EUC Report: Agriculture

Lord Knight of Weymouth Excerpts

Monday 6th February 2012 Grand Committee

[Lord Knight of Weymouth]

My Lords, I start by warmly thanking the European Union Committee for what was an extremely interesting and, as I found out over the weekend, highly readable report—that is not always the case. In particular, I thank my noble friend Lord Carter of Coles for leading on this piece of work and for leading the debate so ably earlier this afternoon. I certainly join in the joy in welcoming the noble Lord, Lord Curry of Kirkharle, and in complimenting him on his excellent maiden speech. As the noble Lord, Lord Bilimoria, has just reminded us, Capability Brown was also from Kirkharle, so it would appear that capability is in the water there, and we look forward to many more capable speeches and contributions from the noble Lord, Lord Curry. I also take the opportunity to pay tribute to the work that the noble Lord, Lord Taylor of Holbeach, has personally done in the area of science and agriculture, and I very much look forward to hearing his wisdom when he winds up.

I do not want to provide a commentary on all the many and interesting areas covered by this report— I am sure that we have other things that we want to do this evening—so I will pick out just a few themes. First, this is clearly a report about not just the future of agriculture but the future of food, where it comes from and how we consume it. The report is about more than just guarding against the future; it is about how we shape the future of agriculture. That is the basis on which I have been trying to think about this—the Foresight report was also certainly very welcome in helping us to think about these issues.

We face an uncertain future: world population growing, as we have heard, from 7 billion to 9 billion; increasing food prices; changing diets; more pressure on land and water; and climate change—I take this opportunity to thank the Minister for the briefing that we had a week or two ago on the department’s assessment of the implications of climate change. Agriculture needs to contribute by less input and more output, and it needs to make a contribution to sustainable energy production and consumption. In addition, there is the uncertainty over future CAP reform, which has been discussed and debated this afternoon. All this was excellently set out by, in particular, the noble Baroness, Lady Sharp, who reinforced the sense of urgency on these issues.

To shape this future and to harness the potential for growth and jobs in the agriculture and food manufacturing sectors, I think that we need: a pro-science climate in which to discuss these issues; international co-operation; and active, strategic government. Those are the three things that I want to touch on in my comments. Paragraph 183 of the report states:

“We welcome the fact that greater prominence is being given to agriculture in the deliberations of the European Commission, and we urge that it should be given a similar priority in political debate in the UK”.

I would be interested to hear both whether the Minister agrees and, beyond the high profile given by a debate in the Moses Room on a Monday in February, how we should do that. If we are to move forward and discuss issues such as GM and biotech, do we not need to try to fashion a more pro-science environment in the media in particular? I do not underestimate the challenge in doing so, but any comments on how we might do that—given the Government’s excellent ability to spin for the media—would be most welcome.

At paragraph 130, the report states:

“Many of our UK witnesses considered that the UK Government should take the lead in communicating scientific innovations as regards food. Professor Moloney was clear that the only way to offer clarity to consumers ‘is through national leadership’ and Dr Bushell suggested that politicians have ‘an amazing opportunity to shed light on the real risks associated with food and not the imaginary ones’”.

The report goes on to say that the Minister in the other place, Jim Paice,

“took a contrary view, suggesting that Government are the worst source to offer such advice”.

I have some sympathy with the view that perhaps trust in politicians is at its lowest possible ebb, but there is certainly a role for government in trying to stimulate that debate and ensure that we give a platform to scientists—government scientists—in trying to extend and inform the debate.

The report also wanted more done in schools. Of course, as well as spending a year as a Defra Minister, I had three years as Schools Minister. Paragraph 177 of the report talked very much about the importance—as did the noble Lord, Lord Plumb—of engaging with young people and attracting them into the industry. Does the Minister think that the narrowing of the curriculum in the English baccalaureate predicates against that engagement and makes it even tougher for schools? What are the Government doing, probably in combination with Lantra, and perhaps with the Minister’s noble friend, the noble Lord, Lord Baker, to develop university colleges for agriculture? They are an interesting development in 14 to 19 education, but I have not yet heard whether more is being done with the land-based industries in trying to go upstream and attract younger people into the industry than we are doing through the FE sector and its land colleges.

The report states in paragraph 61:

“When we put this concern to Mr Paice, he agreed that there was a need to make the food and farming industry an attractive industry, but saw the Government’s role as to ensure that the industry could ‘deliver a satisfactory income and terms and conditions’”.

I agree with the committee when it states:

“We see this as necessary, but not sufficient”.

We need to go further than what the Minister said in his oral evidence. Like the noble Baroness, Lady Byford, I very much support the work of FACE led by the noble Lord, Lord Curry. I should like more of this in our education system.

I move on to international co-operation. The EU’s framework programme for research is the world’s largest research programme, with funding of €1.9 billion earmarked for the area of food, agriculture and biotechnology. There is differential development in this sector across Europe, given its different geographies, and it is certainly the case that no one size fits all. However, different development needs a more sophisticated differential approach by the EU. The UK has an advanced and relatively mature sector, and we have heard about the interesting work that the Netherlands is doing. However, such work in parts of eastern and southern Europe is far less developed, and we have heard about the very small farm units in some of those areas. Like others, I feel frustration at the projections of only a 4 per cent growth in productivity across Europe. The continent as a whole needs to meet future challenges, grasp opportunities and work together to ensure that the single market area achieves sufficiency.

How much is the Minister concerned about UK food security in isolation? If that is the aim, how will he shift consumer demand to seasonal UK food, especially given that what is seasonal and local changes with the climate? How can the UK use what residual influence it has left on the margins of the European Union to encourage co-operation and convergence of the agricultural economies across Europe? Surely, it is only then that we can do more for less, as is essential, and achieve food security within the single market. As the climate changes and the geography of food production migrates north, how can we develop co-operation between producers across borders so that we can learn from each other’s innovative practice? That sort of co-operation is essential.

Finally on international co-operation, what are the Government doing to encourage higher education co-operation, perhaps through the Bologna process, in these areas? I understand the scepticism articulated by the noble Earl, Lord Caithness, and others, but we need to redouble our efforts on co-operation rather than on isolation so that we can address these challenges.

I turn to the question of active, strategic Governments. There was a difference between the evidence given by the Minister of State, Jim Paice, and the Government’s official response to the report, which read very well. One was the voice of the Minister and the other, from my experience, was the voice of officials signed off by the Minister. The Government’s response to the report is helpful but I would rather look at the Minister’s choice of words.

Like the noble Baroness, Lady Parminter, and the noble Lord, Lord Bilimoria, I was concerned about continued government spend on research. I note that the response to a Parliamentary Question in the other place on 20 January at col. 925W of Hansard was that core Defra research and development spend for the last five years is contained within the evidence budgets, and that while the proportion of R&D and the evidence budgets is to remain the same as a proportion of the total programme, that will reduce by 29 per cent in real terms. The figures show a reduction from £210 million in 2010-11 to £167 million in 2014-15. The department’s evidence investment strategy also shows reductions in spend in this area, and that has to be a concern when we are thinking about these issues.

I also have a concern about whether there is a difference in philosophical approach. Paragraph 27 of the report says that the Minister—not the noble Lord here but Jim Paice—said that,

“the present Government had no plans to publish any new document, and that he did not believe in ‘some Government-determined plan’; and he saw no conflict between the Government’s emphasis on localism and the need to respond to the challenges outlined in the Foresight report”.

I disagree with that. It suggests a hands-off Government who believe in getting out of the way rather than enabling, but we need a more strategic approach than is reflected in the Minister of State’s words. I acknowledge the dominance and the vital importance of the private sector in this industry, but surely there is a role for Government in this area, as I detect being strongly argued in this committee’s reports.

The committee says that most farmers are understandably risk-averse. The committee quotes in paragraph 109 Philip Richardson, who said:

“the great deal of uncertainties (weather, disease and price volatility) inherent in farming … make farmers more risk-averse than other business people”.

We all understand that, hence the committee’s view that innovations need a sound business case for farmers to take them on, but innovation needs a higher appetite for risk to make necessary investment than farmers are going to be willing to make in that sort of environment. Hence the importance of the supply chain—and I noted the interesting evidence given by Morrisons. We need either direct top-down investment or investment via the common agricultural policy. We also need other activity from government. I would be interested to know whether there is any progress on the grocery adjudicator to help give us some leverage over that supply chain and address some of the waste reduction issues that the noble Baroness, Lady Parminter, rightly raised.

I will not take any more of your Lordships’ time. This is an interesting area that needs action from the EU and from the UK Government. It needs the urgency that the noble Baroness, Lady Sharp, talked about. I very much commend the report and look forward to the Minister’s response.