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Mrs. Roche: I am sorry, but I have only a short time left to speak. I have been generous in giving way.
My hon. Friends the Members for Hove (Mr. Caplin) and for Lewisham, East (Ms Prentice) made some interesting points about the film industry with which I agree absolutely. I should point out that my constituency is well known in London as the setting of the wonderful film "Truly, Madly, Deeply". The film "Fever Pitch" was also filmed in my constituency.
There were many contributions about the small business measures, which were warmly welcomed by my hon. Friend the Member for Brent, North (Mr. Gardiner). The hon. Members for Bath (Mr. Foster) and for Sevenoaks (Mr. Fallon) also made some generous comments. I was disappointed that the hon. Member for Christchurch (Mr. Chope), who I know takes an interest in these matters, did not welcome the measures more warmly. The hon. Member for Surrey Heath (Mr. Hawkins) cast some doubt on the business expertise on this side of the House.
It being Seven o'clock, the debate stood adjourned.
Debate to be resumed on Monday next.
Ordered,
Motion made, and Question proposed, That this House do now adjourn.--[Mr. Robert Ainsworth.]
Mr. David Prior (North Norfolk):
As many hon. Members will know, supermarkets have had a major impact on our environment and our way of life. They offer variety, quality and, perhaps above all, convenience. There are more than 1,200 supermarkets of over 25,000 sq ft. The multiple chains, dominated by Asda, Safeway, Tesco and Sainsbury's, control some 75 per cent. of food retailing in this country, of which over 50 per cent. is now own label. To a large extent, they also control food production. At some time, surely we shall have reached saturation point, and in some areas I have no doubt that we have gone beyond it.
The massive impact of supermarkets was confirmed by the recent report by CB Hillier Parker, commissioned by the Department of the Environment, Transport and the Regions, called "The Impact of Large Foodstores on Market Towns and District Centres". The report is of particular interest to me because five new supermarkets are proposed for north Norfolk, and I have seen at first hand in Cromer and Fakenham how a supermarket can affect the high street and local shops and producers. The report was welcomed by the Minister, who said:
It is not just food retailers that suffer. Supermarkets now account for some 25 per cent. of all petrol sales, and 2,000 independent garages are going out of business each year. Similarly, 10,000 newsagents are predicted to close over the next three years. Home delivery of milk, pharmacies and a wide range of other services are under threat. The research demonstrates that smaller towns such as those in my constituency are less able to adjust than larger town centres and that a new store can supplant the role of the town centre. In addition, the research confirms that the trade that is clawed back as a result of a new store rarely leads to any tangible benefits for a town centre.
Village shops are also threatened, and many have closed. Many villages have no community services at all. For people without a car, the closure of the shop is a disaster and can lead to social isolation because the shop not only sells goods, but is a meeting place and provides an invaluable service, especially to older people.
Local food producers are also at risk. Work by Lady Caroline Cranbrook has revealed that local traders source a surprisingly large amount of their produce from local suppliers. In a survey of 81 food shops close to Saxmundham in east Suffolk, she found 295 local and regional suppliers. It is not unusual for a butcher to buy the meat from local farms, slaughter it locally and produce
his own range of sausages, freezer packs and cooked meats. Eggs, drinks, bread, fruit, honey, vegetables, sauces and jams are all typical local foods.
Mr. John Hayes (South Holland and The Deepings):
Does my hon. Friend acknowledge that the impact on communities of the close relationship between producer, retailer and consumer is uniquely created by the network of small shops and producers that he describes? In my constituency in Lincolnshire, communities thrive and rely on that very relationship.
Mr. Prior:
My hon. Friend is absolutely right. Lady Cranbrook took a particular look at farm shops. She found that eight farm shops source products from 86 local producers and 11 local wholesalers, as well as providing 22 full-time jobs, 28 part-time jobs and 100 jobs for seasonal casual workers. That well illustrates my hon. Friend's point.
There are also transport implications. Supermarkets, especially ones out of town, generate traffic. Nowadays, 75 per cent. of us use the car to do our shopping. Supermarkets also generate delivery traffic, with heavy lorries. Centralised stocking and distribution systems mean that food is transported for hundreds of miles.
There is also the effect on jobs. It is a myth that supermarkets create jobs. Research by the National Retail Planning Forum into the effect of opening 93 supermarkets concluded that each one resulted in a net loss of 276 full-time jobs. Large supermarkets inevitably increase the trend of large farms, large fields, longer travelling times, more traffic, large abattoirs and large processing plants. Is that the kind of society that we want?
Mr. Tony Colman (Putney)
rose--
Mr. Prior:
I am happy to give way to the hon. Gentleman, whose mother lives in Sheringham in my constituency.
Mr. Colman:
As somebody who was born and bred in north Norfolk, I support the broad thrust of the hon. Gentleman's proposals. But, as somebody who is very concerned about the high prices in many of the shops in many rural towns in north Norfolk, may I suggest that an answer could be the smaller supermarket shops which Tesco and Sainsbury are tending to develop, which are of no more than 10,000 sq ft or 20,000 sq ft and could ensure that people who live in north Norfolk are able to enjoy the much lower prices that supermarket chains can offer, as well as real competition, without the damage undoubtedly done by large supermarkets and large out-of-town developments?
Mr. Prior:
The hon. Gentleman makes a point, but it does not answer the one about local supplies from local producers.
The Minister summed up the position well in a speech in Birmingham on 5 November 1998, in which he said:
I am not for one minute advocating a blanket ban on all those proposals--far from it. There may be strong arguments in favour of an individual proposal, and I accept that public opinion is never at one on the issue. That is illustrated by the excellent work of year 6 children at Millfield primary school in North Walsham. About half the children were for a new supermarket, and half against. Those against felt that it would ruin the town and create more traffic, and those for felt that they needed a wider range of shops and that it would put North Walsham on the map. Their views probably reflect those of the adult population.
I feel strongly that the planning procedure, especially planning policy guidance note--PPG--6, should be tightened up and made more effective, so that the overall impact of a supermarket can be taken fully into account prior to planning permission being granted.
Indeed, the Minister recognised that when he stated:
Secondly, the distance guideline of 200 m to 300 m in PPG6 may be too wide. It is essential that people can walk from the supermarket straight into the high street. Thirdly, all new food store proposals for stores of more than 1,000 sq m should be accompanied by an independent assessment of their impact, using the CREATE methodology proposed by Hillier Parker. At present, such studies are often paid for by the retailer, and are neither independent nor comprehensive.
To those three points, I would add further suggestions. First, PPG6 should be extended to include as a material consideration the effect on the rural hinterland, as well as
the effect on the town and the village. That would include farm shops and local food producers. It would also assess the traffic implications.
Secondly, consideration should be given to adopting a provision similar to the loi Raffarin in France, which requires a public inquiry into any new development in excess of 6,000 sq m. The French Minister described the law as being designed to defend
Thirdly, high street shops affected by a supermarket development should be eligible for a rates review, and for rate relief, which has already been introduced for village shops. That should be funded, at least in part, by increasing the uniform business rate charged to supermarkets. Moreover, it is quite wrong that the new food tax should apply to all food outlets at the same rate of £90, regardless of their size.
Fourthly, supermarkets should be encouraged to develop national policies for sourcing local products, and planning permission for supermarkets should include a condition that a certain amount of floor space be devoted to locally sourced food.
Finally, the financial balance between hard-pressed district councils and supermarkets should be recognised. It is wrong that district councils can be bought off so easily by section 106 agreements, and wrong that district councils sometimes feel unable to press their case, for fear of being liable to costs if an appeal is lost.
The Minister accepts that PPG6 needs to be bolstered and strengthened. He accepts Hillier Parker's findings. He has said:
That, in respect of the sitting of the Scottish Grand Committee on Monday 22 March, Standing Order No. 99 (Scottish Grand Committee (substantive motions for the adjournment) shall have effect with the substitution in paragraph (2) (b) of the word "seven" for the word "ten".--[Mr. Robert Ainsworth.]
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"The research firmly established that out of town supermarkets can seriously damage the health of small towns and district centres. Arguments about clawing back trade and creating jobs simply do not hold water."
Let us briefly examine the impact of a supermarket. Most obviously, it has a direct impact on the town centre and the high street, especially in rural towns, many of which are already under great pressure. The Hillier Parker report took a close look at Fakenham when Safeway opened in 1994. It found a 64 per cent. decline in the market share taken by town centre convenience shops.
"We want to focus new development in town centres, to secure their revitalisation, to ensure greater social inclusion and to achieve environmental benefits, particularly less dependence upon the car. This is not a pious hope. We have a clear policy to focus development in town centres and we are going to stick to it."
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In a speech in Wellington on 25 September 1998, the Minister said:
Given all that background and the Minister's comments, it is pretty hard to understand why north Norfolk is confronted with five new supermarkets in addition to the four that we already have. At various stages in the planning process, there are plans for supermarkets at Stalham, North Walsham, Sheringham, Wells and Aylsham.
"The impact of superstores is greatest on smaller towns and where the superstores include a wide range of in-store services, such as dry cleaners, pharmacies and banking facilities. They effectively take over the traditional town centre activities and can seriously threaten the viability of existing town centre facilities. The smaller the town or district centre, the less they are able to cope with the threat.
But it is not just a question of what the store sells. If a superstore is disproportionately large compared with the amount of shopping in the centre, then it can again swamp the centre. And that applies whether the store is located in the town centre, on the edge of the town centre or out of town."
"Over recent years . . . assessment has become more complex about the best way to assess impact. PPG6 gives quite a lot of guidance, but it needs to be bolstered. . . The main message"--
of the Hillier Parker report--
"and one which heartens me greatly, is that they wish PPG6 to be strengthened."
Hillier Parker made a number of recommendations, which the Minister should consider urgently. First, the need for a new food store should be more clearly defined in PPG6. The method used, for example, in the Nathaniel Lichfield study in Norfolk does not have sufficient credibility.
"social and economic cohesion and the fabric of society",
which shows how seriously the French take the matter.
"When we revise PPG6 we will certainly take Hillier Parker's recommendations into account."
He has said that he wants to bring about a renaissance of our market towns. He has said that that should not be a pious hope. He has it in his power to do that. I hope that he will tell the House today that the time for talking and researching is over, and that the time for action has begun.
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