Common Agricultural Policy Reform
Debate between Eilidh Whiteford and David Heath(11 years, 3 months ago)
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The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)
May I say how grateful I am to my hon. Friend the Member for Brecon and Radnorshire (Roger Williams) for securing this debate, because it is extremely timely? We are about to enter probably the most intensive period of debate in Europe on common agricultural policy. There were doubts about whether we would have agreement on the overall EU budget, but that is now in place and was agreed last week. The Agriculture Committee in the European Parliament voted on its amendments last month, and I am optimistic that we will secure an agreement on CAP reform during the Irish presidency. My hon. Friend raised that point and it is important not least because we do not want our agricultural businesses and farmers to have a prolonged period of uncertainty. They need to know exactly where we are.
My hon. Friend set out to some extent the broad parameters of last week’s deal in which the Prime Minister secured a reduction in the CAP of €55 billion—13% less than the current budget. We do not need to be apologetic that we have sought a reduction in the overall budget of the European Union, as that is consonant with what taxpayers and national Governments across the European Union are experiencing. We also do not need to be apologetic that it will have consequences for the size of the agriculture budget, as no sector can be entirely immune from the process. The key is to ensure that the available funds are used in the most effective way to support agriculture across the United Kingdom.
Although my hon. Friend was concerned, I see the additional flexibility of the 50% potential transfer from the pillar one budget to pillar two as a key part of that support. He mentioned the importance of high-level environmental schemes, and I want to ensure that those continue, because they have enormous value not only for the United Kingdom but for our wider environmental responsibilities. I also believe that our rural programmes are of enormous value and want to ensure that they are still intact. My hon. Friend’s concern is whether the transfer will effectively move money out of farming and into another pot. I understand that and perhaps we need to define better our terms for pillar two and pillar one.
For instance, the definition of greening measures is very important in determining whether they lie in pillar two or pillar one, and whether there is, in effect, a transfer of funding from pillar two to pillar one that compensates for money going in the other direction. I will go on to discuss greening in a moment, but if we had a process under which other member states were required to consider what they could do to introduce in their agricultural systems environmental support schemes such as those in this country, that would improve not only the comparative competitiveness of our industry, but the environment, and most people in this country would like to see that.
What are the Government’s priorities? Of course, we want to negotiate a good deal for farmers, for taxpayers and for consumers. What about in the long run? I do not resile from the view—this is the Government’s clear policy—that we want a common agricultural policy that continues to orientate itself to the market, that increases the international competitiveness of EU agriculture, let alone our own, and that increases the capacity to deliver environmental outcomes. Ultimately, we want an efficient and responsive agricultural sector in the EU and globally, and we want the future CAP to help to achieve that. That is why it is really important that the CAP continues on the path of reform and that we reduce, in the long run, our reliance on direct subsidy.
My hon. Friend asked about the extent to which we involve the priorities of the devolved Administrations in what we argue for, and I can tell him that we involve them fundamentally. It is really important that we hear what every part of the UK agriculture has to say about CAP reform, which is why we devote a great deal of time, both at official and ministerial level, to listening to the devolved Administrations and securing, as far as we can, a common UK position, on the basis of which we then negotiate.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
I am reassured to hear the Minister say that he will continue to work closely with the Scottish Government on this issue. However, I wish to put on the record the fact that the Scottish Government’s top priority has been ensuring that a fair proportion of the allocation comes to Scottish farmers. The hon. Member for Brecon and Radnorshire (Roger Williams), who has led the debate so ably this afternoon, pointed out the disparities between the different beneficiaries of this policy; a level playing field just does not exist at the moment.
Mr Heath
However, there is of course a difference between the distribution per farm and the distribution per hectare. Scotland has a distorting factor, because there are very large holdings that are “lightly farmed”; these holdings sometimes fall within a definition that I know the Scottish Minister is keen to look at to see whether they are actively farmed at all. There are specific issues to address there.
I spent the past two days in Scotland talking to Scottish farmers and to Scottish Ministers, and I was there last week. As I say, we do listen carefully, for instance on the issue relating to the highlands, the definition of permanent pasture and how heather is treated. We have now secured a workable definition, which includes heather. That is important for Scotland and for Scottish agriculture, and it was secured by the negotiations in which we took part. I assure hon. Members from all parts of the United Kingdom that we take that matter seriously and we continue to listen.
Let me give another example. In Scotland, coupled payments are still a key part of the distribution mechanism, whereas they are not in the rest of the UK. Therefore, the fact that we can provide some cover within the national ceiling from, in effect, an English contribution to enable Scotland to persist with its schemes is important.
Mr Heath
I have given way once to the hon. Lady, and as the debate was secured by my hon. Friend the Member for Brecon and Radnorshire I really need to answer the points he raised.
Let us examine some of the other issues. The first is greening, on which we still have a lot to negotiate. The one thing that all member states were agreed on was that Commissioner Ciolos’s initial thoughts were not the answer. They were far too prescriptive and far too inappropriate in many areas. They displayed a lack of recognition that hugely different farming procedures are used, even in various parts of this country, let alone in the wider European family. What we want is a continued orientation of the CAP towards rewarding farmers for the public goods they deliver, which includes environmental benefits and protecting and enhancing wildlife, but not in a form that is over-bureaucratic and over-demanding in implementation, which may result in a tick-box mentality that does not help the environment and certainly does not help farming.
We believe that some of the proposals simply do not represent good value, whereas some of our existing agri-environmental schemes do. I hope everyone agrees that what we need is flexibility to allow local definition of environmental benefits and schemes that do not force people into inappropriate farming practices. I am hopeful that we will secure that degree of flexibility, but we should not take it for granted. The other thing we do not want is duplication, so that people are paid twice for doing precisely the same thing. There is a risk that the outcome of some of the European Parliament proposals will be farmers being paid once under pillar two and once under pillar one for doing exactly what they are doing now. I doubt our taxpayers would thank us for that. It is important that we reach a successful outcome.
My hon. Friend mentioned George Lyon, who is one of the beacons of common sense on the European Parliament Agriculture Committee. I have worked closely with him, and we certainly want to continue to do so in the future.
Our concerns in relation to intervention in the market have been well rehearsed. We have been clear over the years about our desire to reduce the reliance on trade-distorting measures and the importance of the CAP sticking to that path of reform. That is where we part company with the European Parliament Agriculture Committee, because many of the amendments voted through there would move us backwards, away from market orientation, and increase budget pressures for old-style market support. There is a place for recognition of the need to support some farmers, especially hill farmers and those in less-favoured areas. I stress that and argue in favour of doing that, but when it comes to providing subsidy for European farmers to start growing tobacco again and get taxpayers’ money to do so, I draw the line, because that is clearly not in the interest of taxpayers or of the EU.
European Pig Industry
Debate between Eilidh Whiteford and David Heath(11 years, 3 months ago)
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The Minister of State, Department for Environment, Food and Rural Affairs (Mr David Heath)
I congratulate the hon. Member for South Norfolk (Mr Bacon) on securing this important debate. He described me as a pig farmer, but I ought to say that that slightly overstates the case. I had four pedigree Tamworth sows. I do not think that quite constitutes a farm. It does mean, however, that I have farrowed a pig and got my hands dirty, so perhaps I have some affinity with the industry.
The provisions in the EU pig welfare directive, which bans the use of sow stalls from 1 January, represent a significant welfare advance across the EU. It has been a long time coming. As my right hon. Friend the Member for South East Cambridgeshire (Sir James Paice) said, although it does not level the playing field entirely, as European pig producers, unlike UK producers, will still be allowed to keep sows in close-confinement stalls for the first four weeks after service, it means that when all member states achieve full compliance there will be far greater parity for UK producers—provided that we have that full compliance. The hon. Member for South Norfolk probably knows the old saying, “Dogs look up to you, cats look down on you, but pigs is equal.” UK pigs are not quite equal at the moment and that is what we need to achieve.
It is very disappointing that so many member states were not fully compliant with the sow stall ban on 1 January, particularly as it is the second of Europe’s flagship animal welfare measures on which there has been large-scale non-compliance across Europe. The first, as the hon. Gentleman said, was the ban on the keeping of hens in conventional battery cages, which came into force in January 2012.
The UK pig industry is understandably extremely concerned that non-compliance across Europe will continue to disadvantage UK producers who went through the process of investing heavily in converting to group housing systems to comply with the UK’s unilateral sow stall ban in 1999. I assure hon. Members that I recognise and share the industry’s concern about non-compliance. We have been working very closely with it over the last year and it is extremely frustrating that we have been unable to achieve compliance across the EU on a ban that was agreed almost 12 years ago.
I also recognise that non-compliance is a huge challenge for the Commission and some other member states. We are continuing to work to ensure that the ban is fully and effectively implemented across the European Union as quickly as possible. That is essential to avoid damaging compliant businesses and to demonstrate that the EU can deliver agreed long-term policy.
As the hon. Member for South Norfolk shared with the House, the Commission reported at the Council of Ministers on Monday that 17 member states are not compliant with the sow stall ban. The figures are changing rapidly, but as at mid-January 10 member states were more than 90% compliant, three were less than 90% compliant and four were less than 75% compliant, so there is certainly an issue. As the hon. Member for Tiverton and Honiton (Neil Parish) said, the problem is—we should stress this—that the Commission could not take any action until the ban was in force. So we are starting from where we are now.
At the Council of Ministers on Monday, Commissioner Borg demanded that member states provide regular updates of progress with implementation. That goes quite a long way towards what the hon. Member for South Norfolk was saying about a clear map of progress towards full implementation. Commissioner Borg urged member states to apply dissuasive sanctions to non-compliant producers and we will have to wait and see what exactly they comprise. Most importantly, he said that he will commence formal infraction proceedings against non-compliant member states at the end of February. That is quite quick action on the part of the Commission compared with what sometimes happens.
The Commission has held two stakeholder meetings to discuss compliance and enforcement, the most recent this Monday. Commission officials remarked on the rate of progress with compliance in the last couple of months and put the onus squarely on the competent authorities in member states to take tough action against non-compliant producers.
What are the Government doing? We are using every opportunity to press the Commission to take a firm stand, as the priority must be to protect producers across the whole EU from illegal production. My right hon. Friend the Secretary of State and I met Commissioner Borg on 17 January and raised our concerns about non-compliance. At the Council of Ministers on Monday, the Secretary of State led a call for the Commission to pursue a level playing field vigorously, so that compliant producers are not disadvantaged by inaction elsewhere in Europe.
I will be clear: enforcement on imported pigmeat is challenging. There are no marketing rules to prevent imports from non-compliant systems. The Government thoroughly investigated the possibility of taking unilateral action and bringing in a UK import ban on egg and egg products at the end of 2011—I suspect that my right hon. Friend the Member for South East Cambridgeshire has some recollection of that—because at that time it was clear that many member states would not be compliant with the conventional cage ban. It was not a realistic option for eggs, however, and I fear it is not an option for pork and pork products either, because of the legal and financial implications of introducing such a ban and the practical difficulties of enforcing it. The Commission has repeatedly made it clear that it will not allow member states to impose unilateral trade restrictions for welfare reasons, so we have to rely heavily on the competent authority in each member state to take responsibility for ensuring that their producers comply with the directive.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
Does the Minister agree that retailers and supermarkets have a huge responsibility? We have seen in the past two weeks that when they want to clean up their supply chain quickly, they can do it. Why can they not do the same for pigmeat and eggs?
Mr Heath
I agree, and I was coming to that point.
The UK relies heavily on imports, being only 40% self-sufficient in pigmeat and 20% self-sufficient in bacon. Denmark and the Netherlands are the largest suppliers of pigmeat to the UK; both countries are more than 90% compliant and are already taking tough action against non-compliant producers. I have spoken to the Danes and the Dutch and I believe that they are serious about reaching full compliance, so the major importers to the UK will come into compliance.
Oral Answers to Questions
Debate between Eilidh Whiteford and David Heath(11 years, 5 months ago)
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Mr Heath
Both those elements are essential, but I do not want to name and shame specific supermarkets, however tempting that might be. I want all major supermarket chains to behave in a fair and transparent way as far as their suppliers are concerned. There are signs that that is happening not only in the dairy sector, but in other produce sectors.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
The supply chain practices affecting our dairy industry affect other livestock producers, perhaps none more so than our pig producers, which are close to the Minister’s heart. Pigs are being sold well below the cost of production. Given VION’s announcements last week, what will the Minister do to ensure a future for the pig industry?
Mr Heath
The hon. Lady is absolutely right to say that I am interested in the pig sector, having bred pigs myself. She will know that we cannot disguise the cyclical nature of the pig industry. Having said that, I am concerned about the current position, but there are signs of progress. Some supermarkets are now prepared to share risk in the pigmeat sector, which I want to encourage.