Agriculture Bill (Ninth sitting)

George Eustice Excerpts

Tuesday 13th November 2018 Public Bill Committees

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

I am delighted to be back, Sir Roger. I spent much of last week in Northern Ireland and Ireland, and will no doubt be referring to that in Committee.

A couple of points are important to the clause. We need to understand that the Bill should encompass pillar 2 of the common agricultural policy. I am not sure whether it does, although this is the closest that we get to it. I am aware that in due course we will be debating my amendment 115, so I am not going to talk about timetables.

I want to talk about the substance of rural development: it is very important that we understand that although agriculture is crucial to rural development, it is not the totality of it. I would argue that the Government have not got a rural policy, and they need one. Things are going on in rural England, to which the Bill largely refers, that are not good at the moment. Anyone who has read the material that has come out about the relative decline of market towns should be very clear that we need to invest in those communities and the villages around them.

The worry is that the Government not only do not have a rural policy, but they have no one to speak on a rural policy. They dismissed all rural advocacy. I am not saying that new Labour was wonderful in this area, although we did have a good rural policy between 1999 and 2004—principally around the countryside White Paper of 2000 and what the £1 billion earmarked for rural areas implied. It made a significant difference. Sadly, that has all gone: we have lost the rural tsar and the Commission for Rural Communities. That worries me when it comes to this Bill; I do not know how pillar 2, which largely invested in rural communities through the common agricultural policy, transfers into the Bill.

I will be interested to hear what the Minister says. We are back again to the usual game of powers and duties. The Minister and Secretary of State do not need to do anything. They can make lots of warm noises about rural areas, but the reality is that unless we have vibrant rural areas, we will not have a vibrant farming sector because those are inextricably linked.

It is important that we get clarity from the Government on how pillar 2 is embedded in the Act, to make sure that rural areas are not forgotten. The Agriculture Bill is the nearest we will get to being able to talk about rural areas and their need for investment and support through the nature of farming—obviously, a lot of the people who get the benefit of rural development are farmers or farm businesses along the food chain.

Will the Minister clarify what guarantees there are in respect of pillar 2? It was never perfect, but a lot of the academic and support work that goes into rural areas came through that channel. We all know that that sort of funding is highly questionable at the moment. I hope the Government will make some real statements today about how they intend to fund rural development.

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

I want to begin by addressing the shadow Minister’s over-arching point about rural development and the pillar 2 scheme. I will respond to that specific question, which is not directly relevant to this clause but is picked up in other parts of the Bill.

Pillar 2 and pillar 1 are an EU construct: that distinction will no longer exist, but the policy objectives, currently delivered under pillar 2, will be delivered in the following ways. Clause 1(1) is all about the farmed environment and supporting farmers to farm in a more sustainable way and enhance the environment. The objectives delivered by the current countryside stewardship schemes and the previous entry level stewardship and higher level stewardship schemes, which account for the lion’s share of the funding in pillar 2, will be picked up in clause 1(1).

[Jenny Chapman]

This gets to the nub of the problem. As we have said, the Secretary of State may give financial assistance for those things, but the Bill does not say that the Secretary of State is going to do any of those things.

[George Eustice]

We had a long debate about the drafting protocols that we have always had in this country, and “may” is the wording that has been used in a number of Acts, including the Natural Environment and Rural Communities Act 2006 and a number of other Acts that Opposition Members are passionate about, such as the Agriculture Act 1947. We covered that in detail last week when we debated this issue.

I want to return to the point that clause 1(2) enables us to make grant aid and loans for farm productivity, and that picks up a number of the other components of the pillar 2 schemes—notably what we currently call countryside productivity schemes, which are all about supporting farmers to invest in new equipment.

Finally, as I also made clear in earlier debates, there will also be a shared prosperity fund with a rural dimension, which will pick up some of the other objectives currently delivered in pillar 2, such as the LEADER scheme. We have a clear plan, both in the Bill and the development of a shared prosperity fund, to deliver rural development and support.

This clause, in common with clauses 9 and 10, is all about the power to modify retained EU law. That is very important because our frustration at the moment with the bureaucracy around the current schemes is horrendous. The amendment seeks to change “simplifying” or “improving” the operation of the scheme to saying simply to make

“changes which the Secretary of State believes to be necessary”.

I am not sure that the hon. Lady’s amendment narrows the scope—it might, in fact, give more discretion to the Secretary of State. We are clear we want that power to be used to simplify and improve. A number of people have asked what “simplify” and “improve” mean. I think that is understood: it is to simplify and improve. As my right hon. Friend the Member for Scarborough and Whitby made clear, we would not want to make the situation worse and more complex.

[Jenny Chapman]

It is not sufficient to say that people have asked what “simplify” and “improve” mean and then to say that they mean to simplify and improve. It might help if the Minister gave a couple of examples so that we have a clearer idea of what he intends.

[George Eustice]

Yes, I was coming on to do just that. One frustration at the moment is having LEADER groups up and down the country regularly complaining to me about the process that they have to go through in the application. The current regime has been made more onerous with the number of checks and the amount of paperwork required.

We have had problems in the past when people with relatively small grants have been told that they have to get three or four quotes for the job to be done. There is nothing wrong with that in principle but, if there is a slight modification to their plan and they have to make an adjustment to their investment, they have to go out to the market again and get a whole new set of quotes. They find that kind of bureaucracy deeply frustrating. This provision would enable us to improve that.

Another example comes from the countryside stewardship schemes. People get deeply frustrated about the amount of photographic evidence they have to send in; we have even had complaints that people have had to send in photographs of invisible boundaries because that is a requirement of the scheme rules. Again, that has all been done because of pressure from the IACS regime, as it is called: the integrated administration and control system, enforced by the EU. The provision would give us the ability to take off some of those rough edges.

At the moment, we get about £100 million of disallowance fines a year from the European Union, and a large amount of that is for trivial points around the way something is recorded. One example that I remember particularly well is that we ended up with fines from the European Union because it did not like how we had recorded how we checked whether companies were VAT registered; they were large companies with grants under the fruit and veg regime in that instance. We had checked that they were VAT registered. The check took place and was recorded through an email exchange, but the EU said we should have recorded it on a particular type of form.

That is the monstrous complexity and bureaucracy that bedevils all these schemes, and that is why it is right that we strike down that unnecessary bureaucracy and administration, as we seek to do in clause 9.

[Mr Goodwill]

I was in the European Parliament for some time, and it strikes me that the way EU regulations are drafted makes the assumption that every farmer is a crook who is trying to dodge the system; in the UK, we have a long tradition of great honesty from the agricultural community in the way they work through these schemes.

[George Eustice]

My right hon. Friend makes an incredibly important point.

[Jenny Chapman]

Will the Minister give way?

[George Eustice]

I will answer that important point first. The regulations are drafted in a way that assumes guilt—often, it is worse than that. For example, farmers might have made a number of innocent and minor record-keeping errors and we might have chosen to write warning letters instead of imposing fines. Under the penalty matrix, the EU auditors take the view that there almost has to be a quota for guilt: if we were to be more lenient on some farmers because they had made innocent errors, we would have to apply higher penalties to other farmers, deeming them to be guilty. It is an EU process that is completely inconsistent with British notions of justice and the rule of law, but it is a system that we have had to endure for many years.

[Jenny Chapman]

People watching this will be astonished that we are being asked to assume that one group within society is somehow to be treated differently when they are in receipt of public funds, because they have a tradition of honour and not being misleading and should be viewed differently from other people who are getting support. There will have to be rigorous procedures around all this. The Government are in for a huge shock if they think that the scrutiny and pressure from the EU will not be replaced by pressure from constituents and taxpayers.

[George Eustice]

That was not my point at all, and it was not my right hon. Friend’s point. The point was that we should allow farmers and other landowners to be treated the same as everybody else; apply the principles of justice and rule of law that we have in this country; and not have an arbitrary system of penalties coming from the EU.

To come back to my point about the areas in which we can improve, clause 9 will be an important area for some of our evidence requirements and rules on deadlines and dates; we would be able to show more flexibility. The powers in clause 11 will probably be more modest, but they enable us to sort out some of that unnecessary administration—on the LEADER scheme, in particular. They would enable us, for instance, to vary the length of agreements when we thought that was appropriate, particularly if we wanted to extend and roll forward some of the legacy agreements for a few years.

[Dr Drew]

The problem with the LEADER scheme is that it is pan-European. With exit from the EU, will there be the opportunity to allow institutions in this place, and communities, to indulge themselves in a pan-European sense because of the nature of that rural development? We have always learned from other parts of Europe and they have learned from us. Will that be possible or will this expenditure be very constrained?

[George Eustice]

The LEADER scheme is probably the most devolved of all the EU schemes, in that we literally have local action groups—LAGs, as they are called—which are local committees that appraise individual local projects for small grants. The scheme does not require a pan-European architecture; it has just ended up that way. In fact, those types of local grants, which are often administered or certainly appraised locally, lend themselves to a more national scheme.

[Dr Drew]

I hear what the Minister says, and that will be all right from the UK’s perspective, but we will be dealing with countries that are subject to the CAP and continuing LEADER obligations. Do the Government intend to negotiate with the EU post-March to ensure that those cross-country arrangements can continue? Otherwise we will be precluded. Whatever money we choose to put into a new LEADER, we will not be part of LEADER, so what is the Government’s plan?

[George Eustice]

Our plan is to leave the European Union, which means leaving the common agricultural policy and LEADER, but also putting in place superior schemes that we will design nationally. That is what we intend to do.

[Mr Philip Dunne (Ludlow) (Con)]

If I can take the Minister back to his comments about the duration of existing schemes, perhaps he can take this opportunity to inform the Committee that he will have the powers to continue to pay under the existing higher-level, entry-level and countryside stewardship schemes, which in many cases run for up to 10 years. As I understand it, we had commitments from the Treasury that that amount of money would continue to be made available. Will he confirm that he will have the power to ensure that those existing agreements will be honoured?

[George Eustice]

That is a very important point. I can absolutely confirm that existing schemes will be honoured for the lifetime of those projects. I know that we will probably come to this when we consider later amendments, but the grant agreements between the Government and individuals will be honoured even after we leave the European Union. The Bill, together with the European Union (Withdrawal) Act 2018, gives us the power to bring across retained EU law and to continue to make payments under it.

[Simon Hoare (North Dorset) (Con)]

Yesterday morning, I met an organic farmer in my constituency. His is quite a small farm, and his question about the stewardship scheme, and others through which he receives payment, was whether size will be important when determining who receives money and how. LEADER+ and other types of support system are important, but there is an anxiety that the small and beautiful smallholding, as it were, is likely to miss out as people look to scale up. Can my hon. Friend assure me that there will be a range of support within the new system that he proposes, irrespective of the size of an operation?

[George Eustice]

Yes, I can. We discussed this when we touched on clause 1, which is about the way in which we will support people. We heard representations from people engaged in small projects, such as agroecology projects, about whether they could have support. They are often not entitled to support under existing schemes, but I absolutely said that clause 1 will enable us to support those. Indeed, this is an area that we are looking at closely. Clause 1(2) gives us the power to award grants to some of those smaller businesses, including new entrants.

[Chris Davies (Brecon and Radnorshire) (Con)]

Following the question from my hon. Friend the Member for Ludlow, the Minister mentioned that the schemes and their financing will continue. Can he reassure me and colleagues from across the various borders that the devolved nations will also continue to have the money over the period of the schemes?

[George Eustice]

Yes. The devolved nations have that retained EU law through the EU withdrawal Act. We have discussed previously that Scotland requires some kind of clause to be able to continue to make payments after we leave the European Union, but that is relatively easy to remedy. A combination of this Bill and the EU withdrawal Act gives us the power right across the UK to honour all those commitments that have been entered into.

Returning to clause 11, the hon. Member for Darlington asked whether subsection (3) is an exhaustive list or whether we can add to it. It is not exhaustive but it covers the bulk of the regulations. I will explain why we drafted it in that way. The regulations listed under subsection (3) are effectively all the current in-force rural development regulations. However, we have kept open the option to broaden the list slightly because we have some legacy schemes—older agreements under previous countryside stewardship or productivity EU schemes that are no longer technically in force—and we might still want the ability to modify and tweak them. The best way to describe it is to say that the list is not exhaustive, but is close to being exhaustive. It covers all the regulations currently in force, but we need just a slight amount of room to capture the previous legacy schemes that are no longer in force.

[Jenny Chapman]

If there are not many of those additional measures, why did the Minister not include them, just to ensure more clarity in the Bill?

[George Eustice]

The problem with EU regulations is that they are often chopped and changed all the time. We can capture the snapshot of what is there at the moment, but some of these regulations will have repealed and replaced elements of previous ones, but often not all elements. This is a complex area. Often there will be a grant agreement in place where there are binding requirements between the two, but where the initial regulation under which it was made has lapsed and, sometimes, been partially—but not fully—replaced by new ones. There is a constant churn of EU regulations, so we have tried to capture the vast majority of those in force now, but we need that movement to cover areas that might have been missed.

Amendment 80 proposes that regulations under this clause should be made under the affirmative rather than the negative resolution procedure. We discussed this issue in debates on earlier clauses where we are seeking to modify retained EU law. We are talking about technical changes and improvements to legacy schemes that are going to be wound down anyway, and it is not appropriate to have lots of affirmative resolutions for that type of change. We envisage making a single sweep of changes to improve and simplify these schemes in one point, and that would be the end of it.

However, I can give the hon. Lady some reassurance on her amendment 81. As I explained earlier in relation to a similar amendment, DEFRA needs no encouragement to hold consultations. We love consultations. My constant refrain to officials is: “Are we sure we really need a consultation on this?” We often hold consultations where we have just a couple of dozen people who can bear to respond to them. While we do not need to put this requirement in legislation—the only legislative requirement for consultation in the DEFRA sphere, for obviously good reason, is for food safety, which is in the Food Safety Act 1990—I can give her an undertaking that, before making changes to the scheme under the powers of clause 11, we would hold a consultation to ensure that all relevant parties could be engaged.

[Jenny Chapman]

I have such concerns about this, because it could become a free-for-all, where the Government can do what on earth they like. We cannot sit back and allow that to happen. Minette Batters said in evidence that she did not wish this kind of support to become politicised. I do not blame her for that, and I would not wish that in her position either, but the fact is that it is going to be politicised, and the Government have no idea what they want to do. I am not accusing the Government of having some sort of sneaky plan up their sleeve that they wish to inflict on rural communities, but I do not think they know what they want to do. They have therefore decided to come up with this clause, to give themselves as much flexibility as possible. I accept the Minister’s undertaking on consultation. I take him at his word and will be holding him to that, but the Government have not been clear. I do not think they know what they want to do. The list is not exhaustive, as we would have hoped.

I will not push each amendment to a vote—aspects of this issue will undoubtedly be dealt with in the House of Lords—but we have genuine concerns. We are not just trying to make a point; it is a real problem for Parliament and, potentially, rural communities that the Secretary of State is being allowed these kinds of sweeping powers under an inadequate procedure, which cuts out parliamentary scrutiny and Members’ ability to voice their concerns. I will therefore put amendment 80 to a vote.

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[George Eustice]

I am grateful for the opportunity to clarify our intentions regarding the current schemes—the higher level and the entry level stewardship schemes—and, more importantly, some of the countryside stewardship schemes that are being entered into now. My hon. Friend the Member for Ludlow also spoke about the importance of continuity for existing schemes. I am grateful for the opportunity to clarify that the UK Government have already guaranteed that all pillar 2 agreements signed before 31 December 2020 will be fully funded for their lifetime. Even as we leave the European Union in March, until the end of December 2020 we will honour any agreements entered into before that date.

The amendment is unnecessary, because the current regulations do not in fact set an end date in EU law. Had the EU regulations stipulated a cut-off point for agreements, of course we would have needed to address that in the clause, but they do not. We have agreements that are binding under the public sector grant agreements protocols that we have in government. Effectively, that is akin to contract law: we have entered into public sector grant agreements with agreement holders, and that is legally binding for the duration of those agreements.

The underpinning EU regulations set out only limited circumstances in which we could terminate an agreement. First, and quite reasonably, the agreement can be terminated if there is a massive breach of the agreement—for instance, if the agreement holder is not doing any of the things that they said they would. Secondly, if there is a transfer of land and the agreement does not go with the new owner of the land or they do not agree to abide by the agreement, for similar reasons it is right to discontinue the agreement. Thirdly, an agreement can be terminated early by mutual agreement—that is, if the parties choose to do so. That is important in terms of transition to the new order and the new types of schemes.

To answer the shadow Minister’s question about how we envisage moving from these legacy schemes to the new schemes, it may be that in the later years of some of these schemes, agreement holders opt voluntarily to convert their agreement into one of the new environmental land management agreements. They will not have to do so if they choose not to: the agreement that they have will be legally binding. However, if they were to choose to convert their agreement into an environmental land management scheme and both parties thought that was the right thing to do, we would be able to have that option.

I hope that I have reassured the hon. Gentleman. Although he highlights an important point, our intentions are clearly set out, and we are already bound by the public sector grant agreements. The amendment is therefore unnecessary and I hope that he will withdraw it.

[Dr Drew]

I will not press the amendment to a vote—obviously, that would be nonsensical—but I am worried about the tenor of what the Minister is saying. It is easy to find fault with the existing arrangements, but we have to give people confidence that what they have been doing is right. The biggest hurdle arises when the schemes are coming to an end. No one is going to invest time and money then, so ending the schemes early is quite possible, not because farmers and communities necessarily want them to end early, but because they see no future in them.

We need to give a great deal of encouragement to those who have entered into these schemes. They are more than farming schemes: they are to do with the development of our rural communities. It is vital that the Government get the message that the sooner they say what will replace LEADER in particular—all of us with rural constituencies could hold up LEADER as wonderful practice—the better. The sooner we can get some clarity about what will replace it and the degree to which it will allow flexibility to work with other communities and countries, the better for all concerned. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 80, in clause 11, page 8, line 19, leave out “negative” and insert “affirmative”—(Jenny Chapman.)

Question put, That the amendment be made.

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I could go on to pigs, but I will not, because the Minister will have the measure of how I am trying to help the Government in this respect. I really hope that the Government look at the inclusion of animal welfare in the Bill, alongside animal health. If not, I want to know from the Minister why not. If he can find a better place to put it, so as to secure animal welfare, I am very open to that suggestion. However, it must be somewhere; otherwise, it would be a real loss. We are not here always to criticise the Government, as I said, but to help.

[George Eustice]

We have had an interesting discussion on a range of issues in this collection of amendments. I want to touch on each in turn.

First, I turn to amendment 113 in the name of the hon. Member for Bristol East. The amendment attempts to insert an additional paragraph in clause 14, adding to the list of purposes for which information can be collected, to cover a target for food waste. I think this may be a probing amendment; we had a discussion of a similar nature last week.

Food waste is incredibly important and the Government recognise that, which is why later this year we are going to publish a new waste and resources strategy that will cover the issue. As I explained in a debate on an earlier amendment, WRAP is doing a piece of work at the moment looking at waste in the primary sector. Between 2007 and 2015 we have seen a 19% reduction per capita in the amount of food that is being thrown away that could have been eaten. As the hon. Lady pointed out, the quartal 2025 commitment is a commitment for a further 20% per capita reduction by 2025. There are ambitious targets already set through quartals, and we are working with WRAP, which is a DEFRA-supported agency, to deliver that objective.

In terms of the specific amendment, I draw the hon. Lady’s attention to clause 14(4)(f), which states a purpose as

“minimising waste arising from activities connected with agri-food supply chains.”

My contention would be that we already have a clear purpose stated in the clause, which enables us to collect information. It is about minimising waste arising from activities. I think her amendment is unnecessary because it duplicates what we have already provided for in clause 14(4)(f).

[Kerry McCarthy]

I have given my notes to Hansard now, but I think I am right in saying that the clause I cited says that it could be used for that purpose. I am trying to make sure that it is used for that purpose.

[George Eustice]

It is a point that we have often heard here, about the powers or the duties. We have set out our commitments and our targets, such as through the quartal 2025 and our waste and resources strategy, and we have the power here to do what is necessary to collect data, so that we can minimise risk in the supply chain. It is there, listed with all the other purposes, so I believe that the hon. Lady’s amendment is unnecessary. It is an inappropriate place to introduce a target. We can have a debate about targets and whether there should be targets of this nature in a future environment Bill, for example, or whether we should continue to work with the quartal commitments. As I said, they have already made solid progress. This particular clause is about the collection of information and I do not think it is the appropriate place to set a target in the way that the hon. Lady has outlined.

I turn to amendment 114, also in the hon. Lady’s name. Again, it links to an earlier discussion we had about the Agricultural Wages Board, which was removed. Fairness of employment contracts is an important issue, but it is dealt with in other ways. We have the national living wage, introduced by this Government. It is currently £7.83 per hour for over-25s and in April next year it is due to rise to £8.21 per hour. The regulations are already set out and are enforced by Her Majesty’s Revenue and Customs, which enforces all the national minimum wage legislation. In addition, we have the Gangmasters and Labour Abuse Authority, which deals with some of the practices that I know the hon. Lady is concerned about, such as modern slavery and abuse in the labour market. We have the GLAA already, which has powers to tackle and investigate that issue.

[Dr Drew]

I understand all that. We can have all sorts of regulations quoted back to us. The simple fact is that we are ploughing fruit and vegetables back into the ground again this year, because of the lack of a suitable seasonal agricultural workers scheme. I know this is slightly different from domestic wage rates, but the reality is that we cannot attract people to work on the land because both the wages and the conditions are not seen to be suitable. That is why the Agricultural Wages Board was so crucial. It was not just about wage setting, but setting the environment. Although I accept that the National Farmers Union always campaigned to get rid of it, many farmers welcomed it, because now they have to set those rates and conditions themselves, subject to the national minimum wage and the national living wage, which is always a difficult process. I hope that the Government will, at some future date, think again about this whole area.

[George Eustice]

The hon. Gentleman has strong views on this. We debated this at an earlier stage of the Committee. Our view is that the Agricultural Wages Board became redundant, first with the introduction of the national minimum wage and then, more importantly, the introduction by this Government of the national living wage, which provides new protections, so the Agricultural Wages Board was no longer required.

[Kerry McCarthy]

I appreciate that there are problems with enforcement of the living wage, such as people trying to get around it by offering accommodation at extortionate rates. The Gangmasters and Labour Abuse Authority—I have looked at the figures for prosecutions—could do more. I am not so concerned about what is happening in this country as about the supply chain. None of the measures the Minister talks about make any difference to rooting out exploitation and modern slavery in the supply chain. We import millions of pounds’-worth of seafood from the Thai sector, which we know is rife with slavery and exploitation. They come into our supermarkets and are sold on our shelves. The legislation the Minister talks about does not help us deal with that, which is why we need transparency, and to put an obligation on the supermarkets and food processors, to know what is going on and who is doing what. If we have cheap food on our shelves it is cheap for a reason, and I think the Government have an obligation to find out why.

[George Eustice]

I understand that point, but there is obviously a limit to what we can deliver internationally. We have international forums through which we argue for such issues to be addressed.

Coming back to this particular clause, which links to another point that the hon. Lady raised about unfair trading practices in the EU dossier currently under discussion, the purpose of this part of the Bill around collection and sharing of data, and this requirement in clause 14 for people to provide information, is linked to unfair trading practices. The purpose of subsection (4)(b) is to promote transparency and fairness around the price of goods, and it is about the terms and conditions that individual purchasers or processors might have for farmers. The purpose is to improve fairness for producers, so that they have better transparency and can make more informed choices about who they sell their goods to.

[Sandy Martin]

Clause 14(3) states:

“Each purpose specified must be in, or covered by, the list of purposes in subsection 4.”

If these amendments are not passed, is there not a danger that various players within the supply chain might wish to use the fact that these were not specified in subsection (4) to say that they would not give information to the Secretary of State in the pursuit of the purposes for which the Bill stands?

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[George Eustice]

In the precise design we have, clauses 12 and 13—particularly clause 12—create quite a big power for the Secretary of State to require people to provide information. Therefore, we need clause 14 to place boundaries and scope on that. We have had criticism from Committees in the House of Lords and from hon. Members on this Committee, saying that there is too much free power for a Secretary of State—it is not defined or constrained enough. In clause 14, we are placing clear parameters on the purposes for which we will require data to be provided. That is right and proper, and what we are trying to achieve with clause 14. We do not want it to be an open-ended power.

[Sandy Martin]

Surely, you have reinforced what I am trying to say. You are placing parameters.

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[George Eustice]

Subsection (4)(f) provides for a purpose to collect data on food waste. That purpose is covered, but the other purposes the hon. Gentleman mentions are not covered. I will turn to animal welfare in a moment, but in terms of wages and conditions, as I pointed out, that is rightly picked up by regulations in other parts of our legislation, already enforced by the GLAA and HMRC to ensure that we adhere to those. On matters such as terms and conditions and pay, the object is to have the right regulation, which applies equally to everyone. It is not necessarily about just requiring people to publish the regulation and leaving them to their own devices. As I said, the purpose of subsection (4)(b) is to promote transparency in the supply chain.

I turn now to amendment 116 relating to animal welfare. I completely agree with the hon. Member for Stroud about the importance of animal welfare. I was very clear that it should be listed in clause 1 as a purpose for financial assistance. He says it should be recognised as a public good; it is. It is declared as a public good in the very first clause of the Bill. It is not appropriate, however, to have it in this particular clause for reasons that I will explain. If we want to deliver animal welfare outcomes, we can use a number of tools to approach that. We can raise the baseline of regulation and if we do so, we would do so using provisions such as those under the Animal Welfare Act 2006, as we did with CCTV in slaughterhouses. That should be legislation that applies equally to everyone.

The second approach that we can take is to introduce financial incentives to support farmers for adopting an approach to livestock husbandry that is better for the welfare of the animal. We make explicit provision for that in clause 1. It gives us the power to give grants to farmers to invest in new livestock housing that enables more enrichment of the sort the hon. Gentleman describes. It gives us the power to award financial incentives to farmers who sign up to holistic animal welfare accreditation schemes, such as RSPCA Assured or others. It also gives us other powers to help support objectives around animal health and welfare.

The third option is to improve labelling, which I know a number of hon. Members have raised in the past. Things such as method of production labelling or method of slaughter labelling can be introduced, and there are often debates on these issues. Those are the three key areas. They are not necessary in this particular part of the Bill. We can—and do—deliver our animal welfare objectives in many other parts of the Bill. We do not need a requirement here for information on animal welfare to be disclosed, because it should be either a regulation that is enforced uniformly or an incentive scheme. I draw the hon. Gentleman’s attention to clause 3, which links to any payments made to incentivise high animal welfare. Clause 3(2)(e) gives us the power to require people to keep records and subsection (2)(a) has the power to make provisions around information. In the context of the financial incentives that we intend to offer, we can already require the disclosure of information to support the enforcement of those schemes.

[Martin Whitfield]

On that point, does the Minister envisage that the regulation will facilitate the Secretary of State’s collecting the information, or is he hoping it will just be volunteered, because it is being retained by the farmer?

[George Eustice]

In the context of any financial grant or incentive awarded to a farmer under the powers in clause 1, the regulations provided for in clause 3 could stipulate a legal requirement to provide certain information. If farmers enter such incentive schemes, there are already powers in clause 3 to require that information. As for animal welfare in the wider context, that is a regulatory issue that should apply equally to all.

I hope I have been able to reassure the hon. Member for Stroud about the importance I place on animal welfare, but we pick up those policy objectives elsewhere.

[Dr Drew]

I hear exactly what the Minister says, but in a sense he is arguing against himself. Why are we restating health and traceability in the clause? All I am saying is that it would be very neat to put, “health, traceability and welfare of creatures”. Animal welfare is important to both health and traceability; it is the third leg of the stool. I do not understand why that cannot happen.

Welfare may be mentioned elsewhere, but so is animal health. This would reinforce in the legislation that this is a key element within the data collection process, which is what this bit of the Bill is about. More particularly, it is about the way we intend the new farming regime to make animal welfare an important part of how farmers should operate, in terms of animal health and traceability.

[George Eustice]

I can clarify precisely why there is a difference. It comes back to the purposes we envisage with these data transparency clauses. We are trying to tackle two issues. The first is fairness in the supply chain, with transparency of market data and terms and conditions. Secondly, we seek to support the roll-out of a new, much more innovative approach to livestock identification and traceability in the food chain.

The joint livestock information programme involves the farming industry, meat processors and DEFRA, to bring together what we currently have, which is a hotch-potch of different ID schemes for different species, coming from EU laws, and put that into a new single traceability database for animal welfare. That would give us the power to support that particular objective. Animal health and traceability are explicitly provided for because they support that.

[Dr Drew]

As my hon. Friend the Member for Bristol East said, animal welfare is a vital element in the reason why consumers should be made aware of lower standards when they buy foreign products. If we do not put that in legislation, we are effectively saying that we worry about health and traceability but the welfare of the individual animal is less important. So, we will continue to import animals that have been raised in the most inhumane ways.

Because this is a matter of data and information sharing, surely we should share that information with the consumer. I would like to ban such products outright, but that may be difficult with free trade agreements. At the very least, that information should be shared with consumers and I do not understand why the Minister is so reluctant.

[George Eustice]

It is because we have taken quite a large power to require the disclosure of information and we think it is important that we give people clarity and certainty about the purposes for which that will be used. Animal welfare is an incredibly important issue, which is why it is addressed in many other parts of the Bill—not least in clause 1, where it belongs.

To come to the hon. Gentleman’s point, if we were to have, for instance, a scheme requiring labelling on method of production, that could be done under other legislation. We already have the Food Safety Act 1990, for instance, which provides powers regarding labelling of food. There are other powers in other pieces of legislation that would enable labelling to be addressed. We do not believe that it is required in this clause of the Bill.

We have a joint passion about the importance of animal welfare, so I hope I have been able to reassure the hon. Gentleman that it is addressed elsewhere in the Bill, and that it would not be appropriate to include it in this clause, for the reasons I have explained. I hope that, on that basis, he and the hon. Member for Bristol East will withdraw the amendment.

[Kerry McCarthy]

My amendment was a probing one, so I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 14 ordered to stand part of the Bill.

Clauses 15 and 16 ordered to stand part of the Bill.

Clause 17

Declaration relating to exceptional market conditions