Dairy Industry

Baroness McIntosh of Pickering Excerpts

Wednesday 4th February 2015 Westminster Hall

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

I congratulate my hon. Friend the Member for Ribble Valley (Mr Evans) on securing such a timely debate. I will share some of the evidence that the Select Committee on Environment, Food and Rural Affairs heard in addition to our conclusions. One of the most striking things I have found in representing the deeply rural constituency of Thirsk, Malton and Filey and its dwindling number of milk producers is that, in the time that the Groceries Code Adjudicator has been in place, there has not been a single investigation. I welcome the laying of the statutory instrument, but that situation must be rectified by allowing her the power not just to levy fines, but to take an investigation off her own bat. If she is not allowed to do own-initiative investigations, we will not see any progress.

It is not often that, the week after the Committee reports to the House, the Prime Minister takes up two or three of our core recommendations, but that is what happened in this case, which was very welcome indeed. I hope that the Minister will leap into action to ensure that the Groceries Code Adjudicator’s remit and the code will apply to this supply chain. There is a commonly-held belief, which has been explored on many occasions in this Chamber, that the code does not apply in this case. That leaves the small farmer exposed.

I express my hesitation about seeing further concentration in the market. We also need to look at why co-operatives work so successfully in countries such as my second homeland of Denmark but not so well here. They can negotiate collectively on price, contract terms and conditions and that must be considered.

I applaud the moves towards country of origin labelling and I press, as the whole Committee does, for an urgent review of the intervention price. It is welcome that the Government have set up, for the first time, an agriculture counsellor to be based in Beijing. The drive by the Department for Environment, Food and Rural Affairs for exports is welcome, but we must also support those producers, such as Shepherds Purse, just two fields along from where I live in North Yorkshire, who are creating cheeses that compete with many of the popular brands that we currently import.

There is a vibrant future for the dairy industry, but, should prices go up again, potential producers and farmers must look to the fact that the market is very small. We must look at the difference between the small, individual farmer and the might, weight and strength of the processor as well as that of the supermarket. I leave everyone with the thought that until that chain and that relationship is addressed, I do not see there being any change to either the dairy price or the dairy industry going forward. However, I believe that the groceries code and the adjudicator’s role are key to strengthening and restoring the balance for the dairy farmer and ensuring a sustainable future, so that the cost of a pint of milk reflects the cost of production.

Oral Answers to Questions

Baroness McIntosh of Pickering Excerpts

Thursday 29th January 2015 Commons Chamber

[Elizabeth Truss]

I know that British farmers are working on that. This country has very competitive pork producers, who are expanding markets overseas, and it is vital for the health of our agriculture industry.

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

I applaud the efforts of the Secretary of State to boost the sale of pigs trotters from Karro at the Malton bacon factory. Will she use her recent visit to China to expand dairy exports to help boost dairy production in this country?

[Elizabeth Truss]

My hon. Friend is right; there are huge opportunities for dairy in China. Chinese consumers currently consume a third of the dairy products that we consume in Europe, but that is expanding rapidly and the present generation of Chinese children are eating a lot of dairy products. UK products are particularly well respected and I took representatives of dairy companies, including Somerdale cheese, out with me. I want to see more companies out there and we are doing all we can to help the industry get its products into the Chinese markets.

--- Later in debate ---

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

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

2. What assessment he has made of the implications for the Commissioners’ policies of the Church of England report, “On Rock or Sand”, published on 21 January 2015.

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

The central argument of “On Rock or Sand” is that we should seek to enhance the well-being, and the personal and communal flourishing, of all in society, and to seek the common good—or the “common profit”, as the book calls it—and that no one should be left behind. These are principles entirely in accord with the objectives of the Church Commissioners.

[Miss McIntosh]

I am sure the whole House would wish to congratulate my right hon. Friend on being made a lay canon of Christ Church cathedral, Oxford, this weekend. This is only the first or second occasion on which a Second Church Commissioner’s work has been recognised in this way. I heartily congratulate my right hon. Friend. May I ask him to turn his big gun on my question? [Laughter.] Does he agree that when money rules, we remember the price of things but forget their value, and that while retail therapy has a role to play, everything should be done in moderation?

[Mr Speaker]

In congratulating the right hon. Gentleman on his new elevation, I can say only that the House is in a state of eager anticipation to witness his big gun.

Winter Floods 2013-14

Baroness McIntosh of Pickering Excerpts

Thursday 8th January 2015 Westminster Hall

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

Sir Edward, I welcome you to the Chair and wish you a very happy new year. I welcome the Minister and other colleagues as well.

I am delighted to have this opportunity, on behalf of the Select Committee on Environment, Food and Rural Affairs, to debate our report on the winter floods 2013-14 and the Government response to it. In the major event of 2013-14, we can see indications of how the climate is changing. Extreme weather events, such as those in 2012-13 in Yorkshire and the Humber region, and other places, were followed even more dramatically by the events of 2013-14.

We have had a number of significant contributions to the question of reducing the impact of climate change on these flood events. Notably, Sir Michael Pitt, in his 2007 review, looked to achieve a one-stop shop to respond to flood events and considered how to end the automatic right to connect. He recognised that surface water flooding was perhaps the most dramatic new form of flooding in that year alone. We then had the Flood and Water Management Act 2010.

I want to focus on the Committee’s key conclusions and recommendations. First, I recognise the damage done by the widespread flooding last year, particularly in southern England, which cost small businesses alone an estimated £1 billion, not to mention the adverse effects, which took their toll on local residents and rural communities. Certainly, the Committee commends the widespread help and the immediate relief effort provided by the emergency services and others, particularly in the Somerset levels and across the southern half of the country, in response to these floods.

Our key recommendations are as follows. We must be seen to work—particularly the Environment Agency and other the partners involved, including local authorities—with local knowledge. We recognise the role of riparian owners in making good the damage that is done and preventing flood events, and the role of internal drainage boards. It is important that I say at this stage that I am an honorary vice-president of the Association of Drainage Authorities. I pay great tribute to its work in low-lying flood areas such as my own in north Yorkshire, and in East Anglia, the Somerset levels and elsewhere. I commend the work of the coalition Government in seeking to introduce internal drainage boards where they do not currently exist.

In a key recommendation, the Committee firmly believes that we should end the arbitrary split between capital and revenue expenditure and move to a total expenditure. I recognise that this would mean amending Treasury accounting rules, and as most of the recommendations in our report demonstrate, and as reflected in the Government’s response, we are perhaps looking to the next five-year strategic spending review. However, we would like to put down a marker now.

Ofwat and Ofgem have recognised that utility companies such as water companies have moved to a total expenditure approach. It was unacceptable and most frustrating that, as the waters were rising and causing increasing damage in Somerset—I am sure my hon. Friend the Member for Somerton and Frome (Mr Heath) agrees—there was an argument about the size of a pump from Holland to be used to keep the water at bay. Was the pump sufficiently large that the expenditure would constitute capital expenditure or was it deemed to be smaller, therefore falling under what we call revenue or maintenance expenditure? We would like to see an end to that type of argument.

We highly recommend that we revert to a programme of regular maintenance and dredging. A stitch in time saves nine. The most frequently used figures show that for every £1 spent on maintenance and dredging, £8-worth of savings are made in future.

We would also like funding to be more closely matched between maintenance and capital—I will explore that in a little more detail—and the amount in the maintenance and revenue budget in the next spending review should be announced more than one year ahead. The Committee welcomes the Government’s six-year spending forecast, but we believe that, as far as possible, that should also be reflected in the revenue and maintenance spending.

One fact to record is that not one flood defence failed in the winter floods of 2013-14. It cannot be in the interest of any future Government, or in the public interest, for any existing flood defence to fail. That is why it is so important that the maintenance of these capital pieces of kit, not just the regular maintenance and dredging, is protected.

We have said in previous reports that we should not rely on public partners alone, and that is reflected in this report. I personally applaud the Government’s approach to partnership funding. We entirely accept, looking critically and constructively at flood expenditure, that it is a little bit like the health service: there will never be enough money to go round. I note that there are several flood warnings today, particularly for the East Anglia region: Norfolk, Suffolk and Essex. There will always be areas vulnerable to flooding. It is a matter of debate how many houses will be protected under present plans. It is important that we open up to partnership funding and private partners. I welcome and applaud the investment through United Utilities and other water companies in this regard. If we can encourage water companies to invest in upstream flood defences, that will be excellent.

This is the moment to recognise the Pickering “Slowing the Flow” project, which is largely a public partnership approach. Slowing the flow by planting trees upstream, soaking up the excess water, creating bunds and having a softer, more natural flood defence, as set out in the Government’s own natural environment White Paper, shows that there is a lot more we can do. The money will go much further on those projects than on very expensive, hard, physical flood defences, which are capital intensive. Obviously, we will need a number of those, but we need to consider more imaginative processes as well.

The Government have committed £2.3 billion of capital spending up to 2021, but as I have mentioned we must not be seen to neglect the maintenance of flood defences and watercourses if homes, businesses and farmland are to gain better protection against future flooding risk.

The Association of British Insurers has said that, over the last four years, revenue expenditure is down 18% and maintenance expenditure down 40%. That 40% figure relates to dredging and repairing existing walls. We join it in urging the Government to seek a closer match between revenue and maintenance budgets and capital expenditure. The Committee has repeatedly urged the Government, and do so again today, to increase revenue funding in line with funding for new capital schemes so that the necessary maintenance, including dredging and watercourse maintenance, can be carried out to minimise flood risk.

Our understanding is that funding for maintenance remains absolutely at a bare minimum, and that has to be addressed in the next spending review. As I said, it is important to announce maintenance funding more than one year ahead so that everyone knows what the programme is. We must not neglect the costly one-off capital investment that is needed to repair existing flood defence walls. In June last year, the Committee advised Ministers that more fully funded plans are needed to address the backlog of maintenance and to maintain the growing number of man-made flood defences. Regular work to dredge and keep rivers clear can be an essential flood maintenance measure, yet we heard from the Environment Agency in taking evidence for the report that that is exactly what gets squeezed when flood defence budgets are tight. The outgoing chair of the Environment Agency, Lord Smith, told the Committee that the main lesson he had learned from the winter floods while at the Environment Agency was

“to push as hard as we possibly can for keeping and increasing maintenance expenditure alongside capital expenditure, and making sure that Government is aware of the degree of priority that has to be given to that.”

That is the message I think he would like to bring to the House’s attention this afternoon. In the Association of Drainage Authorities’ evidence, it said:

“Fully funded plans should be drawn up to address the backlog of maintenance needed across the country.”

It said that measures to prevent flooding, such as regular maintenance, are less costly and more predictable in the long run.

I will focus on the work of riparian owners. When the pilot schemes have been completed, we would like to see them rolled out nationally. We applaud the public sector agreements the Government have negotiated with the internal drainage boards. The Committee is keen to see internal drainage boards maintain more flood defences. It is important to recognise that internal drainage boards, including the one in my area of the vale of Pickering—I met with it two or three years ago—raise thousands of pounds through a precept. It passes the money on in large measure to the Environment Agency, and it goes into a central pot for regular maintenance. That money never comes back to the vale of Pickering to do the essential maintenance that is required.

The pilot schemes are absolutely essential in ensuring that where the money exists and is being raised locally, such as in the vale of Pickering and other internal drainage board areas, it can be kept and used, utilising local knowledge and the engineering skills that they can buy in. We recognise that local knowledge is the key and that flood risk management priorities must reflect local circumstances. We urge the Government to end, as far as possible, any confusion over maintenance responsibilities—as we conclude in our report—through a widespread education campaign, so that maintenance activity is carried out by internal drainage boards and local landowners, particularly where they are riparian landowners as well.

I repeat that we need to rely more on natural flood defences, the planting of trees and other softer flood defences. We need urgently to ask the Treasury to look favourably on ending the arbitrary division between maintenance and revenue expenditure and capital expenditure. If we can urge the Treasury to amend the accounting rules for areas such as yours, Sir Edward, and mine that are prone to all forms of flooding—coastal, fluvial, river, surface water and groundwater flooding—that one change alone would revolutionise flood defence spending.

I end with a couple of questions to the Minister. The Government are looking to secure £600 million of partnership funding and external funding while achieving 10% efficiency savings over the next six years. It would be interesting to hear how that matches up. It is important that, after the Committee’s debates and the evidence we took, the staffing in the Environment Agency on flood defences has been protected, which is a welcome development. Those staff—many of them were not wearing Environment Agency jackets or uniforms, so local people did not know they were there—and the emergency services played a crucial role in cleaning up in the immediate aftermath of the winter floods. Will the Minister explain what the impact on the six-year investment programme will be if the conditions of partnership funding and external funding and the 10% efficiency savings are not met?

Will the Government look favourably on allocating revenue funding in future for more than one year at a time? Revenue funding has only been allocated to 2015, but we have a six-year commitment on capital funding. That is not helpful to those in the firing line for maintaining flood defences. The Committee recognises that there are only finite funds and that there is a need to balance competing demands on a finite budget, but the avoidance of flood through defences should, as far as possible, take priority over cost-cutting.

The natural environment White Paper was an excellent document, and the Government and the Department could do a lot of work to build on it, looking at softer flood defences and other issues. My hon. Friend the Member for Brent North (Barry Gardiner), if I may call him that—we served on the Committee together—has done a lot of work on the natural capital aspects of the White Paper. The Government are committed to a green, low-carbon economy, and the planting of trees and other softer flood defence options are all part of that strategy.

We commend the report and its recommendations in totality. We recognise that the Government have finite funds and that we should look to other partners as well. As an MP representing one of the most rural communities, I recommend that agricultural land be recognised as worthy of flood defences, and we press the Government further on that. The National Farmers Union gave us the staggering figure of the amount of farming and food production land lost each year through flooding. When I was an Essex MEP, there was a rather alarming proposal on managed retreat that sent the heebie-jeebies through the farming community, so I do not know that we necessarily want to go there. If our food security is coming under increasing pressure, we should protect farmland as far as possible. We set great store on regular dredging and maintenance. The fundamental arguments on merging maintenance and revenue funding, announcing maintenance funding further in advance and removing the arbitrary division between capital and revenue expenditure by going, if Ofwat and Ofgem allow it, to a total expenditure budget would go some way towards protecting farmland. Local farmers and local landowners who, through council tax, are contributing to the funds raised by district councils, county councils and the precept to the internal drainage boards probably feel they are contributing more than anyone else to flood defence. It is important to recognise the contributions being made locally.

The Flood and Water Management Act 2010 is pretty much up and running in my area. I applaud North Yorkshire county council’s work in setting out its flood management risk assessment and for having the foresight to get somebody who used to work for Yorkshire Water to set it up. I hope that can be replicated by other local authorities.

I commend our conclusions to the House. We are grateful for the opportunity to debate them, and I look forward to the debate and the Minister’s response.

--- Later in debate ---

[Mr Heath]

I am most grateful, Sir Edward. Having been encouraged to go on for as long as I like, I probably will not, now. I am sorry to have reminded you of that, but I did feel that an hour was probably sufficient to allow hon. Members to say what they wanted.

I come to the issues that still need to be dealt with. One of them is insurance, which was mentioned, although I think in slightly the wrong way, by the hon. Member for Vale of Clwyd (Chris Ruane). Flood Re is coming along and, even though I did not have personal experience of working on it in the Department for Environment, Food and Rural Affairs, I know how much hard work was put in by Ministers at DEFRA and the Treasury and everyone else over a long period to try to secure agreement with the insurance industry to get it in place. However, until it is operational, there is a difficulty, in that people’s insurance premiums are increasing substantially.

The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for North Cornwall (Dan Rogerson), went to my constituency and met local authority members and others recently to discuss insurance; I am grateful to him for that. It particularly irks people to see their premiums going up just as protections have been built. They are therefore paying much higher premiums even though their risk has reduced substantially since last year owing to the work and investment put in by the Government. That cannot be right, but that is, I am afraid, something that has been reported to me too many times. I hope that that will be dealt with.

On the second issue, the Government and their agencies get a partial tick. The Environment Agency has very much improved its relationship and information flow with local communities. It was not good; indeed, most people felt that the management did not really understand their issues. I must say that that was no reflection on local officers, who did an extraordinary job and were recognised for having done so, but there was a “them and us” feeling, which has not entirely vanished.

I will give two examples from a recent visit I made to Aller. First, there was a degree of falling out between the Environment Agency and landowners about appropriate compensation for work done on their land. It would appear that the Environment Agency had a rather high-handed attitude to such work, though that probably came from its lawyers rather than the officers directly involved.

Secondly—this worried me even more—while the floods were still in progress, ballast was put in place, at short notice, to help protect the sides of a watercourse. However, the ballast had just been dumped. The landowner had said, “If you put that there like that, it won’t be there come next winter,” and they were right; it all washed away. That is just silly and a waste of money. The message to be taken from that is to listen to the people who really know the countryside and understand what happens on land that they own and see every day of the week. I hope that the Somerset rivers authority will help to that end.

We then have the upstream issues, which, again, the hon. Member for Vale of Clwyd mentioned. I do not think we yet have a comprehensive and sustainable view on how we mitigate flooding by river catchment planning and by, for instance, using pillar two money to encourage planting on higher ground and changes in agricultural practice where appropriate—all the things that will help farmers on slightly higher ground to farm water to a point at which they reduce the flow and, therefore, slow the ingress of water into what used to be the great mere, the Somerset moors and levels, so that it can be removed in an orderly way. I would like to see much more attention given to that.

Indeed, on urban drainage, we have the sustainable drainage systems, but I am not yet convinced that planning is based on real understanding of concepts of water management. That goes both ways.

[Miss McIntosh]

I am grateful to my hon. Friend for mentioning SUDS. Does he not think that if we stopped building in inappropriate places and ensured that planning permission for future developments was given only once SUDS were in place, that would go some way towards creating greater resilience to future floods?

[Mr Heath]

I do. We need a much more aggressive statement of concern from the Environment Agency and, where appropriate, the water companies, that says that there is an issue that the planning authority must address, and the planning authorities would need to respond to that.

The problem is really not that difficult to understand. When the floods were at their worst, I went down a flooded road, Aller Drove, and the one thing that really struck me was that a lot of the houses there were bungalows that had been built in the past 30 or 40 years on what is more than a floodplain—it is an inland sea, on reclaimed land that is below the level of the river that runs alongside them. The same thing can be seen in Moorland village in the neighbouring constituency of Bridgwater and West Somerset. That is nonsense. Even our iron-age predecessors knew how to do that properly. There are archaeological remains in Somerset, in the village of Meare. It is very famous—the Glastonbury lake village. The lake village was completely built on stilts, because people there knew what would happen every winter, and knew that building on the ground was rather futile.

--- Later in debate ---

[Barry Gardiner]

I am grateful for your guidance, Mr Walker. I am happy to engage with the Minister— we have engaged in many debates on such issues—but he has to acknowledge that, after coming into office in 2010, his Government specifically removed flooding from the Department’s priorities. He can only accept that that meant that the country was less well prepared for last year’s floods and is now critically less well prepared for the future. I am interested to see whether the Minister will pick this up in his remarks, but we now have a 10% risk of a flood that is 10 times greater than the flooding of 2013-14 and four times more damaging than the widespread flooding of 2007. The Minister knows that that issue must be addressed, and unfortunately the Government have not even begun to address it. Last year’s floods have passed, and the broken promises to flooded communities have been forgotten. The Government think they have got away with it.

I will briefly address the Government’s responsibility for the impact of the 2013 floods, but my comments will focus on how policy should have changed since the floods and how policy has not changed. Among the Government’s blunders, the 2013-14 floods stand out as an example of the real pain that incompetent Governments can cause to communities and businesses—I acknowledge that the Minister touched on that. For the communities and businesses affected, the floods were not simply a natural disaster. The Government slashed investment in flood protection when they entered office, and with that they broke the promise they made before the election to deliver on the findings of the Pitt review of the 2007 floods.

[Miss McIntosh]

The Committee obviously greatly misses the hon. Gentleman. From the evidence we have heard I am having great difficulty reaching the same conclusion of a 10% increase in the risk of flooding. On what is he basing that conclusion?

[Barry Gardiner]

I am happy to advise the hon. Lady that I am basing my conclusion on the reports and work of the adaptation sub-committee and the Committee on Climate Change. If she is interested, I will happily send her the references.

The Government not only cut the budget for new defences; they decided to stop maintaining existing defences properly, and they cut the budget by 20%. Why? Because they cannot cut a ribbon on an essential maintenance project—they need new projects for that. The decision to remove flooding from the Department’s list of priorities was never just about the previous Secretary of State’s illiterate theories on climate change; the larger issue is the Government’s rejection of the responsibility to protect people from risks that are beyond their control. It was interesting to hear comments earlier in the debate about the need for the Government to step in and about Flood Re, which I echo. Both coalition parties supported the Pitt review strategy that the previous Labour Government were delivering before 2010, but both parties abandoned it straight after the election because they felt they could get away with it. They crossed their fingers and hoped that no one would notice the unbuilt defences, the collapsing sea walls, the eroded riverbanks and the clogged up culverts. Forty-six of the Pitt review’s 92 recommendations have not been implemented.

--- Later in debate ---

[Barry Gardiner]

The hon. Gentleman has a very selective memory, because the floods were not only in Somerset. In fact, more houses were flooded on the Thames estuary than in Somerset, so he must be selective in his memory. My point is that, after 2007, the previous Government undertook a huge programme and established the Pitt review. Both the hon. Gentleman’s party and the Conservative party said they would continue to implement the review, but neither did so when they got into government. He cannot say other than that because it is the truth, as he knows. I would be happy to give way to him once again if he wants to deny it on the record, but it is the truth, and I am afraid he really has to accept that.

Flooding not only destroys property, it makes homes unliveable for months and sometimes years. Flooding ruins businesses and destroys crops and livestock. We learned from the 2007 floods that those affected by flooding display between a twofold and a fivefold increase in stress and depression. The effect of flooding on people’s lives is enormous and long lasting, which is why prevention is so important, but the Government chose to cancel new flood defences, slash maintenance and sack front-line flooding staff.

The Government like to talk about competence, but we all remember the chaotic infighting between the previous Secretary of State for Environment, Food and Rural Affairs and the Secretary of State for Communities and Local Government when so much of the country was under water. We all remember the failure to recognise the emergency until it hit the south-east. The Chair of the Select Committee alluded to the argument over the size of the pump and the capital expenditure and revenue dispute, which delayed action at the time. I agree with her call to consider this in terms of total expenditure, and I hope that change will eventually come. Her Committee makes an important point on that in its report.

We all remember the Prime Minister’s cruelly disingenuous promise that money is no object, and it is difficult to decide whether the original statement or the retraction of it in November marked a lower point. Will the Minister confirm how much of the flood support package for home owners and businesses has been received by those affected? Thankfully, many people were protected because, as the Committee on Climate Change has pointed out, the previous Government implemented 46 of the Pitt review’s key findings to increase our resilience to flood emergencies. We established the flood forecasting centre in 2008 as a joint venture between the Environment Agency and the Met Office. As the December 2013 tidal surge hit, the Environment Agency issued 160,000 flood warnings, and an estimated 18,000 people were evacuated from homes in coastal areas. At one stage during the surge, 64 areas had the highest warning level in place, reflecting a danger to life.

What lessons were learned? What has changed since the floods of last year? Many thousands of people were forced to leave their homes last winter. Transport was disrupted for weeks, in some cases months. Businesses were wrecked, and many closed and never reopened. After the flood, the Government promised that they had reviewed their approach to flooding and that the autumn statement would contain a proper long-term flood risk strategy. Well, the National Audit Office and the Committee on Climate Change reviewed that investment programme and found that nothing has changed. Three quarters of flood defences in England have not been maintained according to their identified needs in 2014-15. The Government’s investment plans will see the number of properties at significant risk rise by 80,000 every five years.

The budget for the ongoing maintenance of flood defences was cut by 20% in the 2010 spending review and has not been restored. The failure to maintain flood defences to the required standard has increased the risk of high-consequence flood defences, such as sea walls, failing. The failure of such defences would put lives as well as livelihoods at risk. I need to impress on the Minister that that is not simply my view but that of the National Audit Office and the Committee on Climate Change, and he really needs to take notice of it.

The failure to maintain flood defences to the required standard has led to a huge increase in flood risk. The Government have put the headline first. Of the

“over 1,400 schemes going ahead across the country”

announced by the Chancellor, only 310 are fully funded, and only 97 of those 310 are new. Some 1,119 of the 1,400 schemes may never receive full funding, because they are eligible for only 20% grant in aid funding—the rest has to be made up by partnership funding. The black hole in the Government’s funding announcements could be as large as £830 million.

The Government say their plans will reduce flood risk by 5%—true, but disingenuous, and the Minister knows that very well. The Government have put a cheap headline ahead of reducing risk for the most vulnerable. Instead of focusing on reducing risk for high and medium-risk households, they have focused on moving households at low risk into the lowest risk category. That is completely irresponsible. Limited capital investment should be protecting homes at high risk, which is a one in 30 risk, or at medium risk, which is a one in 75 to a one in 100 risk, rather than being used to provide additional protection to those at low risk, which is a risk of one in 1,000 or more. That is how the Minister gets his 5%, but it is meaningless—it is wrong.

This decision will put more homes, lives and livelihoods at significant risk. In a sign of just how far the Government are willing to go to get their headline, they chose to exclude consideration of risk to life from their analysis. If the Minister wants to deny that, let him challenge me now, but the evidence is there in the impact assessment: the Government have left out of it any assessment of risk to life. How could a Minister ask their civil servants to prepare such an assessment for them?

Does the Minister agree with the Committee on Climate Change and the National Audit Office that the number of properties at risk of flooding is increasing? If not, will he give us his figure for the predicted net change in the number of properties at high and medium risk over the next five to 10 years? Will he confirm that although his 5% net reduction figure is true, it is also true that the number of properties at high and medium risk has increased? Will he have the good grace at least to blush when he acknowledges that?

Will the Minister confirm that the long-term investment strategy assumes, against the evidence, that development on the floodplain will stop after 2014-15? The Committee on Climate Change says that 20,000 new properties are built on the floodplain each year, including 4,000 a year in areas of significant flood risk. Does the Minister disagree?

The Government’s strategy says:

“We have tested our findings against a range of possible climate change projections using the latest scenarios.”

However, if we read further, we find that the strategy assumes minimal climate change. The assumptions section on page 18—I challenge the Minister to read it—states:

“The main assumptions in this ‘baseline’ result are that the climate will change in line with the medium rate of change in UKCP09”—

UK Climate Projections 2009—

“and that no allowance is made for development in the flood plain.”

[Miss McIntosh]

I am following the hon. Gentleman’s argument carefully, although it is for the Minister to respond from the Government’s point of view—good luck! However, what would the Labour party do were it to form a Government? That is the missing link.

[Barry Gardiner]

The hon. Lady and I have worked in partnership for many years, but I did not expect her to be my straight man in quite that wonderful fashion—I was just coming to that point, so I thank her very much.

The point I want to press is that, instead of planning for the worst, the Government are ignoring the inconvenient truth: they are ignoring the risks and abandoning the most vulnerable.

The Chair of the Select Committee asks what the Labour alternative is. The Government scrapped our approach to flooding and climate change, which was based on the findings of the Pitt review into the 2007 floods. They abandoned our focus on reducing flood risk. They abandoned our commitment to invest to protect the most vulnerable and to reduce the cost of flooding to well-being and the economy. We will deliver on the findings of the Pitt review—the other 46 recommendations, which have still not been implemented. However, a Labour Government will go further. We will introduce a new national adaptation plan based on the Committee on Climate Change’s recommendations, because that is the only way to ensure that all sectors of the economy and all communities are prepared for climate change. We will end the confusion and chaos in flood investment by establishing a national infrastructure commission to identify our long-term infrastructure needs and get cross-party support to meet them.

I conclude as I began: the risk of flooding has increased, and the risk of a catastrophic flood is increasing. The Government failed the country last winter. Now, they have tied themselves to a plan that risks catastrophic failure in the future. The Prime Minister was tested in last year’s floods, and he failed that test. Shortly, the electors of our country will have the opportunity to ensure that, when the next floods come, he is no longer in charge and in a position to fail again.

--- Later in debate ---

[Miss McIntosh]

I welcome you to the Chair, Mr Walker, and congratulate you on your richly deserved honour in the new year’s list.

It has been an excellent and, for the most part, good-natured debate, although my hon. Friend the Member for Somerton and Frome almost lost his usual good humour. There were common strands throughout the debate, including the need for greater transparency regarding flood defences. We have made a good case for merging the capital and revenue expenditure into a total budget. A Library note, which I am sure the hon. Member for Brent North could access, shows that nearly every aspect of Pitt has been covered, although as hon. Friends said we still do not know exactly who is responsible for the drains and for maintaining them. In addition, ending the automatic right to connect is not yet in place.

The loss and invasion felt by flood victims is very real, but it does invoke the very best community spirit in response. I ask my hon. Friend the Minister to use his good offices to ensure that the Bellwin formula applies in cases such as that of north Yorkshire. For example, 100% of costs should be recovered in respect of bridges and roads and the properties flooded in Yorkshire and the Humber during the previous year.

On Flood Re, we should look closely at leaseholders and urge the Competition and Markets Authority review to cover affordability of all leaseholder properties.

I welcome today’s debate, and I am sure the Government and the Opposition will keep the matter under review. Future financing is for the next Parliament and the next Government to determine, but this has been a particularly appropriate, timely and positive contribution to the discussion.

Question put and agreed to.

Oral Answers to Questions

Baroness McIntosh of Pickering Excerpts

Thursday 11th December 2014 Commons Chamber

[George Eustice]

As the hon. Gentleman knows, I served on the Committee that considered the Bill that introduced the supermarket adjudicator, and I supported the introduction of fines. At the moment, this matter is subject to cross-Government discussions, and we anticipate an outcome some time in the new year.

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

Underlying the drop in dairy prices is the huge power imbalance between the small individual dairy farmer and the huge processor. It is not good enough that my hon. Friend is looking to beef up the voluntary code. Will he look closely at a statutory basis and extending the remit of the groceries code adjudicator to this very imbalanced relationship in dairy production?

[George Eustice]

If we were to have statutory oversight of the dairy supply chain code, we would have to put the code itself on a statutory basis. Because of EU legislation, however, that would make the code far weaker than what we have. For instance, farmers would not have the ability to walk away from contracts with three months’ notice. The course that my hon. Friend outlines would make things worse for farmers, not better.

--- Later in debate ---

[George Eustice]

The hon. Lady should recognise that there are a number of free range turkey farms, and that these are growing in popularity as demand increases. I can tell her that we are in the process of reviewing all our animal welfare codes, and having discussions with the industry and with animal welfare groups such as Compassion in World Farming. It is our intention to get the new codes in place as soon as possible.

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

T8. One of the side effects of hydraulic fracturing at depth is the huge amount of contaminated water that has to be disposed of. Will my right hon. Friend the Secretary of State take a close personal interest in the first fracking application, because at this stage Third Energy has had no detailed discussions with the relevant water company about how to dispose of the contaminated water safely?

[Elizabeth Truss]

I thank my hon. Friend for her question. Fracking is safe and has low environmental impact if it is done responsibly. The Environment Agency has been working hard to get the licensing process in place to make sure that groundwater is protected. I will certainly be keeping a close eye on this issue and working closely with the Environment Agency on it.

--- Later in debate ---

[Sir Tony Baldry]

As I think EU Commissioners have acknowledged, no one expected the EU habitats directive to cover places of worship.

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

I thank my right hon. Friend for his solicitous concern about the number of years that the congregation was excluded and bats seemed to be given a higher right of entry to the church than the congregation. We tried to do as the hon. Member for Bristol East (Kerry McCarthy) proposed—allowing bats in the roof, with the congregation below—but it was simply incompatible.

[Sir Tony Baldry]

I am glad that after all this time we have managed to solve the problem at St Hilda’s at Ellerburn. It demonstrates that with perseverance and working together with Natural England, it is possible to come up with a solution that enables congregations to worship but does not harm bats.

Food Security

Baroness McIntosh of Pickering Excerpts

Thursday 27th November 2014 Westminster Hall

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

It is a great pleasure to welcome you to the Chair, Mr Hood, and to welcome my hon. Friend the Minister, the shadow Minister, the hon. Member for Ogmore (Huw Irranca-Davies), and colleagues on the Select Committee to their places. We are very pleased to have the opportunity presented by this debate. On a personal note, I represent what is probably one of the most rural constituencies in the country, not just the north of England, of which livestock production and farming form a vital part.

The Select Committee decided to inquire into and report on food security, looking at food production and supply, for a number of reasons. There are particularly challenging and changing—volatile—market conditions at the moment. The inquiry took place against the backdrop of “Horsegate”, as I shall call it for short. I am referring to the adulteration of food with horsemeat that took place. Also relevant are the current global economic conditions, as witnessed by the sanctions against Russia, and the emerging markets—new markets—in China and elsewhere. Also, after a brief visit to Brussels last week, a number of us are better informed about how the European market is changing, with the removal of quotas for milk and the sugar regime facing change as well.

I should like to highlight one or two of the main aspects of the report and to thank those who contributed to the inquiry, which we launched in October 2013. We received 50 written submissions and, earlier this year, held five oral evidence sessions. We are grateful to all those who contributed.

Obviously, the farming—agricultural—and food sector is hugely important and successful. The food and drink sector is responsible for 3.7 million jobs and 7% of the overall economy. At the outset, it is fair to say that there is a danger of complacency. When we looked into food production and the supply dimension of food security, we found that complacency is a genuine risk to future UK food security. We want our food production and supply systems to be secure, in which case the Government and food producers must plan to deal with the impacts of climate change, population growth and increasing global demand for food, so what we are examining today are clear lines of Government responsibility.

We set out that at least three Departments are responsible for food security. They are the Department for Environment, Food and Rural Affairs, the Department for Business, Innovation and Skills and the Department of Energy and Climate Change. We asked, to ensure coherent planning and action, that the overall strategy be led by DEFRA, with a robust approach right across Whitehall. May I say, in again welcoming the Minister to his place, that I can think of no one better than him or his predecessors to take that role? However, he is particularly well placed, having served with such distinction on the Select Committee previously. I shall return to that.

In our report, we support the idea of sustainable intensification—producing more food with fewer resources—and we call on DEFRA to stem the decline in UK self-sufficiency and deliver more resilience in the UK food system. We note that the yields of key cereal crops—for example, wheat—have not increased for more than 15 years. The most conservative figures—I am a Conservative with a small c and a large C—are, I think that we can accurately say, the National Farmers Union figures, which I think are more recent even than the ones in our report. In 2013, we were running at only 60% self-sufficiency in food production; it was 62% in 2012. That is down from the height, in 1991, of more than 75%.

Clearly, the fact that self-sufficiency is on a downward spiral is of some concern. There are a number of reasons for that. We say that the biggest long-term challenge to food production systems is the impact of extreme weather events resulting from climate change, so we call for supermarkets to shorten supply chains to reduce the threat of disruption and for UK farmers to extend the seasonal production of fresh fruit and vegetables in co-ordination with the Agriculture and Horticulture Development Board and local and central Government. The Government must reduce dependence on imported soya bean for animal feed, as increased demand for protein from emerging economies threatens current supply lines.

The Government should also produce a detailed emissions reduction plan for the UK agricultural sector. If we are to curb emissions and adjust to climate change, we need a significant shift, potentially, in how the UK produces its food. Currently, livestock production contributes 49% of farm-related emissions, so we need more research to identify ways to curb that.

We need the better longer-term weather forecasts that successive Governments have worked on—I welcome that work—and more resilient production systems to cope with severe weather events. We particularly welcome the Government’s new £160 million agri-tech strategy to translate technological ideas into farm practices, but I shall add a plea on that. The current funding levels, as they were put to us, are insufficient and the time scale is very limited. When we visited the Rothamsted institute, we were told that the last two years of the five-year term are spent accessing and applying for the grants to ensure that the very valuable work that these research institutes are doing carries on. We looked at precision farming technologies as an example of good research but one that needs commercial partners to make it viable.

Let me deal with a number of these points in turn and against the backdrop of self-sufficiency going backwards rather than forwards. We are looking in the current inquiry at food security: demand, consumption and waste. We are about to report, we hope, on our second inquiry, which is about bringing food to market and actually to the table.

I welcome the fact that supply chains have shortened. I particularly welcome the excellent work done by Professor Chris Elliott in that regard. However, a number of issues remain. Looking at the UK food system within the EU and internationally, can the Minister explain the reasoning behind not having an individual such as him as the Minister responsible, with a specific profile for co-ordinating food security and food supply policy across Government? That would be very welcome. We spent considerable time, in the evidence that we took and in the conclusions that we reached, on the fact that that single development would make a major impact.

[Jim Fitzpatrick (Poplar and Limehouse) (Lab)]

I intervene only to reinforce the point that the Chair of our Select Committee is making, because this was one of our key discussions. Knowing how successful this Government have been in one or two other Departments where there are cross-departmental working parties, although mostly chaired by the Cabinet, does she agree that we did feel very strongly that the Minister at DEFRA should be the lead for any such joint working arrangement in government, because of the significance of food and agriculture and the need for that Minister to lead the rest of the Government on the policies that the hon. Lady is very ably outlining?

[Miss McIntosh]

I could not have expressed it better myself. Against the backdrop of self-sufficiency falling over the past 20 years, and potentially going backwards, we have BIS in charge of research institutes and DECC dealing with the climate change angle. The Committee was absolutely united on that powerful recommendation. We owe it to our witnesses and those whom we visited to extract an explanation from the Minister of why that was not deemed to be appropriate. If the Government would keep the matter under review, that would be very welcome.

The range of actions that the Government and others are undertaking to improve co-ordination is good, especially on cross-sector soils research. Will the Minister outline DEFRA’s plans for promoting the export of products such as apricots, which now have a longer growing season? How can the Department encourage other crop growers to extend their seasons? That would provide opportunities for further growth and more exports, which would build on the success that we have seen.

I would like to spend a moment on the common agricultural policy and greening issues. We heard evidence from the Secretary of State yesterday, and I am absolutely delighted that the Government are looking again at the three-crop rule. Having met the incoming EU Agriculture Commissioner last week, I believe that he is a potential ally who has a great understanding of and background in farming. The review of the CAP to which he has committed in 2017 is particularly welcome. The fact that the commissioner has said that food security is the Commission’s priority must give more grist to the Government’s mill and ensure that that remains the case. In the short term following the adulteration of beef with horsemeat, supply chains were made shorter, and that must be kept under review.

Farmers and NFU representatives have criticised the complexity of the CAP, which was meant to be simple. They have criticised in particular the effectiveness of the ecological focus areas. Does the fact that there will be an early review offer us an opportunity? What discussions are the Minister and the Secretary of State having with the commissioner on the potential for reviewing the CAP and introducing a swift review of problems such as the ineffective ecological focus areas and the three-crop rule? The higher CAP modulation rate in England will penalise our farmers more than those in other parts of the United Kingdom and the EU, so perhaps the Minister would be so good as to comment on that.

Turning to the UK’s international role, the Government said in their response to the report that they were collaborating through the Courtauld commitment on the challenge of reducing food waste, on which the UK is a world leader. They are looking at the matter in more detail and will respond further in due course. The Committee was struck by the fact that soya beans are the main feedstock for our animals, and that the supply is coming under increasing pressure because of competition from emerging economies. May I press the Minister for assurances that action will be taken to avoid any possible crisis in animal feed supplies? How are we encouraging alternatives to soya as a source of protein?

On the challenge of climate change, which may have an impact on farming and other industries, we have seen the latest targets and the framework from the EU. May I press the Minister on the outcomes that will be required from the 2014 to 2020 rural development plan, and from the expenditure under that plan on emission reductions? How will that impact on farming, and how will the Government ensure that the most cost-effective actions are taken first? I particularly welcome the soil protection work, but what outcomes does the Minister expect from the £5 million that has been put into soil security work and when does he expect to see them? When might he be able to report on that? What input is DEFRA having into EU soil protection work?

Our report’s core recommendation related to improving the resilience of supply chains. When we heard evidence recently from Professor Elliott, we were able to thank him in person for his work, and we are delighted that the Government have accepted all his recommendations. Shorter supply chains minimise the threat of disruption. In our report on food contamination, the Committee expressed concern about the length of food supply chains, and we welcome the work that retailers have done to reduce them. Where are we in relation to the cross-government group on food integrity? Where are we on labelling and traceability at an EU level? Will the Minister look kindly on a review of the groceries code and the adjudicator’s role, which currently makes no provision for an investigation without a formal complaint? Will that remit be reviewed and could it be changed? Will the Minister look kindly on the idea of introducing, as a matter of urgency, the statutory instrument that would empower the adjudicator to levy fines? It was something of a shock when we realised that such a statutory instrument had been neither laid nor adopted, so effectively the groceries code adjudicator has no teeth. Can the Minister tell us whether there an appetite in government to press for such a change, although I realise that BIS probably leads on that issue?

The Government response included a commitment to monitoring the agri-tech catalyst. How will that monitoring work and will it lead to action? Will the Minister elaborate on the findings? It is vital that we get a decision on genetic modification one way or the other. Will the Minister update us on progress at an EU level? We have looked at the matter, and I remain to be convinced on GM, but it is important that we have a framework at EU level.

The Government response said that both the Government and industry had started to address the findings of the future of farming review, especially in relation to new entrants to the industry, reducing bureaucracy and the red tape challenge. What more can the Government do to encourage new entrants, particularly young farmers, into the sector? It is no secret that the average age of farmers is relatively high compared with people in other walks of life and industries. Neither is it a secret that farming and fisheries remain two of the most dangerous industries. Farmers work in all weathers, sometimes using very complicated bits of kit. They work hard, against the elements and in the face of a constant stream of regulation, to bring food to our plates and to export as much as possible. I would welcome an update from the Minister on the Government’s plans to introduce more support for young farmers and the likely cost of doing that. How does he believe that we can entice young farmers and new entrants into the programme? One of the barriers to new entrants has to be the lack of broadband coverage in especially rural areas, and I know that we will have the opportunity to quiz the Minister about that separately.

I am very proud of our work on the food security report and I commend our conclusions to the House. I am concerned that we face the challenge of increasing food insecurity and a potential downward spiral of self-sufficiency. Lessons have been learned from “Horsegate”. We need shorter supply chains and to recognise the challenge of climate change and an increasing population, which works both ways, as there will be more mouths to feed and we are in a particularly good place to feed them. I would like consumers to be going out and buying British. I am particularly disappointed that a major retailer—I will not name it—has chosen to move away from the red tractor system. The red tractor is a symbol that food has been produced in Britain to the highest possible animal welfare standards and meets the farm-assured test. To move away from it is a retrograde step, and I hope that that supermarket chain will hang its head in shame and reconsider that decision.

We must increase self-sufficiency at home and increase opportunities to export. I welcome this opportunity to discuss the report, and I commend to you, Mr Hood, the conclusions that we have reached.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Hood. I congratulate my hon. Friend the Member for Thirsk and Malton (Miss McIntosh) on securing the debate. I also congratulate the members of the Environment, Food and Rural Affairs Committee on a comprehensive, rounded report that covers a wide range of issues, including self-sufficiency, whether we can improve and increase our exports, the role of the common agricultural policy, the impact of climate change, the importance of technology in agriculture and, finally, the role that reducing food waste can play in meeting our food security needs.

I will briefly set out the nature of the challenge that we face. As the shadow Minister pointed out, the Foresight report examined the issue of food security and concluded that by 2050 there will be a large increase in the world population. Some projections suggest that it could go to 9 billion. Projections suggest that that could lead to an increase in food demand of between 60% and 70%. Coupled with that is the impact of climate change, which means that parts of the world that can currently produce food may be restrained by water resources. Water could become a limiting resource, which would compromise the ability of those areas to produce food.

The Foresight report concluded in 2011 that we have a good level of food security in the UK. It also highlighted the fact that the issue is not just about self-sufficiency. In fact, self-sufficiency is in many ways—I will come on to them—the wrong measure to use for food security. Global food security depends on free trade as much as it does on sustainable production. The UK Government’s position is clear: we want a successful, vibrant farming industry and a sustainable increase in food production. We are doing a huge amount to promote exports and to try to open new markets for our products. We are also keen to deliver import substitution, particularly in dairy, where there is a great deal more potential for this country to manufacture and process more cheese. There are also export opportunities for sectors such as beef and lamb.

If we deliver that and achieve that sustainable increase in production, displace imports and grow our exports, we will of course increase our self-sufficiency. For reasons I have made clear, however, the production-to-supply ratio is the wrong measure for food security, because we could be completely food sufficient one year, but then have a dire harvest and find that we are not sufficient the next year. Part of global food security is therefore about having open markets and free trade.

It is also worth putting our level of self-sufficiency in context. Between the wars, in the 1920s and 1930s, our food security was only some 30% to 40%. At the start of the second world war and when in dire need, the country managed to switch production sharply to crops such as potatoes and got close to self-sufficiency. We can therefore change such things when we need to. As my hon. Friend the Member for Thirsk and Malton said, our overall self-sufficiency is at 60%, but our self-sufficiency in indigenous foods is still around 73%. That has stabilised in recent years, but it is down, as my hon. Friend said, from the peaks of the late 1980s and early 1990s. We must recognise, however, that a distorting common agricultural policy was driving unsustainable production at that time, and we do not want to return to that.

My hon. Friend also highlighted climate change, which is important in the context of global food security. It is clear that water will become a limiting resource in many countries, which is why some of the research that we are funding through our agricultural technologies strategy is on developing drought-resistant strains of wheat that will still be able to be grown in such countries.

We are also promoting the sustainable intensification of agriculture. Several hon. Members mentioned the green food project, which the Government took forward and published. A number of industry road maps also deal with carbon reduction. My hon. Friend also mentioned soya and its impact on the environment. It is worth noting that the pig sector has made quite good progress in reducing the amount of imported soya used for pig feed, which has contributed to a reduction in their carbon emissions. DEFRA also has greenhouse gas action plans, and we are working with industry to achieve cost-effective reductions in emissions of some 3 million tonnes of carbon dioxide by 2022. We are therefore doing several things to deal with the environmental impact.

Several hon. Members mentioned the report’s recommendation that DEFRA should lead on food security. The Government response made it clear that we agree with that, and that DEFRA should and does lead on food security. The Government were asked whether someone should be designated to deal with the issue. Well, I am standing here, which usually means that I am the Minister who has been designated to look after this matter.

[Miss McIntosh]

The Minister is being gracious in his response, which is most welcome. We want a co-ordination role and a cohesive, comprehensive approach, which he is well qualified to provide. He steps up and says that he is responsible for food security, but we want someone to co-ordinate policy across the three Departments.

[George Eustice]

I understand that. I think that we do have that co-ordination, but I lead on food security. We also need co-ordination on science, because science will have many of the answers to the challenges we face.

Several hon. Members mentioned the Global Food Security programme, which was set up to co-ordinate food-related research. It is led by Tim Benton, whom the shadow Minister mentioned, and deals with joining up research in a number of areas, looking at how to improve resilience and the sustainable production and supply of food. It also considers nutrition, health and well-being. That programme is co-ordinating and joining up much of the specific, tailored research in this area. DEFRA is also looking more generally at whether we can co-ordinate more effectively all the various research bodies to reduce duplication and increase focus on research and its effectiveness.

My hon. Friend the Member for Thirsk and Malton mentioned the importance of waste, an issue that the second part of the Committee’s food security report considers. The Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for North Cornwall (Dan Rogerson), is present for the next debate and waste is generally an issue that he covers, but it is important to recognise that, through the Courtauld commitment and the work of organisations such as the Waste and Resources Action Programme, we have already made good progress on reducing food waste. Household waste is down by some 15%, and we have reduced waste in the supply chain by some 8% and aim to reduce that further.

I want to touch on the importance of technology. Together with the Department for Business, Innovation and Skills, we have an agri-tech strategy and a £160 million fund, £90 million of which is a catalyst fund to support projects in order to accelerate the transfer of knowledge into farms. Another part of the fund is designed to create centres of excellence in science and food technology.

On long-range weather forecasts, I chair a farm resilience group that meets every six months and will be meeting again in the new year. The Met Office is represented in the group, and we regularly discuss how to improve weather forecasting for farmers. DEFRA has also funded a project to examine our flood resilience on the east coast, and, in addition to some other international collaboration, we are doing some work with the Foreign and Commonwealth Office and the US Government to understand the impact that extreme weather can have on global security. We are conscious of the weather’s impact and want to improve our forecasting.

My hon. Friend the Member for Thirsk and Malton and others mentioned the soft fruit industry’s success in extending its season. Our production-to-supply ratio for strawberries has increased from some 60% to 70% just in the past decade or so. I was in the soft fruit industry myself some 20 years ago, and some of these things are not as new as some people say. In Cornwall 20 years ago, I was producing strawberries in heated glasshouses from the end of March right through until Christmas. We used to pride ourselves on having strawberries from Easter to Christmas. The advent of Spanish and French-style polytunnels has given more protection to such crops and has enabled a more widespread extension of the season. My hon. Friend also mentioned apricots, which are indeed now grown in the UK under temporary polythene structures.

I agree with my hon. Friend on the importance of reforming the common agricultural policy. The Government argued against the greening measures in pillar one and were clear that it should be kept as simple as possible, and that the best way to deliver for the environment was through our highly successful agri-environment schemes and pillar two. I can confirm that the Secretary of State for Energy and Climate Change has written to new Commissioner Hogan, with whom I spoke last week. The European Commission is certainly open to the idea of reconsidering some of the greening requirements, and possibly even reconsidering in the mid-term review the idea of the three-crop rule or how it is applied. We have worked with our allies in the Stockholm group of countries, which argue for reform of the CAP and the European Union, to reach a common position to argue for the simplification of the CAP. We hope to make some progress on that next year.

My hon. Friend the Member for Thirsk and Malton mentioned soya beans, and I have already touched on the fact that the pig industry has been particularly successful in reducing the amount of soya bean that it uses. The other thing to note is that one possible impact of the greening of pillar one—of which, I repeat, we were critical—is that in order to reach the three-crop rule some arable farmers may grow leguminous crops such as broad beans to count towards both their third crop and their ecological focus areas. Potentially, we could see an increase in the production of broad beans and other leguminous crops, which might then displace soya imports.

My hon. Friend also mentioned soil protection. Under our cross-compliance regime, we will scrap the need for a soil protection review, which is only a paper-based exercise that people go through and tick boxes. It does not mean much and is simply an administrative task, and we are replacing it with something much more meaningful. Where we know about soil management challenges on farms or inappropriate management of the soil having an impact on water courses, for example, we want to put in place meaningful measures to deal with that. We are completely overhauling cross-compliance in that area.

--- Later in debate ---

[Miss McIntosh]

I thank the Minister, but I hope he will respond to the challenge from the team and the shadow Minister to have more confidence, to step forward and to co-ordinate—not just to lead, but to co-ordinate. On that positive note, I congratulate him on his response.

Avian Influenza

Baroness McIntosh of Pickering Excerpts

Monday 17th November 2014 Commons Chamber

[Elizabeth Truss]

The hon. Gentleman is absolutely right. We are taking a very close interest in what is happening in the local area. That is why we have put in place an operating base in Beverley, very close to the local area, so that we can make sure that we deal with any issues there. The hon. Gentleman also makes a good point about the transportation of any culled ducks. We will make sure that they are properly protected so that we can dispose of them safely.

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

Bearing in mind that Yorkshire is one of the largest and most intensive poultry producers, may I commend my right hon. Friend, the veterinary service and, indeed, the responsible producers on the action they have taken? Mindful of the fact that the chief veterinary officer is on record as saying that the British case may be linked to European outbreaks or, alternatively, that it may be found in migratory birds, will the Secretary of State make it a top priority of all the services to find out the source of the infection? Will she also send out a clear message that British poultry is still safe to eat after the bird has been cooked and that, on biosecurity and those trying to cover the story, it is absolutely essential that those trying to contain this very infectious disease are given the right of access?

[Elizabeth Truss]

My hon. Friend is absolutely right to say that poultry is safe to eat. The Food Standards Agency has confirmed that avian flu does not pose a food safety risk for UK consumers. We are very clear about that message. My hon. Friend is also right to say that Yorkshire is a key county for food production. I recently visited Yorkshire to see many of the different aspects of food production there. We will make sure that people get the message about biosecurity so that we can ensure that proper protection is in place. Swift action is the most important aspect.

Dairy Industry

Baroness McIntosh of Pickering Excerpts

Wednesday 5th November 2014 Westminster Hall

[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.

[Gavin Williamson (South Staffordshire) (Con)]

One of the key drivers in the creation of the groceries code adjudicator was to try to deal with some of the inequalities that dairy farmers had to deal with all the time. Does my hon. Friend feel it is incumbent on us to do everything we can to address that long-term issue?

[Miss McIntosh]

I am delighted that my hon. Friend made that intervention. I hope that the Minister, having heard that, will listen to the arguments made by both my hon. Friend and me. I hope that as many people as possible will heed the message and hear the voices that have spoken this afternoon. I believe that we need a greater balance in the relationship between the dairy producer, the processor, and the retailer. Having a four-pint milk bottle sold for 89p is unsustainable. That certainly would not happen in China.

I shall end my arguments by congratulating my hon. Friend the Member for Carmarthen West and South Pembrokeshire, and by saying that I hope the Minister will review the recommendations in our 2011 report, which we stand by, and will review the groceries code adjudicator and the voluntary code, and encourage co-operatives. There must be a role either for the Competition and Markets Authority or, as I would argue, the Office of Fair Trading.

Animal Slaughter (Religious Methods)

Baroness McIntosh of Pickering Excerpts

Tuesday 4th November 2014 Westminster Hall

[Neil Parish]

Yes. I am hoping that in a moment the Minister with responsibility for farming will give us more figures. I think we should have closed circuit television cameras in all slaughterhouses, whether they are using shechita or halal methods, or stun systems for the general meat trade. I think that the amount of mis-stunning is sometimes exaggerated. On the other hand, mis-stunning of animals should not happen. It is very bad animal welfare, and we need to stamp it out. We need to be certain how big the problem is. If the system of stunning in a slaughterhouse is not correct, it should be replaced. I have no time for mis-stunning.

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

I know that my hon. Friend works closely with the British Veterinary Association, for which I am sure we all have the highest regard. Is it the case that if an animal is stressed, that is reflected in the state of the meat? Is that not damaging for the market?

[Neil Parish]

Yes; my hon. Friend, the Chair of the Select Committee on Environment, Food and Rural Affairs, makes an interesting point. We believe that if an animal is stressed, there will be an effect on the flavour of the meat. It is in the interest of not only the animal but the industry to make sure that it is as little stressed as possible when it comes through the slaughterhouse, but of course, the act of slaughter is in itself very difficult.

The revelations of horsemeat contamination in 2013 highlighted the importance that consumers place on the origin of their food, and the trust that they place in retailers to guarantee that. When that trust is broken, it is felt across the industry. An animal passes through a number of stages from the farm gate to the fork. That is why it is important that the meat should be properly labelled to allow consumers of all faiths to make informed decisions when they buy their meat. It is the all-party group’s belief that labelling should be considered, and it should be on the basis of stun or non-stun methods—not halal versus kosher—because consumers are thought to have a sufficient understanding of what the terms “stunned” or “non-stunned” mean. The group believes, however, that more work can be done to clarify, for consumers of halal and kosher meat, and the wider public, what the terms entail, specifically. That applies particularly to halal, where there is disagreement about the permissibility of stunning, as I mentioned earlier.

The report also makes a recommendation for research to be reviewed and new research to be undertaken where necessary to determine the effect of stunning on the residual blood content left in meat, in comparison with that produced from slaughter without stunning.

Badger Culls (Assessment)

Baroness McIntosh of Pickering Excerpts

Tuesday 4th November 2014 Westminster Hall

[Chris Williamson]

I am grateful to the hon. Lady for that intervention. It is important that there is independent assessment of the culls, as there is a real fear of a lack of trust if there is no independent assessment of their effectiveness. We cannot leave it to the Government to determine whether culling has been effective because, as we have seen, they simply ignore the wealth of evidence put before them.

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

I am following closely what the hon. Gentleman is saying. On the subject of assessment, is his conclusion that the cull should not have proceeded or that it did not take place on the right criteria? The public would like to hear what he and his right hon. and hon. Friends propose for controlling a vicious disease that has an impact on wildlife and domestic animals, as well as a huge impact on cattle, which I am sure many hon. Members will go on to discuss.

[Chris Williamson]

I do not think the cull should have started in the first place, because of the wealth of scientific opinion that I have already outlined. I will come on to the alternative way forward.

I ask the Minister, where is the transparency? The Chancellor of the Exchequer has been talking about the importance of transparent Government, but there is no transparency whatever in this process. Ministers and the National Farmers Union need to get real. The main route of transmission of TB is cattle to cattle. That has been independently verified by numerous experts. Ministers need to end this wild goose chase. To respond to the hon. Lady, we need mandatory annual and pre-movement testing for all cattle, and should impose significant movement restrictions. There also needs to be rigorous biosecurity for dairy farms around the country. That has happened in Wales, where the Welsh Government have gone further and have introduced badger vaccination, a move that the Government would do well to adopt, to address the dreadful disease of TB.

I have a number of questions that I hope the Minister will be able to answer when he responds. The public would like to know—it is in the interests of transparent government that they do—who monitored the latest cull; perhaps he will take a note of that question and respond to it. Will he also say when details about the cull will be published and by whom—will it be Natural England or DEFRA? How will humaneness, safety and efficiency be assessed? Those factors were assessed in the first year of culling.

Will a decision on a third pilot be reserved until after the results are assessed, or has that matter already been decided? Again, it would be helpful if the Minister could come clean on that. Indeed, will there be a third pilot or will the Government go straight to a roll-out? We need to know that as well.

Were any badgers tested for TB during the latest cull? If so, how many tested positive? Last year, a relatively small proportion of badgers killed tested positive. What proportion of badgers killed in this year’s culls were cage-trapped? We need to know that, because, as I understand it, part of the rationale behind the cull was to determine the effectiveness of free shooting.

Why was a different methodology for calculating the number of badgers used in year two from that used in year one? Why does the methodology applying to Somerset differ from the one applying to Gloucestershire? That just does not make sense—how can there be different methodologies from one county to the other? Surely that calls into question the bona fides of the Government’s process.

Finally, does the Minister agree with his own Department’s guidance to Natural England that the badger culls need to remove at least 70% of the local badger population within six weeks to avoid the risk of increasing cattle TB rates? If he does, can he explain why the targets set for this year’s pilot culls have been changed?

--- Later in debate ---

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

I am delighted to contribute to this debate, and I congratulate the hon. Member for Derby North (Chris Williamson) on securing it.

There is a lot of common ground among Members here this afternoon, in that we recognise that TB is a huge problem—both bovine TB and potentially, the spread of TB in wildlife. We are talking about assessing a pilot scheme in one particular reservoir of wildlife, but heaven forfend that it enter into deer or other aspects of wildlife as well. It is not that long since people suffered from TB, and it is only due to the medical science developed in the last century that that has been controlled. The dangers of TB are, therefore, very real.

On animal welfare, there has to be some balance in the argument. We surely have to accept that, if 314,000 cattle are slaughtered, that in itself is something of a potential animal welfare crisis. What we are all trying to achieve is a healthy badger population living alongside a healthy cattle population.

I would like to know about the science. We are the only country in the European Union, and I believe in the world, that has protected badgers. Has that led to the increase that we have seen in the badger population? Has that, in itself, contributed to the spread of TB in the badger population?

I would now like to raise one or two questions for the Minister to respond to. In the previous Session, the Environment, Food and Rural Affairs Committee looked at what the cull’s parameters should be, and I applaud the fact that the Government’s pilot scheme seems, to all intents and purposes, to be following those that we laid down. I should add that I welcome the Minister to his place, and I look forward to his summing up the debate.

If we are to tackle the vaccine situation, we need to deal with a number of remaining issues, and I would welcome the Minister bringing us up to date on them. I applaud the work of the Food and Environment Research Agency, which operates in my constituency and other parts of the country. In Wales, the cost of an injectable vaccine for badgers was estimated at about £662 per badger in 2012. An injectable BCG vaccine has been available for use since March 2012, but there are obviously challenges in using it. To be cost-effective, deployment would have to focus on areas where the vaccine would have the biggest impact. The cost of injecting badgers with vaccine is huge. An oral baited vaccine for badgers, which can be laid at setts, is likely to be cheaper and more practical. I would be interested to know whether the definition of such a vaccine has moved on and whether we are closer to that taking place. Furthermore, from the evidence it received, the Select Committee understood that the current skin test to detect TB in cattle would miss one in four infected cows. Liver fluke, Johne’s disease and even pregnancy may have an impact on the result of a skin test.

How much progress has been made, since the Committee adopted its report, on allowing the vaccination of cattle under European law? That is a vexatious issue. How welcome is vaccination among our friends and allies among other European countries? I agree with my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) that the treatment and control of TB has not been achieved anywhere unless TB has been tackled in the wildlife population. In the long term, vaccination—particularly of cattle, but also of badgers—would be a good way forward, but will the Minister let us know where we are on the vaccination of cattle under European law and how close we are to rolling out field trials in this country, as required under EU law?

Oral Answers to Questions

Baroness McIntosh of Pickering Excerpts

Thursday 30th October 2014 Commons Chamber

[Dan Rogerson]

As I set out to the hon. Lady, there are a number of schemes in place. Some are still paying out and will do so until the end of the financial year. If she has particular concerns about issues in her part of the world, I would be happy to meet her, as ever, to discuss them, but those schemes are available to all those affected by flooding during the period of extreme weather from early December last year through to the end of April.

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

More homes were flooded in 2012-13 across the Yorkshire region, so I hope the Minister might meet a delegation of Yorkshire MPs to consider how our roads and bridges might best be recovered. What progress has been made with the Treasury on having one fund—one budget—between capital expenditure and revenue expenditure for total expenditure on flood spending? That would help communities to recover more quickly and end the senseless rows about the size of the pump and which budget it should come from.

[Dan Rogerson]

I thank the Chair of the Environment, Food and Rural Affairs Select Committee for her question, raising issues to do with transport recovery, which have been well supported by the Department for Transport. I encourage my hon. Friend and other colleagues from Yorkshire to continue to discuss that with Ministers from that Department. On the distribution of the maintenance, revenue and capital money that we have invested in flood defences and coastal risk management—a record amount of money—we continue to discuss with the Treasury whether flexibilities might be helpful in this regard. The Select Committee’s work has been of great help.

--- Later in debate ---

[Sir Tony Baldry]

There are a number of very impressive senior women in the Church of England, including cathedral deans such as the one to whom the hon. Gentleman referred. There are also women archdeacons and others who I am sure will be in contention for early appointment as women bishops in the Church of England.

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

6. What guidance the commissioners follow when making investments; and if he will make a statement.

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

The investments of the Church Commissioners are the responsibility of the assets committee. They are guided by a professional investment team supported by external advisers and the advice of the Church of England ethical investment advisory group.

[Miss McIntosh]

I am grateful to my right hon. Friend, but I still seek what guidance and criteria the Church Commissioners follow. What is the level of investment income from Church of England investments as regards the overall revenue?

[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.