House of Commons International Development Committee Fair Trade and Development Seventh Report of Session 2006-07 Volume II Oral and written evidence Ordered by The House of Commons to be printed 5 June 2007 HC 356-II Published on 14 June 2007 by authority of the House of Commons London: The Stationery Office Limited £0.00 International Development Committee The International Development Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Department for International Development and its associated public bodies. Current membership Malcolm Bruce MP (Liberal Democrat, Gordon) (Chairman) John Battle MP (Labour, Leeds West) Hugh Bayley MP (Labour, City of York) John Bercow MP (Conservative, Buckingham) Richard Burden MP (Labour, Birmingham Northfield) Mr Quentin Davies MP (Conservative, Grantham and Stamford) James Duddridge MP (Conservative, Rochford and Southend East) Ann McKechin MP (Labour, Glasgow North) Joan Ruddock MP (Labour, Lewisham Deptford) Mr Marsha Singh MP (Labour, Bradford West) Sir Robert Smith MP (Liberal Democrat, Aberdeenshire West and Kincardine) John Barrett MP (Liberal Democrat, Edinburgh West) was also a member of the Committee during the inquiry. Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the Internet via www.parliament.uk. Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at www.parliament.uk/indcom Committee staff The staff of the Committee are Carol Oxborough (Clerk), Matthew Hedges (Second Clerk), Anna Dickson (Committee Specialist), Chlöe Challender (Committee Specialist), Alex Paterson (Media Officer), Ian Hook (Committee Assistant), Jennifer Steele (Secretary) and James Bowman (Senior Office Clerk). Contacts All correspondence should be addressed to the Clerk of the International Development Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 1223; the Committee’s email address is [email protected] Witnesses Tuesday 27 February 2007 Page Hon Roosevelt Skerrit, Prime Minister of the Commonwealth of Dominica, and Ms Harriet Lamb, CBE, Executive Director, Fairtrade Foundation Ev 1 Ms Sandra Taylor, Senior Vice President, Corporate Social Responsibility, Starbucks Coffee Company, Mr Cliff Burrows, Senior Vice President and President, Europe, Middle East and Africa, Starbucks Coffee Company, and Mr Mike Barry, Head of Corporate Social Responsibility, Marks & Spencer Ev 12 Tuesday 13 March 2007 Mr Monjurul Haque, Artisan Hut Bangladesh, Ms Erica Kyere, Information and Education Officer, Kuapa Kokoo Limited, Ms Safia Minney, Director, People Tree, and Ms Sophi Tranchell, Managing Director, Divine Chocolate Limited Ev 21 Ms Judith Batchelar, Director of Sainsbury’s Own Brand, Sainsbury’s, Ms Hilary Parsons, Head of Corporate Social Responsibility, Nestlé, and Ms Emma Reynolds, Government Affairs Manager, Tesco Ev 29 Tuesday 27 March 2007 Professor Douglas Holt, Said Business School, University of Oxford, and Ms Sheila Page, Overseas Development Institute Ev 40 Mr Owen Tudor, Head, European Union and International Relations Department, Trade Union Congress (TUC) and Mr Bert Schouwenburg, Regional Organiser, GMB London Region Ev 49 Mr Paul Chandler, Chief Executive and Mr Michael Gidney, Policy Director, Traidcraft Ev 54 Tuesday 17 April 2007 Mr Gareth Thomas MP, Parliamentary Under-Secretary of State, Mr Owen Barder, Director, Global Development Effectiveness Division, and Ms Laura Kelly, Senior Agriculture and Trade Adviser, International Trade Department, Global Development Effectiveness Division, Department for International Development and Ms Amanda Brooks, Director, Trade Negotiations and Development, Europe and World Trade Department, Department of Trade and Industry Ev 59 Written evidence Written evidence submitted by witnesses who also gave oral evidence: 1. Department for International Development Ev 71 2. Divine Chocolate, Trading Visions, Comic Relief and Kuapa Kokoo Ev 83; Ev 86 3. Fairtrade Foundation Ev 88; Ev 104 4. Marks & Spencer Ev 106 5. Nestlé Ev 111 6. People Tree Ev 112 7. Sainsbury’s plc Ev 115; Ev 116 8. Starbucks Coffee Company Ev 117 9. Tesco Stores Ltd Ev 122 10. Trades Union Congress (TUC) Ev 125 11. Traidcraft Ev 132 Other written evidence: 12. ActionAid Ev 138; Ev 141 13. Banana Link Ev 142 14. Biscuit Cake Chocolate & Confectionery Association (BCCCA) Ev 146 15. Business Action for Africa Ev 148 16. Cafédirect plc Ev 153 17. Caribbean Banana Exporters Association (CBEA) Ev 157 18. Co-operative Group Ev 159 19. Co-operative Party Ev 162 20. Ethical Trading Initiative (ETI) Ev 164 21. Simon Forster Ev 168 22. International Institute for Environment and Development (IIED) Ev 169 23. Masterfoods UK Ev 171 24. Progressio Ev 172 25. Scottish Catholic International Aid Fund Ev 174 26. Shared Interest Society Ltd Ev 175 27. The Sustainable Enterprise Research Group Ev 180 28. Tropical Wholefoods / FM Foods Ltd Ev 182 29. Twin/Twin Trading Ev 185 30. War on Want Ev 187 31. Zaytoun Ev 188 List of unprinted written evidence and papers Additional papers have been received from the following and have been reported to the House but to save printing costs they have not been printed and copies have been placed in the House of Commons Library where they may be inspected by Members. Other copies are in the Parliamentary Archives and are available to the public for inspection. Requests for inspection should be addressed to The Parliamentary Archives, Houses of Parliament, London SW1A 0PW (Tel 020 7219 3074). Hours of inspection are from 9:30am to 5:00pm on Mondays to Fridays. Other papers: Draft concept: Investment in the future of fairtrade, Fairtrade Foundation, 20 March 2007 Strategic fair trade funding programme, Fairtrade Labelling Organisation, March 2007 Fairtrade impact: summary of studies undertaken since 2003, Fairtrade Foundation, undated 2007 Letter from Trading Visions, 8 May 2007 3605474001 Page Type [SO] 07-06-07 20:08:54 Pag Table: COENEW PPSysB Unit: PAG3 International Development Committee: Evidence Ev 1 Oral evidence Taken before the International Development Select Committee on Tuesday 27 February 2007 Members present: Malcolm Bruce, in the Chair John Barrett James Duddridge John Battle Ann McKechin John Bercow Joan Ruddock Richard Burden Mr Marsha Singh Witnesses: Hon Roosevelt Skerrit, Prime Minister of the Commonwealth of Dominica, and Ms Harriet Lamb, CBE, Executive Director, Fairtrade Foundation, gave evidence. Q1 Chairman: Good morning and welcome. Thank stock Fairtrade. That public support for Fairtrade is you for coming to give evidence. This is the working. More and more companies oVer Fairtrade Committee’s first session of evidence in its inquiry products. Last year we saw rates of growth of 46% into fair trade products, and it is probably timely which means that more and more farmers and given that it is Fairtrade Fortnight. We have two sets workers in more countries can have the benefits of of witnesses this morning and each will give evidence Fairtrade. for about an hour. For the benefit of our witnesses, first we will ask questions of Harriet Lamb and then Q2 Chairman: Where was it started? we will put questions to Roosevelt Skerrit. To begin Ms Lamb: It started in 1992 and the first product with, perhaps Harriet Lamb can spend a couple of with the FAIRTRADE Mark appeared in 1994. minutes on the Fairtrade Foundation and what it involves. Then I will ask Mr Skerrit to spend a Q3 Chairman: Was that in the UK? couple of minutes on himself and his engagement in Ms Lamb: Yes. Originally, it was started by Mexican fair trade issues. coVee farmers connecting with the Dutch equivalent Ms Lamb: I thank everybody very much. We of the Fairtrade Foundation in response to the coVee welcome this inquiry into fair trade and crisis that aVected them at that time. development. The Fairtrade Foundation is a charity set up and now owned by 13 development NGOs. It Q4 Chairman: I suppose that a question which you was set up as a response to the commodity crisis that have half-answered is: what do you believe Fairtrade is aVecting millions of farmers and workers across can do in terms of development? It is still a tiny the developing world. For example, if one takes proportion of the commodities traded, and even of coVee, in 2001 prices reached their lowest level ever the commodities in the fair trade package it is a very and that spelt catastrophe for both farmers and small proportion. What do you believe is the whole nations such as Ethiopia which depend on V contribution that Fairtrade can make to co ee exports. In response to that Fairtrade was development as opposed to what might be called established as a way that organised farmers and niche markets? If you think it makes a contribution workers could access markets, earn a fair and stable how do you think it can be extended to be a much price that covered the cost of sustainable more significant component of the current Fairtrade development with a premium to invest in the future markets and potentially new markets? and therefore begin to build their businesses and Ms Lamb: First, it matters greatly to those five invest in their communities. The mechanism to make million farmers, workers and their families who that work is the FAIRTRADE Mark as the participate in Fairtrade now. For them it is not a independent consumer label that the public niche but their livelihood; it is their ability to stay on recognises and is available on products from a whole their land, build their co-operatives and survive as range of companies. We now work for 260 farmers. We must take account of that. What we can companies that oVer 2,500 diVerent products.