Common Organisation of the Markets in Agricultural Products (Producer organisations and Wine) (Amendment Etc.) (EU Exit) Regulations 2019

Debate between David Drew and Robert Goodwill

Monday 28th October 2019 General Committees

[Dr David Drew (Stroud) (Lab/Co-op)]

I am delighted to serve under your chairmanship, Sir Roger, and delighted to have this latest CMO debate. I was getting withdrawal symptoms. In fact, I had to demand of the Whip that I was put on the Committee, such is my need to discuss the common organisation of markets at least two or three times a week.

Where do the regulations fit in the great panoply of debates we are having on CMOs? The Government say we cannot consolidate such legislation, but we seem to be having the same debate, perhaps on a different sector, time after time. It would be interesting to know why some of these debates could not have been put together, at least for the benefit of those struggling to understand these different sectors.

I will not rehearse the arguments we have had time after time, but I have some specific questions for the Minister. How was the nine-month time limit arrived at? That seems a peculiar, arbitrary figure. Why not a year or six months?

The regulations are on imports of wine, so we are not looking at the impact on exports. However, we are an exporter of wine, and clearly if we take particular lines of action with regard to imports, we can expect those EU nations to which we export to look at what we do and take retaliatory action. What impact assessment has been undertaken on the export of British wine? There is a growing market for British wine, which is now well known and, indeed, well loved in certain parts of the world.

It is intriguing that the “Minister of State for Agriculture, Fisheries and Food” appears in the explanatory notes. It is nice to look back sometimes. I thought we had killed the Ministry of Agriculture, Fisheries and Food, but the Minister has obviously reincarnated it—even though the explanatory notes say he is in DEFRA.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Will the hon. Gentleman give way?

[Dr Drew]

I give way to the former Minister.

[Mr Goodwill]

The hon. Gentleman referred, I think inadvertently, to British wine, but “British wine” is generally used to describe a product made from imported grape juice, which would not be protected in this way. I think he probably meant to refer to English wine—or even Welsh or Scottish wine, if there is such a thing—which would be protected.

[Dr Drew]

I stand corrected. I was just using that nomenclature, but, given the way we are all going, we may have to get used to being very definite in how we refer to things—English, Scottish, Welsh, Northern Irish or whatever form it takes. The point is that there must be some impact on our potential exports, because we are changing the rules somewhat, and the length of time is quite intriguing.

Page 13 of the instrument refers to how organisations can sign up to a scheme. I am intrigued: is this a new process, or are we carrying it across from the EU? If it is a new process, who will arbitrate to ensure that shareholdings are appropriately held and that organisations are transparent in what they apply for? There is quite a rigorous and—dare I say it?—robust application scheme, so it would be interesting to know whether we are initiating it or carrying it across—as it has been, or as it could have been—given that our status with the EU is at best uncertain.

Page 16 is the most difficult page because it is full of acronyms, and I do not quite understand what it tells me. Regulation 6(16), for example, relates to TPOs, APOs and TAPOs, and we are bringing in different definitions of how those organisations will be referred to. Page 16 has left me in the dark as much as any of our debates on CMOs, of which we have had many. I would be interested to know how the Minister sees it. I understand this will be the law, but if someone were to ask for my advice on what it really means, I would not be quite sure what to say. Will the Minister say more about what we are replacing, how we are replacing it and what we are replacing it with?

In its own way, this is a very minor piece of legislation, but the issue is how it fits together. This is an amendment, so it would be interesting to know why we have to discuss the subject again, unless the EU has moved forward in this area—that is quite possible. It would be useful to know why the Government think we now have it right and will not be discussing it again. Much as I would love to discuss the CMO for the next few days, it is important that we get this on the record and get it right, and that we understand that it is right, and that people whose livelihoods will be affected can know what the regime will look like and can react accordingly.

TB in Cattle and Badgers

Debate between David Drew and Robert Goodwill

Wednesday 23rd October 2019 Westminster Hall

[Dr Drew]

Let me come to that later, because I will point out something slightly different.

We have had the two articles, and they are articles; they are not necessarily anything other than a position taken by both Brunton and Downs. Brunton used the findings given to her by APHA and she made the point that

“to use the findings of this analysis to develop generalisable inferences about the effectiveness of the policy at present”

was at least questionable. Downs was more definitive and did say that there was some strong evidence, in her opinion, that the cull was working. But this is where I disagree with the hon. Member for The Cotswolds (Sir Geoffrey Clifton-Brown). The current figures from Gloucestershire have shown an upward spike, in both incidence and prevalence, in the cull area. This is the problem with this disease: it is not a disease that can easily be measured in terms of one policy. My fear about the Government is that they have gone along the badger cull route as the main policy.

With regard to where we are, the one real criticism that I have of this Government is that I think it is outrageous that MPs are not allowed to know where culling is taking place. I recently had an incident locally that was about culling on the edge of the Woodchester Park area. Anyone who knows anything, and certainly those who have studied the matter, will know that Woodchester Park has spent more time than most of us have had hot dinners in trying to understand how the badger population is affected by bovine TB and in looking at the relationship—the transmission mechanism—between badgers and cattle. Certainly we had some evidence that a badger was shot within that trial area. I know the police will not prosecute, but I hope that the Minister will give me every assurance that there is no possibility of culling, because that would throw away 40-plus years of how we have been studying those badgers, and we need to keep doing that.

I have been talking about where we are. This, of course, is a stress-based disease. That is why I am quizzical, and want to hear from the Government, about why they have not yet responded to Godfray, because it is right and proper that we do respond to Godfray. We need to understand this issue. My area had a recent incidence of TB caused by the way in which people were putting in a new pipeline. Because they did not move the badger setts properly, five farms have gone down, no doubt because of the stress on the badgers that were moved wrongly and on the cattle, which suffered accordingly. It is important that we understand that a number of different things are involved.

I welcome what the hon. Member for Chatham and Aylesford (Tracey Crouch) said about slurry. I hope that the Government are looking seriously at the work of Gatcombe, down in Dorset—on the Dorset-Devon border—where Dick Sibley has tried to do things.

[Mr Goodwill]

Will the hon. Gentleman give way?

[Dr Drew]

May I just continue? I will never finish my speech otherwise, and the Minister will need quite a lot of time to respond because of the excellent debate that we have had, even if hon. Members do not agree on this issue.

I hope that we are looking at what Sibley has discovered in trying to eradicate this disease from a cattle herd. He has narrowed things down, again, to, dare I say, the impact of slurry being put out on farms. We need to know more about that.

With regard to where else we need to be much better, I think that the hon. Member for North Herefordshire (Bill Wiggin) brought up the notion of the Enferplex test. We need to push forward on the different measures. I will be blunt: the SICCT—single intradermal comparative cervical tuberculin—test, the skin test, is notoriously unreliable. Far too often, cattle that have the disease are missed. Sometimes they are picked up with the interferongamma test. Again, Gatcombe is doing work with PCR-polymerase chain reaction— and phage.

It is important that we know that these tests are much more accurate. We need to bear down on this disease. I do not want to kill cattle any more than I want to kill badgers. Far too often, cattle are killed that are clean of the disease. But sadly, there are cattle that are not clean of the disease and get through. We still have 14 million cattle movements. It is important that we understand that those movements could be a major cause of the spread of the disease, because if we do not know which cattle have it, as we may not know which badgers have it, and we allow those cattle to travel around the country, that is clearly a real threat.

We need to look at every tool in the box. We will not agree on how this disease is currently being fought, but fought it must be. The Leader of the Opposition offered with equanimity to work with the Government at the end of yesterday’s debate and I would like to work with the Government on this. I would love for the Minister to come to Woodchester Park and look at the implications of what researchers have found there over many years.

I agree with the Prime Minister about the need to end cattle movement—all live exports—in terms of what we send abroad. That could give us an opening. Much of the way in which we have fought this disease has been to do with the need to keep our trade policy “TB-free”. If we maintain that, it is important to understand that this might be a way forward. Thus far we have been within EU rules. That is something we could address.

In conclusion, I would like to work with the Minister. Sadly, previous attempts at cross-party work have not always succeeded, but I make that offer now—and I hope the Minister will take me up on it.

Oral Answers to Questions

Debate between David Drew and Robert Goodwill

Thursday 9th May 2019 Commons Chamber

[Mr Goodwill]

I would certainly be happy to meet the right hon. Gentleman. I was in Aberdeenshire recently and met representatives of the Scottish farming unions, and last week I met Roseanna Cunningham from the Scottish Administration and discussed a number of issues.

[Dr David Drew (Stroud) (Lab/Co-op)]

Where is the Agriculture Bill? It left Committee months and months ago, and given that we are spending an infinite amount of time on statutory instruments updating what the EU Commission is now doing, can we be assured that we will not have to completely rewrite the Bill— although that could be useful in this time of climate change? We just need the Bill back so that farmers can have some certainty.

[Mr Goodwill]

I am as keen as the hon. Gentleman is to make progress. Perhaps the shadow Secretary of State, the hon. Member for Workington (Sue Hayman), will be able to help, because as soon as we can clear the logjam and get Brexit out of the way, we will be able to get on with it. She is part of the team that is negotiating an accommodation between the two main parties, so perhaps she can help us to make some progress on Brexit so that we can get on with the Agriculture and Fisheries Bills.

Common Agricultural Policy and Market Measures (Miscellaneous Amendments) (EU Exit) Regulations 2019

Debate between David Drew and Robert Goodwill

Tuesday 7th May 2019 General Committees

[Mr Goodwill]

Yes, we are. As I have said, the two major provisions are to do with, first, the ability to switch from pillar one to pillar two and, secondly, the labelling of citrus fruit products. The others are merely typographical and other drafting measures; the hon. Gentleman will be pleased that we spotted before he spotted them and that we are able to correct them.

[Dr Drew]

I thank the Minister. It is always useful to know exactly what we are dealing with, otherwise something could come back to haunt us in due course because we thought we had dealt with it but we had not.

It is a difficult process. Because of the delay—I am not going to argue about why that is taking place—we face having to amend existing SIs because the Commission has made further changes. That is what the Minister alerted us to. That is right and proper, but I am still confused about the terminology in the explanatory memorandum that the Minister repeated. We are considering the notion that the

“marketing standards for mixes of fruit and vegetables apply to mixed packages ‘of different species of fruits, of vegetables or of fruits and vegetables’”.

To say that that is obscure is obvious—I would use the pejorative before that. This is complicated. At one level, the changes are purely typographical and about trying to bring things up to date that have gone through alterations elsewhere. On another level, the measure is important, because it talks about the relationship between pillar one and pillar two.

I want to be absolutely clear that the Government are not pulling a fast one, and that they will be able to make good some of the problems that we have had. The Minister is a farmer and he knows that it is a source of aggravation in the farming community that farmers do not get their direct payments on time through the Rural Payments Agency. We spent a lot of time in Committee on the Agriculture Bill—we would love to have the Bill back, so we could amend it accordingly—and on previous SIs trying to clarify exactly where the Government’s direction of travel is taking us. We know that we will be paying farmers for public goods and environmental supports, but it would help if that was clarified at this stage through the various SIs.

My one concern about the instrument is that clearly, in Europe, some ability is being introduced to improve flexibility, but the danger is that rather than taking the direction of travel that we would want to go in in this country, which is towards greater payments under pillar two, it is possible that, because of the shortcomings of the existing system, it could be taken as an opportunity to further enhance the pillar one payment system. That matters because the British Government—previous Governments and this Government—have failed to entirely deliver on their obligations under pillar two. That is clear from the rural payments, which some of us would certainly want to be enhanced, and from some of the other opportunities through pillar two—including the obvious one, environmental payments.

The other point is that we could be back here again. If we go as far as October, we will have to consider further amendments to some of the SIs that we have made—and because it is DEFRA, we have made an enormous number of them. It would be useful to know from the Minister what work is going on to see what further amendments we will have to make. For the benefit of my colleagues—well, my one colleague who is not on the Front Bench—and of the SNP spokesperson, we have had more than 120 DEFRA SIs. It would be worrying if we had to revisit an awful lot of those because of the updates and changes, even if some of those changes were purely typographical. It would be useful to have an indication from the Minister on how often we will have to re-engage in the process, because we will have to do that if the secondary legislation demands it.

In conclusion, the instrument is obscure but it is important that we get it right, which is why some hon. Members would ask why we are we doing this in May when we might have to further amend it in advance of October. Those are the points that I wanted to make and I welcome what the Minister has to say in response.

Oral Answers to Questions

Debate between David Drew and Robert Goodwill

Thursday 28th March 2019 Commons Chamber

[Mr Goodwill]

The best way of preventing a no-deal Brexit is to vote for the deal. Nothing yesterday was supported by the House. The deal is the best thing for agriculture, the future and our long-term relationship with the European Union.

[Dr David Drew (Stroud) (Lab/Co-op)]

The problem is that the numbers participating in countryside stewardship continue to plummet. Morale at Natural England is at an all-time low, and there is the real problem that no money is going into environmental land management schemes. What will the Government do to move us towards an environmental payment scheme?

[Mr Goodwill]

The hon. Gentleman is absolutely right in some ways. We have not delivered the support for those environmental schemes that we should have delivered. I am pleased that the Rural Payments Agency has now taken that over from Natural England. I met its chief executive this week. If we cannot to get the money out on time, other farmers will not be incentivised to join those schemes, so my priority is to improve the situation, as we did with the basic payments scheme.

draft Common Organisation of the Markets in Agricultural Products Framework (miscellaneous amendments, etc.) (eu exit) Regulations 2019 Draft Common organisation of the markets in agricultural products and common agricultural policy (miscellaneous amendments) (eu exit) regulations 2019 Draft Agriculture (Legislative Fuctions) (EU Exit) (No. 2) Regulations 2019

Debate between David Drew and Robert Goodwill

Tuesday 26th March 2019 General Committees

[Mr Goodwill]

As a farmer myself, and given the family business’s participation in an agri-environmental scheme, I should mention my entry in the Register of Members’ Financial Interests.

The three statutory instruments amend retained EU law setting out the overarching framework for the common organisation of markets in agricultural products, and retained EU and domestic legislation on related wider common agricultural policy provisions. They also amend retained EU law on organic food and feed, and on imports and exports of processed agricultural goods. The amendments will maintain the effectiveness and continuity of retained EU law and domestic legislation that would otherwise be deficient following our exit from the European Union, and will ensure minimal disruption for businesses and other stakeholders.

The legislation is technical in nature and limited in scope. We are upholding standards and maintaining processes, and the legislation makes appropriate corrections to ensure that those standards and processes continue to operate in a UK context. Where changes are required, we have endeavoured to ensure that they will have a limited impact on businesses and other stakeholders. All three instruments apply across the whole UK, and we have consulted extensively with the devolved Administrations to ensure that the legislation on the common organisation of the agricultural markets continues to work, while respecting the devolution agreements.

Two of the instruments, the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019 and the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019, operate in areas of primarily devolved competence, with the appropriate powers transferring to the devolved Ministers. In many of those cases, the Secretary of State is able to act on behalf of the devolved Administrations, should they give their consent. However, in some circumstances that does not apply to Wales. Due to certain provisions specific to the Welsh devolution settlement, in certain instances allowing the Secretary of State to legislate or otherwise act on behalf of Wales would have implications for devolved competence for Wales. The Welsh Government have carefully considered whether the Secretary of State should be able to act on their behalf in respect of each of the functions concerned, and the drafting reflects the outcome of that consideration.

The other instrument, the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019—[Laughter]—amends only provisions relating to reserved matters.

[Dr David Drew (Stroud) (Lab/Co-op)]

Say it again!

[Mr Goodwill]

There will be an opportunity, I am sure.

All three instruments concern the common organisation of the agriculture markets, more commonly referred to as the CMO. The CMO sits in pillar one of the common agricultural policy, alongside direct payments, and it was set up as a means of meeting the objectives of the CAP—in particular, to stabilise markets, ensure a fair standard of living for agricultural producers, and increase agricultural productivity. Over time, it has broadened out to provide a toolkit that enables the EU to manage market volatility, incentivise collaboration between and competitiveness of agricultural producers, and facilitate trade.

The first statutory instrument, the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019, amends the overarching framework for the CMO rather than the details of each policy area, and is intended to lay the groundwork for the more detailed amendments in other CMO instruments. The policy areas in the instrument can be described as public intervention and aid for private storage, aid schemes, marketing standards, producer organisations, import and export rules and crisis measures. The instrument also deals with the basic legislation for the scheme for the promotion of agricultural products, EU regulation No. 1144/2014.

The second statutory instrument in the grouping, the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019, ensures the operability of certain provisions relating to the reserved policy areas of regulation of anti-competitive practices; international trade; imports and exports; and intellectual property law.

The second set of regulations amend provisions in legislation on the common organisation of the agricultural markets and the wider common agricultural policy, as well as in EU legislation relating to imports and exports of processed agricultural goods that largely mirrors the relevant provisions on non-processed agricultural goods within the CMO. The regulations also confer legislative functions held by the Commission on the Secretary of State in reserved policy areas, to enable the smooth functioning of related schemes for producers, traders, importers and exporters of agricultural goods.

In particular, the second statutory instrument contains amendments to: recognise producer organisations that provide exemptions from certain aspects of competition law across all agricultural sectors; make operable requirements for written contracts in the dairy sector; provide for an appeals route in the domestic courts relating to protection of a name as a designation of origin or geographical indication for wine; confer powers on the Secretary of State to make regulations about checks relating to protected designations of origin and geographical indications for wine; facilitate and regulate the import of beef and veal, wine, hops, fruits and vegetables, and ovalbumin and lactalbumin; facilitate and regulate the import and export of fruit and vegetables; and make operable rules relating to the granting of export refunds for processed agricultural goods.

The third statutory instrument in the group, the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019, amends EU legislation relating to CMO schemes; CAP financing, management and monitoring; and organic food and feed. Under the amendments, functions currently exercised by the European Commission will instead be exercisable by public authorities in the United Kingdom. That will enable those legislative functions to continue to be used at a national level after the UK leaves the EU.

The instrument relates to EU regulations covering the common organisation of agricultural products and related CAP provisions, as well as organic food and feed. The EU regulations confer various functions on the Commission, so that it can develop the technical details required to operate a specific regime. Examples of those functions include: specifying forms to be used; setting financial limits or prices; defining scheme eligibility criteria; establishing key dates; and defining programmes or scheme periods. After EU exit, without amendment, the legislative functions in these retained EU regulations would be inoperable. That would prevent the UK Government and, where applicable, the devolved Administrations from being able to make any necessary changes to these policy regimes to keep them up to date. This instrument uses powers in the European Union (Withdrawal) Act 2018 to correct that deficiency, so that the functions can be exercised by UK public authorities.

I will try to pre-empt some of the questions that I suspect I might get from the Opposition. I am sure that they will want to ask whether the instruments will also be needed if we agree a deal with the EU. Yes; they make operability amendments that will be necessary for the retained EU law to function, and to maintain the integrity of our statute book, either at the end of an implementation period, or sooner if we leave the EU without a deal.

I know I will be asked whether a formal consultation has been carried out. I make it clear to the Committee that we have not carried out a formal consultation, as the changes are technical in nature and do not describe any change in policy. There will be no concrete changes. We continue to engage with stakeholders; indeed, I am meeting the chiefs of the National Farmers Union and the Country Land and Business Association later in the week.

I might be asked when the Agriculture Bill will be coming back. I make it clear to the Committee that we wish to bring the Agriculture Bill here as soon as possible. It would be helpful if we could get the withdrawal agreement through at the third time of asking. That would clear the House and enable us to get these important bits of legislation through. I may be asked how we can change what is the statutory instruments. Once we have left the EU, we can amend and change the provisions; the SIs are about maintaining the status quo, including any changes that may flow from the Agriculture Bill, or other changes we wish to make.

In closing, the instruments make appropriate changes to ensure an operable legal framework for the CMO on leaving the European Union. The changes are deliberately minimal, and will commence only when necessary to ensure operability and address deficiency.

--- Later in debate ---

[Mr Goodwill]

Before we were so rudely interrupted, I was trying to rush through my comments in order to get to the end before the Division, but I can now take a little more time to explain the situation and to answer the questions comprehensively.

The hon. Member for Stroud talked about anticipating future SIs. Changes will need to be made to keep up with changes to EU legislation, as I already said, but the SIs before us today make no fundamental changes. They are about changing EU authorities into the relevant UK authority.

The hon. Gentleman also asked why we are rolling over the articles, rather than starting afresh. With regard to future competition law as it relates to agriculture, the articles covering the EU producer organisation regime are being amended by the European Union (Withdrawal) Act in order to be made operable, but will eventually be repealed and replaced by domestic successor legislation using the powers in the Agriculture Bill.

Greener UK were concerned about any reduction in our very tight environmental standards. The Secretary of State has made it clear on several occasions, and I can reassure the hon. Gentleman, that there will be no change. There will be no reduction in our standards. Indeed, with our new method of agricultural support delivering public goods, in my opinion we will have the greenest agriculture in Europe.

The hon. Gentleman talked about organic production. Of course, we will continue to respect EU standards, but many of the licensing bodies in the UK, such as the Soil Association, have even more stringent requirements. The Agriculture Bill will give us the opportunity to help those farmers who may well want to convert to organics. The chance to have better trade relations with the United States will be a great opportunity for UK food, particularly organic food, to be sold into the United States market.

We are transferring powers on organic regulations to the UK from the European Commission. The powers include measures to implement the prohibition of genetically modified organisms, measures to implement rules for production, conversion, processing, approval of certain products, exceptional production, labelling, and precautionary and control measures, which will ensure the notification of UK organic operators, and measures to set out the forms and methods of communication. I think we have a comprehensive approach to the issue of organic production.

A question was asked about school milk, which EU funding supports to an extent. We want children to be healthy and well-nourished, and regular dairy consumption makes an important contribution to that. I have a glass of milk most days myself, as it is the cheapest beverage in the Tea Room—it says a lot for the way that milk is taken for granted that a glass of milk in the Tea Room is a third of the price of a cup of tea. Alongside participating in the school milk scheme, the Government are doing a great deal nationally to promote children’s dairy consumption through, for example, the much larger national free nursery milk scheme, and ensuring the availability of milk for pupils under the school food standards, including free milk for disadvantaged pupils.

[Dr Drew]

At the moment, the money might come from us, but it goes via the EU. Is the Government committed to continue to fund that? Has that been agreed with the Treasury?

[Mr Goodwill]

I thank the hon. Gentleman for that question, which leads me smoothly on to my next point. Regardless of whether we have a deal with the EU, funding will be available under the scheme for at least the next few years, and we will keep the position under review.

My last point is on the database and IT availability for a whole variety of areas. We are working very hard as a Department to make sure that we have IT systems up and running. I am very optimistic that they will work well.

[Dr Drew]

indicated dissent.

[Mr Goodwill]

I know the history. The hon. Member for Stroud can shake his head, but we know that this has been a problem for various Governments. A lot of the systems have been run at the beta phase—the testing phase—and they have worked well, including in my previous Department, Education, for the nursery scheme. That system worked very well after a few initial glitches.

The operability amendments made by the regulations will maintain the effectiveness and continuity of this legislation on the common organisation of agricultural markets and wider CAP provisions that would otherwise be inoperable following our exit from the European Union, as well as the provisions covering organic food and feed, and imports and exports of processed agricultural goods. They will ensure that we can continue to operate schemes under these regulations for our vital farming sector and maintain the standards they set, which support confidence in our farmed goods on domestic and international markets. I commend the regulations to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Common Organisation of the Markets in Agricultural Products Framework (Miscellaneous Amendments, etc.) (EU Exit) Regulations 2019.

Draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019

Resolved,

That the Committee has considered the draft Common Organisation of the Markets in Agricultural Products and Common Agricultural Policy (Miscellaneous Amendments) (EU Exit) Regulations 2019.—(Mr Goodwill.)

Draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019

Resolved,

That the Committee has considered the draft Agriculture (Legislative Functions) (EU Exit) (No. 2) Regulations 2019.—(Mr Goodwill.)

Draft Agriculture (Legislative Functions) (EU Exit) Regulations 2019 Draft Common Agricultural Policy (Financing, Management and Monitoring) (Miscellaneous Amendments) (EU Exit) Regulations 2019 Draft Common Agricultural Policy (Financing, Management and Monitoring Supplementary Provisions) (Miscellaneous Amendments) (EU Exit) Regulations 2019 Draft Common Agricultural Policy and Agriculture and Horticulture Development Board (Amendment etc.) (EU Exit) Regulations 2019

Debate between David Drew and Robert Goodwill

Monday 25th March 2019 General Committees

[Mr Goodwill]

To put it simply, officials went through the regulations, and every time they saw a reference to an EU body, they changed it to a reference to a UK relevant body, whether that was in England, Northern Ireland, Scotland or Wales. I share the disappointment felt by many people that we have not had an agreement in Northern Ireland and a return to devolved administration; at the moment, civil servants are making the decisions, based on decisions taken in the past. As a former member of the Select Committee on Northern Ireland Affairs, I know how tough the job of those civil servants is; the longer it is since there was a devolved Administration in Northern Ireland, the more difficult it is to make decisions based on political policies that were decided at that time. I hope that all the political parties in Northern Ireland will get together to participate fully in the democratic process and give the people of Northern Ireland their voice once again through the devolved settlement, delivering on the Good Friday agreement—the Belfast agreement.

The hon. Member for Stroud asked some general questions about payment windows. There will be no changes to the scheme, but given the performance of the last Labour Government, I have to say that people in glass houses should not throw too many stones. The Labour party must take some responsibility for the complexity of the system introduced in England, which contrasts with the much more workable system in Scotland. We are often critical of European legislation, but if we gold-plate it ourselves, we must take some of the blame.

The hon. Gentleman also talked about new schemes. Obviously, under the new policies that we will introduce once the Agriculture Bill is on the statute book, we will be in a position to facilitate new schemes. We will have an improved system that will allow us to base our agriculture policy and agricultural support on UK priorities, rather than on the often compromised priorities that emerge when we negotiate within the European Union.

The hon. Gentleman talked about consultation. In a debate on a previous statutory instrument, I gave a long list of those whom we have spoken to and who have not expressed concerns. There are no concrete changes; as I have said already, in most cases we are substituting EU bodies with UK bodies.

The hon. Gentleman asked whether we should make modifications at this stage to take account of the directions of change that we discussed in debates on the Agriculture Bill. The answer is no; this is a “business as usual” measure. If he wants to make changes, the first thing he needs to do is vote for the deal, so that we can actually leave the European Union. The Agriculture Bill will create those opportunities, but that will be possible only with a deal. I hope that we can work closely with the devolved Administrations as well.

The hon. Gentleman asked a question about the red meat levy. The exemption that we are concerned with relates only to livestock imported into the UK and slaughtered in England within two to three months of arrival. There are believed to be very few cases, if any, in that category. The overall red meat levy is payable on all livestock slaughtered in England for the human food chain and raises approximately £26 million a year. Extending the exemption to imports from beyond the EU might affect the KPA. No exemptions were sought for such imports last year.

The hon. Gentleman mentioned the Soil Association. I can reassure the association that we are maintaining the status quo. As I say, the Agriculture Bill will give us great opportunities in the delivery of organic production, for example.

I was asked about future funding arrangements: as agriculture is devolved, who will pay for what? I reassure the Committee that the Government have pledged to continue to commit the same cash total in funds to farm support until the end of this Parliament, which is expected to be in 2022.

[Dr Drew]

Will the Minister give way on that point?

[Mr Goodwill]

I know what the hon. Gentleman is going to ask, and I will try to cover it.

That includes all funding provided for farm support under both pillar one and pillar two of the current CAP. Obviously, if there were an early election—of course, under the Fixed-term Parliaments Act 2011, that is not as straightforward as it used to be—since no Government can tie the hands of a future Government, it would be up to the parties standing in that election to put their plans in their manifesto and then deliver on that when elected.

--- Later in debate ---

[Mr Goodwill]

I am certainly not going to rush my fences and write the next manifesto on the hoof, particularly as we do not expect to go to the people again until 2022. The last time we consulted the people on what we should do was in the referendum, and we have not delivered on that one yet, so perhaps we should get on with the work in hand.

[Dr Drew]

Will the Minister give way?

[Mr Goodwill]

I will make a point about the Barnett formula before I give way. We have also committed that the Barnett formula will not simply be applied to DEFRA’s agriculture budget in 2022. That means that farmers in Wales, Scotland and Northern Ireland will not just be allocated funding according to the population of each nation. Each is significantly smaller than England, but they have large areas of agricultural interest. In October 2018, the Government announced an intra-UK allocations review, which will look into the factors that should inform the allocation of convergence funding from 2020 to 2022. The review will report ahead of the 2019 spending review, and its recommendations will be available to Treasury Ministers when future funding decisions are made.

Did I answer the hon. Gentleman’s point? I thought I had.

[Dr Drew]

I was actually going to make another point. Since I think we must assume that the Agriculture Bill will be delayed, these SIs are quite important. The starting point for the reduction of direct payments is 2021—that is in the plan, not in the Bill itself. Will the Minister assure me that if there is a delay, the seven-year transition period will move with it? Or are we going to try to reduce that transition period? Obviously, that would cause those who need direct payments even more difficulty.

[Mr Goodwill]

I thank the hon. Gentleman for that question. We are keen to make progress on the Agriculture Bill. We will get it on the statute book as soon as possible, and it will certainly be on the statute book as and when it is required.

I was asked about cross-compliance. The European Union (Withdrawal) Act 2018 does not give us the power to make wholesale policy changes, and we do not think it would be appropriate to use the powers in the Act to omit cross-compliance from retained CAP legislation. Instead, we have the flexibility to amend cross-compliance within the confines of the current legislative framework. Further substantive changes to cross-compliance will be able to be made through the Agriculture Bill.

I was also asked why the devolved Administrations have taken a different approach to agriculture. Agriculture is a devolved policy area, and the devolved Administrations are currently able to operate CAP schemes within the legislative framework. It is for each Administration to decide how these EU regulations should be made operable.

The hon. Member for Plymouth, Sutton and Devonport raised issues to do with EMFF funding and the Fisheries Bill. I had been doing so well, but that is one that I will need to write to him about, as it is quite a technical issue and I do not want to get it wrong—similarly with the dispute mechanism, although of course that is one of the things for the future. As I said, at the moment, we are keeping measures in place as they are; there is no change.

The hon. Gentleman mentioned the exchange rate. The exchange rate for payments is fixed in September. That has been the case for some time. He also mentioned fixed-term Parliaments. As I said, no Government can tie the hands of a future Government, and it will be up to the parties what they put in their manifestos.

Draft Rural Development (Amendment) (EU Exit) Regulations 2019 Draft Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019

Debate between David Drew and Robert Goodwill

Thursday 21st March 2019 General Committees

[Mr Goodwill]

I look forward to that robust exchange of views. Indeed, it might be that, given my particular take on some aspects of that Bill, we look at some amendments. Who knows!

The hon. Member for Stroud made a valid point that not all the funds have been drawn down. That is a great disappointment, because the funds are important to develop not only our rural economy but the public goods and the environment that people wish to see. We need to analyse why that was not done. In the case of some of the capital grant funding for improvements to businesses, the EU structure was often very much based on giving money to co-operatives. Many European Union countries have a much wider co-operative structure among their farmers, particularly in areas where there are small farmers, who can work together only if they co-operate. In the UK, we do not have that same history of co-operatives, which in some cases has prevented farmers from applying, say, for better storage facilities.

Secondly, as the hon. Gentleman mentioned, many EU schemes are complicated and over-bureaucratic. We need to look at how to simplify them. Given the egregious exploitation of schemes in some parts of southern Europe, I can understand why the European Union came to the view, in some cases, that every farmer was out to exploit the system in a way that was not intended. My view is that farmers in this country are much more likely to comply and engage with our common objectives.

I met several landowners and farmers at an event last week. The point has been made that we have not made payments as effectively as we should—there have been delays, particularly in the agri-environmental schemes. Many such schemes involve up-front investment, such as buying seeds or hedging plants, so we need to improve our performance to encourage more people to feel that they can invest in them.

The hon. Gentleman talked about funding. There is the small matter of our contribution to the European Union budget, which we will be able to deploy for our own interests. As net contributors, we will be in a better position to make sure that the money is adequately spent. We will certainly be engaging in the spending review and with the devolved Administrations to make sure that we have a fair share of the available money and that it can be deployed as intended and not top-sliced in some other way.

[Dr Drew]

Obviously we will not replicate pillar 1 and pillar 2, but is the Minister saying that the pillar 2 moneys will be secured? So far, he has mentioned agriculture and land, but not rural communities. A key thing about the pillar 2 moneys was that they were ring-fenced for particular rural developments, which may have involved farmers and landowners, but did not have to. What will the Government do to make sure that the pillar 2 moneys are secured, as they were under the EAFRD?

[Mr Goodwill]

As the hon. Gentleman well knows, the direction of travel in policy is to switch funding from pillar 1 to pillar 2, so direct funding will be reduced at the same time as the schemes that the Agriculture Bill facilitates are delivered. I am ambitious and optimistic that we can continue to build on such schemes and that the money will be there, because we will be directing it for the public goods that farmers will be keen to deliver. The general public will also feel more content, perhaps, that taxpayers’ money is being spent in those directions rather than how it was spent in the past.

The hon. Gentleman talked about the consultation. There was no statutory requirement to consult, because we are not making operational changes. We met the Rural Payments Agency industrial partnership group in September 2018 to update farming and land management stakeholders about the Government’s plan for EU exit. A number of stakeholders were present, including the Tenant Farmers Association, the Country Land and Business Association, the Farming Community Network, the Institute of Agricultural Secretaries and Administrators, the British Institute of Agricultural Consultants and the National Farmers Union. A subsequent meeting was held on 26 November 2018.

The hon. Member for Dundee West is concerned about Scottish participation. I spoke to Fergus Ewing last week to reinforce my wish to work with the Scottish Government. Their consultation, “Stability and Simplicity”, which was published in June 2018, invited comments on their proposals for dealing with the implications associated with leaving the common agricultural policy. It explained that the first stage would be for EU law to be retained in domestic legislation. The consultation closed in August 2018 and there were 137 responses. At least so far as that aspect is concerned, the Scottish Government are engaging.

--- Later in debate ---

[Mr Goodwill]

The hon. Gentleman is absolutely right to make the case on behalf of not only his constituents but his nation. We certainly look forward to robust exchanges about the way funding is brought forward, but I repeat that, as we leave the European Union, the money that we previously paid into the coffers in Brussels will be available for us to deploy here. England is embracing the opportunities of leaving the European Union, and the Agriculture Bill is one clear example of that. The Scottish Government need to engage more widely in those opportunities and must not be in Brexit denial. Many of the hon. Gentleman’s right hon. and hon. Friends seem to think that it is not going to happen. It is important that they realise that the result of the referendum in the United Kingdom was to leave the European Union. The Government of the United Kingdom are determine to deliver our promise.

As further changes to the way we deploy and deliver the agri-environmental and other schemes in this SI emerge, we will of course consult. We will evaluate the way that schemes have worked in the past. We will need to see how we can balance and incentivise new schemes, particularly in connection with the environment, to ensure we get the balance right between rewarding those who were in the vanguard of delivering these environmental schemes and incentivising new entrants. Getting that balance right will be one of the important challenges for us.

[Dr Drew]

Given how small the rural team is in DEFRA—people now just call it “DEF”, because the “RA” has dropped off—who will do this? These schemes, such as the ones through Erasmus, have not necessarily directly involved DEFRA. It may have had some sign-off, but it has not been directly involved with some of the rural initiatives. Who will do that? We are talking about dropping out next week, so this is pretty urgent stuff. What mechanism is in place to undertake this evaluation?

[Mr Goodwill]

I thank the hon. Gentleman for his question. We will only drop out next week if the Labour party votes against the agreement that will allow us to leave in an orderly way, and allow the implementation period to be delivered. We are preparing for a no-deal Brexit, but it is not a particularly palatable prospect, in terms of turbulence in the land market. The documentation required for, say, fish exports will need to be delivered in a very short time. The Labour party needs to think long and hard about the game it is playing in this regard.

Agriculture Bill (Thirteenth sitting)

Debate between David Drew and Robert Goodwill

Tuesday 20th November 2018 Public Bill Committees

[Dr Drew]

I am minded to support the hon. Lady on this, although we have tabled our own new clause 23. This is at the core of the Bill. Although we are talking about agriculture, we cannot exclude trade from that. We—I mean the great “we”, because no organisation that has commented on the Bill is not of a similar mind—need to know what guarantees there are that the animal welfare, environmental and food-quality standards that British agriculture prides itself on will not be undermined by a race to the bottom, and that we will not take on some mad trade deals to try to dig the UK out of its current dilemma of what it does if it shuts the door on the EU. This is very important.

We have reached a turning point in our debate on the Bill. We hope the Government will get the message, from not just the Opposition but the organisations that have commented on the Bill, many of which will have spoken to the Minister. They want security and the knowledge that there will be no attempt to undermine the standards that have been put in place over generations for British agriculture and the environment. Greener UK, which has been largely supportive of the Government’s approach, sees this as one of the major dividing lines. It wants new clause 23 or new clause 12 in the name of the hon. Member for Edinburgh North and Leith.

We can argue about the definitions—we think that our new clause is slightly more foolproof, but we will listen to the hon. Lady and my hon. Friend the Member for Bristol East, who will hopefully get the opportunity to speak to new clause 14. This issue is absolutely crucial to the way the Bill will be received in not just this country but the wider world. We have to send the wider world the message that this Bill rules out importing cheaper, poor-quality food.

I know there is a degree of disunity in the Government. The Secretary of State for International Trade has been going to all sorts of places, but I challenge him to name one place outside the EU—where he has not been—whose food standards are equal to the UK’s and the EU’s. The reality is that there are not any. Other countries are able to produce cheaper food because they undermine labour standards, sadly mistreat the animals and use all sorts of other methods.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

The hon. Gentleman is making some very valid points, but is it not the case that currently, in the EU, we are unable to ban the import of foie gras or veal produced under systems that are illegal in this country? We could improve animal welfare standards by disentangling ourselves from the single market with Europe.

Agriculture Bill (Fourteenth sitting)

Debate between David Drew and Robert Goodwill

Committee Debate: 14th sitting: House of Commons
Tuesday 20th November 2018 Public Bill Committees

[Dr David Drew (Stroud) (Lab/Co-op)]

Welcome back to the Chair, Sir Roger. I hope that this will be the final session of our deliberations, but anything is possible with this Government. We have already lost one Committee sitting, so let me plough on with new clauses 19 and 27.

The whole point of new clause 19 is that farmers and landowners are being asked to make a dramatic shift in how they perform their duties. I hope that all farmers are to some extent environmentalists—that is why they are on the land and why they care for it—but unless they are among the small minority in stewardship, they have principally been paid for being what they are: farmers or landowners. We are now going to pay them to do environmental things.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Does the hon. Gentleman recognise the many environmental schemes that are in place? Farmers are already doing quite a lot of this stuff.

[Dr Drew]

I agree that there have been schemes such as Blue Flag, but the point is that that was not what farmers were principally paid for. Under the Bill, they will principally be paid to look after the environment in whatever way is deemed fit, and they will need an enormous amount of advice. New clause 19 would implement a mechanism for that.

The Committee has already discussed the areas in which farmers might need support. We have certainly discussed the idea of people advising on land management contracts, whether they come in from local government or whether farmers and landowners bring them in and pay for their advice. The difficulty is that this is all rather fluid and open-ended, so the new clause would give it some substance.

As the Minister says, the advice will be given on a one-to-one basis, but who is going to give it? At the moment there are not many people who can give such advice, and they are very expensive. One might have thought that land agents would be interested, but at a recent event I spoke to land agents who made it very clear that rural is not really where the money or—dare I say it?—the interest is, because they have moved much more into the urban sphere. That will no doubt cause some difficulties.

The new clause covers a range of areas in which there is a need for advice. We do not want to talk in an alarmist way, but this is really important. We are asking people to completely change their business organisation over a very short period. How they operate and, in a sense, their whole reason for being on the land will have to change. I am not implying that it will change completely for everyone, but for some people the change will be dramatic.

--- Later in debate ---

[Dr Drew]

I do not know enough about Scotland, so I will take the hon. Gentleman’s judgment on that. One of the arguments about the Bill and the changes it implies, is that rents will possibly fall. I do not necessarily agree with that, but it has been put to me by more than one person. That is due to the removal of the area payment, which has pushed up rents because people have more value in the land that they possess. We will have to see; it might become apparent only some years down the line.

At the moment, I am clear that we should go back to the Agriculture Act 1970, which put an obligation on local authorities that had land to protect that land and make it available for those who wished to farm or do other things appropriate to the land that would be within the environmental catch-all we are pushing for in the Bill.

[Mr Goodwill]

Will the hon. Gentleman give an indication of the size of unit he believes would be viable? Currently, some of the very small smallholdings are not viable businesses.

[Dr Drew]

That is a problem. Traditionally, the Gloucestershire smallholdings were about 100 acres. I accept that would be very difficult because a great many of them were dairy farms, although we also had some horticulture. That is probably too small. To counterweight that, the Landworkers Alliance argue that they can make a living out of much smaller pieces of land, farmed in a slightly different way, through agroecology and so on, and maybe they would not do that full time. No one is implying that being a farmer has to be a full-time occupation. It is something that people want to do as part of their portfolio of operating.

We need to protect these bits of land initially. I would love to grow them and see local authorities encourage them. That is important, not just for opportunities for people on the land. It is about strategic ownership and the fact that we should always think ahead. If the state is not prepared to put in some effort, where is the direction coming from?

The good thing about county farms estates, as most of them are known, is that they provided education and opportunities for people to look at the front end of farming and see ways in which to do things differently, by collaboration among the tenants and so on. We will come later to tenancy reform but this is all bound up in it. A third of our farmers are tenant farmers and many of them are on land not just owned by local authorities but by charities. In my area there is the Henry Smith charity, which owns considerable areas of land and has been very good. The Church is an important landowner in the way it encourages agriculture.

--- Later in debate ---

[Dr Drew]

I beg to move, That the clause be read a Second time.

This is an important juncture in our consideration of the Bill, and it is probably going to be the most popular part, as we are giving the opportunity to those who wish to be consulted to get rid of the Rural Payments Agency.

It does not have to be that way. We could have a revitalised and reinvigorated payments agency, but a new agency this will have to be, because it will be doing fundamentally different things, and sadly the legacy that the RPA leaves is not necessarily a satisfactory one. That is nothing to do with this Government; previous Governments are responsible too. In my previous incarnation, we spent a lot of time on the Environment, Food and Rural Affairs Committee trying to sort out how the hell we got into such a mess over the area payments scheme involving Accenture and the computer system that was brought in. It was an unmitigated disaster, because it cost millions more and never did what it was supposed to do. We had to drag the chief executive, Johnston McNeill, back from Belfast, where he had managed to hide for a period of time, to get some clarity on why the agency got itself into such a mess. That is history. My dear late lamented friend David Taylor did an enormous amount of work on the computer system, and we were indebted to him for that work on the Select Committee. I just make the point that we are asking the new agency to do fundamentally different work.

[Mr Goodwill]

When it comes to who was to blame, the right hon. Member for Derby South (Margaret Beckett) might have had something to do with it, given that she chose such a complex way of enacting it under the previous Labour Government.

[Dr Drew]

I do not disagree that we were foolhardy. There should always be a de minimis and a de maximus in terms of how the payment system operated. As always, when the delightful EU Ministers came together they looked around the room for who was going to pilot this scheme, and somebody maybe put their hand up at the wrong time and said, “We’ll have a go at it.” It was not even a UK-driven scheme; it was England-driven. The other territorial Administrations went at their own pace, adding to the complexity and confusion.

I am merely making the point that we are asking for a consultation on the most appropriate agency to take forward this brand new scheme. It does not have to be rushed; it could be done over a period of time. It does not have to be just with farmers; it can be with the green groups, obviously, but also landowners, to get some clarity on what all those different parties expect from a payments agency. The Minister says that the way public moneys will be paid out will be more straightforward. We will only be able to tell that in due course.

--- Later in debate ---

[Mr Goodwill]

Does the hon. Gentleman intend it to be an offence for individuals to purchase the product while on holiday or does he merely mean the commercial importation of this product?

[Dr Drew]

Again, there are going to be commercial obligations, because the fact is that we are looking for a ban. As far as I know, both parties have talked about this quite openly. Certainly representatives of the parties have talked about it. We looked at it as regards the withdrawal agreement. From memory, and we will come on to live exports later, it is one of the things that certain people prayed in aid of the advantage of leaving the EU—that is, that we could bring about some of these animal welfare changes. It was a crucial argument. It was not quite as big an argument as the £350 million a week for the NHS, but it was nevertheless an argument.

--- Later in debate ---

[Dr Drew]

My wife would say I was never romantic, although I do not want to disillusion the Minister too much. This is not about going back. There would have to be a new body, but it would perhaps take account of sectoral organisations—that was what was probably wrong with the old Agricultural Wages Board. The NFU always saw it as a one-size-fits-all.

A modern Agricultural Wages Board must take account of the different sectors and regions. Its whole point is that it underpins wages and conditions. We feel very strongly about that. We talked to Unite, the main representative body that came out of the old National Union of Agricultural and Allied Workers. Historically, Unite has always been linked to the Labour party, although it has not always agreed with it. Although we look back in this sense, we also recognise the modern world.

[Mr Goodwill]

On the more highly paid work in appointment grades one and two, would that not in some way create a cartel for the farmers? They would not be able to outbid each other for the more skilled staff because they would say they were paying the going rate. That would not mean that the more skilled people could do better.

[Dr Drew]

I hear what the right hon. Gentleman says. There is always a danger with some form of proportionality—how different groups would be paid. Those groups would not necessarily be encompassed by the Agricultural Wages Board anyway, because it is looking at a minimum structure. That is something that a modern, forward-looking wage board will have to take account of.

We have no magic answer: the NFU asks us what form things would take and hopefully we can have sensible and serious discussion with it. We are making the point that the industry is completely short of labour—yet again this year, sadly, the fruit and veg was ploughed back into the ground. There is something wrong when what has been produced cannot be brought to market because there is no one to pick it. From talking to my dairy farmers, I know that there is always a problem in getting milkers. That transcends any dairy-producing region; it is a real issue. All we continue to argue for is one way in which that can be recognised.

I will press this amendment to a vote; we hope the Government will gradually recognise that they must put a structure in place that transcends the normal minimum wage standards or the living wage. This industry is different, and that must be recognised.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Dr Drew]

We really are getting away from the issue. I am making the point that the United Kingdom has a clear policy on allowing live exports. So long as that stays the case, it has nothing to do with what we are talking about here. We are talking about trade between the United Kingdom and other parts—principally Europe, of course, although livestock could be exported to various different parts of the world. We choose not to, because it would be very cruel and also probably economically illiterate to do so.

We are moving the new clause to allow the debate to take place for those who believe that the ban is going to happen as a matter of course when and if we leave the European Union, when we have the opportunity to do it under WTO rules. There is some debate about whether it is going to be that easy, but we will have to face up to that in due course.

The reality is that unless we have some legislation to enable us to implement the ban, we will never do it anyway. This is our opportunity to have a debate and to see whether this legislation can stand the test of time. Without the new clause or something like it, the ban will never happen. We can have as many Adjournment debates as we could possibly want: it will never take place until and unless we are able to put it into legislation.

[Mr Goodwill]

The fact is that this will not happen if we do not get the agreement voted through in the meaningful vote in Parliament. Will the hon. Gentleman make it clear that anyone who votes against the agreement is voting against our opportunity to ban live exports—and foie gras, for that matter?

[Dr Drew]

I thank the right hon. Gentleman for that. We are now back—

--- Later in debate ---

[Dr Drew]

I hear what the Minister says. The problem with this is the issue of how many bits of legislation will come around that can be includable in terms of this ban, or can be amended to allow this to carry through. I know this is complicated, and it is sad when newborn male calves are shot. Genetic modification might provide ways of dealing with the number of male calves at source. We would want to see improvements in many aspects of the dairy industry. This new clause is not a magical answer but live exports is a very political issue, and the general public felt—rightly or wrongly—that on our exit from the European Union, the UK would have much greater discretion on what it wanted to do with regard to live exports.

[Mr Goodwill]

I hear exactly what the hon. Gentleman is saying, but what he is saying in the amendment does not stack up with the second of the six Labour tests for the agreement, which asks:

“Does it deliver the ‘exact same benefits’ as we currently have as members of the Single Market and Customs Union?”

The hon. Gentleman is saying one thing here, but unfortunately the policy of the Labour party is to stay in the customs union and the single market, which would mean that we could not ban live exports.

[Dr Drew]

rose—

Agriculture Bill (Eighth sitting)

Debate between David Drew and Robert Goodwill

Thursday 1st November 2018 Public Bill Committees

[Dr Drew]

I will read this interchange back very carefully to see whether it has been about what I think or whether I have misunderstood. This matters because, at the end of the day, farmers need to plan ahead, and 2021 is not that far in the future. Some farmers will lose a considerable amount of money, which they will have to replenish by moving into the new scheme, which we do not quite have yet.

[Mr Goodwill]

Will the hon. Gentleman give way?

[Dr Drew]

I give way to the right hon. Gentleman, who will help me out.

[Mr Goodwill]

The hon. Gentleman will be aware that many farmers have already entered into multi-annual environmental schemes. They need the security that the support will be there for them to deliver the plans they already have.

[Dr Drew]

That is very helpful. A lot of farmers have obviously entered the countryside stewardship scheme, but a lot of farmers have chosen to come out of it because they are very unhappy with it. We have to put that right very quickly, because if farmers are to have any certainty in the payment system, they have to know that the scheme to which they are applying exists, is capable of doing what they think and rewards them appropriately, otherwise they will feel short-changed.

I see this as largely technical, but again, it is very complicated. We are moving from a scheme that pays farmers for being farmers to not paying them at all. We will pay people—they may not be farmers—to do things with the land. We therefore have to be very clear that they will not be paid anymore for being farmers; the basic payment is going. Yes, there is a taper, as the Minister says, but it rolls through quite quickly. People need to understand that they will no longer be able to do what they were used to doing and be paid for.

We will not vote against this measure, because it is a technical change. However, I ask the Minister to communicate what is involved to as many people as possible. There will be a modulation, and it was never going to be a straightforward process—when I was on the Environment, Food and Rural Affairs Committee, we struggled to understand exactly how it worked in practice. The Minister will need a proper communication strategy, so people know that, when their money goes, on the one hand, they will have other ways in which to earn it, on the other.

Question put and agreed to.

Clause 6, as amended, accordingly ordered to stand part of the Bill.



Clause 7

Power to provide for phasing out direct payments and delinked payments

--- Later in debate ---

[Dr Drew]

The amendment is really a probing amendment, to consider where we are in relation to setting rules for the de-linking process. The Minister has already talked about that. I have just asked how this will work in practice. It is unclear, at least in my mind; maybe people are ahead of me on that. However, I think there is a need for further work in that regard.

What would happen if the Minister introduced a de-linked payment, but then made use of the powers to extend the transition period in accordance with clause 5(2)? The status of the farmer who has taken a de-linked payment is uncertain—we have identified that. He may be locked out of the system for longer than envisaged. This is really contingent on our previous debate. So, in taking the money—what? They then can use their opportunity on the land? The status of the person will be defined in law, but again it is a matter of how the process works in practice.

Under the CAP, there are payment windows, and—dare I say it?—this is all laid down for those who receive payments for work they have done. So things are not as clear in this new proposal. All of us who have rural constituencies know that the Rural Payments Agency is not very good at making the payments on time, for the right reasons or in the right amounts. So there are some question marks about the extant process and where we are now going to. If anything, it is going to be quite a complicated change. So it is really about whether farmers will be entitled to payments on guaranteed timescales, because again—dare I say it?—we do not have a good history.

[Mr Goodwill]

It strikes me as well, of course, that the farmer could take the payment but then his wife could establish a new business, in which case perhaps there would not really be a fundamental change; it was just a mechanism. I wonder if the hon. Gentleman shares my concerns and whether the Minister could comment on that situation.

[Dr Drew]

This did come up quite a lot on Second Reading. I think my hon. Friend the Member for Bristol East had something to say on it, or somebody else referred to succession planning. Farmers could take the money and then another member of the family could decide to carry on with the holding.

[Dr Drew]

I stand suitably admonished and we will be hit by the towels later.

[Mr Goodwill]

rose—

[Dr Drew]

The right hon. Gentleman can dig himself out of that hole now.

[Mr Goodwill]

It is particularly difficult, because as I am down here doing this job, my wife is minding the farm, although I am the one who signs the forms when I make claims, so it is often difficult to distinguish the person who is farming from the person who signs the form—[Interruption.]

[Dr Drew]

I am not sure whether that helped or hindered. [Laughter.] We will move on.

Amendments 107 and 108 really try to tease out how this process is going to work in practice. I do want to say some things that are effectively for the stand part debate, but they link in directly with the clause. The issue is the way in which this phasing-out of direct payments and the de-linked payments will work. This is the clause that, if you like, executes that, so we need to look at it quite carefully.

A number of important issues arise, some of which have already been identified through the EFRA Committee, where I gather the Minister had quite a difficult time in answering questions about exactly how this process was going to work. It is important that he puts on the record again how he thinks it is going to work.

We are talking about considerable sums of money. If three years’ worth of payments for a reasonably sized holding are wrapped up into one, we are talking about tens of thousands of pounds, so we have to get the accountability of the process right. The average direct payment in 2016 was £20,000, but 10% of recipients received something in the order of £6.5 billion. The bigger landholders have traditionally received quite large sums of money through the single area payment scheme, so the mechanism through which we make that change is very important. Multiplying that over seven years, which is what the transition period will be, we are talking about large sums of money. It would be useful to know that in accepting this use of public money, the Minister can justify the larger sums involved.

As I referred to, the policy statement explains how the tapering down will operate. It would be good to know that there will be some further explanation of what that means for particular holdings. Let us look at some figures from real holdings, rather than the rather abstract figure that we have at the moment. What can those lump sum payments be used for? One can understand a tenant needing to acquire property, or to have sufficient money to pay the rent. Will recipients be limited to some use or reuse of the land, or will they basically have a free choice about what they do with that money? My notes refer to Lib Dem pensions Ministers and Maseratis; I think Steve Webb will always regret having made that point.

I have quite a lot of interesting evidence from the Landworkers Alliance and from the Tenant Farmers Association. Those are the people who represent smaller farmers and new entrants. The Landworkers Alliance is keen to know what that lump sum can be used for, how much flexibility there will be in the purposes outlined in clause 1(1), and whether—dare I say it?—the payments will be linked to the productivity of the farm or farmland. Could farmers, for example, put that money into a community land trust and collectivise those payments? That is an interesting point, because there are those who do not want to farm a holding in isolation, but want to do so on a more collective basis. Is the scheme flexible enough to allow that to take place?

The Tenant Farmers Association has written to me to support the concept of de-linking, because it thinks that farmers should be able to retire. However, although the money is of significant assistance to farmers who wish to retire, the question of what subsequently happens to that money, and any bar on what they can do if they have taken the money, are of keen interest. Those farmers might want to re-invest that money in another holding, or enable another member of the family to take that money and start a new holding. These things matter, because people have to start planning their businesses now. I know that I have stretched the Chair’s patience by moving away from the amendments, but my comments are part of our stand part contribution. We are asking the Minister to spell out in a little more detail what, in practice, these de-linked payments are and are not available for, because people are going to have to plan for that.

--- Later in debate ---

[Dr Drew]

I am now assured, I think.

[Mr Goodwill]

As a member of the Northern Ireland Affairs Committee, I can say that this is not just a problem in agriculture. There is no devolved Government there and it is very difficult for civil servants to second-guess what might be done, because it has been a long time since decisions were made on which they could base their activities. For those in Scotland, the policy seems to be to stick their fingers in their ears, sing “la la la la” and pretend that it is not going to happen.

[Dr Drew]

I will not go down that line. The Chairman will be relieved to hear that I am not going to get involved in devolved politics. I think this has been a very useful debate that has been far and wide in scope. It has not really been about the amendments, but the stand part has allowed us to look at some of the possibilities of what will happen—2021 is not very far in the future. People will be doing their planning now, particularly if they have it in mind to leave their holding, and they will need security, certainty and some very good advice on whether that is the right thing to do. I beg leave to withdraw the amendment, but I am grateful for the discretion of the Chair, which has allowed us to get through this issue.

Amendment, by leave, withdrawn.

Clause 7, as amended, ordered to stand part of the Bill.

Clause 8 ordered to stand part of the Bill.

Clause 9

General provision connected with payments to farmers and other beneficiaries

Agriculture Bill (Fifth sitting)

Debate between David Drew and Robert Goodwill

Tuesday 30th October 2018 Public Bill Committees

[Dr Drew]

That is exactly the point I am making. We are seeking to strengthen the Bill. We come not to wreck it or to make it impracticable; we come to improve it. We believe that one way the Bill would be improved is by the inclusion of duties. As the hon. Gentleman quite rightly said, there may be a future Government who are less partial towards agriculture, and it is vital that we fetter them. That is why we have legislation.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Does the hon. Gentleman not think that his amendments would, in fact, be a lawyers charter? It would be open to any pressure group to take the Government to court for not doing something that they said they must do. It would take away the element of judgment from Ministers in any forthcoming Government of whichever colour and give it to the courts.

[Dr Drew]

I do not agree with the right hon. Gentleman, as much as I respect him—we have had many hours together in this place. The reality is that all we are doing—the Bill will probably last as an Act for the next 50 or 60 years—is including in the Bill a requirement that the Secretary of State must provide financial assistance. That is what legislation is about. It is not: “the Minister might want to do it and they might not want to do it.” This is about ensuring that the Minister is very clear that when they have to introduce these major changes, there are some parts that they must deliver.

--- Later in debate ---

[Dr Drew]

I support amendments 72 and 41, but I shall speak to amendment 49. The Bill is about improving the environmental quality of our agriculture, and there is no better way of doing that than ensuring that we improve soil, water use and the development of our countryside to provide the most efficient agriculture. Those issues will take up much of our time on this Committee.

I make it clear that amendment 49 comes from the Uplands Alliance, which has some concerns about how it will fare once the Bill is passed unless some account is taken of the uplands. We all know how difficult it is to farm in the uplands; I am afraid that, whatever the Bill does, it will not make it much easier. Sheep farmers are largely farming on the margins. We will be careful to try to rule out anything that would undermine their ability to get a fair price for their sheepmeat. We are wary of any free trade deal with certain parts of the world, and we make no apology for making that argument.

The Uplands Alliance’s point is that the easiest way of dealing with environmental degradation in the uplands is rewilding, recarbonisation and allowing the land to go back to nature, but of course that does not give anyone a living. The people concerned do not have a living at the moment; they may get some money through direct environmental payments, but those are effectively a subsidy to keep them on the land.

Why does this matter? It matters not only because upland farmers deserve our support, but because this is about our kept landscape. Rewilding the whole uplands landscape may be attractive, but will it draw in the tourists? Will it give us a sustainable rural community? I suspect not. If we want these people to carry on farming, we have to allow for a balance between the environmental payments that they will be eligible for and their ability to farm at a profit, which can be done only if we invest in them.

Amendment 49 is important because it looks at the reality. I do not happen to represent any upland areas, but some hon. Members present do, so in a sense I am speaking on their behalf. They will know exactly what I am talking about.

[Mr Goodwill]

My constituency takes in two thirds of the North Yorkshire moors. The hon. Gentleman spoke about rewilding, which is precisely what would happen if the heather moor land was not managed properly. People would not be happy to see that, because they see the heather moor land as a fragile environment that they want to sustain as a public good.

[Dr Drew]

That is exactly why we must balance the environmental aspects of the Bill with the reality of farming in those areas. I am trying to identify the issue that the Uplands Alliance asked us to address in the amendment, which is about looking at traditional and sustainable forms of agriculture. As has been said, agro-ecology is a new term, but in many respects it is revisiting the past; it is about how we have always tended to consider farming in certain parts of the world as traditional. How we maintain that landscape—a farmed and managed landscape—depends on a relationship between what is farmed and the environment being managed by those farmers.

The alternative is rewilding or having much larger holdings. In essence, we would end up ranching those holdings; they would have to be on such a large scale because the money would not be there in any other way. That would be deleterious to our countryside, and many farmers who want to remain would have to be moved off the land.

It is important that we have this debate. I support the important agro-ecological points of my hon. Friend the Member for Bristol East, because we are giving the Bill some substance. We disagree with the Government: we need examples of how such agricultural improvement will work and how to deliver it. Many others support the amendments, as my hon. Friend said, such as the Soil Association. In its written evidence, which we have all looked at, the Landworkers’ Alliance very much encouraged this direction of travel, to see how agriculture can be improved, made sustainable and meet our sustainable development goals. We will talk in detail later about climate change, which is central to this debate.

I support my hon. Friend’s amendments, and I make no apology for saying that they improve, as we said we would, the status and clarity of the Bill on how agriculture should move. I hope the Government will look positively at what we are trying to do.

--- Later in debate ---

[Dr Drew]

The nature of the food we produce is another area of the Bill that needs to be improved and strengthened. This is the Agriculture Bill—although, some say that there is not enough agriculture in it—and it should take, by every stretch of the imagination, more account of access to food and the improved quality and distribution of that food. We pass legislation to try to improve the current situation.

Many of us on this side feel that the use of food banks, as well as the poor quality of food and problems with access to food, are a tragedy and a scandal. We are not here to get involved in the politics of that, but to look at the practicalities of ways in which we can help. We would all acknowledge that the distribution of food is as much of a problem as the production of food, which is why organisations such as FareShare are so important; they work with food producers to distribute food to people who cannot afford to buy it through the normal market mechanism. Recognising those problems is important to us, both as Labour politicians and as human beings. This is the appropriate part of the Bill for amendment 51.

The biggest single challenge facing the NHS is obesity, and we need to do something about that in the Bill—it may be called the Agriculture Bill, but it is also about food. We ask the Government at least to acknowledge that this is an issue worthy of discussion, debate and improvement.

[Mr Goodwill]

Healthy and unhealthy people shop at the same supermarkets. Is it not their choices that make the difference to their health, rather than the food on the shelves?

[Dr Drew]

That is an interesting view, but it depends on what food is on the shelves. Maybe I have misled the right hon. Gentleman, because it is not just about supermarkets and the retail end; it is also about fast-food business, which has to be part of today’s debate on the food we produce, who buys it, and how we can help them if they cannot afford it.

Agriculture Bill (Sixth sitting)

Debate between David Drew and Robert Goodwill

Tuesday 30th October 2018 Public Bill Committees

[Dr Drew]

As I said at the outset, this is—from us, at least—a probing amendment, so we will not push it to a vote. I was intrigued by some of the Minister’s arguments; the nuance between self-sufficiency and food security was interesting. I have always thought that with more self-sufficiency came greater food security, but maybe I am naive about that. The Minister dealt with the issue of farmers’ lack of forage during the recent drought. It does not matter whether farmers are more self-sufficient or trying to work out a more secure supply—the reality is that there was no supply. It is all well and good to talk about open markets, but farmers were looking everywhere for sufficient forage for their animals for the winter. Lots of them are facing real financial difficulty; if they bought at the wrong time, they are paying through the nose because of their problems in not being able to get sufficient grass from their land.

I take the Minister’s point—it is a clever argument, but when it comes down to the practicalities, I am not sure it is one that I would buy completely. Likewise, he lauds the fact that, for some of our foodstuffs, there are greater movements towards what I would see as self-sufficiency. The market I know best is milk, because I have a former Dairy Crest factory at the bottom of my garden, which is now owned by Müller Wiseman. The milk industry is classic—we should be 100% self-sufficient, and we are not only because of the craziness of the relationship between the farmers, the processors and the retailers. The reality is that it is a very difficult market, and we cannot provide enough of our own milk because that relationship has never been good. That is a reason why, right at the beginning, we had the milk marketing boards, which functioned well for many years. They were seen as very state-led, but we produced enough of our own milk, as was reflected in the price.

[Mr Goodwill]

While I can understand some of the advantages of the milk marketing boards, was it not the case that during the era of intervention buying, the milk marketing boards—because of their size—were the ones making milk, butter and skimmed-milk powder interventions, while our competitors across the channel, with their co-operative structure, were developing new, innovative products that are now seen in our markets?

[Dr Drew]

I agree. That is why, on the back of the milk marketing boards, we created Milk Marque, which was a co-operative. Sadly, it did not stand the test of time. Talking to farmers retrospectively, many of them believed wrongly that there was a better, private solution. We have seen a monopsony grow up, which has caused the producer to face all the same problems, except that they are more subject to the whim of that marketplace, where we should be producing as much of our milk as possible. We will not get delayed on this too much, but it is a classic case of the Government’s needing to recognise that they have a role to play. They still set the parameters, even if they do not intervene in the ways in which they used to do, by controlling that marketplace completely. I hear what the Minister says. Parts of his argument are highly believable; I am more sceptical about other bits, but as we go through the Bill, no doubt we will see where the Government are going.

To go back to the start, food security is an important issue, and we need to recognise that it will keep coming back. This was a probing amendment that we will not push to a vote, but we have had an interesting discussion. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 41, in clause 1, page 2, line 6, at end insert—

‘(2A) The Secretary of State shall also give financial assistance for, or in connection with, the purpose of establishing, maintaining and expanding agro-ecological farming systems, including organic farming .—(Kerry McCarthy.)

This amendment would ensure that new schemes support agroecological farming systems, including organic, as a way of delivering the purposes in clause 1. Agroecology is recognised by the UN Food and Agriculture Organisation as the basis for evolving food systems that are equally strong in environmental, economic, social and agronomic dimensions.

Question put, That the amendment be made.

Agriculture Bill (Third sitting)

Debate between David Drew and Robert Goodwill

Thursday 25th October 2018 Public Bill Committees

[Dr Drew]

Q In terms of what the Environment Agency does at the moment, will that just move across into this new regime, or will you need a complete reskilling of your enforcement people to make this operate properly?

Professor Fox: The issues in farming, and the impacts that farming has on the environment, will be consistent, whatever regulatory or legislative framework is in place. Our skilled workforce is there to advise farmers and to work with them, but then to enforce regulation if necessary—we will be consistent. Unless the Bill or the Secretary of State determines that other regulations will apply, the current framework will roll forward, and we will work on that basis.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Q On Tuesday we took evidence on public goods, and we primarily looked at environmental enhancements or public access. One possible public good, of course, would be to encourage farmers to participate in flood alleviation or protection schemes. How far—this may be specifically for the Environment Agency—do you think the Bill could be used to improve flood protection and to encourage farmers to participate in that type of scheme?

Professor Fox: Part 1 of the Bill provides the Secretary of State with powers to make grants to farmers for various public goods, including the management of water—within that, the management of flooding would clearly be a potential beneficiary. The opportunity to manage floods better through landscape-scale work with farmers is already widely recognised. There are a number of schemes around the country where farmers provide attenuation ponds to reduce flood flows, and in so doing provide important community benefits. This scheme of paying for public goods may well support and augment that, and that can only be welcomed.

Agriculture Bill (Second sitting)

Debate between David Drew and Robert Goodwill

Tuesday 23rd October 2018 Public Bill Committees

[Dr Drew]

Q Just a very quick rejoinder. If the Bill goes through unamended, what type of farmers are most at risk from the changes?

Andrew Clark: The economic modelling that has been done suggests that it is the livestock sector—particularly beef and sheep, and especially in the lowlands. A lot of focus is given to upland farming—I have great interest in that myself, having worked on conservation and environmental schemes for most of my career at the NFU—but lowland livestock farms in marginal situations in the west of the country have few choices other than grazing land. They are particularly vulnerable communities. Very often, they are communities; they are not just isolated farms. They form a network and the backbone of both the landscape and the farming community.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Q In this morning’s evidence session, we had two farmers from different parts of the country, representing different types of farms. One was from Cambridgeshire, where the fields have been amalgamated and production is very intensive, and the other was from the south-west, and he said, for example, that the field margins around hedges discriminated against him because he has small fields. On my farm, I have very small fields, compared with my next-door neighbour, and I always feel that we are being picked on.

As we go forward, how can we manage to have a system that works for the farmers who have intensified their farms and are going to green them up while not being unfair to the ones who are already very green? How do we reward progress and, at the same time, reward the people who have always been doing the right thing?

Andrew Clark: This is one thing I wanted to pick up in evidence to the Committee. The legislation that we are looking at is only half of the formula that needs to be delivered in order for farms to be profitable, sustainable and productive in future. It is the policy that goes alongside that legislation that is important. That policy needs to be one of opportunity, that creates opportunities for farms to follow the approach, whether it is public good provision, or becoming more productive or, hopefully, doing both those things together.

Looking at that policy and the measures that are available, it is important that the Agriculture Bill ensures, in fact, almost places a duty on Ministers, to deliver schemes that help farms to be both more productive and more sustainable in future. Those two themes would apply both to the farmer in the west country and the farmer in East Anglia. There are great opportunities for both of them to manage soils better or protect waters and thereby manage their farms in a more profitable and productive way in future—for instance, by nutrient management and introducing some of the approaches in terms of minimum till agriculture. That would apply to both farming situations.