hindsight, was it possibly a mistake to exclude manufacturing of food from the industrial strategy?”

Responding for the government, the Parliamentary Under-Secretary of State for Industry, Chris McDonald MP said:

“At the time that the industrial strategy was established, the government looked very carefully in selecting the sectors to select those that had the greatest growth potential for the economy, but we were also extremely clear to communicate that that does not mean that sectors that were not identified for high growth potential were not important – quite the contrary. Our food manufacturing sector is incredibly important.

“The government is acutely aware of the issues around food prices and I believe there is a statement from the Chancellor of the Exchequer later today, and she may well have more to say on that subject.”

Reacting after the exchange, Mr Carmichael said:

“The minister talks about food price inflation but that ultimately arises from rising input costs for farmers and food and drink producers – exactly the sectors that were excluded from support in the industrial strategy. The government needs to recognise that food and drink production is not just central to our economy and our export markets, but central to communities up and down the country – and start to act accordingly.”