Response to interpellation 2023/24:227 on the government's measures against sharply increased food prices
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerns the government's measures against sharply increased food prices. M argues that combating inflation is a priority to protect households with small margins 1. M believes that the government combines restrained fiscal policy with reforms that have strengthened the job tax credit and lowered taxes for pensioners 1. M emphasizes that the food industry is responsible for the prices and that the government has tightened the monitoring of industries with lacking competition 1. M claims that reduced fuel taxes are having an impact on prices 2 and that the government has a plan to take Sweden through the economic winter 2. S wants to see a price commission to monitor and follow food prices. S wants the government to work harder to manage the inflation.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Finansministern Elisabeth Svantesson (M)
Madam Speaker! Mikael Damberg, who is not here today, has asked me what measures the government intends to take to prevent further increases in food prices. He has also asked how the government intends to support families with children with small margins.
Inflation hits households hard, and hardest of all against those who already have small margins. Inflation has begun to turn downwards but is still too high. Combating inflation is therefore still a priority for the government, while we support households and welfare. The government's budget proposal for 2024 shows that it is possible to combine a restrained fiscal policy to combat inflation with reforms that strengthen households' finances. But there is also a great responsibility resting on several other actors in the economy to prevent the high inflation from becoming more persistent. This applies in particular to the food industry and retail, which have a responsibility not to raise prices more than is proportionate. The government has allocated funds to the Competition Authority to tighten the monitoring of industries with lacking competition.
Many households with weak finances have received compensation for the high inflation through price-indexed grants and transfers. Increased housing allowance for families with children, electricity support, increased unemployment insurance, and reduced energy tax on fuels are reforms that have been particularly significant for households with small margins. At the turn of the year, the reduction obligation is also lowered. The budget for 2024 contains important structural reforms while we support households and welfare, including through an enhanced job tax deduction for low- and middle-income earners, reduced tax for pensioners, and a further reduced tax on fuels. This gives households with scarce resources more in their wallets.
When Mikael Damberg (S), who submitted the interpellation, reported that he was prevented from attending the meeting, the second deputy speaker allowed Markus Selin (S) to participate in the interpellation debate instead.
Markus Selin (S)
Madam Speaker! I thank the Minister for Finance for the answer. I am glad to be here today to debate this issue.
We live in a dark time. I am fundamentally an optimist, but it does not look so good. We live in a time with war in our world, war in Europe, and tensions all around the world. The planet has a fever, and Sweden faces a poor economic situation. Today, there are many small fingers opening hatch 1. It is getting tight towards Christmas.
A year ago, we warned the Social Democrats that we are facing a difficult economic situation. The Sverigedemokratically governed government lacked a plan, we Social Democrats argued. We must do something, and quickly. Sweden's economy is expected to shrink this year and also next year. The EU Commission gives Sweden the worst forecast of all EU countries.
Madam Speaker! Every third family is now finding it difficult to make ends meet. Higher electricity prices, rising rents, rising interest rates, and not least rising food prices hit hard-working ordinary people hard. According to Statistics Sweden's latest statistics, our food prices have risen by 6.6 percent. Fish and vegetables, for example, have risen by 12 percent. If these 12 percent were to correspond to a whole plate, it means that every eighth plate is gone. My favorite tomatoes have risen in price by 45 percent.
At the same time, we have a period where the food giants are making a killing. They continue to make record profits. We have a strong market dominance by a few actors.
Madam Speaker! At the same time, we also have a few banking giants who are carving out gold with a pocketknife. Presumably, these four banking giants will make historic record profits this year. The forecast shows that the total profit will land at approximately 160, perhaps 180, billion kronor. Those amounts correspond to one and a half times what we in Sweden invest in our common defense.
We live in a time when Stadsmissionen, in its poverty report, reports a doubled number of visitors in need of help. 72 percent of these need help because there is a lack of food on the table. Matmissionen saw a doubling of visitors in its food mission stores from 2021 to 2022, and the growth of visitors remains strong.
I would like to hear more from the Minister for Finance about how the government and the Minister for Finance are handling the situation we are in now.
Isak From (S)
Madam Speaker! This is an interpellation from Mikael Damberg, but I thank Markus Selin for the contribution. I could not refrain from entering the debate when I heard that Elisabeth Svantesson, in her response, referred to the heavily criticized electricity support as a response to skyrocketing food prices – an electricity price support that has actually divided the country.
It was promised very clearly that electricity support for municipalities and regions would be ready a long time ago. Now it turns out that it is far from ready. One of the reasons is that the authorities have judged that horse activities or other things that some municipalities and regions have should be classified as agricultural activities.
It is completely absurd how the government, in area after area, has failed with the electricity support that is now being highlighted as a tool against skyrocketing food prices. Quite a few do not agree with the government. It is pointed out time and again that one is lowering the petrol and diesel tax and that this has been done in stages. However, it is not particularly visible at the pump, because it is actually the world market prices that entirely affect the price at the pump. The price has since the government took office gone up and down by approximately 7 kronor. That is something that affects Sweden's motorists. It was promised that it would be lowered by up to 10 kronor at the pump, and this has not been implemented. Now, a changed reduction obligation has been introduced, and so far we have not seen the result of that.
We Social Democrats, on the other hand, promised to support those who truly need it. Those living in the countryside who need the car shall receive support. We have also presented a proposal on Sweden prices where the state procures a certain amount of biofuels to keep prices down.
It makes a difference depending on who is in power. Do you put the resources on luxury-root and luxury-rut, or do you prioritize something else? Here, Markus Selin has clearly shown that for too many families with children, this Christmas will be extremely difficult, but in the government's policy, we see nothing.
Instead, we see an increased number of warnings and more unemployed people. In that case, it is good to have unemployment insurance, but the cost increase in the food sector hits families with children here and now.
Finansministern Elisabeth Svantesson (M)
Madam Speaker! Today is December 1st, and many children are looking forward to Christmas. Some children may perhaps be disappointed and sad because they did not receive the first, the second, or the third gift on their wish list. Many parents will feel sorrow over it.
The root of this and many other problems we see right now is inflation. It is one of the absolute most contributing causes to many people's margins becoming very tight. The reason that mortgage costs have increased dramatically across Sweden is that the interest rate has risen because we must bring down inflation.
The most important thing we can all do to make things easier for people, wherever they live in Sweden, is to ensure that we get down the inflation. It is on its way down, which is pleasing, but the final round is not yet won.
We also have a recession. A year ago, I said that we have an economic winter and that it will be tough during this year and next. Then it will turn around, if nothing unforeseen happens. Much unforeseen is happening right now in the world. It can be about geopolitics, energy prices and other things.
The government has a plan to take us through this economic situation. The plan is about exactly inflation fighting, where we also support households and welfare. Let me just point out that this year Swedish households receive 40 billion in different types of support.
I hear the Social Democrats scoffing at the reduced fuel tax. I can only state that the National Institute of Economic Research recently conducted an evaluation. It is reading that I recommend. There, it is stated that it will have an impact on the price.
We can only dream about – a nightmare, naturally – what the fuel prices would have looked like if the Social Democrats had continued to govern. And what would the prices look like if it had been the Social Democrats governing on January 1st? The reduction obligation would have continued to be raised, but we are lowering it now. It is one of many important parts of our policy: to make it easier for people all around the country to live.
I will not say much more in this debate, Madam Speaker. I have had several debates with Mikael Damberg, who is not here right now. The intention in the answer is, as I have pointed out, that I work every day with the question of dampening inflation. Every day, my focus is on more parents being able to go to work, have a salary and be able to support their family, and that the children should be able to get the winter shoes they need so much. This is my and the government's focus.
Very many have been left behind over the recent years, in long-term exclusion, additionally with a feeling of being forgotten. One has not received support from Arbetsförmedlingen, and one has not been given the opportunity to get in. Requirements have also not been placed on parents to take the jobs that exist, and then the children also have to live in exclusion. There is much to do here.
Unemployment will rise according to the forecast, due to the recession that Sweden and many other countries are now beginning to see.
Madam Speaker! I conclude here and state that the fight against inflation continues, while at the same time we support the most vulnerable households.
Markus Selin (S)
Madam Speaker! I have Finnish relatives and Finnish ancestry, and as a Swedish-Finnish person, I thought I would treat myself to a few words in Finnish: Nostaa kissa pöydälle - let us put the cat on the table. It means that we must tackle a difficult and unpleasant situation, despite the circumstances.
We have the highest inflation in 30 years in Sweden. I will not take offense, Madam Speaker, but I have calculated that the word inflation is mentioned surely 15 times in the Finance Minister's written response, oral account, and contribution. In the written response alone, it is mentioned six times, while food prices, which this debate is about, are mentioned once.
Yes, we Social Democrats detest inflation. We know what arbitrariness it entails for us Swedes. It is exactly what we see now, Madam Speaker.
Let me return to Stadsmissionen, which does a fantastic, fine job, and Matmissionen. Right at this moment, over 14,000 are seeking help to get food. In my constituency, Stockholm County, Stadsmissionen, despite doing a beautiful and fine job, has been forced to open new stores, from Södertälje in the south to Norrtälje in the north.
Madam Speaker! I know that inflation is a ghost. We Social Democrats do not want to see inflation. But I would like to know more specifically how Finance Minister Elisabeth Svantesson wants to handle food prices, because we live in this, here and now.
We have, for example, four banks in Sweden making enormous profits in the middle of a burning crisis. This is not ultimately about money or accounting, but I would argue that it is ultimately about trust. How can we have people - 10,000, 14,000, 15,000 or soon perhaps more than 20,000 - seeking help to get food while the banks this year make profits of 160-180 billion kronor? The margins for ordinary Swedes are shrinking.
But not only that, but the Salvation Army, which also does a very fine work out there, reports that new groups are seeking help. Crying mothers call in shame and ask for help with food.
Madam Speaker! Today is December 1st, and many small children out there are opening the first door in the calendar. But we have thousands who are struggling and looking forward to a boring Christmas. Thanks for now!
Isak From (S)
Madam Speaker! Elisabeth Svantesson wonders how it would have gone with a Social Democratic government. We would have prioritized differently. We have been very clear that we will strengthen the households that need it most and support the car owners in the countryside who need it most. The government's policy, when it comes to the lowered petrol and diesel prices, focuses on the city commuters, which in itself is not unimportant.
We have established that the reduction obligation was too high and needed to be lowered to a more reasonable level, but not to the level that the SD-led government has set it at.
The inflation we have now is largely built on Europe's heavy dependence on Russian gas and oil, and it is largely due to the skyrocketing energy prices in Europe. We have had to bear a large share of this.
What we have also been struck by is the government's inability to maintain the value of the krona. The krona is valued completely absurdly low, and this also generates sharply increased food prices on everything that we cannot produce ourselves, such as bananas, fruit and so on, which the vast majority of children want for Christmas.
The government could do something about this. But one clearly chooses to prioritize those who have the larger wallets. For the Social Democrats, the opposite policy applies.
TREDJE VICE TALMANNEN
The Minister has now announced that she will refrain from making further speeches in this interpellation debate.
Markus Selin (S)
Madam Speaker! I mentioned ordinary people earlier. Save the Children, the Red Cross, Majblomman and the Tenants' Association have recently conducted a survey together. It shows that a third of single mothers who have an income of 35,000 kronor have difficulty putting nutritious food on the table - a third.
Madam Speaker! The National Food Agency now reports that rising food prices will risk public health by making food of lower quality and not nutritious. We Social Democrats, of course, do not want to see such. We have proposed a series of measures to mitigate the inflation crisis and the recession, which is now seriously knocking on the door. It is about extra child allowance, it is about fair tax cuts for more low- and middle-income earners, and it is about increased maintenance support. It concerns the tank discount, and it concerns the abolished funkis tax. It concerns folkhemsel, to gain control over the electricity market, and it concerns bank tax, so that the banks that are currently profiting extra well during the crisis shall participate in mitigating this.
We Social Democrats want to see a price commission, in order to monitor, regulate and follow the development of food prices.
I would very much like to see Finance Minister Elisabeth Svantesson and the government work even harder, even more, and not just talk about inflation but manage it.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.