FSB Wales. Action Plan for the Food and Drinks Industry. 3 rd March 2014

Transcription

1 FSB Wales Action Plan for the Food and Drinks Industry 3 rd March 2014

2 Action Plan for the Food and Drink Industry The Federation of Small Businesses Wales The Federation of Small Businesses Wales welcomes the opportunity to present its views to the Welsh Government. FSB Wales is the authoritative voice of small businesses in Wales. With 10,000 members, a Welsh Policy Unit, two regional committees and twelve branch committees; FSB Wales is in constant contact with small businesses at a grassroots level. It undertakes a monthly online survey of its members as well as an annual membership survey on a wide range of issues and concerns facing small business. Introduction According to the Welsh Government s Priority Sector Statistics, published annually to accompany the Economic Renewal Programme, there are a total of 13,985 firms active in the food and farming sector in Wales of which the vast majority are SMEs, representing roughly 15 per cent of the total business stock. Collectively, these firms employed around 27,045 employees during Unfortunately, during the period , the number of firms has declined by 5.2 per cent with a subsequent reduction in employment of 2.8 per cent 1. It is therefore crucial that the Welsh Government actively supports firms in this sector to start-up, to grow and to increase employment across communities in Wales. Q1. How would you change or add to the mission statement? FSB Wales broadly welcomes the mission statement included in the consultation document. However, FSB Wales would prefer there to be a stronger statement on sustainable growth. This would mean a commitment that the action plan would lead to sustainable growth rather than just encourage sustainable growth. Furthermore, FSB Wales would like to see an expression in favour of supporting SMEs in respect of sustainable growth. Q2. Are the overarching themes appropriate? Are there others? The overarching themes set out in the consultation plan are on the whole sound; however FSB Wales believes a number of changes need to be made to strengthen the document. FSB Wales would like to see a fourth overarching theme focusing on supply chain development. This should seek to encourage added-value at all levels of the supply chain with a particular emphasis on capturing value in Wales. This should focus on firms of all sizes and seek to encourage supermarkets in particular to develop localised supply chains and support indigenous Welsh businesses to maximise the opportunities presented. While this is identified as a priority later on in the consultation document, FSB Wales feels it should be an overarching theme that impacts on all areas of policy. With regards to the Food and Drink Federation, FSB Wales welcomes this development but urges the Welsh Government to ensure that it engages meaningfully with small food and drink producers in 1 Welsh Government Priority Sector Statistics [Online]. Available at: (accessed 25th February 2014). 2

3 Wales. This should include those that produce artisan produce that frequently sell to localised markets but add significant value added to their products. In terms of the identity of food and drink produce from Wales, FSB Wales welcomes the findings that show around 75 per cent of food producers currently use Wales in their branding 2. FSB Wales believes effective support via organisations such as Business Wales, Hybu Cig Cymru and via the True Taste Wales/Gwir Flas campaign is essential to the success of the Welsh brand. FSB Wales also agrees with the conclusion of the Welsh Language and Economic Development Task and Finish Group that suggests bilingual branding can add value to Welsh products. Finally, FSB Wales believes skills development is one of the areas where Welsh Government can have significant impact on Welsh economic outcomes. Many small firms face large barriers to skills and training development due to opportunity costs for time away from productive activities and the cost of planning and setting up training programmes. In other areas, such as in apprenticeships, the Welsh Government has been proactive in supporting small firms via an expanded Young Recruits programme with significant emphasis on support for firms in dealing with recruitment costs. Early indications suggest this has been successful and FSB Wales believes this should be examined in relation to the Action Plan for the Food and Drink Industry. Crucially, skills provision should also include the needs of the supply chain, for instance the maintenance and repair of machinery involved in the sector. Anecdotally, FSB Wales is aware of situation where young people do not see a career in the sector as desirable. Careers Wales and other bodies should be promoting the virtues of employment within the food and drinks sector to Wales young people. Q3. Do you reject any of the seven priorities? What else would you suggest? How would you rank the priorities in order of importance? As stated previously, FSB Wales believes procurement should become an overarching theme. This would render the Supply Chain Efficiency and Integration of Government and Supply Chain Collaboration priorities unnecessary. In relation to Market Development and Growth, FSB Wales believes it is vital that differentiation is made in terms of size to reflect the varying needs of firms. As our research into the Welsh Government s Economic Renewal Programme highlighted, frequently it is the size of the firm that creates barriers rather than the sector 3. With regards to Food, Culture, Heritage and Tourism, FSB Wales agrees with the approach and suggested interventions. It is vital that the proposed Food and Drink Federation is able to work with Visit Wales to maximise the brand potential of visitors to Wales. This should reinforce export and growth strategy and should also be linked to procurement objectives, supporting tourism businesses to buy and sell local produce. FSB Wales would like to see the emphasis around a reduction in climate change impact placed on supporting firms to adopt environmentally friendly practices. As part of this, the opportunities 2 Welsh Government Delivering Growth: An Action Plan for the Food and Drinks Industry Crawley, A; and Munday, M Small Businesses in Priority Sectors [Online]. Available at: tors.pdf (accessed 25 th February 2014). 3

4 provided by legislation such as the Environment Bill should be used to reduce costs on businesses in Wales, for example by incentivising the re-use of materials. In relation to Food Assurance and Resilience, FSB Wales urges the Welsh Government to ensure regulatory bodies such as the Food Standards Agency are proportionate and risk-based in their approach. This would mean targeting those most likely to break the rules while avoiding placing undue burdens on businesses that exhibit best practice. Finally, in relation to Health and Social Impacts, FSB Wales hopes a growing food and drink sector will contribute to wellbeing in communities across Wales. As such, FSB Wales would expect to see the linkages between quality, locally sourced produce from businesses often rooted in their communities, and health outcomes. This is particularly important in relation to the Public Health (Wales) Bill. Conclusion FSB Wales broadly welcomes the Welsh Government s Action Plan for the Food and Drinks Industry in Wales. However, FSB Wales would like to see a greater recognition of the dynamics of size in relation to barriers to business growth, particularly in the mission statement. Furthermore, FSB Wales would like to see procurement becoming an overarching theme for the strategy. This would enable greater emphasis on capturing and maximising the value produced in Wales by food and drinks producers. 4

5 Contact: Federation of Small Businesses WALES OFFICE 1 Cleeve House Lambourne Crescent Llanishen CARDIFF CF14 5GP Telephone: policy.wales@fsb.org.uk Web: The Federation of Small Businesses The FSB is non-profit making and non-party political. The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the selfemployed and owners of small firms. Formed in 1974, it now has 200,000 members across 33 regions and 194 branches. Lobbying Our lobbying arm - led by the Westminster Press and Parliamentary office - applies pressure on MPs, Government and Whitehall and puts the FSB viewpoint over to the media. The FSB also has Press and Parliamentary Offices in Glasgow, Cardiff and Belfast to lobby the devolved assemblies. Development Managers work alongside members in our regions to further FSB influence at a regional level. Member Benefits In addition, Member Services is committed to delivering a wide range of high quality, good value business services to members of the FSB. These services will be subject to continuing review and will represent a positive enhancement to the benefit of membership of the Leading Business Organisation in the UK. Vision A community that recognises, values and adequately rewards the endeavours of those who are self employed and small business owners within the UK The Federation of Small Businesses is the trading name of the National Federation of Self Employed and Small Businesses Limited. Our registered office is Sir Frank Whittle Way, Blackpool Business Park, Blackpool, Lancashire, FY4 2FE. Our company number is and our Data Protection Act registration number is Z We are a non-profit making organisation and we have registered with the Information Commissioner on a voluntary basis. Associate Companies We have two associated companies, FSB (Member Services) Limited (company number and Data Protection Act registration number Z ) and NFSE Sales Limited (company number and Data Protection Act registration number Z ). 5