Tenant Farming

George Eustice Excerpts

Tuesday 10th May 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Wealden (Nusrat Ghani) on securing this important debate. It is an issue that I have followed closely as Farming Minister over the past two and a half years. She is absolutely right: tenant farmers have a vital role to play in our countryside. Roughly one third of farms and one third of the land we have is tenanted. Farm tenancies are a vital route for new entrants coming into the industry. They help existing businesses expand and take on new land, and they are essential because the prohibitively high capital cost of land is a real bar and obstacle to new people entering the industry.

Every industry needs new talent, fresh thinking and new ways of doing things. Farming is no exception. In our 25-year food and farming plan, we will consider how to encourage alternative models of doing business in farming so that we do not think just about landowners, owner-occupiers and tenant farmers, but look at ways of expanding some of the contract farming models that have been very successful. Perhaps farmers could progress to share farming models where they have a stake in a business and earn in the business before taking on their own tenancy and perhaps even buying land at the end.

I come back to the crucial farm business tenancies. It is important to remember why they were introduced. The deregulatory measure was taken in 1995 because there was real concern that, as my hon. Friend the hon. Member for Eddisbury (Antoinette Sandbach) said, not enough land was coming to the market and that was restrictive and acting as a barrier. The burdens and obligations in the Agricultural Holdings Act 1986 prevented land from coming to the market but, generally speaking, the Agricultural Tenancy Act 1995 was judged a success. Between 1996 and 2003, 35,000 acres a year came on to the market. That has stabilised since and things have not changed as much, but it was undoubtedly successful in deregulating and bringing more land to the market, creating more opportunities.

However, I am aware that the Tenants Farmers Association and others have expressed concerns about the average length of some tenancies. Currently, they are around three and a half years. A couple of years ago they were around three years and have gone up slightly. As my hon. Friend the Member for Wealden pointed out, the challenge of having such short-term tenancies is clear. If someone has tenure of the land for only three years, they do not have the incentive to invest in that land.

I worked in the farming industry for 10 years and grew up on a farm. I know that if someone takes on a piece of land that has not been farmed adequately or properly for a period of years, it can take four or five years to turn it around and get the land back to its full potential by investing and putting on farmyard manure, and adding fertilisers, sand or lime to bring the soil to its full productive potential. That takes time and if someone is there for only three and a half years it can fuel short-termism, which is not good for the quality of our soils. We should be concerned about soil in agriculture because it is at the heart of everything we do and we must protect it.

We are interested in finding ways to incentivise longer term tenancies without losing the benefits of flexibility in farm business tenancies. I have had numerous discussions with agricultural lawyers and land agents, and with representatives from the Tenant Farmers Association and the Country Land and Business Association. The last two do not always see eye to eye on this issue, frankly. I recently met representatives from a selection of county farms around the country. I share the concern expressed by the shadow Minister about the potential loss of some county farms. About a month ago, we had an interesting session with representatives to discuss how to refresh that model in a way that recognises some of the pressures on local authorities.

The Government have no fixed view on the need for change to legislation or otherwise. Many of the issues raised by my hon. Friend the Member for Wealden are for the Treasury and she might want to have conversations with Treasury Ministers. The area is complex and I am mindful of the points raised by my hon. Friend the Member for Eddisbury that we must be careful when making changes that we do not create unintended consequences. Having caveated what I am going to say with those crucial points, I want to explain the context and texture of my discussions with some of the leading experts in the field and some of the ideas that we could consider.

The first thing to recognise is that although the average length of a farm business tenancy is three and a half years, there is a big division between bare land, which people rent for a short-term crop—perhaps potatoes —for a couple of years and a farm that has a farmstead, a yard and a house where people live. The average length of a tenancy of a farm with a farmstead is more than eight years, which is much closer to the 10 years that the Tenant Farmers Association is calling for.

The other thing to bear in mind is that short-term lets are important for some business models. Even in my part of the world—Cornwall—businesses often specialise in particular areas. Some may specialise in brassica crops—cauliflowers and cabbages—which can be grown on the land for only two to three years before a new rotation must come in. Often, a potato grower will follow for a period and a daffodil grower will follow that. Finally, when the land has been hammered for a few years of intensive cropping, a cattle farmer comes in and puts it into grazing for the best part of a decade. That model can work and can suit some farm enterprises.

I have had discussions with the Tenant Farmers Association about agricultural property relief. I subsequently had discussions with Treasury officials about the TFA’s proposal and I helped to facilitate a meeting between George Dunn, its chief executive, and Treasury officials to discuss his ideas further. The officials told me they will consider these ideas and feed back their thoughts to me. I am still awaiting that feedback. They have obviously been busy with the Budget recently, but I look forward to having their feedback about whether it is a good thing or not because it is a policy area for them. There is a danger that such a measure could restrict the market and that less land could come to the market for the agribusinesses that value flexibility.

A second matter raised was stamp duty land tax. Tenant farmers and landowners agree that they would like changes. Again, this is an issue for the Treasury, but the challenge is that the longer the term of the tenancy, the higher its value and the more likely it is to trip over the threshold for SDLT.

I have received proposals about considering the law on rules of forfeiture of farm business tenancies. At the moment, if there is a breach of a covenant, the only option open to the landlord is to go for full forfeiture, which is quite a high hurdle to clear in a court. That makes landlords nervous about longer-term tenancies and makes them more likely to go for a shorter term tenancy because there is less risk. One suggestion is that we may be able to borrow some of the other remedies and tenancies in the Agricultural Holdings Act 1986 and have options and measures that fall short of full forfeiture—for example, an enforcement notice to get a covenant in a tenancy abided by.

I have received some suggestions about borrowing elements of commercial property tenancies with a right to renew, which would stop short of longer term tenancies but might create some sort of soft presumption that someone who has been a good tenant for a three-year term should have priority to renew that tenancy—a right to renew rather than being held to ransom for a higher rent. Again, that is an interesting idea that I am keen to consider, although I have heard mixed opinions about how significant a change that would be and whether it would have much impact.

Going into more detail in these areas, I have had representations to repeal section 31 of the Agricultural Tenancies Act 1995. Under the Law of Property Act 1925, there has been a statutory right for a landowner to create a tenancy on their land. They did not have to have the permission of any moneylender who had a charge over that land to do so because it was deemed important that land was kept in productive capacity and that the interests of banks and moneylenders should not be placed ahead of food production for the country. Some deft lobbying by the British Bankers Association in 1995 resulted in a change to the flagship Law of Property Act 1925, which undermined landowners’ ability to put a tenancy on their land to the extent that to create a tenancy they now need prior permission from someone with a charge on that asset if that is in the mortgage deed.

The shadow Minister referred to county farms. There has been concern about those, particularly in Herefordshire, which prompted me to set up some discussions. The Agriculture Act 1970 gives DEFRA a role to work with local authorities to help them to refine their plans and I am considering that. We cannot block them from selling those assets—they have a statutory right to do that—but we have a role to play in working with them on any plans for reorganisation of their county farms. That is why I am keen to have discussions with them about how we can try to refresh the model and make it a real option for new entrants to the industry.

I want to give my hon. Friend the Member for Wealden a chance to come back on some of these issues, but on contract farming, there are some interesting models out there that enable new entrants, who perhaps do not have a huge amount of capital behind them, to get access and set up a new business. I will give just one example of the kind of thing that we are looking at in our food and farming plan. Tulip, which is a very large pig producer that accounts for about 20% of all pig production in this country, runs a system called franchise farming, whereby it owns the units and gives access to its animal genetics. It takes care of all the marketing and gives people access to its science and veterinary expertise. But on each unit it has a franchise farmer, who basically runs the unit for a fee, for a contract per pig completed, with all sorts of performance-related pay. That is a great way to give young people who want to farm, but have no capital behind them, the first stepping stone into the industry. It is also a model that can lead to better knowledge transfer and access to technology.

My final point, therefore, is that as we think about the future of farming in this country, we perhaps need to move beyond the traditional notion of tenancies and land ownership and look at some of those other, more creative models, which may actually have far more promise for new people trying to get into the industry.

Oral Answers to Questions

George Eustice Excerpts

Thursday 5th May 2016 Commons Chamber

[Ann Clwyd (Cynon Valley) (Lab)]

2. If she will reconsider her Department’s plans to extend the badger cull; and if she will make a statement.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

The Government are taking action to deliver a long-term strategy to eradicate bovine TB in England and protect the future of the dairy and beef industries. That strategy includes strengthening cattle testing and movement controls, improving biosecurity on farm, and badger control in areas where TB is rife. The veterinary advice is clear that there is no example in the world of a country that has successfully eradicated TB without also tackling the reservoir of the disease in the wildlife population.

[Ann Clwyd]

Badger culling in England costs around £7,000 per badger killed; in Wales, the badger vaccination programme costs around £700 per badger vaccinated. Lord Krebs, the renowned scientific adviser on the subject, has continually said that

“rolling out culling as a national policy to control TB in cattle is not really credible.”

Why, then, do the Government persist with a policy that is stupid, costly and ineffective?

[George Eustice]

The cost of doing nothing would be £1 billion in 10 years’ time. As for the cost of running the culls, there were one-off costs initially, but those were halved in the most recent culls last year. The right hon. Lady will also be aware that Wales has had to suspend the vaccination programme because of a lack of availability of vaccine and on the advice of the World Health Organisation. The vaccination programme was also in a tiny pilot area of about 1.5% of Wales. Wales has had success with cattle movement controls just as we have done, and that is the reason it has been able to bear down on the disease in the same way we have.

[Michael Fabricant (Lichfield) (Con)]

My hon. Friend the Minister has already pointed out issues with bovine TB. My hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile)—who is not in his place—and I share a love of hedgehogs. Years ago I brought a hedgehog into the Chamber, which was completely out of order—[Interruption.] Not in your time, Mr Speaker: it was under Baroness Boothroyd, who did not approve. It did something terrible in my hand, I dropped it and it scurried off. That is off the point, sorry.

The hedgehog population is falling, and it is partly because they are part of the food chain of badgers. Badgers may be cuddly, while hedgehogs have spikes but they are cuddly too, and we need to remember that they are being attacked by all the badgers where there is no cull.

[George Eustice]

My hon. Friend is a real advocate for hedgehogs, and many other hon. Members have supported their cause, including my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile). Some research suggests that badgers compete with hedgehogs for some foods and in their environment, but there are many other pressures on the hedgehog, including gardens that are not particularly hedgehog friendly. Everybody can play a role in helping hedgehog populations to recover.

[Kerry McCarthy (Bristol East) (Lab)]

It is, of course, national hedgehog week, and we need to do all that we can to protect their habitats rather than blaming badgers.

Usually when experts tell us that something is not working the sensible thing to do is to stop. So why, when the Government’s experts said that last year’s efforts were ineffective and inhumane, and when bovine TB increased by 34% in Somerset, is the Department so determined to push ahead with yet more culling? May we have a moratorium on the granting of any more licences this year until we have had a full public debate, with all the information in the public domain, so that we can decide whether it is worth proceeding with culling?

[George Eustice]

The country’s leading experts on tackling bovine TB are in DEFRA, including the chief vet and his veterinary team. Their advice is clear: we will not eradicate this disease unless we also tackle the reservoir of disease in the wildlife population. That is why we are committed to a roll-out of the cull in areas where the disease is rife.

[Bill Wiggin (North Herefordshire) (Con)]

The Minister was characteristically generous to the right hon. Member for Cynon Valley (Ann Clwyd). Can he give us the figures for the increase in outbreaks of bovine TB in Wales and in England? For those of us who have constituents on the Welsh border, will he continue to roll out the cull and do as much as he can, rather than punishing beef and dairy farmers with post-movement testing?

[George Eustice]

My hon. Friend will be aware that in England we slaughter some 28,000 cattle a year. Last year, both England and Wales saw a slight increase in the prevalence of the disease, but that tends to move in cycles. In the previous year, we saw a slight reduction in the disease. I understand that the cattle movement controls we have put in place are frustrating for some farmers, but they are also a necessary part of eradicating this disease. We have to do all of these things—deal with the reservoir of disease in the wildlife population, improve biosecurity on farms and, yes, improve cattle movement controls so that we can reduce transmission of the disease.

[Neil Parish (Tiverton and Honiton) (Con)]

When will the Minister be able to give the scientific figures for the badger cull areas to show the reduction in the amount of disease in cattle?

[George Eustice]

As my hon. Friend knows, the randomised badger culling trials a decade or more ago found that the benefits of the culling of badgers were only seen some four years after the conclusion of the culls. The reality is that the programme is a long-term commitment and it will be several years before we can see the impact of the culls. From figures from last year, however, we know that perturbation, which several hon. Members have previously highlighted to me, was actually far less of an issue in years one and two of the culls in Gloucester and Somerset than people predicted.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

3. What recent progress her Department has made on reducing levels of air pollution; and what targets she has set for air quality in 2016.

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[Mr Steve Baker (Wycombe) (Con)]

4. What assessment she has made of the potential contribution of data and technology to increasing the productivity and competitiveness of British farming.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Data and technology have a central role to play in increasing the productivity and competitiveness of British farming. Last October, I launched the first of our agri-tech centres of excellence, the agrimetric centre at Rothamsted. They will develop new software models to improve our ability to understand and utilise the huge volume of data that exist. In addition, we are on track to open up 8,000 data sets to the public, which can help food and farming to achieve its potential.

[Mr Baker]

As a software engineer, I very much welcome my hon. Friend’s response. Does he agree that the implementation burden of vast changes, such as this year’s common agricultural policy, make it difficult to realise all these benefits? Does he agree that there is a simple solution, which is to vote to leave the EU?

[George Eustice]

As my hon. Friend knows, the Government’s position is that we should remain in the European Union. He will be aware, however, that I have exercised the option granted by the Prime Minister to disagree with the Government on this particular issue. From a personal perspective, I simply say that the vast majority of problems farmers complain to me about are the consequence of dysfunctional EU legislation.

[Liz McInnes (Heywood and Middleton) (Lab)]

8. What progress her Department has made on ensuring that farmers receive a fair price for milk.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

These are undoubtedly very difficult times for many dairy farmers. The combination of oversupply around the world coupled with a weakening of demand in major markets such as China has led to a very depressed commodity price. We secured a £26 million support fund last November to alleviate short-term cash-flow pressure. We introduced a dairy supply chain code to improve dealings between dairy processors and farmers. Longer term, we are working on a project to introduce a dairy futures market to help farmers manage future risks. We are exploring the potential to facilitate investment in new dairy processing capacity, so that we can add value to our production.

[Cat Smith]

A food-secure Britain needs British farmers to be able to make a living. Milk prices plummeted in March this year; they were at their lowest since 2009, with farm-gate prices as low as 16p per litre. This comes at a time when British dairy incomes are dropping; they are forecast to fall by almost half this year. I was disappointed that there was nothing for dairy farmers in this year’s Budget. What action will the Minister take now, working with supermarkets, retailers and farmers, to ensure a future for the British dairy industry?

[George Eustice]

We have introduced tax-averaging across five years to help farmers who face a tax bill; they can average it against difficult years. Her Majesty’s Revenue and Customs has been clear that it will take a generous approach to the time-to-pay provisions to help farmers who may be under pressure with their tax bill. I completely understand that this is an incredibly difficult time for many farmers. There is a mixed picture; a small number are still on aligned contracts, and still receive a fair price. We constantly meet retailers to try to improve the contracts that they offer, and to encourage them to offer more aligned contracts and to source more dairy production. Many of them are now offering those aligned contracts, or higher prices, to their farmer suppliers.

[Liz McInnes]

Can the Minister tell the House and Britain’s farmers why the Government failed to support EU efforts to improve the school milk scheme, which provides a valuable market for our struggling dairy farmers? Can he confirm that the Government will roll out the scheme in our schools, and say what benefit it will bring for British farmers?

[George Eustice]

It is not the case that we did not support the school milk scheme. The European school milk scheme is very small; it is worth around £4 million a year. It is dwarfed by our domestic schemes. The one funded by the Department for Education and the Department of Health, for infants, is around £60 million a year. The issue that we had with the school milk scheme was the bureaucracy and administration that the European Commission was trying to add to it. We were keen to pare that out, but we certainly supported the scheme; it is not true to say that we did not.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

In north Yorkshire, in the last 15 years, we have lost 50% of our dairy farmers, and 90% of those still in business are losing money, despite generous taxpayer subsidies. Does the Minister agree that now is the time for the supermarkets to start paying British farmers a fair price for British milk?

[George Eustice]

I understand the point that my hon. Friend makes, and as I say, these are very difficult times for farmers. People often lay the blame on supermarkets, but we have to recognise that at the root of the problem is the worldwide issue of low commodity prices. There are very low prices in New Zealand—far lower than we have here—and many people have been driven out of business there. This is a global challenge. Some of the supermarkets have stepped up to the plate and offered aligned contracts, and many of them are selling their milk at a loss; we should recognise that and give credit where credit is due. Of course, we are always trying to improve the position of farmers in the supply chain.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

Perhaps there is a win:win here. The hon. Member for Kettering (Mr Hollobone) made a suggestion about Weetabix; if we advocate having British milk with it, that might offer a little solace. The Minister has spoken about a commitment to strengthening the voluntary code of practice for the dairy sector; when will that be in place?

[George Eustice]

I have already had this discussion with NFU Scotland, and I have offered to meet it to discuss its concerns. The voluntary code of practice for the dairy industry is GB-wide, as the hon. Gentleman knows, but the reality is that it tends to help farmers more in a rising market, when prices are firming, than in a difficult time in which there is over-supply. The crucial element of it is that it gives farmers the ability to walk away at three months’ notice, and that enables them to extract a better price. That obviously only works when market prices are going up, rather than down, but I have offered to meet NFU Scotland to discuss its concerns. We will review the code again with a view to strengthening and improving it where we can.

[Fiona Bruce (Congleton) (Con)]

6. What progress the Government are making on delivering their strategy to eradicate bovine TB.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

The Government are determined to use all available measures necessary to eradicate this devastating disease as quickly as possible. We have continued to make improvements to cattle movement controls, most recently introducing a requirement for post-movement testing of cattle travelling from the high-risk to the low-risk area. At the end of last year, we launched a new project to promote better on-farm biosecurity in order to reduce cattle-to-badger contact. Finally, we also started a cautious roll-out of the badger cull to an additional area in Dorset last year, which was successful.

[Fiona Bruce]

I thank the Minister for his reply, but I urge the Government to do all they can to ensure that bovine TB is checked in Cheshire so that it does not take further hold. It is the cause of extreme concern to farmers in my constituency.

[George Eustice]

My hon. Friend makes an important point. I recognise the specific challenges in parts of the edge area, notably in Cheshire, and we have therefore introduced much more frequent—six-monthly—testing in Cheshire to get on top of the disease, which has been a success. We have also increased the use of the more sensitive interferon gamma blood test as a supplement to the skin test to ensure that we can remove infected cattle from herds more quickly.

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

7. What recent assessment she has made of the effect on the farming community of delays in payments by the Rural Payments Agency.

--- Later in debate ---

[David T. C. Davies (Monmouth) (Con)]

10. What steps she is taking to encourage more people to consume meat produced in Britain.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

We have some of the best native breeds of cattle, pigs and sheep in the world, and we want to promote quality meat that is produced in the United Kingdom. Because we secured country of origin labelling legislation, such labelling is now mandatory on poultry, pigs and lamb, as well as on beef. Two weeks ago, the Secretary of State was in the United States, working to open the market there for British beef, and I was in Japan making the same case for our top-quality beef to the Japanese Government. We are also exploring ways in which to use the GREAT branding in retail settings to encourage more consumers to choose British products.

[David T. C. Davies]

I greatly welcome that. I recall that, last November, Parliament was festooned with banners reminding us about something called “vegetarian week”, and urging us to try a vegan meal. In the interests of fairness, may I suggest that we organise a similar event to encourage people to try British meat—perhaps a “British meat May”? If we launch such an event, can we ensure that Opposition Front Benchers are invited as well?

[George Eustice]

I am sure that my hon. Friend’s suggestion will enjoy cross-party support. He makes the good point that we need to promote our top-quality meat. The Agriculture and Horticulture Development Board also performs an important role. I recently signed off two of its campaigns: a television advertising campaign to promote pulled pork, which is currently running; and a mini-roast television marketing campaign, which is intended to increase consumption of, in particular, underutilised lamb and beef cuts. There is already some very good work going on, but my hon. Friend’s suggestion of a parliamentary event is a useful one, and I shall be happy to explore it with him.

[Tom Pursglove (Corby) (Con)]

11. What assessment she has made of the effect of changes to hedge-cutting regulations on (a) contractors, (b) farms and (c) hedge maintenance.

--- Later in debate ---

[Neil Parish (Tiverton and Honiton) (Con)]

T4. Dairy farmers are suffering due to low prices—there is a lot of milk in the market. One of the markets that we still cannot get into is Russia. What is happening? Is there any chance that we can get back into that market? European and British dairy farmers are paying a high price for the ban on exports to Russia.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

My hon. Friend makes the important point that the Russian trade embargo has exacerbated the challenges facing the dairy sector and others, such as the pig sector. However, we put in place sanctions against Russia because of its totally unacceptable conduct against Ukraine and its incursions into Ukrainian territory. It is important that we show solidarity with other European countries and do not accept how Russia has behaved towards Ukraine.

[Nic Dakin (Scunthorpe) (Lab)]

T3. We have already heard about the £1.6 billion profits of water companies and their £1.8 billion payout to shareholders. They are rich organisations, and some, to their credit, are already living wage accredited. Does the Secretary of State therefore back Unison’s campaign for the current living wage to be paid throughout the industry?

[Nigel Huddleston (Mid Worcestershire) (Con)]

T5. The recent Groceries Code Adjudicator report showed that Tesco breached the code of practice by delaying payments to suppliers and demanding extra fees, which has been raised with me by farmers in my constituency. What are the Government doing to ensure that further such breaches do not occur?

[George Eustice]

As my hon. Friend will be aware, we introduced regulations at the end of the previous Parliament to make it possible for the Groceries Code Adjudicator to levy fines against retailers that breach the code. The action that she took against Tesco was evidence that that is starting to work, and that she is beginning to pick up on and deal with bad practice. The Department for Business, Innovation and Skills will shortly be leading a review of the role of and our approach to the Groceries Code Adjudicator. As part of that, we will be looking at ways in which we might be able to improve the code.

[Anna Turley (Redcar) (Lab/Co-op)]

Recently, two of my constituents were sentenced to just six months’ electronic tagging for the brutal and horrific abuse of their pet bulldog. The community has been rightly outraged by the leniency of the sentence, because these people also videoed the abuse and were laughing as they carried it out. The dog was subsequently put down. I have written to the Secretary of State for Justice, but may I ask the Secretary of State for Environment, Food and Rural Affairs to chase up my letter and to review animal sentencing, given that the maximum sentence for animal cruelty is just one year?

[George Eustice]

We have looked at the issue of animal sentencing; there can be an unlimited fine, and my understanding is that the sentence can be up to five years for animal cruelty. I will check that point and write to the hon. Lady if that is incorrect. The evidence shows that for most offences the courts are not using the maximum sentence, so we do not believe there is a case for changing it. We have looked at the issue of fighting dogs and organised dog fights, where there is some evidence that the courts are restricted by current sentencing guidelines. The hon. Lady will be aware that this is an issue for the Ministry of Justice, and I am sure that its Ministers will want to discuss it with her.

[Rishi Sunak (Richmond (Yorks)) (Con)]

As a keen rambler himself, the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Penrith and The Border (Rory Stewart), will be familiar with the coast-to-coast walk, which runs across both our constituencies. It is one of England’s most popular long-distance walks, yet it is not an official national trail. Will he meet me to discuss my campaign to give the coast-to-coast the formal recognition it deserves?

Oral Answers to Questions

George Eustice Excerpts

Thursday 17th March 2016 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

1. What plans she has to repatriate control over British fishing waters and policy in the event of the UK leaving the EU.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

We have made some progress in reforming the common fisheries policy so that there is a commitment to fish sustainably, a ban on the wasteful practice of discarding fish, and new flexibilities to improve the way quotas work. As my hon. Friend knows, the formal Government position is that the UK should remain a member of the European Union. However, should there be a decision to leave in the forthcoming referendum, there are well-established international conventions that govern territorial scope and the way nation states manage fisheries.

[Mr Hollobone]

The EU’s common fisheries policy has been a disaster for both the British fishing industry and our marine environment. Overfishing by heavily subsidised Spanish trawlers has seen North sea cod stocks fall by 80% and the number of fishermen halved, and Britain is constantly outvoted on matters affecting our traditional British fishing grounds by EU member states that have no coastlines themselves. Will the Minister draw up plans to repatriate our fishing grounds as soon as possible?

[George Eustice]

As I said, the formal Government position is that we should remain a member of the EU, but my hon. Friend knows that Ministers have been given the discretion to take an alternative view if they want. We have made progress in reforming the common fisheries policy. This year at the December Council we saw increases in cod and haddock quotas in the North sea. As a result of the work that we have done with other countries, including Norway, Iceland, the Faroes and other EU countries, we have seen a recovery of stocks, in the North sea in particular.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Does the Minister acknowledge, however, that one of the difficulties involved in Brexit is that it is not necessarily easy to erase grandfather fishing rights?

[George Eustice]

With many countries—EU member states and also countries such as the Faroes, Iceland and Norway—we have mutual access agreements, and we have annual discussions about the allocation of fishing opportunities. This is the norm. Whether countries are in the EU or not, there is always a large degree of international debate on these issues.

[Richard Benyon (Newbury) (Con)]

Will my hon. Friend confirm that whatever happens on 23 June, there will still need to be quotas, fishermen will still want to export to EU countries two thirds of the fish and 86% of the shellfish that we land in the United Kingdom, and fishermen will still want to retain rights to fish in EU waters?

[George Eustice]

My hon. Friend is right. Countries outside the European Union do have quota systems. We have considered alternatives, but a quota system of some sort, with the flexibilities that we are trying to introduce, is the best way to conserve fish stocks, we believe. Just as Norway, the Faroes and Iceland have quotas, we would retain those too. When it comes to the market, whichever side of the EU debate people are on—whether they believe we should stay in or leave—we all agree that free trade is to the benefit of everyone.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I commend the Minister, who is obviously walking a very careful line today. He knows, however, that we had foreign trawlers operating in British waters before we were in the UK—[Interruption.]—sorry, before we joined the European Union, and that would remain the case if we were to leave. How many bilateral arrangements would be necessary if we were to leave the European Union? Can the Minister tell the fishermen in my constituency how the crucially important EU-Norway negotiations, which have a tremendous direct impact on us every year, would be conducted?

[George Eustice]

The right hon. Gentleman makes an important point. There is a misconception that the December Fisheries Council of the EU decides fishing opportunities in the North sea. As he and others know, fishing opportunities in the North sea are decided at the North-East Atlantic Fisheries Commission through the coastal states meetings and then EU-Norway. The UK currently does not have a seat at those meetings; we are represented by the EU. Obviously, if we were to leave, the UK would regain its seat on NEAFC.

[Martin Vickers (Cleethorpes) (Con)]

There is little doubt that membership of the EU has been damaging to the deep-sea fishing industry, but looking to the future, does my hon. Friend agree that our relationships with non-EU countries such as Iceland are particularly important to the industry?

[George Eustice]

Yes, my hon. Friend makes an important point. For Grimsby and his constituents, the close relations and the partnership we enjoy with Iceland in particular is extremely important. There is a tradition in this country that we import much of the fish that we consume, notably from Iceland and to a limited extent from Norway, and that we export much of the fish that we catch to the EU, but also to other third countries, such as China and Nigeria.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

2. What steps she is taking to meet the recycling targets in the EU circular economy package.

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[Margaret Greenwood (Wirral West) (Lab)]

7. What steps the Government are taking to reduce marine litter and plastics pollution.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Part 3 of the UK marine strategy, published last December, sets out the actions we are taking to improve the marine environment. It includes measures that contribute to reducing sources of marine litter, including plastics. In England, we have now introduced a 5p charge on single-use plastic bags, following the success of this policy in other parts of the UK. Given the trans-boundary nature of marine litter, we are working with other countries in the Oslo and Paris convention for the protection of the marine environment.

[Margaret Greenwood]

Marine litter and plastic waste are damaging our wonderful coastlines and marine life, not least, in my constituency, in the Dee estuary, which is internationally important for its bird life, the beaches of West Kirby, Thurstaston and Hoylake, and the Red Rocks site of special scientific interest, which is an important breeding ground for frogs and natterjack toads. Will the Government follow President Obama’s lead and ban microbeads in cosmetics?

[George Eustice]

This issue was discussed at OSPAR—the Oslo and Paris—convention in 2014. The UK pushed very hard to get a voluntary agreement to which the cosmetics industry would sign up. At the end of last year, Cosmetics Europe, the industry body representing all cosmetic manufacturers in Europe, gave an undertaking to phase out the use of microbeads in particular. We rule out nothing when it comes to considering regulation in the future.

[Michael Fabricant (Lichfield) (Con)]

The hon. Member for Wirral West (Margaret Greenwood) is absolutely right to raise this issue. Nothing is more heartbreaking than walking along a coast—or even in Lichfield, right in the middle of the nation, where we have the lakes of Minster Pool and Stowe Pool—and seeing swans and other animals suffering because of bags and other material that have been left there.

[George Eustice]

My hon. Friend makes a very important point. That is why we took the decision to introduce the 5p charge on single-use plastic bags. The big problem we have with plastics is that they remain in the environment for a very long time, which compounds the problem, and we add to it each year. Once these plastics are in the marine environment, it is incredibly difficult for them to be removed, so it is essential that we do all we can to stop plastics getting into the marine environment.

[Kerry McCarthy (Bristol East) (Lab)]

At the last Environment, Food and Rural Affairs questions, the Environment Secretary assured me that the Government were serious about tackling plastics pollution and marine litter. Yet, on the circular economy all we hear is vague talk of encouraging voluntary action and mumblings about overarching concerns. On the marine side, 10 EU countries have invested in joint EU research into micro-plastics in the sea, the joint programming initiative on oceans. We have world-class marine research facilities in the UK, so why are we not part of that?

[George Eustice]

I think the hon. Lady will find that we are doing quite a lot of research on marine plastics. Plymouth University has done some work for us on that. I am very clear: we do want action across Europe. That is why we have worked with partners in the OSPAR convention, and why we have pressed to get a voluntary undertaking by the industry to get rid of microbeads. As I said in my initial answer, we have also been very clear that we do not rule out regulatory steps, if necessary.

[Rebecca Pow (Taunton Deane) (Con)]

8. How many flood defence schemes are planned to (a) begin and (b) complete construction in 2016.

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[Mrs Flick Drummond (Portsmouth South) (Con)]

T3. The shellfish industry is worth £500,000 to the local economy in Portsmouth and has been affected by pollution in the past. What progress are the Government making to create blue belts that balance the legitimate interests of the fishing industry with marine conservation?

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

My hon. Friend makes a good point. As she knows, we recently designated an additional 23 marine conservation zones, taking the total to 50 around the country. In addition, we have a network of sites of special scientific interest, special areas of conservation and special protected areas. She makes an important point that, in those designations, we have to balance the needs of fishing with the needs of the environment. That is what we intend to do.

[Imran Hussain (Bradford East) (Lab)]

T2. The Secretary of State has rightly acknowledged the need for better management of land upstream and water catchment areas in preventing floods. What concerns does she have about the burning of heather to improve grouse moors in upstream areas, where it reduces the ability to retain water?

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

T4. A number of farmers in my constituency have suffered from delays in the basic payment scheme, with all the worry and financial anxiety that that has caused. What guarantee can the Minister give that this will not happen again?

[George Eustice]

We have worked very hard with 1,000 people on this project to pay farmers as soon as possible. We have done considerably better than other parts of the UK, such as Scotland. We have now paid about 83% of farmers. By the end of this month, almost all of them will have been paid. We believe that from next year—we have done a lot of work on the computer system—it will be much easier for farmers to complete their application, because the data will already be there.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

T5. Violent crime is rising in my urban constituency. It has been proven that access to open spaces and the natural environment can reduce stress and have a calming effect. Will the Minister consider discussing with me the trial of a programme to enable those at risk of serious youth violence to experience the calming effects of the natural environment?

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[Marcus Fysh (Yeovil) (Con)]

T8. People who love bees, and farmers and consumers of products relying on them, are deeply concerned that there is an attempt by large US and EU chemical companies to downgrade environmental protections from pesticides in backroom lobbying over the proposed Transatlantic Trade and Investment Partnership deal in Brussels. Is this not an example of how elites run the EU and cause grave concern that their influence is unaccountable?

[George Eustice]

The authorisations to use all pesticides are decided by both the European Chemicals Agency and the European Food Safety Authority in the European Union. The chemicals regulation directorate in the Health and Safety Executive contributes regularly to them.

[Holly Lynch (Halifax) (Lab)]

T6. I echo the sentiments of my constituency neighbour the hon. Member for Calder Valley (Craig Whittaker) in welcoming the announcement yesterday on flood defences. May I probe for a little bit more detail and ask how much of the £150 million pot the Secretary of State anticipates will be available for Calderdale? Given that it is being raised in a tax in this way, when does she anticipate it becoming available?

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[Martyn Day (Linlithgow and East Falkirk) (SNP)]

T7. Given that the position of the farming Minister is for the UK to leave the EU, what measures does he believe should be in place and how will he ensure financial assistance for Scottish farmers should there be a Brexit?

[George Eustice]

As I explained earlier and as the hon. Gentleman knows, the formal Government position is to remain in the European Union, but the Prime Minister himself made it clear this week that were the country to decide to leave the Government would of course continue to support British agriculture.

[Sir David Amess (Southend West) (Con)]

Would my hon. Friend broaden the list of special areas of conservation to include the Thames estuary, which has important marine habitat, including marine marshes and marine sands in the area I happen to represent?

[George Eustice]

My hon. Friend makes an important point. Both Leigh marsh and Leigh sands are wonderfully important habitats for wildlife. They already benefit from the protection of being a site of special scientific interest and are also part of a special protected area under the birds directive, so there is already a lot of protection for these wonderful sites.

[Ian Lavery (Wansbeck) (Lab)]

In Morpeth in my constituency, we have a Rolls-Royce flood defence system, but we also have a problem with insurance companies still quoting exceedingly high premiums. They blame the Environment Agency for not updating the data. What can the Minister do to resolve this unacceptable situation?

Welfare of Young Dogs Bred for Sale

George Eustice Excerpts

Tuesday 8th March 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

It is a pleasure to serve under your chairmanship, Sir Roger, especially since you yourself have done so much on the issue of animal welfare over the years.

I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on securing this debate, which is undoubtedly an important one on an issue that many Members have strong views about. Indeed, when I was a Back Bencher and a member of the Environment, Food and Rural Affairs Committee, I spent a number of years pressing for change, and it has been a pleasure to be a Minister responsible for this area.

I start by saying that we have made some progress over the years. First, there had been concern for many years that local authorities were taking an interpretation that said that, if someone was breeding fewer than five litters of puppies per year, they did not need a licence. It took me some time in the Department to get to the bottom of why that was the case—the figure used to be two litters per year. The law had been changed in 1999 because in one debate in Parliament, the view was expressed that the authorities should focus more on large puppy farms and not on smaller breeders. Although the law as drafted means that anyone who is in the business of buying and selling puppies requires a licence, an idea had taken hold—encouraged by a Home Office circular sent at the time in 1999—that five litters per year was the correct threshold to go by. In 2014, therefore, we clarified things. We wrote to all local authorities and made it clear that anyone in the business of breeding and selling puppies, irrespective of the number of litters per year, must have a licence.

The second area where we have made progress is microchipping. I hope hon. Members have seen the attempts in the last few days to raise awareness about the new provisions that will commence from next month. They require all dogs to have a microchip and will make it easier to reunite stray dogs with their owners, to tackle the problem of dog theft and to track down irresponsible dog owners.

The third area where we have undoubtedly made good progress is, as a number of hon. Members have already alluded to, through the Pet Advertising Advisory Group. I pay tribute to those online advertisers who have participated in that group. Some real progress has been made. In total, 130,000 inappropriate adverts have been taken down. We have had volunteers from a number of the animal welfare charities assisting in moderation to do that.

However, when I talk to companies such as Gumtree—I regularly attend the PAAG meetings on these issues—they say that, in the last three years, they have seen an 80% reduction in the number of pets being advertised on their websites. It is a real credit to them that they have engaged in a responsible code of practice that has seen such a drop in the number of pets being advertised online. For instance, if any of those companies see high-velocity sales—that is, if anyone advertises a pet on their website more than three times in a year—they immediately block that individual or firm from being able to advertise again, and they report that to animal welfare charities. If someone has a licence, it must be displayed in any advert on a website, and they have to show a photo.

PAAG also looks for keywords. One of the saddest, most tragic things is when pets are being sold online for use in baiting or dog-fighting. There are certain keywords—code words—that people who are involved in that dreadful and appalling activity understand, and PAAG is now picking up on them.

[Angela Smith]

I am greatly enjoying the Minister’s response to the debate. I acknowledge absolutely the work that charities, online sellers and websites, and indeed the Government, have done on this issue—I will be absolutely honest about that. However, does he not acknowledge in return that there has been a shift from registered sites to unregistered sites, and that more needs to be done?

[George Eustice]

Yes, and I was going to come on to that point.

Finally, Gumtree, Preloved, Friday-Ad, Pets4Homes, Epupz and Vivastreet have already signed up to be members of PAAG, and some of them are now starting to send guidance on buying a puppy and caring for it to anyone who expresses an interest in buying a puppy or searches for puppies online. Again, that is quite a big step forward.

I agree about getting others to sign up. Some of the classified ads are registered and based overseas, and it is harder for us to track them down. Just a few weeks ago I had a meeting with Facebook, to encourage it to participate. It obviously has a slightly different model and it is harder to search for puppies in the same way as on the internet in general. Nevertheless, it has given an undertaking to go away and think about whether there is something it could do.

I also accept that there is more to do, and that is why we are doing more. First and foremost is the consultation, which a number of hon. Members have mentioned, that is reviewing the licensing of animal establishments. The consultation closes at the end of the week, and I encourage anyone watching the debate who has ideas to make a contribution. We are looking at a number of key areas, including in relation to puppies.

First, we are reviewing the Pet Animals Act 1951. The Act makes it clear that, if someone is in the business of selling pets online, they require a licence. Not everyone understands that, so we are looking to tighten the provisions to put it beyond doubt that, if someone is internet trading, they require a pet shop licence, whether or not they have a shop in the high street.

The second area we are looking at, and which a number of people have raised with me, is that of selling puppies that are under eight weeks old. Under the new microchipping regulations, it is illegal to microchip or transfer ownership of a dog until it is eight weeks old, but when it comes to pet shops, there is a quirk that allows such practices to continue. We propose to tighten the provision and ban the sale of puppies that are under eight weeks old.

[Sir David Amess]

Does my hon. Friend think it sensible for puppies to be sold in pet shops?

[George Eustice]

Only about 70 pet shops in the whole country still sell puppies. There is a danger that we get distracted by what is a small part of the overall sales when, to me, we should focus our efforts on the much bigger problem of people who are totally unlicensed, not inspected by local authorities, off everyone’s radar and trading on the internet. That is my priority.

Thirdly, on the number of litters, we are adding a condition that puts it beyond doubt that, if someone breeds more than three litters a year, they must have a licence, whether they are in the business of trading puppies or not—it is a backstop. That would bring us into line with countries such as Wales.

We are also looking at the issue of giving information on the sale of a pet, which is particularly important for exotic pets. The matter was considered in the Animal Welfare Act 2006 and we are now considering adding it as a legal requirement.

[Graham Jones]

Will the Minister give way?

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[George Eustice]

I am going to make some progress—I am conscious of the time.

On enforcement, it is all very well having a licensing system for the breeding of puppies, but it is a big problem if local authorities do not enforce it. The statistics for most local authorities are in single figures. We are considering introducing a system that is accredited by the United Kingdom Accreditation Service under which responsible puppy breeders, who sign up, for instance, to the Kennel Club accreditation scheme for rearing puppies, can be exempt from the licence requirement. Local authority resources could be freed up to go after those who are off the system altogether. In doing that, we borrow an idea that the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) pioneered in the field of greyhound racing. There is a UKAS-accredited system for most tracks and a backstop local authority licensing system for those outside that system. People have their own views about greyhound racing, but that hybrid system has been successful and we want to learn from it.

A number of hon. Members have raised the issue of enforcement. I accept, particularly when it comes to the importing of puppies, that we can do more. In 2015, the border police, trading standards and the Animal and Plant Health Agency worked together on Operation Bloodhound and brought a number of prosecutions. At the end of last year, I met with our chief veterinary officer to ask what more can be done. Some veterinary practices, particularly in Lithuania, Hungary and Romania, have been fraudulently signing off paperwork for pet passports, and the chief veterinary officer has written to the authorities in those countries to raise his concerns. Investigations have taken place and, in some instances, veterinary licences have been suspended, so we have taken action on that front.

We are also working with the Dogs Trust initiative. The trust has made available some quarantine premises, which is helpful to the work of the Animal and Plant Health Agency. Since 2 December, when the operation, led by APHA and local trading standards and supported by Dogs Trust, began, 108 puppies have been licensed into quarantine. The principal reason is that the puppies were under age when inspected by a veterinary officer, either because they had not been left for three weeks after receiving their rabies jab or because they were given the jab prematurely. That is a matter of serious concern and APHA will follow it up, learn lessons from it and raise concerns where necessary with any other European authorities. In one case, there was a deliberate attempt to deceive, with microchips being hidden in the collars of five puppies. The puppies appeared to have valid pet passports but these did not correspond to those particular dogs.

We are doing a lot of work on enforcement but there is more to do. I have considered whether we can do many more random inspections, for instance tracking vehicles that are associated with the trade, working more closely with the border police and making use of thermal imaging. I asked our veterinary experts to give consideration to that. It is not easy. It is a complex area, but we are redoubling our efforts to tackle the terrible trade of illegally imported puppies.

Agriculture and Fisheries Council

George Eustice Excerpts

Wednesday 24th February 2016 Written Statements

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I represented the UK at the Agriculture and Fisheries Council on 15 February in Brussels.

The chair of the Council, the Netherlands Minister for Agriculture, presented the work programme for the duration of the Dutch presidency. It focused on the key areas of food security, the future of the common agriculture policy, plant breeders’ rights and patent rights, antimicrobial resistance, market situations, and sustainable fisheries.

Commissioner Vella introduced the first agenda item on the Commission’s proposal to amend rules for the control and management of EU fishing vessels operating outside of EU waters. All member states, including the UK, supported the general aims of the proposals. However, we and a number of others had concerns about increased administrative burdens and coherence of EU rules with relevant regional fisheries management organisations. Concerns were also raised about the overlap of member state and Commission responsibility for issuing authorisations, on the grounds of subsidiarity. The presidency noted it hopes to agree a Council general approach in May or June 2016.

The second agenda item was on establishing an animal welfare platform—a paper which was put forward by Germany, Sweden, Denmark and the Netherlands. The Council broadly supported this, which would allow experts to further exchange best practice and harmonise data and animal welfare across all member states. France stressed the need to include animal welfare standards in future international trade negotiations.

Before lunch, a brief overview was given by the presidency on the antimicrobial resistance conference which took place in Amsterdam on 9 and 10 February. The UK, Denmark and Slovenia supported making this issue a priority.

After lunch, Commissioner Hogan updated the Council on EU trade and ongoing negotiations. He highlighted that EU exports were 6% higher than the previous year and that he was continuing to support sectors by increasing export promotions funding, diversifying and increasing EU trade partners and capitalising on opportunities in emerging economies. The Commissioner set out his ambitions to diversify and increase EU trade with a number of countries including China, Japan and the USA and he updated the Council on his recent visits to Colombia and Mexico. He also highlighted the recent success at the World Trade Organisation conference in Nairobi.

I supported the Commissioner in calling for ambitious trade and pushed further consideration of animal welfare in free trade agreements. This was echoed by a number of other member states.

Lastly, Commissioner Hogan summarised the conference on agricultural research held in Brussels on 26-28 January 2016. Many member states intervened welcoming the development and direction of the strategy.

The following were AOB items on the agenda:

Poland tabled a non-paper detailing their concerns on the extension of the restricted area for african swine fever, and called for additional support to the Ukraine to manage the spread of the disease. This was supported by nine other member states.

Poland and Spain led the discussion on agricultural markets highlighting the challenges in the pigmeat, dairy, fruit and vegetable sectors. This led in to a closed ministerial lunch discussion.

[HCWS545]

Bat Habitats Regulation (No. 2) Bill

George Eustice Excerpts

Friday 5th February 2016 Commons Chamber

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I too associate myself with the comments about the sad death of Harry Harpham.

I thank my hon. Friend the Member for Christchurch (Mr Chope) for giving me the opportunity to respond to his Bill. As he indicated, this is a Second Reading in more ways than one, because, a little over a year ago, I stood at the Dispatch Box debating precisely the same Bill. This is an opportunity, as he said, to update the House on what has happened since, although it is obviously a short time in which to make progress on such a long-term problem. I am afraid, however, that the Government still do not support his Bill, for reasons I will explain.

All bats are subject to protection under the Wildlife and Countryside Act 1981, which makes it a criminal offence deliberately to kill, injure, take or disturb bats. There is also a strict liability offence of damaging or destroying their breeding sites or resting places. The Act’s provisions protect bats from disturbance in their place of rest and the obstruction of such locations.

Most of the 18 species of bat found in the UK evolved to live, breed and forage in or around trees and caves, but many have now adapted to roost in buildings, including barns, houses, churches, tunnels and bridges, following the loss of their natural roosting sites through modern agriculture and forestry practices, and also through urban growth. Such artificial roosts are now essential to the survival of many bat species. However, the threat of demolition of old buildings, barn conversions, an increasing use of artificial lighting and the move towards air-tight buildings have highlighted the increasing importance of the remaining roosting sites. Decreasing the protection afforded to bats in these important sites is therefore likely to have a detrimental impact on the conservation status of bats in the UK and would be in contravention of our existing national legislation, which, as my hon. Friend pointed out, is also underpinned by our obligations under, for instance, the habitats directive.

My hon. Friend’s Bill proposes that surveys must be undertaken before any new buildings are built, to assess the presence of bats in the area; and if there are any bats present, that building should proceed only if bat boxes or other artificial roosts are provided. The requirement to be aware of the existence of bats and to consider the impacts of any build on their numbers already exists. Local planning authorities have a duty to consider biodiversity and the requirements of the habitats directive when considering developments. Mitigation of damage to bat roosts and resting places may be required, but bat boxes and artificial roosts are only two of the possible measures that can be implemented. Each case should be considered on its merits. Furthermore, bats require not just roost sites, but suitable habitats in which to feed. The Bill does not take account of this.

The Bill also proposes to prohibit the placing of wind turbines in the vicinity of any bat habitat. Again, bat surveys are already undertaken at potential wind turbine sites when bats are nearby. The Department for Environment, Food and Rural Affairs has commissioned research on the impact of wind turbines on bats, and I am told the report will be published shortly. My hon. Friend asked for an update on that report, and the fact that it is being published suggests that either it is nearing completion or the finishing touches are being put on it. We expect the report to be published in the spring. Should that research show an impact, we will consider what changes may be needed in the placing of wind turbines. I would make the point, though, that this is not believed to need new legislation; rather, there would simply be a change in planning policy guidance.

Finally, the Bill proposes that bats should be excluded from a building used for public worship unless it has been demonstrated that their presence would not have a significant adverse impact on the users of such a place. Unfortunately, the Bill does not define what a “significant adverse impact” would be. Such a blanket prohibition does not take account of either the potential importance of some churches to vulnerable bat populations or the work the Government are doing to alleviate the impact of bats in such places where they are causing a nuisance or distress. In a changing landscape, where hedgerows and other linear features so important to bats have been lost and other buildings used as roost sites, such as farm outbuildings or other traditional buildings, have been lost or demolished, churches can represent one of the few remaining constant resources for bats, thus giving them a disproportionate significance for the maintenance of bat populations at a favourable conservation status.

However, as I have said previously, the Government recognise and are very sympathetic to the concerns of the many parishioners who are suffering from the negative effects of bats in churches, such as bat droppings. To address this, the Government have invested significant resources in research and development to assess how we can reduce the impact of bats in churches. A recent three-year research project led by DEFRA, along with a pilot project led by Historic England, developed techniques to assist churches with significant bat-related issues. Solutions are ready to be implemented in some churches that were involved in this work. Natural England is currently creating a licensing framework, which will be the mechanism through which these techniques will be delivered.

[Mr Chope]

When does my hon. Friend expect Natural England to complete the licensing framework?

[George Eustice]

I do not have a particular timetable, but the framework is being developed based on the evidence from the research project. I imagine that it could be done relatively quickly.

I thought my hon. Friend took a rather “glass half empty” view of the parliamentary question and the response to it that he received today. The reality is that Heritage Lottery Fund money is being sought to support the roll-out of this work across England and to create an effective national support network for churches that have bat-related issues. He might have misinterpreted one element of the response, because it made it clear that this is a funding application, a decision on which is expected in March this year, and that that funding will support a five-year project. It is not the case that nothing will be done for five years or that further evidence gathering will go on for five years. If the project is supported, it will be largely complete after five years. There is more reason for optimism than my hon. Friend showed.

[Mr Chope]

Obviously, I would not expect the Minister to anticipate not getting the funding from the Heritage Lottery Fund, but can he guarantee that, whether or not that application is successful, this work will be carried out, because it would be perverse if it were dependent solely on the success of that bid?

[George Eustice]

When it comes to heritage assets, our churches are almost second to none. We have thousands of churches and they provide incredibly important heritage assets, so I think this bid will be a very strong one. If, however, for some reason the bid were unsuccessful, it goes without saying that we would seek alternative means to fund this important work.

Major positive strides forward are already being made at one church. Work carried out at St Hilda’s in Yorkshire led to the impact of bats being removed altogether, while ensuring that the bats were still able to roost in the roof of the building. This is an excellent example of peaceful co-existence between bats and parishioners in churches.

Let me deal with the habitats directive, another point that my hon. Friend raised. The Commission is working on its REFIT—regulatory fitness and performance programme—proposals, looking at the implementation of the habitats directive. We think it unlikely that any major revisions to the list of species protected by the directive will be made, but the Commission is keen to ensure that implementation is proportionate. That work is carrying on. My hon. Friend will know that things do not always move at a pace in the European Union, but I can assure him that we are in regular dialogue with the Commission on this matter, and we are keen to see the REFIT approach to the directive taking place.

My hon. Friend’s Bill deals with the habitats directive by inserting a notwithstanding clause. The constitutional position is clear: Parliament has the right to set aside directives in the way he describes if it wishes to do so. It would, of course, cause difficulties for our laws internationally, which is why we have tended not to do this. He should understand that we sign up to other international conventions. He sought to make a distinction between the protection of migrating species and species that are here purely domestically. We have signed up to the Bern convention, which encourages wildlife protection in all the countries that are signatories to it—whether or not they are in the European Union and irrespective of whether the species are migrating. The Bern convention makes some reference to bats in this respect.

[Mr Chope]

May I give an example by referring to what happens with migrating birds in Malta? Although Malta is a member of the European Union, it does not seem that any of these rules apply to that country.

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[George Eustice]

The rules do apply to Malta. We have debated in the House some of the challenges posed by dove shooting in Malta, for example. Legal cases have been brought against the Maltese Government on precisely these issues. They have been required, under these regulations, to put in place protection for migrating doves, too.

In conclusion, the current licensing regime administered by Natural England already allows us to address problems caused by protected species such as bats and properly balances the legitimate interest of people in a way that avoids harming wildlife, without the need to change the law. For the reasons I have outlined, the Government oppose this Bill as being both unnecessary and inappropriate. I can, however, assure my hon. Friend that I take the issues he has raised very seriously. I hope he will recognise that although it is just one year on, we have indeed made progress with this application to the lottery project and with the ongoing review of the habitats directive. I hope therefore that he will see fit not to push this to a Division.

Oral Answers to Questions

George Eustice Excerpts

Thursday 4th February 2016 Commons Chamber

[Tom Elliott (Fermanagh and South Tyrone) (UUP)]

6. What assessment she has made of the effect of recent flooding on the agriculture industry.

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

Farmers in many parts of the country have been affected by the winter flooding, notably in Cumbria, Lancashire, Yorkshire, Scotland and, of course, areas of Northern Ireland. We identified 600 farmers in Cumbria alone who suffered flooding after Storm Desmond. Unlike the Somerset floods two years ago, the flooding events have been relatively short-lived. However, in their wake, considerable damage has been done to stone walls, hedges and tracks. In England, we have established a farm recovery fund to help farmers get back on their feet.

[Tom Elliott]

In Northern Ireland, there is a long-established relationship with the Republic of Ireland Government in relation to Lough Erne and its levels. The UK Government had a relationship, too, from 1950, when that deal was made. Have there been any discussions with the Northern Ireland Minister of Agriculture and Rural Development about reviewing the levels of Lough Erne to stop farmers from being flooded in the area?

[George Eustice]

As the hon. Gentleman knows, flooding is a devolved matter, but if there is a need for discussion with the Irish Republic and if the Northern Ireland Administration would like me to be involved in that, I would be happy to have that conversation with them.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Farmers in areas in the south of my constituency, around Methley and Mickletown, have had large areas of their land flooded to hold water in order to prevent flooding of housing, which the farmers themselves agree with. However, what they do not agree with is the Environment Agency saying that it could take up to six years for this water to drain off the land. One particular farmer in my constituency had 80% of his land covered. Will my hon. Friend speak to the Environment Agency to speed up the draining of the water from this land?

[George Eustice]

That is a good point. Natural flood plains play an important role in alleviating the risk of flooding in urban areas. We intend to use the countryside stewardship scheme to help us to deal with flood problems. As for my hon. Friend’s specific point about the length of time for which land has been flooded, I shall be happy to take it up with the Environment Agency and see what can be done.

[Greg Mulholland (Leeds North West) (LD)]

I am still waiting to hear the date of the meeting with Members whose constituencies lie along the River Wharfe to discuss the flooded farmland in Pool-in-Wharfedale and Arthington, in my constituency. We particularly need to discuss what can be done upstream to prevent the water from coming down and threatening both farms and housing. When can we have that meeting?

[George Eustice]

I am sure that my hon. Friend the Member for Penrith and The Border (Rory Stewart), the floods Minister, has heard what the hon. Gentleman has said, and will be willing to meet him to discuss his concerns. My hon. Friend has already had many meetings with the many Members who have been affected by winter floods.

[Nick Smith (Blaenau Gwent) (Lab)]

The Secretary of State says that DEFRA wants to be able to spend more on flood defences by reducing the millions paid in penalties to the EU every year. However, the National Audit Office says that the Rural Payments Agency fiasco could cost the country a whopping £180 million a year in penalties. Can the Minister confirm the most recent estimate of the amounts that are being paid to Brussels in fines, rather than being spent on British agriculture and dealing with flooding?

[George Eustice]

The “horizontal” regulation that governs the disallowance system has been changed, and the penalties that the Commission can charge, and their frequency, have increased. That is the issue of concern in this instance, rather than any particular issues involving the rural payments system. I repeat that we are spending £2.3 billion a year on flood defences, and have provided £200 million to help people to get back on their feet after the most recent episode.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

7. What assessment the Government have made of the contribution of nature improvement areas to habitat creation and wildlife conservation.

--- Later in debate ---

[Peter Aldous (Waveney) (Con)]

T6. Will the Minister confirm that the Government will reallocate fishing quota from those who hold it only as an investment to active, small-scale fishermen such as those who fish out of Lowestoft, who bring real benefits to their local community?

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

My hon. Friend will be aware that we had a manifesto commitment to rebalance quotas, and we have already commenced that this year, with the quota uplift that comes with the introduction of the landing obligation. We have made it clear that we will give the first 100 tonnes, and 10% thereafter, to the under-10 metres, and this year it will give them an extra 1,000 tonnes of fish.

[Mr Mark Williams (Ceredigion) (LD)]

T2. The recent Tesco case has shown the importance of the Groceries Code Adjudicator. Does the Secretary of State share the view of the National Farmers Union, the Farmers Union of Wales and many in the dairy sector that now is the time to consider extending the adjudicator’s remit right across the supply chain, from gate to plate, even if that requires legislative change?

[George Eustice]

I am aware of the representations made by the NFU and of the conclusions of the Select Committee on Environment, Food and Rural Affairs in this regard. I know that colleagues in the Department for Business, Innovation and Skills are about to commence a review of the role of the adjudicator so far, and it may well be that as part of that they look at how the code is implemented. There would be challenges involved in trying to regulate things that far up, with thousands and thousands of different relationships to police, but we hear what has been said and we will look at this matter.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T8. Cross-compliance rules prevent hedge cutting in August, yet the only bird that seems to be nesting at that time is the very prolific wood pigeon. The rules are preventing farmers from doing vital work, as they are unable to get on to that land during August. Will Ministers agree to look at this to see what can be done to change these rules?

[George Eustice]

My hon. Friend will be pleased to hear that I am always looking at the cross-compliance rules to see whether we can introduce proportionality. I do not agree with him that it is just the wood pigeon that is being protected; yellowhammers and other rare species that we are trying to encourage to recover also have second broods later in the year.

[Kerry McCarthy (Bristol East) (Lab)]

One less well-publicised deal the UK has been negotiating with our European partners recently is the circular economy package, which could not only bring about significant environmental benefits, but create jobs and growth. The Government, however, do not seem to have a strategy for achieving the ambitious waste targets set out there or for unlocking the economic opportunities that would come from greater resource efficiency. When are we going to have a proper waste resources strategy from the Secretary of State?

--- Later in debate ---

[Margaret Greenwood (Wirral West) (Lab)]

T3. I welcome the announcement of further marine conservation zones around our coast to protect our wildlife. However, back in November 2012, when the previous round of MCZs was announced, many in my constituency were very concerned that the zone to protect Hilbre Island was dropped at the eleventh hour, especially in the light of the licence for underground coal gasification that exists in the Dee. Why was Hilbre Island not included in this latest round?

[George Eustice]

We ruled out Hilbre Island, following assessments by the Centre for Environment, Fisheries and Aquaculture Science and the Joint Nature Conservation Committee, because the simple truth was that the features that people said were there were not there sufficiently for us to designate those areas.

[Neil Parish (Tiverton and Honiton) (Con)]

For farmers, farmgate prices are so low that the single farm payment is absolutely essential. Will the Secretary of State assure me that the Rural Payments Agency recognises that there are still too many farmers who have not received their payments, and that work is being done to ensure that, next year, we catch up so that we are not late in paying again?

--- Later in debate ---

[Sir David Amess (Southend West) (Con)]

Has my hon. Friend thought through the impact of the introduction of marine conservation zones on the under-10-metre fleet? That could have an effect on smaller, non-nomadic boats, which might be banned from fishing in their own grounds.

[George Eustice]

I absolutely assure my hon. Friend that the interests of fishermen are taken into account when we make decisions on these designations. It is important to note that designation does not mean that we ban fishing; it may mean, for instance, limitations on the particular types of bottom-trawling gear that do most damage.

[Several hon. Members rose—]

Basic Payment Scheme

George Eustice Excerpts

Thursday 28th January 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I congratulate my hon. Friend the Member for Wells (James Heappey) on securing this highly important debate. I completely understand—a number of hon. Members have discussed this—the importance of these payments to farmers, particularly in a year when farmers have suffered low commodity prices and when sectors, such as the dairy industry in particular, have been in the doldrums and suffering severe difficulties.

I will begin by agreeing with the hon. Member for Ross, Skye and Lochaber (Ian Blackford), who has the analysis of what has caused these problems this year absolutely spot on. He was no doubt briefed by the Scottish Government, who have had similar problems. The root cause of our difficulties is the new common agricultural policy. We aimed to get a simpler CAP in the last Parliament. However, we have ended up with something far more complex, because the European Commission was determined to add what it called the greening of pillar 1 payments. We therefore have to map every hedge in the entire country, and there is a whole plethora of rules about the minimum width of a hedge, the maximum width of a hedge, what size a gateway can be, what type of crops can be grown over the other side of a hedge—and it goes on and on forever. There is an incredibly complex set of greening rules, including the three-crop rule that every farmer must now grow three different crops on their holding.

In addition, we have seen the integrated administration and control system—a very intensive system of enforcement —brought into the pillar 2 schemes, which has also added complexity to our countryside stewardship scheme, which is causing a parallel problem.

To deal with all those problems, we needed a new IT system. The truth is that the core of that system—the bit that processed the rules—actually worked well. It was made by a company called Abaco, which had a track record in this area. The bit that processed the rules worked well, as did the payment engine—sometimes called the back end of the system—which is successfully paying people.

The bit that we had difficulty with at the beginning of last year was the interface at the front that was supposed to enable farmers to do their online applications. We realised by the time that we got to the end of February that it would not be possible to make that dovetail successfully at the correct speeds needed to do online applications last year, so we had to switch to a paper-based application and delay the deadline for a month.

I want to put on record my praise for the work that the RPA has put into the scheme. A number of hon. Members have been critical of the RPA, but I think that it falls to me, as the person who is dealing with it week in, week out, to praise its work. We have had between 800 and 1,000 people in the RPA working on this seven days a week to try to get these applications on the system and to get payments out to farmers as quickly as possible.

My hon. Friend the Member for Selby and Ainsty (Nigel Adams) asked whether we had the right expertise in the RPA. It is true that, in a typical year, we would have about 400 people working on BPS applications. We have brought in additional people from other agencies, as well as what is called the surge force of civil servants working in the Cabinet Office—a flexible team of people who can be deployed to unexpected workloads. Therefore, people are there who have not traditionally been in the RPA; nevertheless, they have worked incredibly hard to get to where we are now.

Turning to the RPA’s leadership, my hon. Friend the Member for Wells pointed to the exceptional track record we have had over the past three years. It was not always like that. A decade ago, things were in an incredibly bad state. Today, the same leadership team are turning around the difficulties we had at the start of this programme. They have delivered the exceptional results that he pointed to, and I have great confidence in them.

I will just point out what has been achieved to date. We took on this difficult position and paid 33,000 farmers on day one—on 1 December—when the payment window opened, and we had paid more than half by the end of December. As of yesterday—a number of Members have pointed this out—we have paid 61,278 farmers. That takes us to just over 70%. As I speak, we are working on the final batch of payments, which will go out before the end of March and will take us to the vast majority of payments having been made.

[James Heappey]

I suspect that the Minister misspoke, but I invite him to clarify what he said. He said that we are working today on payments to be made by the end of March. Does he mean the end of the month?

[George Eustice]

Sorry, yes, I meant by the end of the month—I am sorry if I said by the end of March. We will have a final batch, which will take the figure probably above 75%, but it is not certain; that is still being worked on now.

We should highlight the fact that we worked quickly to get the dairy support fund out. It went out earlier than expected in the middle of November to help hard- pressed dairy farmers.

[Nick Smith]

I was just listening to the Minister’s comments. Will he confirm whether he thinks that the “vast majority” is 75% of farmers? Is that the definition he is using?

[George Eustice]

We could agonise over the definition of “vast majority”, but as far as I am concerned, “over 60,000” is a vast number of applications and a vast amount of work has gone into processing them.

We should recognise what has been done on the entry level and higher level stewardship schemes. Again, we had a difficult start because of the paper application process, but 97% of applicants have now had their first instalment and 60% have received their second instalment a month earlier than normal. We have made progress, but there is further to go.

Some people will ask why we cannot just pay and why things are so complicated. As the hon. Member for Ross, Skye and Lochaber said, there is a good reason for that. Under regulations and law, the EU requires certain inspections and verification to be carried out. The truth is that we tried to get the Commission to relax those requirements to enable us to expedite payments this year, but it refused. We cannot make those payments from the EU until those various checks and the validation of claims have been completed.

A number of hon. Members referred to communications. In November, we wrote to around 15,000 farmers whom we anticipated would not be paid by the end of January. The two primary groups are some 4,700 farmers with common land—I will come back to them—and around 9,000 farms that had inspections of one sort or another.

A number of hon. Members mentioned part-payments. We considered this, but we ruled it out and I will explain a couple of reasons why I think that we were right. Scotland has decided to make part-payments. It has 3,500 farmers and, according the latest figures I have seen, around 18% of them had received a part-payment of 70%. Compare that with this country where 70% of farmers have received everything. That is a better position to be in. Had we taken a decision in November at the end of last year to start chopping and changing plans again and messing around to try to get part-payments out, even fewer farmers might have received them, never mind receiving full payment.

[Sir Henry Bellingham]

I accept the Minister’s point about the overall strategy at DEFRA, but what about those really difficult and deserving cases with very complicated problems of reconciliation, cross-compliance and so on, such as those with commons? Surely, there is an argument in those few rare cases to go for part- payment.

[George Eustice]

I will come to that, but we should remember the experience of 2005. Some hon. Members have said we should learn lessons. Let us remember that in 2005 no one was paid in December, no one was paid in January, no one was paid in February and no one was paid in March. The first farmer to be paid was paid in March. Then, the last Labour Government decided to switch to a part-payment system and got themselves into a complete muddle that took a couple of years to sort out because of all the reconciliation that had to be done afterwards. They found that farmers had received inaccurate payments and it caused all manner of difficulties. For that reason, we should be cautious.

We should realise that, as a number of hon. Members have pointed out, the payment window does not open in May, but closes in May. The next application window opens in March, which is not long to go—five or so weeks. I want staff in the RPA to be working on making sure we get next year’s applications right and through, rather than messing around doing part-payments of this year’s applications.

I want to say what we have done. We have introduced a hardship fund. We have worked closely with groups such as the Farming Community Network that provide a triage process. If a farmer is suffering real hardship and cannot, for example, buy feed for their cattle, they are fast-tracked. In some cases, if we can we speed up an application, we make we sure we get it through as quickly as possible. In other cases when we suspect they will not be paid in a hurry, we have in many cases made part-payments on account cash-flowed by the Treasury—not EU-funded, which would expose us to difficulties, but on account from the Treasury.

[Geoffrey Clifton-Brown]

Will the Minister give way?

[George Eustice]

I will not give way because I want to cover a few more points and leave time for my hon. Friend the Member for Wells.

Some hon. Members have talked about the banks. I have been meeting them regularly and encouraging them to show forbearance to farmers. One reason why we sent a letter last November to those who were not expected to get their payment at the end of January was that they could take it to the banks, which were ready for that.

A number of hon. Members talked about communications. As I said, a letter went out in November and a further letter has gone out to those not receiving payments now, in January. The RPA has held almost weekly meetings with key NFU office holders and regularly attends NFU councils, so I do not accept the allegation that people have been kept in the dark and not informed. What I can understand is the understandable frustration among farmers who have not yet received their payments. That is spilling out in criticism of communication, which is probably a little unfair.

I want to talk about next year. A number of hon. Members asked about lessons. The reality is that we now have all these data on the core system. For next year, farmers will start from the position they left off in this year. We are confident that having done all the difficult work to get those applications on, from here forward it will be far easier. We will offer paper applications to those farmers who want them next year, but we hope that those who were previously online—about 70% up until 2014—will return to being online.

I want quickly to cover the issue of commons, which was raised by a number of hon. Members. We had a legal challenge from a local authority in Minchinhampton. It challenged the very basis on which we used to make payments and it caused huge difficulty for everyone. The issue is not about just having a plan B; the problem is that the methodology that it has now forced on us through its challenge means that it is impossible to pay anyone on a common until we have resolved all those claims. Our biggest difficulty in relation to many of these commons is that the National Trust has a large, complex claim that has always taken a long time to resolve. That has caused us a particular difficulty with common land, but we are recognising that and doing what we can to try to speed things up.

I want to leave a bit of time for my hon. Friend the Member for Wells, but I will answer these questions. My hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) asked about the deadline for this year. It will be May; it will go back to the normal time. My hon. Friend the Member for Brecon and Radnorshire (Chris Davies) talked about some of the difficulties that the Welsh Government have experienced with requirements imposed by the EU, particularly in relation to accurate mapping and the difficulties with shade from woodlands. This goes back to my initial point. We are now in an era with an incredibly complex CAP, causing many difficulties.

We have had a very important debate, covering many different issues. We have not got on to the exciting issue of the European Union and the potential impact of the referendum, but we will have much more time to discuss that in the months ahead.

[James Heappey]

I thank all hon. Members who have spoken in today’s debate and all those who made themselves available to brief us so that it could be so well informed. I would like to pick up a couple of points. I am very grateful to the Minister for attending. He is a worthy champion of our nation’s farming and fishing and has addressed the vast majority of the issues raised in the debate. He will expect us to hold him to account as we move forward. An uncertainty does remain, and that uncertainty is deeply worrying for our farmers; we have to recognise that.

We need to be absolutely clear about when the remaining payments will be made. I appreciate that it is very difficult to do that from the Minister’s place in a debate such as this, but I assume that the RPA is watching and I know that he will chase it when he gets back to his office to make absolutely sure that the plan for the remaining payments is communicated accurately and urgently, so that people know when their money will come. The point about speaking with colleagues at the Treasury to discuss what can be done about the looming tax deadline is a very good one, and I hope that the Minister will work on that.

The Minister spoke about the IT system being good enough for Government work in its core process and in the payment engine. I just hope that he will note my suggestion, which has been made to me by others, that a system that is rural-proof—and that therefore saves every time someone clicks “next”—would be an important development.

[George Eustice]

I can confirm that the system already enables people to save part-prepared applications. I can confirm also that we are in constant dialogue with the Treasury and HMRC to encourage them to show forbearance.

[James Heappey]

My time is slipping by quickly, but I believe that that is an active decision to save. An automatic one, because people are not in control of when their system crashes or their broadband drops out, might be a worthwhile improvement.

Most important of all, will the Minister reassure us that the RPA, although it is in very close contact with the big issue of making the remaining payments, has the space also to plan for what might come next year, and that these lessons can be applied? It would be unforgivable to have all the right urgency in making the remaining payments, but then for the lessons not to be applied for next year, so the same mistakes are made again. The Minister will expect us to hold him to account on that as we go forward. It is an urgent issue. We need to ensure that the mistakes are not repeated in relation to this year’s applications and next year’s payments.

Agricultural Holdings Act 1986 (Variation of Schedule 8) (England) Order 2015

George Eustice Excerpts

Monday 11th January 2016 General Committees

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

I beg to move,

That the Committee has considered the Agricultural Holdings Act 1986 (Variation of Schedule 8) (England) Order 2015.

I am grateful to the Committee for considering this Government proposal to update the provisions governing agricultural tenancy compensation set out in schedule 8 to the Agricultural Holdings Act 1986. In essence, this proposal is all about the value of farmyard manure. Those of us—there are some in this room—who have been farmers will understand that farmyard manure has a very important role to play in the quality of our land, the fertility of our land and the structure of soils.

The reform applies to all landlords and tenants in England who have agricultural tenancy agreements governed by the 1986 Act. Approximately 21,500 such tenancies remain in England, accounting for approximately 17% of agricultural land. They tend to be traditional lifetime tenancies, with succession rights of up to two generations.

The 1986 Act sets out detailed provisions governing the terms and conditions of the tenancy agreement between landlords and agricultural tenants governed by the Act. Certain provisions in the 1986 Act have become out of step with modern farming practices. The changes will deliver the final reform in a package of proposals, on which we consulted in 2014, aimed at updating and modernising the 1986 Act. The changes have the support of industry representatives—both landlords and tenants.

Schedule 8 to the 1986 Act entitles outgoing agricultural tenants to be compensated for short-term improvements they have made to the holding that have value to an incoming tenant, in order to incentivise outgoing tenants to farm sustainably and to keep the land productive during the last years of their tenancy. The schedule is now out of date with respect to current farming practices in the following ways.

First, compensation can currently be claimed only for purchased manure and fertiliser applied to the land, thereby excluding other beneficial material, such as digestate, which is the by-product of anaerobic digestion, and soil improvers such as compost, which are now often used on farms to improve soil condition. We are therefore broadening the list of improvements eligible for compensation to include digestate and soil improvers, and we are removing the restriction on allowing compensation for purchased manure and fertiliser. Those changes will mean that compensation can be claimed for improvements from manure, fertiliser, soil improvers and digestate applied to the land, regardless of whether they are purchased, created on-farm or otherwise acquired, as that has no bearing on the soil improvements delivered.

Secondly, manure is currently compensated for only if it comes from horses, cattle, sheep, pigs or poultry, which excludes other species now found on farms, such as alpacas and llamas. We are therefore broadening the scope of the schedule to allow compensation for manure derived from a broader range of livestock on the holding that is held in storage. Those changes will update and modernise the schedule, to provide a more effective incentive to outgoing tenants to leave the soil in good condition for incoming tenants. They are supported by the Tenancy Reform Industry Group, which includes representatives of tenant farmers, landlords and professionals such as agricultural valuers, surveyors and solicitors.

We ran an eight-week consultation on the changes in 2014 and received 19 responses, with the majority of consultees supporting the changes, including key industry representatives such as the Country Land and Business Association, which represents landowners, and the Tenant Farmers Association and National Farmers Union, which represent tenant farmers. I therefore commend the instrument to the Committee.

--- Later in debate ---

[George Eustice]

I shall move quickly to address some of the issues raised. First, the shadow Minister, the hon. Member for Blaenau Gwent, raised the point about improvements and whether there is a dispute in that regard. That is not necessarily a new problem, in that there would have been that problem even previously had this been restricted just to the purchased manures rather than manures generated on farm.

However, we do have a tried and tested way of resolving the issue. It basically enables landowners, landlords and tenants, if they cannot agree among themselves, to appoint an independent person to deal with the matter on their behalf. The hon. Gentleman pointed out that arbitration is expensive, but I draw his attention to the fact that this order is part of a package of measures. It is the latest statutory instrument; we introduced SIs before the break-up of Parliament ahead of the last election. One of those, for instance, enabled third-party expert determination to be put in place as an alternative dispute mechanism to arbitration; that is certainly a cheaper approach. It also removed the prescribed approach for calculating end-of-tenancy compensation to give landlords and tenants much more flexibility to agree these things among themselves. Given the background of the earlier changes we put in place, I think we have the issue covered.

The hon. Gentleman mentioned the importance of raising awareness. As I said, we worked closely throughout the consultation with the Tenancy Reform Industry Group, which includes all the major stakeholders. As has been highlighted, there has also been some coverage in the agricultural press of the changes we are making. In addition, such negotiations are quite important for the tenant and the landlord as the tenant gets towards the end of their tenancy—particularly a 1986 tenancy—so land agents are likely to become involved. It is their job to understand legislation such as this and to make sure that outgoing tenants are aware of their rights under the changes before us.

I turn now to some of the points raised by my hon. Friend the Member for North Dorset. He asked whether donkeys were covered. I can confirm that the existing legislation already covers equidae. It is quite broad. It covers donkeys and asses, so it covers all types of equidae. My hon. Friend also asked whether there was a restriction on what animals can be fed. There has always been legislation that handles that issue. It looks at the feedstuffs that animals can be fed for the relevant part of the legislation to be satisfied.

On my hon. Friend’s final point, about digestate, the Environment Agency obviously has a role to play in making sure that regulations are complied with. If there are problems with contamination, the agency should take responsibility for looking at that. However, in terms of whether digestate improves the quality of the soil, I am sure a valuer would take that into account in their considerations.

In conclusion, the proposed changes will update and modernise the compensation provisions in schedule 8 to the 1986 Act, bringing them in line with current farming practices. That will ensure that they give outgoing tenants an effective incentive in terms of farm sustainability in the final years of their tenancy so that they leave the soil in good condition for incoming tenants. I commend this instrument to the Committee.

Question put and agreed to.

Food Security

George Eustice Excerpts

Wednesday 6th January 2016 Westminster Hall

[The Minister of State, Department for Environment, Food and Rural Affairs (George Eustice)]

May I begin by congratulating my hon. Friend the Member for St Ives (Derek Thomas) on securing the debate? His constituency neighbours mine and I know that he champions the interests of farmers in his constituency. Indeed, we often jointly attend west Cornwall branch meetings of the National Farmers Union, and in the autumn I had the pleasure of speaking at a village called Madron in his constituency, which ran a series of events on the future of farming.

I worked in the farming industry for 10 years. I care deeply about the industry, and the Government value the role of agriculture and our food industry because it is the biggest industry in the country. Food manufacturing is our biggest manufacturing industry—bigger than the aerospace and automotive industries put together. It is worth about £100 billion a year throughout the supply chain and employs about one in eight people. That is why we made a manifesto commitment to put in place a 25-year food and farming plan, which is currently under development and will be published in the spring. It will look at how we attract new skills to the industry, how we use technology to improve productivity and use of resources, how we open new export markets, and how we develop risk management tools for the agricultural industry.

As my hon. Friend the Member for St Austell and Newquay (Steve Double) pointed out, there is growing consumer interest in food provenance. People want to know where their food comes from. There is a growing interest in local sourcing and local brands, particularly in Cornwall where we have some strong local food brands. We are keen to develop that, so 2016 will be the year of great British food. Our Great British Food unit will champion those artisan food producers throughout the course of the year.

We are also doing a huge amount on exports. My hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski) asked about that. At the end of last year, the Secretary of State went to China and was successful in opening new markets for British barley and for pigs’ trotters. In fact, we have been opening about 100 new markets a year over the past two or three years. Our food exports are now rising to £19 billion a year.

We have made some very good progress on exports, but I do not deny for a moment that farming is going through an incredibly tough and difficult time, due to a number of factors. The exchange rate of the pound against the euro is not favourable to farmers; the weakness of the euro has put pressure on all commodity prices for British farmers. Set against that, there has been a global oversupply in many areas and some key markets have been disrupted. In Europe, milk production has risen by about 10% due to very good weather and favourable conditions for production. That has had a downward pressure on prices and, as many hon. Members have said, many farmers are experiencing prices that are well below the cost of production.

There has been difficulty in other sectors such as pig production, where the market in Russia has been disrupted, exacerbating the problems. There has also been difficulty with lamb. New Zealand lamb has been finding it more difficult to get access to the Chinese market, so there has been a surplus of New Zealand lamb on the world market. Despite those short-term pressures, my message is that the long-term prospects for our farming industry remain good. As my hon. Friend the Member for South East Cornwall (Mrs Murray) said, there is a growing world population. It is set to reach about 9 billion by 2050 and many projections suggest a rise in demand for food of about 60%. That brings me to the issue of food security.

As the shadow Minister said, we are clear that there are two key elements to delivering food security in the world. One is that we must have open markets and the second is that we must have a vibrant, profitable and successful food production and supply system. The reason that self-sufficiency and food production alone is not enough to guarantee food security is that farming is always at the mercy of the weather. If there is a severe weather event in one part of the country, we need to be able to move food around the world, so open markets are crucial to ensuring food security.

Although our self-sufficiency is lower now, at about 64%, than it was at its peak in the late 1980s, we should recognise that then there was an incredibly distorting common agricultural policy. It was an era of grain mountains, butter mountains, wine lakes and so on. That had a distorting effect. Against historical standards, we are still producing far more of our food than we have done in the past. Indeed, in the 1930s just before the second world war, our food self-sufficiency was only about 30% to 35%, so things are not as bad as some would suggest. However, if the Government do what we want to do—produce more, sell more, export more and import less—over time I hope that our current self-sufficiency will improve.

My hon. Friend the Member for St Ives posed a number of questions. He raised the plight of cauliflower growers in Cornwall, many of whom are in my constituency. That situation is wholly driven by weather. The autumn has been warm and many of the varieties have come in simultaneously, which has caused particular problems. I agree with him about country of origin. The UK has been at the fore of arguing in the EU for mandatory country of origin labelling—successfully when it comes to beef, pork, poultry and other fresh meats. We have been arguing tenaciously for country of origin labelling to be mandatory on some dairy products. I have to say that the Commission is pushing back on that at the moment, but we will redouble our efforts to improve the voluntary code in that regard.

My hon. Friend also asked what supermarkets are doing. It is important to recognise that and to give credit where credit is due. For instance, Morrisons has its “Milk for Farmers” brand. Many people scoffed at that when it came out, but it has actually been very successful. It pays an extra 10p a litre to farmers and its sales have well exceeded expectations, which shows a consumer interest in helping British agriculture. The other thing is that many of the main supermarkets, including Sainsbury’s, Tesco, M&S and the Co-op all have aligned contracts with virtually all of their liquid milk suppliers. The farmers supplying some of those supermarkets with liquid milk in particular are still quite often getting somewhere in the region of 29p to 32p a litre. There is a wide spread of fortunes in the dairy industry currently and we should recognise that some supermarkets are supporting farming through aligned contracts. Tesco is experimenting with the idea of an aligned contract on cheese, although that is more difficult because it is more exposed to commodity markets. M&S has also experimented with aligned contracts in other sectors, such as lamb.

On the other questions asked by my hon. Friend the Member for St Ives, public sector procurement is an important issue. We set up the Bonfield report to set out a balanced scorecard so that more locally sourced food is bought by the public sector. He asked what we are doing to back British farming. We have our Great British Food campaign and we will be working with organisations such as the NFU. He is right to highlight the benefits of animal welfare that we have. In fact, World Animal Protection rates the UK as top in the whole world for farm animal welfare. When it comes to getting a fair price, we are doing things to try to improve risk management so that farmers can mitigate the price volatility that they experience.

The hon. Member for Strangford (Jim Shannon) mentioned the issues in Northern Ireland. There has been a particularly difficult situation with dairy in Northern Ireland and we have recognised that by arguing for an increased share of the support fund from the EU in November. My hon. Friend the Member for Shrewsbury and Atcham asked about the Groceries Code Adjudicator. That will be reviewed later this year by the Department for Business, Innovation and Skills. We have now put in place the ability for it to levy fines of up to 1% of turnover. In fact, looking at the survey data, the number of complaints about supermarkets has gone down slightly and Christine Tacon reports that more buyers and more suppliers to supermarkets are using the code in the way that they should.

The hon. Members from the Scottish National party mentioned convergence uplift. I am meeting NFU Scotland later this week. I have committed to reviewing that once everybody is on an area-based payment system, and we will continue to do that. Finally, a number of hon. Members, including the hon. Members for Berwickshire, Roxburgh and Selkirk (Calum Kerr) and for Great Grimsby (Melanie Onn) and my hon. Friend the Member for South East Cornwall, made a very important point about fisheries. I completely agree with that, although I do not share the analysis of my hon. Friend the Member for South East Cornwall that it is all bad news. We have seen big uplifts for plaice, haddock and cod this year, which shows the benefit of sustainable fishing.

In conclusion, we have had a very good debate in which lots of interesting points were raised. I again congratulate my hon. Friend the Member for St Ives on securing the debate.