UK food sector seeks eco incentives and skills push

By Jane Byrne

- Last updated on GMT

Related tags European union Industry Uk

Fiscal measures to support the UK food and drink manufacturing industry through the economic downturn as well as stimulus package to help the sector continue to reduce its environmental impact are top of the FDF’s wish list for the impending UK budget.

The director general of the Food and Drink Federation, Melaine Leech, claims that the UK Chancellor, in order to encourage investment and new entrants into the sector, should provide clarity over issues such as trade credit insurance.

Leech told FoodProductionDaily.com that the industry body is very concerned that in the current economic climate credit insurers are starting to scale back on available credit insurance limits.

“This is worrying for suppliers, in particular small and medium enterprises, since it leaves them exposed in terms of their trading relationships, and could have a significant impact on their businesses,”​ she explained.

EU directive

Leech is calling for a postponement of the planned increase in employers’ National Insurance contributions in 2011, and she also maintains that there should be a three year phase-in for the EU Temporary Agency Workers Directive.

She said that FDF members feel that there needs to be enough time to interpret the directive for the UK in order for government to carry out full consultation with all stakeholders including employers and recruiters.

“The members are also particularly keen to see a robust impact assessment carried out and the provision of detailed guidance on how this directive will be implemented. There are many unanswered questions around what this means for UK businesses and how the UK will interpret this piece of EU legislation,” ​said Leech.

She said that as food security is at the top of the agenda nationally and globally, this must be the year that the Chancellor recognises the strategic importance of the food and drink manufacturing industry, which is the UK’s largest manufacturing sector.

The sector, according to the FDF, has a collective turnover of £72.6bn (€82.2bn) and a staff of 440,000 – roughly 14 per cent of all manufacturing workers in the UK.

Eco grants urged

In addition, the head of the FDF is urging the UK government to provide incentives such as a grant scheme in its budget to prompt wider industry take up of environmentally-friendly waste to energy projects using technologies such as anaerobic digestion or to assist industry develop more effective ways of re-use and recyling.

“We also need financial incentives to encourage businesses to invest in key capital improvements earlier than they will otherwise be able to in the current economic climate,” ​she claims.

She told this publication that such investment could lead to updating of plants and equipment to make more efficient use of energy, water and resources.

Leech claims that the food and drink manufacturing industry also needs investment in skills to tackle the shortage of food scientists, engineers and technologists in the sector.

Regulation

The FDF is also seeking clarity over what it terms unwarranted and poorly-implemented regulation, citing the example of the ‘Southampton six’ food colours.

“The European Food Safety Authority (EFSA) says these colours are safe for use, yet manufacturers in the UK have still been subjected to a ‘voluntary’ ban,”​ added Leech.

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