HC Deb 18 July 1985 vol 83 c466
9. Mr. Thurnham

asked the Minister of Agriculture, Fisheries and Food if he will provide figures for 1984 for the percentage cost of the transport element of food manufacture costs in the United Kingdom and the European Economic Community.

Mrs. Fenner

On average, transport costs probably represent about 5 per cent. of food manufacturers' costs in the United Kingdom, but there will inevitably be considerable differences between manufacturers. I am not aware of the position being markedly different in the European Community as a whole.

Mr. Thurnham

I thank my hon. Friend for her answer. Is she aware that the CBI has said that transport costs in Britain are twice as high as those in the rest of the EC? Will she consider those differences further?

Mrs. Fenner

The evidence that I have described does not show that to be the case, but any evidence that United Kingdom manufacturers are being disadvantaged because of transport costs should be passed to my right hon. Friend the Secretary of State for Transport.

Mr. John

Does not the huge concentration of food processing plants in the south-east of England involve a double journey of food from the growing areas to the processing plants and back again to be sold? Should we not encourage food processing plants to be dispersed throughout the regions, thus avoiding such extra expense?

Mrs. Fenner

There has been some reallocation of food processing plants through the regional programme. The Centre for Physical Distribution Management, in a survey of distribution costs in the United Kingdom last year, found that transport costs of food, drink and tobacco manufacturers were on an average 5.77 per cent. of sales. The figure varied tremendously between firms, from 0.35 per cent. to 9.97 per cent.