Category Archives: Economy
For many years international agencies have promoted a school of thought that says it is cheaper to import food than to grow it within the country, comments Devinder Sharma (below, right).
In December he told Rediff.com’s Syed Firdaus Ashraf:
“Rural Gujarat has voted against the influential ruling BJP. During the 2014 elections, Prime Minister Narendra D Modi had promised that if elected his government would give 50% profit over the cost of production as recommended by the (M S) Swaminathan committee and rural India voted conclusively for the BJP – but farmers are still waiting for the promise to be delivered”.
“The Reserve Bank of India’s governor used to say that the biggest reforms would be when farmers are moved out from the villages into the cities, because cities are need of cheaper labour. Cheaper labour is required for infrastructure, real estate and highways. In other words, agriculture is being sacrificed to keep economic reforms alive”.
Farmers need a fair price: cost of production plus
An article by Lancashire farmer, Kathleen Calvert, issued as a press release by local business, Dugdale Nutrition, stressed:
“Maintaining viable dairy farms not only protects livelihoods of farming families and others directly involved, it also makes a major contribution to local economies and the future of businesses, jobs, and families in the locality”.
Ruth and Richard Burrows, Devonshire farmers, assembled suppliers representing 3000 others whose livelihoods depend on them and other farmers. A photograph was published (right, faded newsprint, The web of rural ruin, Richard Price, Daily Mail, 23.9.99) with notes giving the names and roles of the people pictured. Mrs Burrows said: “They are living proof of the importance of the spending power of the farmer and how enormously important agriculture is in terms of the entire economic structure around here. The rural communities of Britain tick over on a system of mutual dependency of which the farm forms the hub. If it goes to the wall, dozens of ancillary trades in both town and countryside suffer”. Read more here.
Farmers organise politically in UK
As talks are under way at Stormont, William Taylor, speaks for Northern Ireland Farm Groups, which represents several food production sectors – now including the National Beef Association – and is concerned about the future of 25,000 SME family farmer businesses.
A bill, written by Daniel Greenberg, a barrister who specialises in legislation and is Editor of OUP’s Statute Law Review, is to be taken forward.
It proposes that farmgate prices in NI return to farmers a minimum of the cost of production, plus a margin inflation linked, that would give 20,000+ new jobs and prosperity across the province in towns, cities and countryside alike.
Their proposals have been well-received by several parties and unions, and Claire Sugden from Coleraine, Independent (the Justice Minister in the former assembly) told the farm groups that ‘she was of a mind to take legislation on farm gate prices forward’.
Legislation on farmgate prices for Northern Ireland according to the Gosling Report, would return 10-20,000 jobs+, save Stormont £280million+ in welfare costs and bring prosperity back to Northern Ireland.
In both countries, as Sharma comments, “What farmers need is income, a profit over the cost of production. To keep food inflation in control, successive government have denied farmers their rightful income”.
The Financial Times reported on Jeremy Corbyn’s ‘well-received’ address at the CBI’s annual conference in London on Monday.
Mr Corbyn said to the 1,300 delegates that there was “common ground” between business and the Labour party on the threat a “no deal” on Brexit posed to the economy. Guarantees are needed now to stop firms cutting the UK out of their business models. He continued:
“Many of you feel no closer to having the clarity about the direction of travel you so desperately need [than a year ago]” – the cause: “chaos and confusion at the heart of government”.
He added that time is running out and guarantees are needed now to stop firms cutting the UK out of their business models. He said a transitional arrangement was needed immediately “so that businesses know they won’t face a cliff-edge Brexit when the two year negotiating period is up” and that EU citizens working in the UK should be unilaterally guaranteed full rights to remain: “We agree on the need to signal that the UK remains open to the rest of the world, that Europe is not the enemy,” he said.
The FT’s view is that delegates at the conference appeared impressed by Mr Corbyn’s pro-business tone. Consultant Dina Medland said on Twitter that watching Mr Corbyn address the conference was like “switching from a soap suddenly to a hard news story about human issues — extraordinary delivery”.
Others applauded the confidence of his delivery.
Carolyn Fairbairn, CBI director-general, said: “Labour are right that agreeing a transition deal as soon as possible is mission critical to maintain business confidence. There is cross-party agreement on this now and so this is the time for urgent action.”
Mr Corbyn repeated calls for employers to give British workers a pay rise, and said a Labour government would raise taxes and nationalise utility companies. Ms Fairbairn responded: “Industrial strategy and Brexit must be focused on building a fair, innovative and productive UK economy where society benefits.”
Cityam focussed on Ms Fairbairn’s message highlighting the mainstream business belief that “competitive markets are the best way to improve people’s lives. Abandoning this model will hurt those who need help most and make the UK a laggard in the global race for investment”.
The Telegraph’s article said much the same as the FT and the BBC, belying its ‘fake’ headline: “Businesses reject Jeremy Corbyn’s wooing and warn he would trash Britain’s economy”.
Judge for yourself: see the far more substantial and interesting video or transcript https://www.youtube.com/watch?v=hKNQNa_2anI
As Anil Sasi (Indian Express) notes: “Inland waterways are a far more efficient mode of transportation than either road or rail, considering that just a single mid-sized barge has the dry-cargo capacity equivalent to 50 trucks or over 10 railcars. As a consequence, transportation of cargo over inland waterways offers the advantage of both lowering carbon dioxide emissions and curbing the rate of road accidents, where India has the dubious distinction of being among the worst in the world”.
The Indian government passed The National Waterways Bill in March. The Statement of Objects and Reasons of the Bill states that while inland waterways are recognised as a fuel efficient, cost effective and environment friendly mode of transport, it has received far less investment than roads and railways. Large rivers and canals across the country have been designated as national waterways, to be developed to enable more movement of goods and passengers.
Britain’s Commercial Boat Operators’ Association (CBOA) agrees with its statement recommending the carriage of bulk goods on waterways. Goods in India travel by congested road and rail networks, which increases the costs of trade logistics by as much as 18% of the country’s GDP. The government statement continues: “Although it is cheaper, more reliable and less polluting than transporting them by road or rail, India has yet to develop this cheaper and greener mode of transportation”. (Read on here: CHS-Sachetan)
In April the World Bank announced a $375 million loan to help the Inland Waterways Authority of India to put in place the infrastructure and navigation services needed to develop National Waterway 1 as an efficient ‘logistics artery’ for northern India. The loan will enable the design and development of a new fleet of low-draft barges capable of carrying up to 2000 tonnes of cargo in these shallower depths.
Section 3 of its 322 page 2016 report: Consolidated Environmental Impact Assessment Report of National Waterways includes an assessment of inland waterway transport’s impact on climate change, concluding that this is the most efficient and environmental friendly mode of transportation, involving least CO2 generation when compared with rail & road. An estimate of the CO2 emissions from different modes of transportation for the same quantity of cargo for a similar distance is that CO2 would be reduced and a net saving of 4.54 million tonnes realised over a period of 30 years (till 2045).
A gradual expansion of waterway freight transport would reduce transport costs, road accidents and urban air pollution.
In both countries manufacturers, the construction industry and agricultural producers would be enabled to use waterway transport to reach markets at home and abroad.
At the moment, due to imports, this country’s food security ratios are high – see map:
But 28,000 farms in England went out of business (132,400 in 2005 to 104,200 in 2015, DEFRA), many due to farmgate prices below production costs.
Meanwhile the AHDB advisers inflicted on them thrive, advertising for Sector Strategy Directors to be paid £62,000 – £76,000 for working 35hrs per week
The farmer drawing attention to this – who works far longer than 35 hours for far less return – comments “How easy it is to spend someone else’s hard earned income. An independent organisation (independent of both commercial industry and of Government)??”
A government website explains that the Agriculture and Horticulture Development Board is a non-departmental public body funded by a compulsory levy on British farmers. growers and others in the supply chain.
It “has a role in the processes of national government and operates to a greater or lesser extent at arm’s length from ministers”.
AHDB advisers working half the hours at more than double the average farming income frequently offer sage advice: their mantra: “improve productivity”. The FT quotes reflections by Phil Bicknell, market intelligence director at the AHDB who sees only three options:
- The most desirable: securing a free-trade deal with the EU,
- The least: putting up protectionist barriers or
- opening up trade to low-cost competition from around the world.
Notably absent is any sustained concern about a fair price deal for food producers and the prudence of supplying the home market first before trading any surplus.
Between 2013 and 2015, according to figures from the House of Commons library, smaller producers left the industry and during that period, milk prices fell by about 30%.
The Gosling Report finds that for farmers in Northern Ireland the sale price for the majority of commodities they produce does not even cover the input costs; this applies equally to most other British farmers. Paul Gosling comments:
“Meanwhile, large processors, large corporate food wholesalers and corporate retailers continue to maintain their enormous unsustainable profits”.
Farmers in the rest of Britain in the same position should act with those in Northern Ireland. They require legislation similar to that submitted by Fairness for Farmers in Europe (an association of 30 farm organisations in Britain, Ireland and the EU) to the 2010/11 CAP review. This would state that farmers must be paid a minimum of the cost of production plus a margin inflation linked for their produce; if the ‘free’ market moves up the farmer will get the benefit, however, when it falls the legislation is there to provide the safety net limit of drop.
AHDB please note: as a matter of urgency with Brexit negotiations under way, all farm groups could campaign for legislation on just farmgate prices, stating that a minimum of the cost of production plus a margin inflation linked must be paid at the farmgate for all food produced in Britain.
Readers wishing to know more about NI Farms Groups’ campaign should contact:
56 Cashel Road, Macosquin, Coleraine, BT51 4NU
Tel. 028 703 43419 / 07909744624
Following our tenth entry: MP Andrew Gwynne, who successfully introduced the Debt Relief (Developing Countries) Act and worked long and hard to get justice for those who received contaminated blood through the NHS, we turn to Botswana, after reading an obituary by Emily Langer in the Independent. Her subject was Ketumile Masire – a statesman who described himself as ‘a farmer who has been drawn into politics’.
A summary with added links and photographs
Masire herded cattle before enrolling in a primary school at 13 and receiving a scholarship to attend a high school in South Africa that trained many leaders of the first government of independent Botswana. When his parents died he supported his siblings, becoming a headmaster. He later earned a Master Farmers Certificate, and having saved enough money to buy a tractor and became a successful farmer.
He served on tribal and regional councils and was a founder and secretary-general of the Botswana Democratic Party, now the country’s leading political party. He once travelled 3,000 miles of the Kalahari Desert to attend two dozen meetings over two weeks.
After serving as minister of finance and development planning and Vice President, Ketumile Masire became President of Botswana (1980-1998): roads and schools were built, healthcare improved, access to clean water expanded, farming techniques advanced and life spans extended.
The discovery of diamond reserves had transformed the country’s prospects and Masire continued to use the revenues for the public good after the death of his predecessor Seretse Khama.
He became ‘a model leader in a model nation on a continent where poverty, corruption and violence had crushed the hopes of many for stability and prosperity’.
After leading Botswana through a drought that persisted for much of the 1980s, he shared the Africa Prize for Leadership awarded by the Hunger Project in recognition of the food distribution efforts that helped the country avoid starvation during the crisis.
Though South Africa was Botswana’s major economic partner, Botswana opposed apartheid. “He had to walk a fine line in a really rough neighbourhood,” said Chester Crocker, a former US assistant secretary of state for African affairs. “He had to get along with everybody, without sacrificing his principles.”
After leaving office, in addition to tending the cattle on his ranch, Masire advised other African leaders and chaired an international panel that investigated the Rwandan genocide of 1994. He made important contributions to peace efforts in Congo and, more recently, Mozambique. He established a foundation which seeks to improve agriculture, governance and children’s health in the region.
He once said: “We have a saying in Botswana: A man is never strong until he says what he believes and gives other men the chance to do the same. I am proud to say without a doubt – we are a strong democracy.”
A more chequered account of his life is given in Wikipedia..
Christine Parkinson has drawn attention to an article in the Guardian, in which MPs Clive Lewis and Caroline Lucas express a profound sense of frustration and dismay about the Conservative victories won by narrow margins in places such as St Ives, Richmond Park and Hastings. They pointed out that if every progressive voter had placed their X tactically, Jeremy Corbyn would now be prime minister with a majority of over 100.
Highlights from their article
The regressive alliance we see forming before our eyes between the Conservatives and the DUP can only be fully countered by a progressive alliance on the opposition benches and if we work together there is nothing progressives can’t achieve. The limits of the old politics are there for everyone to see – the limitlessness of the new we are just starting to explore.
More than 40 electoral alliances, in which people across parties cooperated on tickets including support for proportional representation and the common goal of preventing Conservative candidates winning, were pulled together quickly for the snap election. People from different parties worked together to ‘do politics differently’ and there was a sense that politics has become hopeful and positive again.
We shouldn’t forget the challenges we face:
- markets that are too free,
- a state that can be too remote,
- a democracy that still leaves so many voices unheard
- and change on a scale our people and our planet can’t cope with.
It is going to take a politics that is social, liberal and green to overcome these challenges. No single party or movement has all the answers. We are going to have to learn to cooperate as well as compete to build the society of which we dream. And we are going to have to recognise that the future is not a two-party system but one in which smaller parties grow – both in influence and in their electoral representation.
Colin Hines adds detail: also advocating a progressive alliance of Labour, the Lib Dems, the SNP, Plaid and the Greens he says that they will need to get their ‘policy ducks in a row’ to win it. He continues:“Firstly, these must provide hope, not just for the young, but for every community in the country.
“To do this Jeremy Corbyn must revisit and vigorously shake his people’s QE “money tree”. This could pay for real economic activity on the ground via decentralised infrastructure projects to make the nation’s 30 million buildings energy efficient, ensure a shift to localised renewable energy, and the building of local transport systems.
“Secondly, the divide between young and old must be bridged by policies fostering intergenerational solidarity. Older people with significant saving should be offered “housing bonds”, paying, say, 3% interest to help fund a massive council and affordable homes programme.Tuition fees would be scrapped, but so too must be the threat of having to lose a home to pay for care, or having to scrabble for means-tested benefits such as heating allowances.
“Financed by progressive and fairer wealth and income taxes, and a clampdown on tax dodging, this should have an election-winning appeal to the majority of grandparents, parents and their young relatives”.