Agriculture Bill

Baroness Humphreys Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Thursday 16th July 2020 Lords Chamber

[Lord Curry of Kirkharle [V]]

My Lords, I shall speak to Amendment 197, in the names of the noble Lord, Lord Grantchester, and the noble Baroness, Lady Jones of Whitchurch, and to Amendment 207, in the names of the noble Baroness, Lady McIntosh of Pickering, and others. I very much welcome Clause 27. The Government’s commitment to include fair dealing within supply chains in the Bill is important and much needed.

I speak as someone who established a reasonably successful agricultural co-operative to market livestock, finished beef cattle and lambs, during the 1990s, so I am only too well aware of pressures in food supply chains. I still have the scars. Clause 27 goes into a huge amount of detail on how fair dealing obligations will be applied. That is welcome. For far too long, insufficient information has been available on input costs and benchmarks on which to base sensible modern contractual arrangements.

As has already been said, when pressure is applied to supply chains, the primary producer is, ultimately, the fall guy and the weak link in the chain. The buck stops there. So, however welcome the provision is, I am concerned because, in this part of the Bill, the Government are particularly vague about the location of the administration of the function. Like others who have spoken, I think I understand why. I am aware that the Department for Business, Energy and Industrial Strategy is reluctant to expand the scope of the Groceries Code Adjudicator.

As the noble Lord, Lord Grantchester, and the noble Baronesses, Lady Boycott and Lady McIntosh, have said, under the current chair, Christine Tacon, the office of the adjudicator has been established with huge credibility and influence. It is the logical home for this function, and I would encourage the Minister, in negotiations with his colleagues in BEIS, to persist in trying to achieve that outcome. There is no other logical place, even if we consider the RPA, with the experience for the function to be sited there. A new chair of the Groceries Code Adjudicator will be appointed later this year, when the current chair steps down, and that will present an opportunity to review and expand its remit. I support the amendments.

[Baroness Humphreys (LD) [V]]

My Lords, I support Amendment 197, in the name of the noble Lord, Lord Grantchester, and I thank him for his detailed approach in introducing the amendments. This amendment to Clause 27 provides the opportunity to look again at the remit of the Groceries Code Adjudicator, and to examine whether it could be extended to include responsibility for overseeing fair dealing obligations in relation to farmers and producers. More importantly, perhaps, the amendment also provides an opportunity for the Government to explain and expound on their position.

Since the adjudicator’s role was established in 2013, there have been calls from farming unions in Wales and the rest of the UK to address fairness in this part of the supply chain by bringing the sector into her remit. Clause 27 allows the Secretary of State to impose new fair dealing regulations and to provide for enforcing those regulations, and allows

“complaints relating to … non-compliance to be referred to a specified person”—

in effect, creating a new body under a new leader.

The Environment, Food and Rural Affairs Committee in the other place recommended that the adjudicator is

“a more logical entity to oversee fair dealing obligations”,

and it could

“see no reason why fairness in the food supply chain should be governed by two separate processes and enforcement bodies.”

In Wales, the Senedd’s Climate Change, Environment and Rural Affairs Committee agreed with the sentiments of the Farmers Union of Wales and the Tenant Farmers Association Cymru, which expressed concern that the Government were not seeking to achieve the desired outcomes of Clause 27 by expanding the role of the adjudicator.

In their response to the EFRA Committee’s report, the Government said that

“no final decisions have been taken about the body that would oversee and enforce the new codes of practice”,

although their positive comments about the potential role of the Rural Payments Agency seemed to point in its direction. The Government do, however, rule out a role for the adjudicator, referring to the call for evidence in 2016-17, when they concluded that they would not extend the adjudicator’s remit to indirect suppliers, because

“there was insufficient evidence of a market failure across the supply chain to justify a major government intervention”.

It appears, however, that circumstances have changed somewhat in the intervening three or four years, and the Government themselves have now recognised that there is now a need for further regulations—hence Clause 27. It seems illogical that the new regulations should lead to the creation of a new body when a person and a body that operate in that field, and have the necessary expertise, already exist.

If, as they say, the Government have not made a final decision, my hope is that in the promised industry consultation they will be open-minded, and that the option of the new role being incorporated into the functions of the adjudicator will be included in that consultation. In the meantime, I would be grateful if the Minister could provide some clarity about the Government’s thinking and tell us, in particular, whether they consider a completely new body to be desirable, and how they view the relative merits of the Rural Payments Agency and the Groceries Code Adjudicator in relation to the new regulations. I support the amendment, and look forward to hearing the Minister’s response.