Dairy Industry

Tessa Munt Excerpts

Wednesday 4th February 2015 Westminster Hall

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

I begin by congratulating my hon. Friend the Member for Ribble Valley (Mr Evans) on securing this important debate. Given the sheer number of Members who have wanted to speak today, it is clear that he has touched a nerve and alighted on a serious problem, which is the current state of affairs in the dairy industry. I am well aware that many dairy farmers are suffering at the moment. Yesterday, I was in Cumbria and I met a group of dairy farmers there. Earlier this year, the issue dominated discussions at our regular farm resilience group, as it did at our meeting of the dairy supply chain forum last November, and we have another meeting next week with the Secretary of State to look further at the issues facing dairy farmers and to consider how we can help them.

It is fair to say that the dairy industry has had a rollercoaster ride in the last couple of years. In 2012, we were exactly where we are now, with prices on the floor; in fact, in many ways the situation then was worse, because feed prices were very high and dairy farmers were losing a lot of money. Then, last year—2013-14—we saw a very good year for dairy farmers. Prices were much higher, at around 30p to 35p per litre. feed costs came down, and the farm business survey showed that they had a good year last year. Since then, there has been a big increase in production in New Zealand, with production there up around 18% over the last year. Demand in China dropped off quite suddenly, as the Chinese had built up stockpiles of skimmed milk powder and came back out of the market. Production in Europe is up by 8% to 10%, and the Russian trade ban has aggravated things. As a result of all that, on the international auctions we have seen a very sharp decline in prices, which brings us to our current low level.

As a number of hon. Members have already alluded to, it is worth noting that there are differences between different farm businesses; different farmers face a wide range of costs. Yesterday, I visited a farmer who has Jersey cattle on an extensive grass-based system, and his costs of production were only around 22p per litre. It is not always about “inefficient” and “efficient” producers. Sometimes, efficient producers choose to run quite intensive systems, which means they have higher labour, feed and capital costs, and have to make more investment. Quite often, those producers find that they have higher production costs—for some of them, it costs 28p to 30p per litre—and if they are receiving low prices they are losing money.

The other element to bear in mind is that there is a big spread in the prices that farmers receive. At the top end, there are those farmers who are responsible for around 30% of UK liquid milk production and they are on cost-of-production contracts to the major supermarkets. Many of them are still receiving around 30p per litre for their milk. At the other end, there are those farmers who supply processors and consequently they are much more exposed to the international commodity markets, such as those supplying First Milk, which takes most of the milk production in Scotland, the north, the borders and Wales. At the moment, First Milk is able to pay farmers only around 20p per litre, so there is a big spread, both in terms of production costs and the prices farmers are paid.

I will point out, first of all, the things that we are doing in the short term. Immediately, we have to address farmers’ cash-flow challenges. Regarding those farmers who have not yet received their single farm payment—most farmers have received it, but some have not—we have told the Rural Payments Agency to absolutely prioritise dairy farmers, and particularly those supplying First Milk.

I had a meeting with the banks two weeks ago to encourage them to show forbearance to their business customers who are dairy farmers suffering difficulty at the moment, and I will continue to monitor the process as far as the banks are concerned.

We have urged Her Majesty’s Revenue and Customs to be sympathetic in its dealings with dairy farmers. Those dairy farmers who had a good year last year potentially face quite a large tax bill, which is due to be paid in June this year, and we need to show some forbearance to those farmers who will have just weathered a very difficult winter.

Finally DairyCo, which is part of the Agriculture and Horticulture Development Board, has set up a special unit to give financial advice to farmers to help them through these difficult times. Also, we will shortly open a new round of rural development programme schemes, which will have dedicated measures to try to help farmers to improve their productivity and reduce their costs.

In the medium term, there are other issues that we are looking to explore. First, there is exports, which was mentioned by a number of hon. Members. I completely agree that if we want to have a resilient industry for the long term, we have got to open new export markets. We have seen good progress in this area. In the past year, there has been 47% growth in exports to non-EU markets of our dairy products. In fact, our total dairy exports are now at their highest level ever, at £1.3 billion. A few weeks ago, the Secretary of State was in China where she had discussions with the Chinese about how we can open up these opportunities, and we will shortly receive a delegation from Brazil to consider the opportunities for dairy exports to that country.

Another key area that I have been working on with the National Farmers Union in particular is around market measures to deal with volatility. In the US, when quotas were removed, quite a sophisticated futures market was developed to help to manage volatility. Typically, US dairy farmers fix around 40% of their production at a fixed price, hedged in the futures market, and leave only 60% of their production to the vagaries of the market. That takes some of the extreme peaks and troughs in the market out of their income profile. We can learn lessons from that system and we are working on this issue with the NFU. There are embryonic markets in skimmed milk powder and butter, for instance, which are run by the London international financial futures and options exchange, and Eurex, and we would like to see whether we can develop that futures model further.

We are keen to promote country-of-origin labelling. The UK was at the forefront of arguing for improved country-of-origin labelling on beef, lamb, pigs and poultry, and we should do the same on dairy products, so that we do not have Irish milk being imported to the UK and processed into cheese, before it is fobbed off as a product of the UK.

Procurement was mentioned by a number of hon. Members. Last year, we launched the Bonfield report, which was a new approach to procurement. It sets out a balanced scorecard. The uptake from schools and hospitals has been good in that respect, and we are keen to encourage further uptake.

[Tessa Munt (Wells) (LD)]

Will the Minister give way?

[George Eustice]

I cannot give way, as I want to cover as many points as possible. I agree with the point made about procurement, and we are making progress in that area.

A number of hon. Members mentioned the Groceries Code Adjudicator. I can confirm that a week ago the order that establishes the ability to levy fines was laid. It is subject to an affirmative resolution process, so it will now go through Committees in both Houses, but that will happen during this Parliament.

A number of hon. Members talked about the extension of the groceries code. We are considering that. Last year, I considered whether we should place the dairy supply chain code on a statutory basis, but because there is existing EU legislation in this area—a Common Market organisation regulation that establishes the grounds of such codes—we would end up with a weaker code if we put it on a statutory footing, because we would not be able to stipulate that farmers could walk away at three months’ notice. Therefore, while we had a contingency plan to put the dairy supply chain code on a statutory footing if it collapsed, we would have ended up, as I say, with a code that was weaker, so there are limitations to doing that.

When it comes to the powers of the GCA, we have to realise that they are not reliant on complaints. They already have full powers to investigate

“if there are reasonable grounds to suspect”

that the code has been broken. So, those measures are already in place. In fact, when I met Christine Tacon recently to discuss this matter, she said that one of the biggest things she is trying to encourage is better training of processors and those dealing with supermarkets to ensure that they use the code effectively and say to supermarkets, “You’ll understand that I can’t accept what you are asking me to accept, because it would be in breach of the code,” and to do so in a way that ensures everybody abides by the code. That is how we can help those further down the supply chain, because one of the issues is that it might sometimes be easier for processors to take the hit from the supermarket and pass it on to farmers. We need to ensure that they hold their retail customers to the code.

A number of hon. Members mentioned intervention prices. I have to say that Commissioner Hogan thought that that would be the wrong way to go when it was discussed at the Agriculture and Fisheries Council last week. One of the difficulties we would have is that other farmers in the UK would have to pick up the cost of such action through crisis measures, and we would tend to find that other European countries would benefit most, because although we have low prices here, other European countries have even lower prices. Also, the history of such schemes tends to be that the UK pays while others benefit, so we have to be concerned about that. However, we have the milk market observatory at EU level, and other crisis measures, particularly to mitigate the effects of the Russian ban, have been considered.

Hon. Members mentioned the EU school milk scheme. I will say, briefly, that we access that scheme, although it is not a very generous scheme; we have to top it up a lot, but we do use it. When it comes to the number of dairy farmers, there has been consolidation over many years, but production in the UK is now at a 10-year high. So, although we have fewer dairy farmers, total dairy production in the UK is still higher than it has been for a decade.

I will finish on a brighter note, by saying that the long-term prospects for this industry are good. We are seeing a 2.5% rise in demand per year, and the UK is well placed to take new opportunities in markets. We should also note that most analysts are now predicting a recovery of milk prices—farm-gate milk prices—later this year. The last three Fonterra global dairy trade auctions have shown a recovery in skimmed milk powder prices on the global market; in fact, they are up 15% since the beginning of the year. As I said, it will take time for that to feed through to farm-gate prices, but most analysts now expect that we will see a recovery in farm-gate milk prices from the summer onwards and that could be quite a strong recovery, if the early indications on the international auction in recent days are anything to go by.

Dairy Industry

Tessa Munt Excerpts

Wednesday 5th November 2014 Westminster Hall

[Simon Hart]

The hon. Lady’s contribution is timely. One advantage of debates such as this is that we can bring to the attention of the public and decision makers examples of where things are working and ideas for best practice. I suspect that that anecdote will resonate with the Minister, and I hope he will deal with it specifically when he sums up.

The hon. Lady might be interested in my next point, which is about accessing more EU funding to promote dairy products. Again, that is slightly simplistic and will have to be a long-term goal, but I suspect that as a nation we are not accessing those funds quite as effectively as we might be for the dairy industry.

My third point, which is another long-term project, is that there should be greater collaboration between farmers. Even in my part of west Wales I speak to numerous dairy producers, all of whom, it seems, have some slightly differing arrangement with their processors. Having quite so many variations on a theme when it comes to marketing a product does not make for a particularly cohesive industry with real marketing clout.

[Tessa Munt (Wells) (LD)]

Will my hon. Friend give way?

[Simon Hart]

I am not getting on too well with not taking interventions, am I? I will give up, so I happily give way.

[Tessa Munt]

I thank my hon. Friend for his generosity. When farmers are asked to open their accounts prior to the arrangement of their contracts, it is no surprise that they are laid bare to the vagaries in behaviour of the people with whom they sign contracts to sell their milk. If they have to expose every single tiny bit of profit, of course the contracts will be screwed right down to the deck.

[Simon Hart]

My hon. Friend is referring to the cost of production and the guarantee element of contracts between certain producers and supermarkets—I am trying not to name them. That is a unique feature. I am not aware of any other industry that has to expose its accounts to quite that degree of scrutiny. That of course means that the particular customer can set a price that is so marginally advantageous to the producer as to hamper their sustainability. In reality, that arrangement is not as good as it looks or sounds. Perhaps the supermarkets in question, which champion the arrangement and use it as a public relations tool, might emerge from the shadows after the debate and tell us whether they think it is an honourable and moral way forward.

--- Later in debate ---

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

I welcome you to the Chair, Mrs Riordan, and the Minister to his place, and I congratulate my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) on securing this timely debate. Many dairy farmers in my area are tenant farmers, and they have been acutely affected by the downturn in price. They form the social fabric of the hills and are an integral part of the uplands.

My hon. Friend referred to the groceries code and the adjudicator; it is a commonly held belief that the groceries code applies to the dairy industry, but I point out to him that it does not. The Select Committee on Environment, Food and Rural Affairs is launching an inquiry at the end of the month, and we are asking for evidence, because there are those who would like to see the remit extended and a review of the remit. It is generally accepted that the groceries code has been working well, and that the adjudicator, created under the last Government but brought in by the present Government, is a great asset, and I absolutely accept that it must apply to the dairy chain. The Government, in their defence, will probably say that a change would open the sluice gates to other products, but I believe that there is a common interest in the Chamber today in such a change.

[Tessa Munt]

Might that be something one could refer to the Competition and Markets Authority, instead of trying to use powers that are not within the remit of the groceries code adjudicator?

[Miss McIntosh]

I beg to disagree with my hon. Friend; I believe that the groceries code adjudicator should extend to dairy farmers, but I would go further: I believe that there is a role for the Office of Fair Trading in reviewing increased collaboration on pricing and marketing, and on the whole agreement between farmers.

On a Select Committee visit to Denmark—I will declare an interest: I am half-Danish and very proud of that—we were hugely impressed by the amount of exports and marketing opportunities that there have been through its co-operative movement. Arla was one of the first and most successful dairy co-operatives, and we understand that there are now 1,000 producers in this country under Arla. I yield to no one in my admiration of British and north Yorkshire farmers, particularly those who work on the land in my area. They are fiercely independent and fiercely proud of their tradition, but we must do more to help them co-operate and understand that, if state-aid rules are not deemed to be broken in Denmark, we could apply the same collaboration and co-operative movement in this country.

On exports, my hon. Friend the Member for Carmarthen West and South Pembrokeshire set the scene well. We saw a 3p increase in price about two or three years ago, which was very welcome. We have now seen at least a 1p—and potentially up to a 2p or 3p—decrease. I understand that that is partly because of the global situation, partly because of Russian sanctions and partly because of the milk powder scenario in China, but every time the price goes up, people flock to milk production. We then get a glut of milk and two or three years later, the price goes down. There is a circular situation, and if we are not careful, we will have, at some stage in the long term, a potential food security issue.

Another hon. Friend set the scene for me to say that 40% of leftover liquid milk is used for butter and cheese. We produce Shepherds Purse and Wensleydale cheese in north Yorkshire, and Cheddar cheese is world-renowned. Liquid milk and milk products generally are some of the most nutritious products available. We should be doing more not only to generate growth in this country for this market, which is very popular, but to ensure that we are exporting as much as we possibly can.

There is a role for Government. I believe that what the Committee set out in our report in 2011 still pertains today: dairy farmers should be offered written contracts by processors that specify either the raw milk price or the principles underpinning the price, the volume and timing of deliveries, and the duration of the agreement. Unless such contracts are made compulsory, we will continue to be in this circular situation. That is a very good argument for looking at the voluntary code, as mentioned by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), whom I am delighted to follow. If we have a situation where the voluntary code is not deemed to be working, let us review it and see whether it should be made compulsory. Let us look at why the groceries code and the adjudicator’s remit does not extend to the role of the dairy industry. Let us look at having greater oversight by the Office of Fair Trading. Let us work with the European Commission and our partners, crucially, to underpin the labelling. If we can get the labelling right at an EU level, that would be a great way forward. Let us encourage all consumers to buy the red tractor products.

--- Later in debate ---

[Tessa Munt (Wells) (LD)]

I will make very few points, because most of the points have been made already, but it seems a great shame that the advantage of power is all held by the retailers and processors. One thing that I welcome is what has been done by Farmers For Action. Its protests have generated publicity. That sort of thing gets on to the news, and those protests have always proved peaceful and, certainly in my area, have taken place with the agreement of the police. I particularly welcome the move that Farmers For Action has made to produce stickers, posters and leaflets that it will distribute outside supermarkets so that the customers, who are the end of the line, can connect the dots and understand the difficulties faced by the producers, who are at the very beginning of the line. Asking farmers to plan when they are being offered prices that are well below the cost of production seems desperately unfair. I will leave it there, but I endorse everything else that has been said today.

[Mrs Linda Riordan (in the Chair)]

Mr Drax, would you like 45 seconds?

Badger Culls (Assessment)

Tessa Munt Excerpts

Tuesday 4th November 2014 Westminster Hall

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

It is great to follow the hon. Member for Brecon and Radnorshire (Roger Williams). I concur with many of his remarks, if not all of them. It will come as no surprise to hon. Members to learn that I completely oppose the whole idea of stopping the badger cull: I will explain exactly why.

Between 1999 and 2010, the number of cattle with TB in this country rose from 6,000 to 33,000. That was the period when Labour Members were in control of government in this country. Let us look at the same period in the Republic of Ireland. There were 40,000 reactors to TB in 2000, but by 2012 the number had dropped to 18,500 and it is dropping further now, so the number of cases in the Republic of Ireland more than halved in that period, whereas ours went up by four times.

In the Republic of Ireland, there are badgers and there is virtually the same cattle testing regime as we have, so of all the countries in the world that we look at, the Republic of Ireland is the best one to take an example from. In that case, what was different about the Republic of Ireland in the period to which I am referring? It took the difficult decision—it is a difficult decision; we all respect that and I respect hon. Members in this Chamber who have different views on badger culling—to cull badgers and it is reducing the disease dramatically. If we are to eradicate TB from our cattle, we must tackle the reservoir of disease within badgers.

More than 6,000 reactors a year are taken out of the county of Devon alone. There, we have a real hot spot of TB, and where we have a hot spot of TB in cattle, we also have TB in the badgers. There is a higher percentage of TB in the badgers because they catch it from the cattle, and then the badgers reinfect the cattle. I have made this point many times before. If we are going to test our cattle and test them more vigorously, as the hon. Gentleman said, and take out the infected animals, it is absolutely pointless then putting the cattle back into a field where there are badgers with the disease, because they will just reinfect the cattle all the time.

[Tessa Munt (Wells) (LD)]

Does the hon. Gentleman agree with me on this point? Certainly in my part of Somerset, a number of the farmers have declared that they have cattle with TB, but the cattle are not removed from their farms with any level of speed whatever, so it both causes a great deal of distress to the farmers and has the potential to keep the infection level going.

[Neil Parish]

Yes. The hon. Lady raises a point that my hon. Friend the Minister might well like to deal with. The quicker we can get a reactor off a farm the better, because it is infectious while it is there.

While there is a reservoir of disease in the wildlife and particularly in badgers, we have to cull, and we have to cull in the areas where the badgers have TB and the cattle do. That is why the hot spots are where we target the culling. That is why we targeted Gloucester and west Somerset. That is absolutely right. We will be able to use vaccine in other areas, because in other areas, where there is little TB in the cattle, there is likely to be little TB in the badgers also. Therefore, vaccinating badgers in those areas could well be very successful. The point has been made many times that if a badger is infected with a disease, we will not cure it by vaccinating it. That is why we have to take the very difficult decision of culling infected badgers.

I congratulate very much the previous Secretary of State, my right hon. Friend the Member for North Shropshire (Mr Paterson), who may have been lambasted by many, but who actually stuck his neck above the parapet and said, “Yes, we will do the thing that is necessary, which is to cull badgers in infected areas.”

The hon. Member for Derby North (Chris Williamson) opposed the policy from the beginning, so he would oppose it whether or not it was successful. That was never an issue with him, because he has opposed the whole thing, but what do we say to my constituent, David, who is at Ennerleigh farm in Washfield? He has been farming there for generations. Over the last 10 years, he has lost 350 cattle that have had TB. It has been a slow decline all the time—more and more reactors. He needs the pool of wildlife that has that infection to be dealt with, as do farmers across Devon, across the west country and in Wales, because, as has been said, the disease is spreading. If we do not deal with it in those hot spots, we will, in the end, have to cull more badgers, for the simple reason that the disease will have spread, the badgers will get it, they will then disease the cattle and the whole thing will get worse and worse. We cannot go on like the last Labour Government did—prevaricating and prevaricating and doing absolutely nothing.

The current Government have taken the difficult position. We have looked at the cull areas. We have looked at hard boundaries to ensure, as far as possible, that we use major roads, rivers and so on to try to prevent as much perturbation as possible. The system is not perfect. We would accept that and we have learned lessons from last year as far as the humaneness is concerned. As for traps, it is absolutely within the rules for traps to be used, and as for those activists who go out and trash the traps so that we cannot catch the badgers, that is absolute madness, because if we want to cull a badger in the most humane way possible, getting it in a trap so that we can dispatch it at point-blank range will always be the best method of culling.

We have worked so hard to get this going, and the farmers of this country, who keep the cattle, deserve to have the disease brought under control, because this is not only about the meat that we eat and the milk that we drink. It is about the countryside that we see out there and the cattle out in those fields. If we do not get rid of the disease in the wildlife, those cattle will have to stay indoors because it is too dangerous for them to go out, and I do not exaggerate. That is why this Government are making the right decision. I look forward to these pilot culls being successful. We are, again anecdotally, seeing the disease reducing, reactors reducing and outbreaks of TB in Somerset in particular—

Oral Answers to Questions

Tessa Munt Excerpts

Thursday 30th October 2014 Commons Chamber

[Mr Speaker]

Last but not least, I call Tessa Munt.

[Tessa Munt (Wells) (LD)]

Thank you, Mr Speaker. Can the Secretary of State find out what has happened to the scheduling of payments for higher-level stewardship schemes for farmers in my environmentally sensitive part of Somerset? These have been contracted for a 10-year period but they seem to have been cut, delayed or changed without consultation or notice, and many farmers depend on them for their business.

[George Eustice]

I understand the hon. Lady’s point. An important part of the agri-environment scheme in the next few years will be to fund higher-level stewardship schemes to conclusion. If she has particular concerns, I am happy to discuss those with her. There has been some alignment on the start dates of some of the schemes, but I am not aware of any problems with schemes discontinuing.

--- Later in debate ---

[Sir Tony Baldry]

The Church Commissioners have investments of just over £6 billion. From that is generated an annual income of about £100 million, most of which is devoted to clergy pensions, and the rest to helping poorer dioceses across the country, such as Durham and Liverpool, and supporting their mission work. The Church Commissioners are advised by the Ethical Investment Advisory Group. I assure my hon. Friend, and the House, that we take considerable care to monitor any investment that might have an effect in these areas: tobacco, defence, non-military firearms, gambling, pornography, high interest rate lending, stem cell research, alcohol, and genetically modified organisms. For each and every one of those, the assets committee and the Ethical Investment Advisory Group spend hours and hours working to produce detailed policy to try and ensure not only that we do not invest inappropriately but that we use our investments to encourage companies to act responsibly.

[Tessa Munt (Wells) (LD)]

I think that the Church of England believes in having partnerships of constructive engagement with the companies in which it invests. Therefore, will the Church Commissioners, first, call for SOCO International, an oil and gas exploration firm in which it has shares, to launch an independent investigation into the allegations of corruption and violence that it has attracted in its dealings with the Virunga national park in Democratic Republic of the Congo; and secondly, explain how this investment aligns with the Christian values of the Church?

[Sir Tony Baldry]

I am sorry that the hon. Lady did not give me notice of that question, because had she done so I could then have given her a substantive response. I know nothing of the facts of the investment, but I will make inquiries and write to her.

Oral Answers to Questions

Tessa Munt Excerpts

Thursday 17th July 2014 Commons Chamber

[Sir Tony Baldry]

I can assure the hon. Gentleman that the Church of England is committed to paying all our staff the living wage. I hope that that will be an excellent example for employers voluntarily to follow where the Church of England is leading.

We understand the broader concerns about food banks. That is why, together with support from the Church Urban Fund and a number of diocesan bishops, I have been, and I am, organising meetings across the country with the Minister for the Cabinet Office to consider the reasons causing people to use food banks and how, collectively, we can move on from them.

[Tessa Munt (Wells) (LD)]

The Church Commissioners have significant land holdings in and around the village of Westbury-sub-Mendip, and only the Church Commissioners can ensure that the villagers have space to replace their 19th-century school, hall and shop. For some years the parish council and other village organisations have tried, unsuccessfully, to meet the Church Commissioners about their social responsibilities in the village. Could the right hon. Gentleman ensure that those discussions now take place as a matter of urgency, because there are pending planning applications on the Church Commissioners’ land?

[Sir Tony Baldry]

That is a gloriously ingenious question, but I am not sure whether it entirely follows on from food banks. The Church Commissioners, like any other charity, have a duty to their beneficiaries, who are largely clergy pensioners, in how we manage our investments. We will of course communicate and liaise directly with those who are democratically elected—in my hon. Friend’s case, the local authority—about the appropriate way in which any landholdings we have might be used in the context of the local plan.

Flooding (Somerset)

Tessa Munt Excerpts

Wednesday 2nd July 2014 Westminster Hall

[Mr Heath]

I am grateful to my hon. Friend, because the next thing written on my piece of paper is “A361”. I do not like the idea of Taunton being cut off from civilisation and we need to do something about the A361, but the question is, what? I am not convinced that simply raising the level of the road along its entire length is the most sensible use of funds, but we need to do something in combination with the sluice, which I will come back to in a moment. We need to mobilise whatever funding is available—whether from Network Rail, which otherwise needs to do something about its track across the levels, or the roads agencies—and use it in the wisest way to ensure that the road is not closed again and that we all have easy access to the pub at Burrowbridge, which served as such a useful headquarters for the media during the flooding.

Are we going to see the replacement of the necessary pumping facilities? Some have already been done, but we brought in those massive pumps during the crisis and they were an extremely good thing. We need to ensure that they are available when we need them, and without having to ask, as we need a boat to be available when necessary. Such facilities need to be built.

That brings me to the two big ticket items. One is the Parrett sluice, which I agree entirely with, having looked into the matter. As the hon. Member for Bridgwater and West Somerset knows, I was initially sceptical as to whether the sluice would include improvement for my area—it clearly would for his—but I am now convinced that it would. Preventing the influx of water from the Bristol channel at high tide, thereby ensuring that we can drain away water from the upper reaches of the levels, is crucial. We need the Chancellor of the Exchequer to announce the funding in the autumn statement—no doubt about it, we need it there in black and white. When we have that, we will be satisfied that the Government are keeping their promises to the people of Somerset.

[Tessa Munt (Wells) (LD)]

While we are on the subject of sluices, will the Minister address the problem of Bleadon sluice, bearing in mind that we have all talked about how any approach has to be for the whole catchment area? My concern is with the Axe and Brue rivers; there is a need for dredging on the Brue, but my most important concern is the Axe, which drains out into the northern part of my patch and over towards Weston-super-Mare. Bleadon sluice was closed by the Environment Agency, which put a red notice on it in 2009. There has been a bundle going on—no one will take responsibility. I was told earlier this year that the sluice was going to be fixed at some point during the year, but we are a long way through it and nothing has happened. Will the Minister address that, since we are on the subject of sluices?

[Mr Heath]

My hon. Friend is absolutely right. We cannot divorce the issues of the Parrett and Tone from those of the Axe and Brue. That is why the next ask is equally important: setting up the Somerset rivers authority, to absorb the interests of the existing internal drainage boards and to create real capacity to manage our complex water systems appropriately and with the benefit of local knowledge. That will not happen unless we have a revenue stream to support it, which in turn will not happen unless the Department for Communities and Local Government realises that Somerset is an exception and does not fit its rules. The Department will have to give way to establish what is already the case in some parts of the east of England—a separate levy to fund the maintenance we know to be necessary. Again, that is an ask to which the answer must not be no, because otherwise we will not have done our job.

Will the Minister also update us about how the common agricultural policy reforms as implemented in England—the pillar two payments, in particular—will be used to encourage water retention, the sort of sustainable use of land that will reduce the amount of water entering the lower reaches of the levels at the right time? That is a key component, whether it involves reforestation or simple changes in land use, to enable us to hold more water at higher levels, releasing it slowly when it can get away.

We need a balance between the environment and the community, including the agricultural community. The environment of the levels is precious. I will not have it said that the environmental benefits of the levels do not matter, because the levels are irreplaceable—if we allow them to drown, they die. Therefore, it is in our interests as environmentalists, as well as representatives of our community, to ensure that the balance is created. As I have said often, flooding 3-feet deep for three weeks is fine. That is what we expect in Somerset; it is the levels way. Flooding 10-feet deep for 10 weeks is unacceptable; that is when people are in difficulties, businesses and communities die, and vegetation dies as well.

I hope that the Minister will give as many answers as he can. We will excuse things not having been completed by next winter, provided that we have clear intent that they are under way. After all the promises that we have been given and all the efforts made, however, we will not excuse things simply being said only for nothing to happen. We will have flooding again this winter—that is a fact—but if it is as bad as it was last winter and we can turn around and say, “The Government have failed to do all those things that they said they were going to do,” then, frankly, the Government will have to answer not only to the people in this Chamber, but to an awful lot of people in Somerset, who will be very angry indeed.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)]

It is a pleasure to serve under your chairmanship, Mr Hood, and to have the opportunity to respond to the debate.

I hope to satisfy my hon. Friend the Member for Somerton and Frome (Mr Heath) with my response, as far as I can on the day. As he said, he has raised the issues consistently, since long before my time with this portfolio. More recently, we have had a number of opportunities for debate inside and outside Parliament. He has been entirely consistent, as have my other hon. Friends present today, and they have worked together as a team, along with our right hon. Friend the Member for Yeovil (Mr Laws), who has also raised the issues with me.

I have only a short time to respond, so I will not set out everything to do with the extreme weather that we experienced, although it is important to mention that the effects in Somerset were replicated in other parts of the country. Yesterday I was debating with right hon. and hon. Members from the Humber estuary. My hon. Friends here today will be delighted to know that those Members were only requesting £880 million for the schemes identified in that area. We are not short of positive ideas to deal with flooding around the country.

The specific issues affecting Somerset are not so much to do with the large numbers of properties flooded—as my hon. Friend the Member for Somerton and Frome said, in other areas a much larger number flooded—as with the volume of the water and its duration, producing the longer term economic impacts on the communities affected. There was in excess of 65 million cubic metres of floodwater, covering an area of 65 sq km. Exceptionally, that floodwater stayed on the levels for more than 12 weeks.

The Environment Agency did an excellent job in carrying out the single largest pumping operation ever undertaken in Somerset. As my hon. Friend said, the emergency services, the volunteers and all the other groups from local communities and from across the country who offered assistance did a magnificent job in some very difficult conditions. In addition to the 40 permanent pumps, the Environment Agency mobilised a further 24 temporary units, increasing the ability to pump by more than 150%, although there is an interaction between the tidal nature of the catchments and the ability to get the water out into the sea, which my hon. Friend considered when talking about the sluice. I want to make it clear that there are no plans to reduce the number of Environment Agency front-line flood and coastal risk management posts. That issue has been raised in the past.

On my first visit to the Somerset levels with my hon. Friend during the episodes of winter flooding there, the clear ask from the community was for dredging of the rivers. I came back to the Department determined that we should re-examine the case for doing so. The Secretary of State for Environment, Food and Rural Affairs followed up with a visit and asked all the local organisations to meet and to put an action plan together, with support from officials in the Environment Agency and DEFRA. That happened in a remarkably speedy six weeks. I chaired the first meeting and returned later to hear about some of the progress. We now have the action plan, whose delivery is crucial for the future of the levels.

[Tessa Munt]

Will the Minister give way?

[Dan Rogerson]

I will give way briefly, but I do not have much time.

[Tessa Munt]

It is a brief point. Will the Minister make absolutely certain that DEFRA officials stay engaged with the process, because an internal drainage board cannot do things on its own? It is crucial that DEFRA officials carry on working with the boards.

[Dan Rogerson]

DEFRA officials and indeed Ministers will remain involved. The Secretary of State was in the area again recently to look at progress. He has been appointed flood envoy for Somerset and Wiltshire by the Prime Minister, as I have for Cornwall. We maintain an interest in the delivery of the plan which, as my hon. Friend says, is crucial. Money has been made available from the Department for Transport, DEFRA and the Department for Communities and Local Government. For example, an additional £12.3 million from the Department for Transport has been made available to the county council to help roads recovery.

I want to pick up on some of the issues in the action plan and the progress that has been made against that plan. An important element is resilience, which is perhaps slightly more intangible than dredging and hard defences but is important. The Somerset civil contingencies partnership is providing a dedicated programme of targeted support to help people, farms, businesses and neighbourhoods to recover, including by accessing the support and advice that we have made available. They are working hard on plans to increase resilience in the future. As my hon. Friend the Member for Somerton and Frome said, flooding will happen again, so we must ensure that communities have what they need at their disposal. That is particularly so for people who have moved to the area and may not have been through this before, unlike the old hands who have and know about resilience and how to support one another.

Implementation of the action plan has started with the dredging of the Rivers Parrett and Tone. It started when the banks were stable and safe enough to support the weight of the heavy equipment, when local access permission had been sought and preparations made for receiving the excavated silt. The dredging is progressing well and is on target to be completed by the autumn. The plan is to dredge 8 km of river; so far 1.7 km has been completed and the number of gangs has increased from two to six.

Work is in hand to find alternative ways of getting water to flow from the Parrett catchment area by increasing the capacity of the River Sowy and the King’s Sedgemoor drain so that water can be pumped more easily and be diverted to Dunball where extra pumps are working. The footings have been made permanent so we can call on them if necessary. That will lower the levels in the River Parrett sufficiently to enable the pumping stations to be operated, helping to lower water levels on the moors around Langport, and to a lesser extent around West Sedgemoor, Curry moor and North moor.

The Environment Agency is currently scoping this work and hopes to appoint a consultant by the end of this month who will work with communities and professional partners to agree aims and to include them in the development of the options. By the autumn, the agency expects to have assessed a range of options to see what is feasible. Partnership funding will be needed to build the scheme. Further key action is the construction of a barrier or sluice to deal with the impact of a rise in sea level and to protect Bridgwater from flooding, and to look at future development.

On Friday 6 June, the Environment Agency, with Sedgemoor district council, organised a technical meeting to discuss various options for the type of barrier that could be used. The meeting was attended by 60 people who received presentations from experts from across the country who have been involved in the design of other flood defence barriers. The long-term vision for Bridgwater was also discussed. A group will review these options and compile a report by September. That report will contribute to an informed decision on the preferred option.

The Environment Agency estimates that it will be three to five years before construction starts and that it will take two years to complete notwithstanding discussions on funding, to which my hon. Friend is keen to draw attention. If we have a plan by September, that will allow serious consideration of the funding options.

Under the action plan, a new Somerset rivers board is being set up. It will have greater control of and responsibility for work to maintain water and flood risk management in the area. This work is being co-ordinated by Somerset county council, working closely with district councils, the Environment Agency, Natural England and the internal drainage boards, which do such crucial work not just in the Parrett and Tone catchment areas but the Axe and Brue areas.

The Somerset rivers board was discussed at an interim leaders implementation group meeting on 20 June. It was a positive meeting that acknowledged the need for compromises and urgency. The options under review include organisational structures, legislative requirements and funding models, all issues that will need to be discussed by local and national Government to ensure a sustainable model in the future. Proposals being considered include an appropriate catchment-wide funding mechanism to generate additional funds. These proposals will be discussed at the next leaders group meeting on 7 July. When proposals have been agreed, next steps will include consultation and engagement on them. In addition, work is under way to consider raising the road to Muchelney and building a ring-bank flood protection scheme for Thorney. My hon. Friend was keen to make the case for that.

We have made provision through funding such as the farming recovery fund, and 167 applications were received from Somerset by the 27 June deadline. That represents 44% of all the claims. It was available to other areas of the country that experienced winter flooding from early December 2013 to April 2014. The total value of claims from Somerset is over £1.5 million of the money that was made available. Repair and renew grant is also available, and householders and businesses may claim up to £5,000 to establish flood resilience measures on their property. Of the 283 properties that were flooded in Somerset, 219 were in the area covered by Sedgemoor district council. Other councils have also taken that option.

In the few seconds remaining, I should say that I greatly appreciate the leadership that has been shown in communities. This has helped to bridge the gap between local and national agencies. We will continue to focus on delivering the action plan. There are challenges ahead, but if we work together we can overcome them so that that resilient community has a better time in future.

Flooding

Tessa Munt Excerpts

Wednesday 26th February 2014 Commons Chamber

[Dan Rogerson]

I will come back to the hon. Gentleman later.

In addition to DEFRA funding, we are on course to bring in £148 million of additional funding over this spending review period compared with just £13 million in the previous period. This means that some schemes that perhaps would not meet the cost-benefit ratios that we want from national funding will now go forward because local funding has made that possible.

Looking further ahead, we have made an unprecedented long-term six-year commitment to record levels of capital investment in improving defences. Since the beginning of December, our defences have taken a terrible pounding. The extra £130 million that we have committed to pay for emergency repairs will ensure that our long-term improvement plans progress as planned. These future schemes will not lose funding that needs to go towards the repairs that we will make sure happen, and are happening immediately.

Many hon. and right hon. Members have spoken and I want to pick up on some of the points that have been made. The hon. Member for Newport West (Paul Flynn) has clearly volunteered to take a PowerPoint presentation to the Somerset levels on how people there could do a better job and how dredging will have no effect whatever. I wish him well with that. I will be there tomorrow and will extend his offer. If he would like to talk to them, I am sure they would welcome that.

I share the hon. Gentleman’s view, however, that we could do more in terms of land management and local solutions to problems. I think that hon. Members across the House would agree with that and it is something we will take forward in catchment management approaches.

The hon. Member for Tewkesbury (Mr Robertson) discussed planning and the need to ensure that it takes account of flood risk and floodplains. The Government’s message not to build on floodplains is very clear and we maintain it. Local authorities, which are of course key to responding to these events, also have an incentive to take account of that. Flood Re includes premiums and excesses, so I hope that reassures the hon. Gentleman.

The hon. Member for Vale of Clwyd (Chris Ruane), who, as we heard earlier, looks as radiant as ever, was keen to pick up on a number of issues that are, as he knows, devolved to Wales. I am pleased to hear that he is raising them with the Welsh Government. Flood Re is not devolved and I would be happy to talk to him about it if he wants to raise any further issues. I went to university in Aberystwyth and saw the effect on the west coast of Wales. I would very much have liked to have visited as a Minister, but this is a devolved issue and I respect the duties of Welsh Ministers and what they are doing.

The hon. Gentleman mentioned discussions with the Association of British Insurers and a response to a parliamentary question. I want to clarify that the response was not that we have had no discussions with the ABI on this issue. The question was about technological and process improvements to speed up drying out after flooding, and not about flooding generally. We continue to have regular discussions with the ABI. I did so over Christmas and have done so more recently since the recent flooding events.

The hon. Member for Isle of Wight (Mr Turner) spoke movingly of the impact on his constituency. In particular, I took into account his point about the importance of a timely response from the insurance industry. We have addressed that and I am pleased to say that the spirit in which it is approaching the situation is very reassuring. It knows that mistakes were made in previous years and a number of loss adjusters are getting on with work on the ground.

The hon. Member for York Central (Hugh Bayley) continued his discussion about funding figures. My right hon. Friend the Secretary of State has written to him and offered a meeting at which he would be happy to discuss the issues further. I have set out our position and will do so repeatedly, and I will of course answer any questions the hon. Gentleman puts to me in order to ensure that he has all the information he needs to inform his constituents of the actual picture.

My hon. Friend the Member for Somerton and Frome (Mr Heath) has been a doughty campaigner on behalf of his constituents, as have his colleagues from across Somerset, making sure that what is happening on the levels remains in the public eye and that we get the balance right on all the tools we can use.

[Tessa Munt (Wells) (LD)]

Will my hon. Friend give way?

[Dan Rogerson]

I am afraid I do not have time, although my hon. Friend has raised these issues consistently too.

The hon. Member for Winchester (Steve Brine) highlighted the great responsibility taken by the Environment Agency and, indeed, all the community action that took place to look after residents in his area and the innovative solutions they came up with.

The hon. Member for Derby North (Chris Williamson) was clear in saying that there are no simple answers and that it is worth exploring some of the issues relating to farming practices. They will not be appropriate in every area and we will need a range of tools to tackle this.

I particularly welcomed comments made by the hon. Member for Romsey and Southampton North (Caroline Nokes) on the role played by armed service personnel in what was delivered on the ground in her area. I recognise the urgency of some of the issues she continues to raise.

The hon. Member for Nottingham South (Lilian Greenwood) raised transport issues again—we debated them this morning as well. She will have plenty of opportunities during Transport questions and other debates to pursue my colleagues at the Department for Transport with some of her concerns.

Hon. Members from along the east coast, including the hon. Members for Kingston upon Hull North (Diana Johnson) and for Brigg and Goole (Andrew Percy), were absolutely right to say that the Government are taking into account the effects on the whole country and that all the measures being put in place to help the recovery will be available to them too.

I would be happy to meet the hon. Member for Hayes and Harlington (John McDonnell) to discuss the points he raised. The hon. Member for Spelthorne (Kwasi Kwarteng) focused on groundwater, which is a particular problem that will be with us for some time.

I reassure hon. Members that we are continuing the implementation of the Pitt review. The vast majority of recommendations have been implemented. I do not think, therefore, that the formal need to continue reporting is necessary, but we will continue to update the House on anything that still needs to be dealt with.

The Opposition have tabled a motion that we are happy to support in the main. We disagree with some issues, but the important thing today is consensus to tackle the problems and recognise the contributions that people have made on the ground.

Oral Answers to Questions

Tessa Munt Excerpts

Thursday 13th February 2014 Commons Chamber

The right hon. Member for Banbury, representing the Church Commissioners, was asked—

[Tessa Munt (Wells) (LD)]

6. What recent discussions the Church Commissioners have had on further consultation on the decision to relocate the residence of the Bishop of Bath and Wells.

[The Second Church Estates Commissioner (Sir Tony Baldry)]

At the invitation of my hon. Friend, I visited Wells on 25 January to attend a public meeting and listen to the views of local people. I promised that I would report those views to the governors of the Church Commissioners, which I shall do at their next meeting later this month. She also presented a petition at General Synod earlier this week. A number of questions on this matter were also asked and answered at General Synod.

[Tessa Munt]

Bearing in mind that there is unity between churchgoers and those who are not churchgoers, I will quote from a letter that I received last night, which said of the Church of England:

“It is most depressing to see it damaged by its own corporate actions…There are times when I look into the internal workings of the Church of England and despair.”

People understand that the investment arm can make a return on the latest asset of the Church Commissioners, the Old Rectory at Croscombe, by renting it out on the ordinary market. However, may I make a plea for a graceful and sensitive response to the thousands who have registered their disagreement with allowing the new bishop to move in, and for there to be real consultation?

[Sir Tony Baldry]

My hon. Friend has made her views on this matter very clear. I have promised that I will report those views to the governors of the Church Commissioners later this month. I am sure that they will reflect carefully on all the representations that have been made on this matter.

Flooding (Somerset)

Tessa Munt Excerpts

Monday 3rd February 2014 Commons Chamber

[Mr Paterson]

I am grateful to my hon. Friend for his question. I remind him that we are protecting significant areas of agricultural land as we speak, but my view of the future, as he has probably picked up, is that many of the low-risk waterways are much better cleaned out and maintained by local landowners, in co-operation with the Environment Agency. That is probably the best way to go.

[Tessa Munt (Wells) (LD)]

I hope that the Secretary of State will applaud the fantastic work of the Somerset Community Foundation and its hardship fund, which is helping people who are suffering financial difficulties as a result of the flooding. Does he agree that the whole catchment approach should include the Rivers Axe and Brue and that it should involve dredging, repairing the Bleadon sluice gates, installing more flood gates and more pumps for local protection, and ensuring that we value productive land?

[Mr Paterson]

I thank my hon. Friend for that question. She is absolutely right that they are part of the whole catchment of the levels, and the relevant internal drainage board will be involved in the discussions. As she probably already knows, the River Brue is one of our pilot schemes.

Badger Cull

Tessa Munt Excerpts

Wednesday 11th December 2013 Westminster Hall

[Simon Hart]

I am grateful for the lesson on countryside management. Actually the method of control is similar and the activity of the animals is very similar. If the hon. Lady had, as I have, spent many hours studying how they behave at night, in the lights of a vehicle or the lights used by an expert, she might reach another conclusion. Perhaps that is a debate for another day.

[Tessa Munt (Wells) (LD)]

Surely it would have been most sensible to mark the ammunition used in the pilot, so that the public could be assured about whether the bullets that were fired reached their target. There has been no such marking of ammunition, so it is not possible to be certain that it did not damage and wound badgers. I have mentioned the issue time and again, and I do not understand why the Department is so loth to do it, so that we know exactly what happens.

[Simon Hart]

The Natural England licensing conditions are clear about the sort of ammunition and weaponry that should be used, and the degree of expertise to be deployed. We all need to wait to see if there was any wounding—let alone what the rate of that was—so I shall not answer the question and I do not suppose the Minister can either.

Opponents of the cull have quite reasonably pointed out that cage trapping can be more effective; but they have also said that it is ineffective, or less effective than it could be. I find that odd. If it is ineffective for the purpose of removal, why should it be effective for the purpose of vaccination? If we can learn anything from what has been said, it is that it is very difficult to trap wild animals, whether to dispose of them with a weapon or to inject them with a vaccine. I do not say that it is not possible. I live almost next door to the vaccination operation that is going on in Wales, and am well aware of the practical difficulties that are being encountered; but we cannot say that trapping badgers to shoot them is ineffective, but trapping them to vaccinate them is effective. That does not wash.

The third myth is that public safety has been compromised. There does not seem to be any evidence. Perhaps the hon. Member for Derby North can come up with hard and fast evidence. Before we bandy scare stories around we need examples. I mentioned the endorsement given by animal welfare organisations in the past few years to the use of high-velocity weapons for the control of other mammals in Britain. It is odd: if it does not pose a public safety issue to put fox control into the hands of someone with a high-powered weapon who knows what they are doing, why should it pose a safety issue when someone engages in precisely the same activity to control badgers, with the same weapon, ammunition and training, in the same place? If someone can answer that question I should be grateful.

The fourth myth is that the cull has increased police costs. The history of the hon. Gentleman in the animal welfare movement is perfectly reasonable, but I venture to suggest that had it not been for animal rights activity—violence, intimidation and damage—carried out in or around the cull areas, there would have been no need for any policing costs. The only policing costs are to do with policing animal rights activity. They have nothing to do with the cost of the cull itself.

--- Later in debate ---

[Geoffrey Clifton-Brown]

Having watched badgers, I know that when a badger gets TB it goes into the bottom of the sett, dies slowly over a long time and infects other badgers. That is a fact. The disease is painful and must be eliminated one way or another. Surely we can unite around that. It is not something we want in our wildlife or our cattle.

In closing, I want to make one or two points. A lot of nonsense has been talked about the safety of shooting. If it were not safe, we would have seen more incidents in Gloucestershire. My information is that there has not been unsafe shooting and that there has been humaneness. I do not know of any cases of a badger going away to die. Again, if the hon. Member for Derby North, who represents the League Against Cruel Sports, can produce evidence, I would be interested in seeing it. He made many exaggerated claims in his speech.

We must do something about this dreadful disease. Our farmers have to use one of the strictest biosecurity devices in the world to ensure that their cattle are free of TB, and it costs them a great deal of money.

[Tessa Munt]

Will the hon. Gentleman give way?

[Geoffrey Clifton-Brown]

I will give way to the hon. Lady in a moment.

If we keep imposing those costs on our farmers, vast areas of the south-west—the hon. Lady’s constituency area—will have no beef cattle. We will then import more and more beef into this country and we will lose jobs. That has happened in the pig industry, and it will happen in the beef industry.

[Tessa Munt]

Many farmers in my constituency have an enormous problem with DEFRA and its agencies in respect of taking cattle off farms when they have been proved to be infected according to the criteria. If cattle are waiting on a farm, not isolated, for 21, 22 or 23 days before they are removed, how on earth can we say that biosecurity is at a high level? That is not the case.

[Geoffrey Clifton-Brown]

Nobody would condone any farmer or anybody breaking the biosecurity regime. In fact, the Government, as no doubt the Minister will tell us this afternoon, have tightened regulations still further so that they are some of the toughest in the world. They are imposing a great deal of economic strain on the farmers who have to implement them.

In closing, I simply say that if we want to import more and more of our food, let us get rid of our cattle industry in the south-west by not doing something about TB. For goodness’ sake, let us do everything that we can with the armoury in our box to see if we can at least reduce it, if not eliminate it.