Wednesday 10th October 2018

(5 years, 6 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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I am always interested in what we can learn from France. We want to make sure that food and drink, which is our biggest manufacturing sector overall, can continue to be world leading. Critical to that, as the hon. Gentleman mentioned and as I acknowledged in responding to the hon. Member for Huddersfield (Mr Sheerman), is making sure that there is a fair price at the farm gate for our food producers. Our farmers do not want subsidy; what they want is fairness, and that is what this Bill seeks to deliver.

Talking of fairness, I just want to stress the critical importance of recognising what a public good is. There has been some debate over what a public good might mean. It is some time since I studied economics, but public goods have a clear definition: they are non-exclusionary and non-rivalrous. We can all enjoy them, and as we all enjoy them, no one, if they are enjoying a public good, does so at the expense of anyone else. I am talking about clean air, soil quality and making sure that we invest in carbon sequestration, that farmers get supported for the work that they do to keep our rivers clean and our water pure, that the public have access to our glorious countryside and that the contribution that farmers make to animal health and welfare is recognised. We all benefit from those public goods, but, at the moment, our farmers are not adequately rewarded for them. We in the UK spend a higher proportion of common agricultural policy funds on rural development and on environmental schemes than any other country in the European Union—I should say that the Welsh Administration lead the way in this—but far too much of our money still goes on coupled support based on hectarage payments, rather than on rewarding farmers for what they do and on giving DEFRA the opportunity to intervene to give farmers the deal that they deserve.

Michael Gove Portrait Michael Gove
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I am very happy to give way to—ah—the hon. Member for High Peak (Ruth George).

Ruth George Portrait Ruth George
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I congratulate the Secretary of State on his reading ability. He has mentioned animal welfare. Various Members have asked about the difference between Wales and England. Local abattoirs are very important—as important as farms—to high standards of animal welfare. Will he commit to supporting small abattoirs, a third of which have closed already, in the investment that they need to comply with the regulations and to looking again at DEFRA’s decision last week not to award grants to small abattoirs as is being done in Wales?

Michael Gove Portrait Michael Gove
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It is important that we have a network of abattoirs that enables, wherever possible, sustainable local food production. I know that it is an issue close to the hon. Lady’s heart; it is also close to mine. I pay tribute to Patrick Holden and the sustainable farming network for the campaigning work that they have done. We are doing everything we can to support small abattoirs. When it comes to animal welfare, it is also important that we make sure that we have a strong network of official veterinarians guaranteeing the quality of our food. It is also important that we recognise that this Government—originally under the leadership of my right hon. Friend the Member for South Northamptonshire (Andrea Leadsom)—have introduced, or required, CCTV in all abattoirs to make sure that there is no hiding place for animal cruelty. It is critical that we recognise that our farmers thrive on the basis of producing high-quality food with animal welfare at its heart.

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Baroness Hayman of Ullock Portrait Sue Hayman
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The hon. Lady may recall that the Leader of the Opposition discussed the environment and issues connected with the Department for Environment, Food and Rural Affairs in his speech.

All over the world, nearly all farmers are supported financially to produce food, and our farmers must be able to compete with them, but to do so they will need the right financial and policy framework so that they are not disadvantaged in a competitive and volatile global marketplace. We need to move away from the current system of direct payments, but if we are to bring in land management contracts, they need to be accessible. The recent delivery of payments to farmers and landowners has been poor, and the hoops that have to be jumped through put many people off signing up in the first place. We need to ensure that the agencies are adequately resourced—only then can they properly help the farmers who need the support that subsidies provide.

Ruth George Portrait Ruth George
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Does my hon. Friend agree that, given their excellent relationships with farmers and landscape managers, national parks are ideally placed to provide that network in our national park areas, where so much farming goes on?

Baroness Hayman of Ullock Portrait Sue Hayman
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I thank my hon. Friend for her contribution. I have discussed that with the Lake District national park, which is in my constituency, and I am sure that there will be other discussions in this area.

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Ruth George Portrait Ruth George (High Peak) (Lab)
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Were the Minister in his place, I would remind him that many of us have been attending agricultural shows and sheepdog trials for many years, and not just in our role as MPs. Our farms and our farming communities are part of our way of life in areas such as the Peak district. It is important to remember that when we examine the Bill. Promoting agriculture and the proper management of our land is important not only to tourists and visitors, but to those of us who live in rural areas and want our communities to be maintained.

Farming is important not only to our economy but to ensuring that we can continue the rural way of life. I am talking not just about upland farmers, but lowland farmers—in the Peak district, we have both the hills and the dales—sheep farmers, dairy farmers, beef farmers and smallholders. Most farming families have been farming for generations. They understand animal welfare, looking after the land, and how to put together a dry stone wall—a skill that takes years of dedication to acquire.

The rural way of life needs to be sustainable for future generations. The Bill is being introduced at a time when the average age of a UK farmer is 59, 30% are over 65 and only 3% are under 35. The Bill needs to be able to give the new generation the certainty to carry on in farming. At the moment, it is hard for them to see a way forward. The number of farmers in the UK has dropped from 141,000 in 2011 to 126,000 now: a drop of 11% in just seven years. The average income is about £20,000 a year—for lowland sheep grazing, it is about £16,000—and that is for all the hours farmers put in. They work 24/7 in many cases, particularly during the sort of weather we have had this year. Farmers have been out in the freezing weather and out taking water to the uplands when the water pressure has dropped and the supply has not been able to continue. Farming is a way of life and farmers want to be able to continue living it, but they are very concerned that the proposals in the Bill may mean—we have not seen any figures yet—that that is impossible.

It is a pleasure to follow the hon. Member for Berwick-upon-Tweed (Mrs Trevelyan), who set out clearly the problems that lots of farmers are having with the Rural Payments Agency and the bureaucracy involved in trying to claim a lot of the agri-environment payments on offer at the moment. The thought that their whole income has to be derived from those sorts of projects—the filling out of huge forms, all the bureaucracy, taking photos, reporting everything online and having multiple visits—does not fill them with confidence for the future. One of my local farmers reported that the RPA had asked him whether he was measuring his dry stone wall in metres or acres, and that was when he started to worry that RPA staff really do not know about farming and are far too remote from the farms and what is actually going on.

At the moment, farms are supported with nearly £3 billion via the CAP. Fortunately, we are going to see that continue, but direct payments make up 78% of that amount, so they are incredibly important to grazing animal farms, which actually make a loss. The direct payments are a source of sustained income on which they can rely when they are looking to invest. We need to make sure we have a system that recognises different types of farms, as has been said by Members from across the House. It may well be that we can have different systems of payment for different types of farm, and that that will take away the problems that farmers have having, but the Government need to make sure they set that out clearly for farmers for the future.