Carmichael presses Chancellor for broader action to protect UK food production from effects of Iran war

Orkney and Shetland MP, Alistair Carmichael, has pressed the Chancellor of the Exchequer to unlock fairer support for farmers and food producers in response to the effects of the war in the Middle East.

Speaking during a government statement on the economic response to the conflict around Iran, which has caused the price of fuel and connected resources to rise sharply, Mr Carmichael welcomed a cut in duty on red diesel, but called for further action on fertiliser prices and for caution on plans to open up the UK to greater food imports, which could undermine homegrown production.

Speaking in the House, Mr Carmichael said:

“Last year, suckler beef farmers in my constituency were getting paid £7.30 per kilo for their finished product on the hook. Yesterday that was down to £5.75, and it is still falling. The price paid to dairy farmers for their milk is through the floor. Arable farmers are struggling after two catastrophically bad harvests. The red diesel duty cut is welcome, but it will not help farmers who are struggling with rocketing fertiliser prices or, indeed, those who are required to heat glasshouses. Opening the door ever wider to food imports risks undermining domestic food production.

“If food security genuinely is national security, surely our food producers and manufacturers should have access to the same support as other critical sectors. Will the Chancellor look again at adding food and drink to the Government’s industrial strategy, so that they can access the same support as other sectors?”

Responding, the Chancellor of the Exchequer Rachel Reeves MP said:

“I know that, as Chair of the Environment, Food and Rural Affairs Committee, the right hon. Gentleman will play a key role in scrutinising what the Government are doing. The reduction of more than a third in the rate of duty on red diesel will have an immediate and important impact on the costs for farmers.

“I also appreciate the fact that his party, like the Government, did not support the conflict in the middle east and recognised that it was a mistake that would have an impact on businesses here at home. That is why we are doing everything within our power to reopen the strait of Hormuz, to ease these pressures on consumers and businesses, including farmers, but also in the meantime to diversify supply and open up new refining facilities in the UK, to help businesses, including farmers, during these challenging times.”

Reacting after the exchange, Mr Carmichael said:

“I can agree with the Chancellor that the war in the Middle East has been both catastrophically misjudged and destructive to our economy, but its effects are with us whether we wanted the conflict or not. It is the government’s responsibility to respond effectively and in a way that does not bring unintended consequences for our own businesses.

“Farmers and food producers are rightly concerned that some of the measures announced today risk undercutting their profitability by opening the door to more imports, even while their input costs are soaring. The Chancellor needs to rebalance the books here and give our food producers a fair deal.”