Draft State Aid (Agriculture and Fisheries) (Amendment) (EU Exit) Regulations 2019

Martin Docherty-Hughes Excerpts

Tuesday 19th March 2019 General Committees

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

It is good to see you in the Chair, Mr Robertson. I will not take up too much of the Committee’s time. Following what has just been said by the Opposition spokesperson, I am sure the Minister will appreciate that, although there is a need for continuity, there is still, at least on these Benches, opposition to withdrawal from the EU.

Nevertheless, in practical terms, the official Opposition have raised important points that need to be answered. Replacement of the European maritime and fisheries fund and how that relates to the devolved settlement raises grave concerns about design, implementation and involvement. Will the Minister say who has been involved in the design, whether that be the Scottish Government, the Welsh Government or the civil service of Northern Ireland?

Will the Minister also advise which elements will be devolved and if there is a timeframe for that? In relation to the devolved settlement, will the Minister be clear where in terms of the SI, the Scottish Government, the Welsh Government and specifically the civil service of Northern Ireland, given that there is not a sitting Government there to hold to account, have been involved? Will the Minister explain where that settlement is going?

[Mr Goodwill]

I thank the hon. Member for Plymouth, Sutton and Devonport for the constructive way that he has approached this matter. The questions he asked me were precisely those that I asked my officials, to be reassured that nothing is changing.

The hon. Gentleman spoke about the speed and volume of the SIs. I apologise that there is so much legislation that we must transfer from the competence of the European Union so that we can take back control of some of these measures. I can reassure him that there are no missed nuggets. Indeed, one nugget that we did spot was the change that is under way in the European Commission to increase the de minimis fishing limit from €25,000 to €30,000 and we have managed to include that.[Official Report, 29 March 2019, Vol. 657 c. 5MC.]

The hon. Gentleman talked about progress on the Agriculture Bill and the Fisheries Bill. I am also keen to make progress and this SI relates to some of the measures that we could implement through the Agriculture Bill in particular, so that we can deploy taxpayers’ resource to deliver those public goods that we all want to see as a way to continue agricultural support. We are keen to schedule that business and particularly keen, as I discussed earlier, not to lose all the hard work that has been done.

The hon. Gentleman also talked about resources for the CMA. I can reassure him that the CMA has been allocated £20 million for 2019-20 to prepare for EU exit, which includes resources for setting up its new state aid function. That is in addition to the £23.6 million allocated for the financial year 2018-19. The SI heads off potential challenges to the CMA over what could be described as illegal state aid because it now makes it legal state aid. I am talking about, for example, the subsidies that farmers get—the greening schemes and the aid for the fishing industry—and the SI allows for that without its being illegal state aid.

The hon. Gentleman talked about the impact assessment. We did not do one because nothing has changed. All we are doing is transferring responsibilities from the European Commission to the CMA. If we did not pass the measure today, that would change and there would be additional work for the CMA. On rural development, we intend to maintain the aims of the work that is being done. We are not making any changes as we leave the EU. We will maintain the status quo as we leave. The rural development regulations are being rolled over by other SIs.

The hon. Gentleman talked about the EMFF. The Secretary of State announced on 10 December four schemes comparable with the EMFF to support industry from 2021 onwards. The funding quantum will be set following the spending review in 2019.

The hon. Member for West Dunbartonshire is understandably concerned that the measure might be seen as a land grab by the Westminster Government, but if he peruses page 4 of the document he will be reassured to read that article 2B states:

“In relation to Scotland, in respect of areas within devolved competence, the competent authority is the Scottish Ministers”,

and the same will apply to Wales. As somebody who has just finished being a member of the Northern Ireland Affairs Committee, I share his concerns about the need for a restoration of the devolved Administration in Northern Ireland so that they can make the decisions. Currently the civil service in Northern Ireland—the Department of Agriculture, Environment and Rural Affairs in the case of agricultural policy—is in effect on automatic pilot. It is becoming more and more difficult for it to navigate a way forward, given that the co-ordinates it is using were set when there was an Administration in place.

[Martin Docherty-Hughes]

I am grateful to the Minister for what he has said, but I ask him again: has his Department discussed the SI with the civil service in Northern Ireland?