← Back to Westminster Hall Debates
Energy Support for Farms — [Mr Laurence Robertson in the Chair]
21 March 2023
Lead MP
Carla Lockhart
Upper Bann
DUP
Responding Minister
Andrew Bowie
Tags
UkraineTaxationNorthern IrelandEnergyAgriculture & Rural Affairs
Word Count: 7207
Other Contributors: 8
At a Glance
Carla Lockhart raised concerns about energy support for farms — [mr laurence robertson in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
Carla Lockhart asks the Government to revisit its decision and extend the Energy and Trade-Intensive Industries (ETII) scheme to support energy-intensive farms such as horticulture, poultry, and pig production. She urges the Minister to explore this comprehensive case once more and provide adequate support for farmers facing these challenges.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The farming sector in Carla Lockhart's constituency is vital to the local economy, contributing approximately £376 million and supporting 265 agrifood businesses. Energy costs for farms have significantly increased since the outbreak of war in Ukraine; dairy farmers experienced increases of over 400%, with an annual cost of £105 per cow, totalling around £46,000 a year for a 250-cow herd, up by £26,000. Poultry businesses also face daily increases amounting to approximately £32,000 annually.
Alan Whitehead
Lab
Southampton, Test
Farming uses significant energy, particularly in intensive industries like poultry farming and horticulture. Energy costs are rising, impacting farm sustainability and food production costs. The debate highlighted the need to reconsider how sectors are defined for energy intensity purposes to better support farms.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Alistair Carmichael highlighted that the issue is not just about increased energy costs but also encompasses labour shortages, making it difficult for farmers to meet demand. He warned that this could lead to a reliance on imported food through trade deals, which may be hard to reverse.
Grahame Morris
Lab
Easington
Farmers in Easington are facing unprecedented energy price hikes, with many struggling to afford the necessary support to continue operating. I urge the Government to take immediate action to help them.
Gregory Campbell
DUP
East Londonderry
Congratulates the hon. Friend on securing the debate, acknowledges small farm holdings in Northern Ireland's adaptability and diversification over recent years, and agrees that pressure should be applied to the Government for support over the next 12 months.
Jim Shannon
DUP
Strangford
Farmers and farm businesses are heading towards a crisis due to high energy costs, impacting food security. The cost of production has risen but the agrifood industry cannot provide as much food as they could before because of these rising energy costs. Government grants and subsidies do not meet the increased costs for farmers who have been encouraged to diversify and modernise. Inquired about 20,000 households in Northern Ireland not receiving their benefit, suggesting some might be farmers who missed out on the initial distribution of benefits.
Mark Menzies
Con
Ayr South
I am concerned about the cost of energy for farms, which has risen significantly over the past year. The rising costs are a major challenge for farmers who need to maintain their operations.
Patricia Gibson
SNP
North Ayrshire and Arran
Ms Gibson highlighted the exclusion of horticulture and poultry sectors from the UK Government's energy cost support, causing significant disquiet among farmers. She questioned why botanical gardens are included in the scheme but not food grown in greenhouses. She stressed that a €500 million package provided by European governments to help with production costs was absent for UK farmers. The omission of horticulture is particularly frustrating and undermines domestic food production, risking longer-running food price inflation and negatively impacting supply chain companies.
Wendy Chamberlain
Lib Dem
North East Fife
Congratulates the hon. Lady on securing this important debate, highlighting a local seed potato farmer's increase in costs from £10,000 to £30,000 and expresses disappointment with the Government's lack of support for farmers through the Budget.
Government Response
Andrew Bowie
Government Response
Acknowledged the challenges faced by farmers due to high energy costs, thanked all hon. Members for joining the debate, expressed gratitude towards Carla Lockhart for bringing forward this issue, highlighted the importance of agriculture in Northern Ireland employing over 50,000 people and contributing £4.5 billion annually, outlined several support schemes including the Energy Bill Relief Scheme worth £7.3 billion, discussed further support through the Energy Bills Discount Scheme from April to March 2024, addressed specific points raised by Jim Shannon, Dr Whitehead, Patricia Gibson, thanked Upper Bann for raising issues of farm eligibility under ETII, committed to looking at carbon intensity in farming, stressed that farms do not meet ETII eligibility criteria but benefit from other schemes such as Energy Bills Support Scheme, Alternative Fuel Payment and non-domestic alternative fuel payment offering £150 to approximately 76,000 customers in Northern Ireland.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.