Agriculture Bill (Twelfth sitting)

Debate between Sandy Martin and Philip Dunne

Thursday 15th November 2018 Public Bill Committees

[Mr Dunne]

I beg to move amendment 109, in clause 33, page 24, line 39, at end insert—

“(2) Payments made by virtue of this Act must be paid pursuant to regulations made by the Secretary of State to implement a multi-annual financial framework determining the monies available under this section.

(3) Prior to any payments being made under this section, regulations must be laid before the beginning of the agricultural transition period.”

The Agriculture Bill should establish a multi-annual budgetary framework that provides certainty for farmers and allows them to plan and invest for the future.

I stress at the outset that this is a probing amendment, and I am looking for the Minister to give me some comfort that what I am asking for is in line with current practice and widely supported by the industry. I urge the Minister to have discussions across Government to consider whether something along the lines of this amendment could be incorporated in the Bill at a later stage. I have tabled the amendment because under the scheme that we are currently looking to replace—the CAP scheme—multi-year support packages have been agreed, and all farmers across the UK have been operating according to those packages and are accustomed to them. That is my first point.

Secondly, the Government have already acknowledged the importance of a multi-year settlement in the transition arrangements that they have announced and the Minister has secured from the Treasury, with a commitment to 2022, which is a significant development. I give full credit to the Minister and his colleagues in the Department for Environment, Food and Rural Affairs for securing a commitment from the Treasury that takes us ahead of the comprehensive spending review period—outwith that—in order for farmers to have confidence in the way in which the current scheme will transition into the new one.

Thirdly, the new scheme is intended to be a multi-year arrangement for the period from 2021, as we move from an area-based payment to a public goods-based payment. The Government have clearly recognised that multi-year arrangements are required for this industry, not least because—as we have heard previously in this Committee—many tenancy agreements and stewardship arrangements are undertaken by farmers on a multi-year basis. That is not always the case: some tenancy arrangements, such as grass keep, last for only one season, but many last for many years.

[Sandy Martin (Ipswich) (Lab)]

I have visited a farm in Suffolk at the NFU’s invitation, and seen the various improvements that the farmer wanted to make to his farm. However, he was not sure whether he would be able to claim money for those improvements in future. Does the hon. Gentleman agree that it is extremely difficult for farmers to make improvements to their farms when they do not know the future shape of the financial settlement?

[Mr Dunne]

I agree with the hon. Gentleman. This is not just about farm improvements, of course; it is about the rotational nature of farming. Arable farming relies on an assumption of continued occupation for a period of years, in order to adopt an appropriate rotational pattern for the use of the land over a number of years. For all those reasons, it is entirely appropriate that the Government should consider a multi-annual scheme.

Perhaps I may refer to some of the external support that I have received for the amendment, which I am sure other members of the Committee have seen as well. I am sure that it is no coincidence that during the passage of the Bill we have had the benefit of presentations elsewhere on the parliamentary estate from a large number of groups interested in agriculture, and in what happens in the environment on and around our farms. I am sure that many hon. Members will have gone to yesterday’s presentation by the wildlife trusts. There have been presentations in the past couple of weeks from Greener UK, an umbrella group of 14 organisations, all of which are supportive, including the NFU, the Country Land and Business Association and the Woodland Trust, which has also organised presentations in Parliament recently.

Also in Greener UK is the National Trust, which I visited on Friday in my constituency, and which is particularly concerned about some of the conservation measures it is introducing across its estate. I think it is the largest private sector landowner in the country, with something like 1,800 tenant farmers operating around the UK. While on the subject of the National Trust, I commend to the Minister the Stepping Stones project, in which it seeks to link together landscapes across the Shropshire Hills area of outstanding natural beauty. As he has not visited my constituency to see that work in action, I am keen to invite him to do so, because the trust wants to bring forward an environmental land management scheme, and I was impressed by what I saw last Friday. It wants multi-annual arrangements, as do the other organisations, and I strongly encourage the Minister to recognise that that is how farming in this country functions, so it is appropriate at least to consider a scheme of that nature.

The amendment would also insert a provision about having a scheme in place at the outset, not as an afterthought during transition. Whenever we move from one scheme to another, things should be set out clearly in advance, to give farmers the confidence they need to undertake projects that, as I have explained, take several years, as well as confidence that they will be able to farm appropriately in the future.

Agriculture Bill (Eighth sitting)

Debate between Sandy Martin and Philip Dunne

Thursday 1st November 2018 Public Bill Committees

[Mr Dunne]

Thank you for the clarity of your guidance, Sir Roger. I rise to speak to clause stand part and to pose some questions to the Minister following the comments of the hon. Member for Stroud. The proposal is very complex and the explanatory notes make it clear that this is a novel system. The concept of de-linking payments is welcome, but because it does not exist at the moment, it is hard for us to get our minds around it, so when the Minister responds, I encourage him to give us as much clarity as he can about the intent of how the de-linking scheme might work.

First, hon. Members have raised several challenges about how the structure of ownership and tenure of land might be affected by such a de-linking payment, which is designed to facilitate the transfer between one generation of a farming family or of a farming business and another. Farming businesses are very diverse, however, as is the nature of all businesses in this country, so it is difficult to assume that they will all fit in a neatly prescribed and, dare I say, bureaucratically designed structure.

My right hon. Friend the Member for Scarborough and Whitby referred to his farming business with his wife. My farming business is in partnership with my wife too, but I was previously a partner with my father. The advantage of a partnership structure is that it allows generations to come in and to retire in the same business. If the scheme is not capable of coping with that kind of structure, it will not apply to several family-run farming businesses. We need clarity about how the scheme will be designed to cope with the business structure.

Secondly, it is unclear to me, although I might not have picked it up in the drafting, whether the de-linking payments will cover the entire transitionary period or just a number of years that are yet to be determined and spelt out through the regulations. Any clarity about whether they are likely to be for a limited number of years or the entire period would be helpful.

Thirdly, it would be helpful to understand whether, when the regulations are proposed, the way the transition payments are reduced over the period will be determined through regulation and fixed, or whether they will be capable of adjustment. If they are adjustable payments, that will not provide the clarity that would help somebody to make a decision about whether to accept the de-linking payment at the beginning of the period, or whenever it is first allowable, because they will not know whether that is the right judgment to make.

Fourthly, if a payment is made in relation to a farming business, does that make the land to which it relates sterile in relation to other payments in future? Does that land become eligible only for public goods payments under the new scheme, or is there flexibility? If a business is sold, and the land is sold to an existing or neighbouring farmer, will that preclude them having any access to the transition payments? Those are my main points and I look forward to hearing what the Minister has to say.

[Sandy Martin]

I do not particularly want to address the amendments or the whole de-linking scheme in detail, but we need to bear in mind one or two basic principles. Obviously, if we support the movement to payment for public goods, and a tricky transition, people who have farm businesses that will be involved in that transition need to understand what will happen to them before they get there.

We do not want large numbers of farmers to move out of the business involuntarily. Subsection (7) provides the opportunity for support for somebody who has voluntarily decided to leave the business. However, there is a problem with small farmers in particular, who might have extremely delicate finances. They need to know before they get to the year in which they might find themselves unable to continue financially—indeed, they would need to know three or four years before—whether they are going to get there. They need to know that before deciding whether to take the lump sum payments under subsection (7). If they do not know whether they will be financially viable under the new payments regime more than three years before, that might become a fatal position for them. They might take the payment and go anyway, even though it might turn out that they would have been better off and happier continuing to farm under the new payment for public goods system, rather than the current system.

Agriculture Bill (Sixth sitting)

Debate between Sandy Martin and Philip Dunne

Tuesday 30th October 2018 Public Bill Committees

[Mr Dunne]

I am grateful to my right hon. Friend for his encyclopaedic knowledge of previous agriculture Bills.

I move on to some brief remarks about amendment 89 and the consequential amendment 90, which would amend schedule 3, “Provision relating to Wales”. Those amendments seek to make it explicit that agricultural support should be payable to those who are responsible for managing the land. Under the previous system, that support has been paid to farmers. We are trying to devise a system of public goods for farmers to do things of environmental benefit that will replace income that they would otherwise derive from growing food, food produce or horticultural forestry products on the land. That aims to provide farmers with some incentive to generate environmental benefits. It is the farmers—all 83,500 of them—who currently receive direct payments through the RPA basic payment scheme who are most deserving of the support that will be made available in the future, rather than other worthy, worthwhile groups who will be able to advise them and generate benefit for the environment. But they are the people who are responsible for delivering most of that public good; that is, the people who manage the land.

That was explained by the Secretary of State in a letter that he sent to MPs when the Bill was published last month. He said:

“For too long our farmers have been held back by the stifling rules and often perverse incentives of the CAP… Our new Agriculture Bill marks a decisive shift. It will reward farmers properly at last for the work they do to enhance the environment around us. It recognises the value farmers bring as food producers.”

He was very clear that the Bill is designed to provide support to farmers in lieu of what they would otherwise do in managing the land by trying to stimulate a greater public good.

I therefore encourage the Government to respond on whether the Bill seeks future support to be able to make payments to those who deliver public benefit from stewardship of the land, or whether it should go to other bodies that do so only indirectly, and for which there may be benefits through subsequent legislation, such as the environment Bill, which might be a more appropriate place for it.

[Sandy Martin]

The House of Lords Delegated Powers and Regulatory Reform Committee report stated that if the Bill is passed in its present form,

“Parliament will not be able to debate the merits of the new agriculture regime because the Bill does not contain even an outline of the substantive law that will replace the CAP after the United Kingdom leaves the EU”.

What the House of Lords was looking for and what, I believe, farmers are looking for is a far clearer expression of the support that farmers will get and the activities for which they will get that support than is expressed in the Bill.

However, at least one thing is clear in the Bill as it stands. The Secretary of State does not envisage rewarding farmers just for being farmers. They need to be supporting the public good. I think farmers would support that, but the problem is defining exactly what the public good is and the extent to which any definition should be left entirely to the Secretary of State, rather than laid out clearly in the Bill. If the hon. Member for Ludlow supports the idea that access to healthy local food grown sustainably is a public good, I am a little mystified as to why he could not support our amendment.

We all want what is best for this country. One of the supposed benefits of Brexit was that it would enable us to decide for ourselves what would be the best agricultural support regime, rather than having to rely on the common agricultural policy. However, I am afraid that amendments 88, 89 and 90 fall down at that hurdle, because they very much advocate supporting farmers simply for being farmers. In the words of amendments 88 and 89, following the meaning across from one amendment to the second:

“The Secretary of State may also give financial assistance”

to

“those with an interest in agricultural land, where the financial assistance relates directly to that land.”

In other words, that means paying farmers for being farmers or, indeed, paying landowners for being landowners, which neatly expresses the worst aspects of the current operation of the common agricultural policy.

I have been a keen advocate of much of the support and protection that we have achieved through our membership of the European Union, and I fear that we will lose a good deal of it when we leave. However, even I would never claim that the common agricultural policy is perfect, and the UK has been at the forefront of attempting to reform it over the years. I think that that reform was intended to ensure that any financial support through the common agricultural policy aligns better with the support of the public good, but I do not believe that it was altogether successful. Payments to landowners simply for being landowners is one of the aspects of the common agricultural policy that this Bill was designed to end, so amendments 89 and 90 would be a serious step backwards.

Agriculture Bill (Third sitting)

Debate between Sandy Martin and Philip Dunne

Thursday 25th October 2018 Public Bill Committees

[Sandy Martin]

Q As you said earlier, the devil is in the detail. There is very little detail in the Bill at all. Most of what will come out of the Bill will be in regulations, and there is very little written into it about consultation. Would you feel more comfortable about having more consultation written into the Bill so that you will know that, when the regulations are coming up, your concerns and those of other people involved in the industry will be taken into account?

Helen Browning: I think it would be helpful because we are in a situation where we do not know so much of what is going to transpire over the next year or two. I think that there will be a huge amount more policy making to do, and this is just the starting point. What we must make sure of, with this Bill, is that it does not close off avenues that we may need open to us, depending on what happens to trade and the Brexit deal itself. It is base camp, and as everything else starts to become a little clearer, I think more consultation, as we start to look at the regulatory framework, would be really helpful.

Jack Ward: From our point of view, I think there is a case for saying that the lack of detail is not a bad thing, given the timescale we are working on and the need for this Bill to be in place before the end of March. The worst thing would be to rush forward with schemes and solutions that had not been properly thought through. We work very closely with DEFRA on the development of schemes, and in our experience it is really important that those who are going to operate them at ground level are part and parcel of the development process, because we have seen just how difficult it is to implement some of the EU schemes. God forbid that we go around the buoy of producing schemes that are inoperable, having designed them ourselves. I think there is an onus on all of us to work together to make sure these things work for the benefit of everybody involved, from taxpayer to grower, through to consumer.

[Mr Dunne]

Q Mr Ward, you have touched on public procurement, and you gave some examples of procurement in other existing EU countries. As we come out of the EU, do you think there is scope for this Bill to make provision for us to be much freer as to public bodies procuring locally? Should that be specified in the Bill?

Jack Ward: Yes, I think public procurement would be really helpful; but we have to recognise that we only produce a percentage of the total requirement. Inevitably, there are periods of the year, or there are crops, where it is not that easy to get locally grown produce, simply because it does not exist. We need to factor that in to our thinking. It is all very well to say, at a design level, “Yes, wouldn’t it be great if you specified that it had to be British?”, but eight out of 10 tomatoes are imported, so, by definition, they will not be local.

Overseas Electors Bill

Debate between Sandy Martin and Philip Dunne

2nd reading: House of Commons
Friday 23rd February 2018 Commons Chamber

[Sandy Martin]

I am saying something fairly similar, yes. If someone is living, paying taxes and working in a country, they are also accruing pension rights and contributing to the society in which they live, and that society then has some obligations towards them if they decide to move abroad. That is a very good point, and I will come on to it later. However, I am not prepared to accept that somebody living in a country other than the country that they are making decisions for can set a level of taxation in the country that they are not living in.

[Mr Philip Dunne (Ludlow) (Con)]

I am interpreting the hon. Gentleman’s remarks to mean that far from seeking to remove the restriction on the duration within which people can vote, he is seeking to tighten it, and arguing that there should be no right to vote for any British citizens living abroad. Is that really what he is saying?

[Sandy Martin]

I will reach that point in my speech at some stage—I have got through only one paragraph so far. I wish to make a large number of points, and I cannot make them all instantaneously. I can address them in a random order depending on when Conservative Members want to raise them, or I can address them in the order in which I have written them down. It is entirely up to them which way they want me to take them.