(2 years, 5 months ago)
Grand CommitteeMy Lords, I hope it will be useful to your Lordships if I speak to all the instruments, beginning with the draft Direct Payment to Farmers (Reductions) (England) Regulations 2022, which were laid before this House on 3 February 2022. The matters in these instruments are closely related. Made using powers under the Agriculture Act 2020, they implement important aspects of our new agricultural policy, as set out in the agricultural transition plan published in November 2020 and updated in June 2021. The three instruments apply only in relation to England.
The Direct Payments to Farmers (Reductions) (England) Regulations 2022 apply progressive reductions to direct payments to farmers in England for the 2022 scheme year. By doing so, it continues the process of phasing out direct payments in England which began in the 2021 scheme year. The Government remain committed to phasing out direct payments in England over the seven-year agricultural transition period. We are doing so as area-based payments are unfair: they go primarily to larger landowners, artificially inflate land rents, stand in the way of new entrants to farming getting access to land, and offer little return for the taxpayer.
To help farmers plan, we initially committed in 2018 to phase out direct payments. The specific reductions provided for in this instrument were announced in November 2020. As was the case for 2021, higher percentage reductions will be applied to payment amounts in higher payment bands.
Although direct payments are reducing, total funding to farmers is not. We will make money from the reductions available to targeted schemes, which will increase farm productivity, improve the health and welfare of animals, and enhance the natural environment. In the coming year, that reallocated money will be used to meet the rising demand from farmers for countryside stewardship, our current environmental offer, which has seen a 40% increase in applications. That funding will also be used in the launch of the first of our new environmental land management schemes: the sustainable farming incentive. Further, we will also fund the initial wave of the landscape recovery scheme, with projects focused on supporting native species and restoring rivers.
We are also making available free business advice to farmers and will continue to offer a range of popular grant offers so that farmers can invest in their businesses and become more efficient and sustainable. We will also be offering a new suite of opportunities for farmers, supply chains and researchers to collaborate on researching and developing innovative but practical solutions to the challenges and opportunities that farming faces. This is an essential reform that puts England on track to meet its legally binding environmental and net-zero targets, while creating a thriving and self-reliant farming sector.
The Agriculture (Financial Assistance) (Amendment) Regulations 2022 amend the Agriculture (Financial Assistance) Regulations 2021, approved by this House on 22 March 2021. Those regulations put in place financial data publication and enforcement and monitoring requirements for four new financial assistance schemes established under the Agriculture Act 2020. This amending instrument extends the range of financial assistance schemes covered by the 2021 regulations to ensure that any new financial assistance scheme launched in 2022 and thereafter is subject to the same checking, monitoring and enforcement requirements that applied to the original schemes launched in 2021.
The 2021 regulations gave Defra the opportunity to test, refine and develop these new requirements. The amendments made by this instrument will now allow the Government to move on to the next stage of agricultural policy set out in the agricultural transition plan.
This instrument also strengthens the investigative powers in the 2021 regulations to ensure that where there are suspicions of offences in connection with financial assistance —for example, fraud offences—the Secretary of State can, where appropriate, fully investigate the matter. The amendment will allow the Secretary of State to investigate not only agreement holders but applicants, and in certain circumstances the employees or agents of an applicant or agreement holder. These investigative powers mirror powers Defra holds in relation to CAP schemes, while allowing Defra to use them in a more proportionate manner, reflecting the objectives of the Agriculture Act.
This instrument also removes a reference to grants in Regulation 13 of the 2021 regulations. The amendment will ensure that “financial assistance” is not limited to grants and can include other forms of assistance, as provided for in Section 2(1) of the Agriculture Act.
In drafting the 2021 regulations, Defra engaged with key stakeholders in a targeted consultation exercise between 4 August and 1 September 2020, giving stakeholders the opportunity to review Defra’s proposed approach and express their views. Feedback gathered during the consultation exercise was used to inform the content of the 2021 regulations and this amending instrument.
I turn to the Agriculture (Lump Sum Payment) (England) Regulations 2022. As part of our wider agricultural reforms, we want to support farmers who wish to leave the industry, as well as those who want to stay. We know that some farmers would like to retire or leave farming but have found it difficult to do so for financial reasons. That is why this instrument allows a scheme to be introduced in 2022 which provides lump sum payments to farmers in England who wish to leave the sector. These payments will be in place of any further direct payments to the recipient during the remainder of the agricultural transition. This is not new money and will not impact the funding of other schemes. This scheme should also free up land, creating more opportunities for new entrants and farmers who wish to expand.
These instruments implement provisions in the Agriculture Act 2020. They continue the transition away from the inefficient direct payments model of the CAP and they build upon the already implemented financial assistance framework to cover new schemes, in line with the agricultural transition plan. I beg to move.
I thank my noble friend for introducing these regulations. I would like to put one or two questions about each in turn.
Could my noble friend the Minister clarify an issue that has been raised? The Secretary of State for Environment, Food and Rural Affairs said at Blackpool, if I have understood correctly, that farmers have more than made up for any income lost since these new provisions came in—or, in fact, since we left the European Union. My contacts told me over the weekend that is anything but the case. It would be welcome to know the basis for the Secretary of State’s remarks; perhaps there is something I am misunderstanding.
Regarding direct payments to farmers, the subject of the first regulation before us, as my noble friend said, this is putting us on the path to reducing the direct payments until we eventually come into ELMS. What has been identified, I think by the CLA especially, is that there will potentially be a 50% gap in the funding that farmers have been receiving between the regulations before us this afternoon and the end of the transition period. If that is the case, and I am sure my noble friend’s department will be aware of that, I would like to understand how that gap will be filled so that farmers do not lose out.
I am concerned that there is a lack of understanding. We are meant to be levelling up the economy and unleashing the rural economy. I think, at the moment, the rural economy is performing below par. One reason is that we simply do not have the tools.
I will take the North Yorkshire moors as an example, or the Yorkshire Dales, where my brother lives: we still have woeful broadband internet connections there and the mobile signal contacts are often potentially extremely dangerous. We learned at a recent meeting that masts have apparently been put in by two providers—I believe it is O2 and EE—but these have not been linked up in this rather broad area of North Yorkshire. My noble friend’s department is responsible for rural affairs—it is in its title—so perhaps he could use his good offices to ensure that, as we leave direct payments and move to an alternative form, farmers will be given the tools to do the job.
To conclude on the first regulations, there is also a lack of understanding that tenants are unable to qualify under the new schemes. I would be interested to know to what extent that is reflected in contacts that the department has had with tenants. I know that our honourable friend the Farming Minister in the other place, Victoria Prentis, is aware of this. I commend the work of the Rock review on tenant farmers, but tenants are being evicted as we speak. There simply will not be that many of them left, if we carry on at this pace, when we reach the end of the transitional stage for direct payments to farmers.
I make a plea to my noble friend: will he help me to understand how, when it is gone, the direct payments relief will be replaced for those tenants who cannot claim for anything other than farm schemes owing to the nature of their farm tenancy agreements? Those are enshrined in a great many agricultural Acts, not least the 1947 Act. Can he put my mind at rest on the plight of tenant farmers?
I add that on common land graziers and those with shooting rights are trying to compete side by side. I am sure my noble friend will be aware that there is currently an issue with food security, not least because we understand that Ukrainians have been picking most of our fruit and vegetables in the last two or three years. It appears that, added to the cost of wheat, we may perhaps soon have in this country a local shortage of such staples. I wonder how my noble friend expects to address that.
I turn briefly to the Agriculture (Financial Assistance) (Amendment) Regulations. Paragraph 7.6 of the Explanatory Memorandum says that the department will perhaps try to look more favourably and proportionately on how the offences are to be inspected; I think my noble friend alluded to this. However, the first sentence does not entirely fill me with confidence. It states:
“The instrument also expands the power of the Secretary of State to investigate suspected offences in connection with applications for, or receipt of financial assistance.”
That will not go down well, particularly with the owners of small family farms, who have said at every turn how they are finding that, if anything, the administrative burdens are increasing. I would like to hear a little more detail from my noble friend about how these regulations will applied. How will the full force of Defra be applied more proportionately?
The third and final instrument before us states clearly that direct payments are to be replaced. My noble friend referred to a lump sum payment. This might seem very attractive, particularly to older farmers. I refer again to my experience of North Yorkshire in this regard. The difficulty they have asked me about is: if they apply for this lump sum grant, how will that affect their tax situation? Did I understand my noble friend to say that it could be up to £100,000?
We have a shortage of affordable homes in the countryside. Very few new houses being built across North Yorkshire—and, as far as I can see, in other rural areas of England—are one- or two-bedroom, which would be ideal for farmers who have moved off the farm and want to stay in a village. If we do not make it more attractive for them, we will prevent newer, younger farmers coming in, which is a desire of Defra. With those few remarks, I look forward to my noble friend’s responses.
I have that already. I am just slightly disappointed that the working group will not now report for nine months; it was meant to report within six months.
I said six to nine months; I am afraid that is the answer I received. I shall check on the timescale, but I assume six to nine months is correct, since that is what my colleague, my noble friend Lord Benyon, has told me.
The noble Duke, the Duke of Wellington, raised a broader point beyond tenant farmers, about small farmers. He is right: small farmers are the backbone of our countryside, and any policy that results in a reduction in the diversity, breadth and viability of our small farmers is not a good one. They are critical to the future sustainability of our countryside. Farmers will be supported throughout the seven-year transition period to the new system. We are reducing direct payments, as the noble Duke said, but that will be gradually over the seven years, which will give farmers time to adapt and take advantage of the new offer. Money saved by direct payment reductions will be reinvested directly into English farming and agriculture through our new schemes. The Government are committed to providing the same cash total to the sector in each year of this Parliament. Some £10.7 million of funding has already been awarded through the interim phase of the future farming resilience fund. That provides, among other things, free business support to farmers and land managers to help them navigate the changes during the early years of the agricultural transition period.
Upland farmers have a particularly important role to play in addition to that of food production, and that is in land management. In their contribution to alleviating the threat of floods, which blight so many communities in this country, there is almost no one in a more important position than those farmers. They are absolutely in the mix when it comes to the new system that has been designed.
I turn to the questions asked by the noble Lord, Lord Carrington, and my noble friend the Duke of Montrose. My noble friend asked what proportion of the money would be spent on schemes which are not related to farming and are purely conservation. Again, I cannot give him a direct number, but there are schemes beyond the system being described today which are designed to support, for example, natural regeneration or tree planting, most of the funding for which comes from the nature for climate fund. We are talking here about a slightly different system which the nature for climate fund supports, but ultimately this is all about good land management.
The Government published a paper, which was updated in September 2019—I may have mentioned it earlier—setting out the impacts of removing the direct payments. That paper is being updated as we speak. The delay is caused by the conflict in Ukraine.
My noble friend and the noble Lord, Lord Carrington, talked also about the impact on consumer food prices. The analysis that we have made in Defra suggests that any effect of direct payments on consumer food prices is limited. However, we are doing a full impact assessment on food security up to 2024, and the results will be made available and will inform future policy design.
It is important that we continue with the transition as planned. Applying reductions to direct payments frees up money which we can use to pay farmers and land managers to encourage environmental protection and enhancement, public access to the countryside, and the safeguarding of livestock and plants. We must also provide opportunities for farmers who wish to leave farming to do so in a managed way. These instruments will allow the Government to ensure that this can be done. I hope that I have answered the key questions put to me today. I beg to move.
(2 years, 5 months ago)
Lords ChamberThat is a very different issue. The noble Lord will not be surprised that I disagree, but again I challenge him to give me a single example of another country that has either protected more waters directly or done more heavy lifting internationally to get the rest of the world to increase its ambition. More than 100 countries are now signed up and committed to protecting 30% of the world’s ocean by the end of this decade. That would not be happening if it were not for UK leadership.
My Lords, my noble friend, as Minister for the Oceans, took a great interest in the passage of the now Environment Act, and in how the competing claims of fishing, shipping and new planning applications for offshore wind farms would be balanced. Have there been any further developments to put our minds at rest that future applications for offshore wind farms will have regard to fishing and shipping?
This is an important point and there is a tension between our desire to scale up offshore wind, a sector in which the UK has a leadership position, and the need to protect our ocean and fishing sector. Defra is playing an increasingly important role, mostly through my colleague Rebecca Pow, and is liaising with BEIS and other departments, working to improve our understanding of the adverse environmental impacts and developing a cross-government approach to addressing them. In a few months, we will publish the findings of our recent consultation.
(2 years, 5 months ago)
Lords ChamberI very much share the frustrations of the noble Baroness about how long some of these things take, but it is worth pointing out that, as she says, we now have the power to ban products which cause environmental pollution and are harmful to human or animal health and harmful to nature more broadly. The bans that have already been introduced, on plastic bags, for example, resulted in a 95% reduction in sales. Straws, stirrers and cotton buds have reduced by similar amounts and there are many more products in the pipeline where the UK Government are very likely to be introducing the necessary bans.
My Lords, I congratulate my noble friend and the Government on going as far as they have. Is part of the difficulty the confusion over the different types of plastics? On 4 March, the Government produced a press release on post-consumer plastic, which includes household plastic and other uses. Would it not be better for this to be disposed of through issues such as energy from waste, so that we were dealing with two problems at the same time: disposing of plastics and feeding into energy for households to use locally?
(2 years, 5 months ago)
Lords ChamberMy Lords, I congratulate the Government on what they have done so far, but does the Minister agree that this package has already been overtaken? It is already inadequate against the developing need. For example, the Germans have been able to impound the yacht belonging to Mr Usmanov in Hamburg, yet he still has access to his stately home in Guildford. How can that be?
My Lords, I congratulate my noble friend on all his efforts and those of Ministers in his and in other departments in both places. However, there is a concern in the country that the inevitable delay in passing the legislation which came into effect on 1 March has perhaps meant that a number of assets have been able to be moved. Are the Government concerned about this?
Looking at SI No.194—I hope I have identified it correctly—I understand that provision will be made for medicines and humanitarian aid to reach Ukraine. I want to press my noble friend as to what routes will be used. There are reports that pharmacies in Ukraine are already facing a shortage of medicines. There will need to safe routes in.
We can only imagine the level of injuries and casualties that are having to be dealt with at this time. Is there any way in which some of the casualties can be evacuated to neighbouring countries? Is it the Government’s desire to send teams of medically qualified people out from the United Kingdom to assist with this humanitarian effort?
My Lords, I congratulate the Government on having gone further and faster than they had originally planned once the gravity of the situation became clear. Although this may be the largest ever package of sanctions from the UK, can the Minister explain to the House why there are so few individuals on our sanctions list compared with the EU’s? Why, in a particular spirit of generosity, are we allowing 18 months from when the legislation comes into effect for those who wish to sell their houses and get the proceeds out of the country to do so?
(2 years, 6 months ago)
Lords ChamberMy Lords, I have a quick question for the Minister. It is a little wide of the regulations but related to it: the hole in the dyke could be Switzerland. Have we had conversations with Switzerland, and are we going to close any holes there?
Following on from the noble Viscount, Lord Waverley, I rise briefly to ask my noble friend the Minister a question. The hostilities against Ukraine started with cyberattacks. There have been multiple cyberattacks and ransomware attacks on at least one firm of which I am aware in North Yorkshire, but FatFace and a number of other companies as well. What advice are the Government giving to companies, local authorities and, not least, the infrastructure network—to which the noble Viscount referred—to ensure that we can keep ourselves safe from such cyberattacks at this time?
My Lords, I will be very brief. Of course I support the comments from my noble friend Lord Foulkes. However, in relation to the Council of Europe, I hope the Government, in doing what they are currently doing—although they need to go a bit faster, as many noble Lords have said—are thinking about an exit strategy. We need one. While we are cutting ourselves off from Russia because we are almost at war, it is still important that the dialogue continues between us. It is also important that we understand the feeling from the people in Ukraine—as well as the people in Russia, as the noble Viscount, Lord Waverley, said. I hope that the Minister will keep the dialogue open as long, and as widely, as he can, because getting out of a war is extremely difficult.
(2 years, 6 months ago)
Lords ChamberI can answer half the question. I cannot tell the noble Lord why the confusion arose, other than that it was a particularly complicated time, but I can say that at the time the email was sent, the staff member who the noble Lord mentions was seconded to that emergency evacuations unit at the FCDO and was emailing in that capacity. The email was not sent under my instruction or with my knowledge; it was part of a wider process.
My Lords, can my noble friend say whether any health checks were undertaken on the animals in question before they left Kabul?
My Lords, as I said, it was an exceptional emergency situation. In normal circumstances, we do not recommend the movement of consignments of animals, particularly large consignments. We take biosecurity very seriously. On landing in this country, the cats and dogs were transferred to prearranged quarantine facilities where they will have to remain for four months or until they have completed the rabies risk management process fully. The process ensures that animals meet the highest standards and protects our rabies-free status, which of course we value greatly.
(2 years, 7 months ago)
Lords ChamberMy Lords, I am not sure I agree that we have taken an insufficiently proactive approach, but I certainly think the new Foreign Secretary has brought a particular level of energy to the task. The first meeting last year saw frank but constructive discussions on the TCA implementation; yes, a number of areas of disagreement were identified, but the process launched the governance and committee structures of the TCA and our commitment to dialogue and co-operation. I think it achieved the first goals that were set out.
My Lords, will my noble friend take this opportunity to update the House on meetings of specialist committees between the UK and the EU, particularly in areas such as fisheries, which are so key to our ongoing and future relationship with the EU in these policy areas?
I will try in due course to provide answers relating to other specialist committees, as the noble Baroness mentioned, but on fishing licences our approach has been and remains fully in line with our TCA obligations. We have said throughout the process that we have issued licences where we have received evidence of an entitlement. It is worth pointing out that the UK has issued over 1,800 licences to EU vessels seeking to fish in our waters.
(2 years, 7 months ago)
Lords ChamberI am afraid I cannot provide that justification because there is a clear contradiction, but that is why we are pushing ahead with our proposals and measures to eliminate the use of peat in horticulture. The noble Lord makes a very good point.
My Lords, does my noble friend share my concern that, since we have left the European Union, we will now have different environmental standards in England, Wales, Northern Ireland and Scotland? Will he use his good offices to ensure that the devolved nations all impose a ban on the use of peat for horticultural purposes, bearing in mind that it takes 200 years to create a peat bog?
My Lords, it is not a source of concern that we are able to legislate or regulate differently; the UK has demonstrated a commitment to raising the bar in terms of environmental protections. It is generally recognised—if not in this country then certainly elsewhere—that the UK is a world leader in conservation and nature restoration, but it is for the devolved Administrations to make their own policies and, of course, we will continue our discussions in the hope that we are as closely aligned as possible.
(2 years, 8 months ago)
Lords ChamberMy Lords, we believe that the network of agencies and stakeholders that work on puppy smuggling are doing a good job. We are not planning to change this, but we will work closely with the Border Force, local authorities, the devolved Administrations and so on to tackle the problem. The new measures that we are introducing should have very little additional impact on APHA, the Border Force or local authorities, but we are looking closely at the implications of these proposals and we will continue to work with them as we develop future restrictions.
My Lords, will my noble friend accept that the single most effective measure for reducing the smuggling of puppies is to ensure that the mother of the puppies is always present at the point of sale? Will that be included in the kept animals Bill?
My Lords, two years ago we introduced Lucy’s law, whose purpose was to tackle unscrupulous breeders in this country. One of its components was a requirement that, where people purchase a puppy, they are able to see that puppy first in the context of its natural family and the home in which it was raised. That would include, of course, being with its mother.
(2 years, 9 months ago)
Lords ChamberMy Lords, I join those congratulating the noble Baroness, Lady Young of Old Scone, on securing this debate. I add my congratulations to the right reverend prelate the Bishop of Exeter on his excellent maiden speech. We are looking forward to hearing many more contributions and I hope I can work with him on rural areas. I declare my interests: I am a co-chair of the All-Party Parliamentary Group on Water, a vice-president of the Association of Drainage Authorities, president of National Energy Action and a member of the rural action group of the Church of England synod.
I join those paying tribute to the president, Alok Sharma, who came into his own in securing the agreement that was reached during COP 26. I warmly congratulate our own Minister, the noble Lord, Lord Goldsmith, hot from his triumph and excellent work on the Environment Act, on being able to build on that at COP 26. Glasgow and Scotland also came into their own by hosting and rising to the occasion.
One of my regrets is that population growth did not really feature at all in the procedures and processes of COP 26, yet it is generally recognised to be one of the greatest challenges that we face. A number of speakers have alluded to this in the debate so far. I hope we can grasp the nettle on that, certainly next year—not just in terms of communities being displaced but the rise and explosion of population growth globally, which contributes hugely to climate change. What will the test of the success of COP 26 be? Will it be the effects being reduced on the remote island communities? Will it about the cost and impact on the competitiveness of rich nations in helping to reduce those incidents of climate change? In recognising the effects of climate change globally and at home, I would like to focus on those four areas that were targeted for progress at COP 26.
My own experience, certainly domestically, is that of flooding in North Yorkshire. On the floodplains of the Vale of York, indeed in the whole of Yorkshire and the Humber, along with parts of Cumbria and many parts of Gloucestershire—and in the rest of the UK —flooding is something that we experience on an annual basis. On mitigation and adaptation, we can learn to work with nature: to plant trees intelligently; to value the role that farmers have to play in putting food on our plates; and by encouraging them to become more self-sufficient and not putting barriers in their way.
I decided to be environmentally friendly and attend COP 26 only remotely. I was very impressed by one of the sessions I attended on reimagining the future of water, by bringing together communities not just from across the EU but from the island nations. The cost of flood resilience, especially at home, and of installation—alluded to by my noble friend Lord Bridges—bears closer examination. We need to ensure that we give them the tools for what they have to produce. Here I praise the work of the report I was associated with, Bricks & Water, for its sensible recommendations that seem so simple yet are so hard to implement.
Finally, I echo the thoughts of all those who want to see rich and developed countries working with poorer developing countries to ensure that pollution is reduced so that we can, in the long term, tackle climate change.