Marriage (Same Sex Couples) Act 2013

Baroness Northover Excerpts

Wednesday 30th July 2014 Lords Chamber

[Lord Fowler]

To ask Her Majesty’s Government whether they are satisfied with the enactment and operation of the Marriage (Same Sex Couples) Act 2013.

[Baroness Northover (LD)]

My Lords, the first marriages of same-sex couples took place on 29 March—sooner than we had originally thought possible. We intend to bring the remaining elements of the Act into force on 10 December, enabling couples in a civil partnership to convert it into a marriage, and couples to stay married, if they wish to do so, when one or both of them changes legal gender.

[Lord Fowler (Con)]

I congratulate the Government on their progress but perhaps I could raise one point. Canon Jeremy Pemberton married his partner in April, as a result of which he has had his permission to work as a priest in Nottinghamshire revoked and been banned from seeking a new post as a chaplain and bereavement manager. Given that there are other clergymen at similar risk, will the Minister, as a matter of good will, look at the position and see whether anything can be done to help reconcile the difficulties?

[Baroness Northover]

My Lords, I thank the noble Lord for his thanks to the Government on this. I was a guest at a same-sex marriage very recently and found it extremely moving. The couple had had to overcome so many hurdles to get to a point that so many of us simply take for granted. My noble friend will know that the Bill sought to protect the position of religious organisations and that this is a matter for the Church of England. We hear what he says, and it is worth also bearing in mind that things can evolve. For example, it is good that we should soon see women bishops.

[Lord Collins of Highbury (Lab)]

My Lords, I know that the Minister is aware of the disappointment felt by many over the regulations tabled for debate yesterday. Although they made the administrative process easy, they failed to recognise that many in a civil partnership would wish to celebrate their marriage in the same way as all other same-sex couples have since March. I know that the noble Baroness understands the importance of setting the date. Will she therefore update the House on when the revised regulations will be published and tabled for debate? Perhaps on this occasion she could even offer to share a draft before they are tabled. Will she reassure us that they will still come into force on 10 December?

[Baroness Northover]

We are indeed determined that the regulations will be in place by 10 December so that civil partnerships can be converted to marriages. As the noble Lord will remember, in the consultation prior to the Act, the emphasis that came through from people feeding in their views on this was that they wanted to make sure that their civil partnership was properly marked and could be translated into an equal marriage. They wanted that to be as straightforward as possible with as few hurdles as possible. That was what was built into the Bill.

As the noble Lord will know, since then some people have felt that they want to mark that transition. He will also know that the Bill and regulations allow ceremonies to be associated, but they want to make that link closer. We are determined to try to make sure that everything that people want in this situation can be done within the complexity that he is familiar with within the Bill. Indeed, we are determined to deliver this by 10 December, and we are happy to discuss those draft regulations.

[The Lord Bishop of Sheffield]

My Lords, I thank the Minister for her affirmation that according to both the letter and the spirit of the legislation on same-sex marriage, it is for the Church of England and all faith communities to determine their doctrine and what is appropriate conduct for their clergy. Is the Minister aware that the recent guidelines of the House of Bishops state clearly that those who enter a same-sex marriage, together with children in their care, should be welcomed into the life of worshipping communities, and also that the Church of England is about to begin a two-year process of structured conversations to explore the changing attitudes to human sexuality and their implications for the life of the church and its disciplines?

[Baroness Northover]

I welcome what the right reverend Prelate has said and his tolerant approach.

[Baroness Barker (LD)]

Could the Minister tell the House whether there have been any instances of clergymen being asked to conduct same-sex marriages against their convictions?

[Baroness Northover]

Again, my noble friend will know that built into the Bill was protection for religions that did not want to conduct same-sex marriages, as well as for those within religions that decided that it should be allowed—so we have no evidence of that at all.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, the Minister set out very clearly the Government’s intentions as far as the implementation of the Act is concerned. It was very reassuring to hear from the right reverend Prelate the current views of the church. However, I do not think that either she or—if I may say with respect—he addressed the question that the noble Lord, Lord Fowler, raised about the loss of employment that followed this incident. Can the Minister say anything further about the application, for example, of the Equality Act or any employment Act in situations where people lose their job over their sexuality?

[Baroness Northover]

As the noble Baroness may remember, the protections given to various religions in the equal marriage Act protect them in this regard from the operation of the Equality Act. It is up to the Church of England, but I note what the right reverend Prelate said.

[Lord Elton (Con)]

My Lords, to clarify the position for Church of England clergy during the next two years, will my noble friend confirm that clergy in civil partnerships are able to carry out their ministry in the normal way?

[Baroness Northover]

I think I need to write to the noble Lord to clarify exactly what the situation is at the moment within the Church of England—but again, it is a matter for the Church of England.

[Baroness Liddell of Coatdyke (Lab)]

On a lighter note, would the Minister join me in congratulating the organisers of the opening ceremony of the Commonwealth Games which, with great humour and more than a touch of Glasgow gallusness, celebrated how liberal every part of the United Kingdom is nowadays?

[Baroness Northover]

I am extremely happy to endorse that.

[Viscount Ullswater (Con)]

My Lords, when will the Government amend the Marriage (Same Sex Couples) Act 2013 to include heterosexual civil partnerships? This would even up the playing field for those who do not wish to get married, especially those in later life who need financial security but do not want to upset their children.

[Baroness Northover]

My Lords, as my noble friend no doubt knows, a review came out of that Act, and the conclusion was that there is no settled view on what should happen here. Probably one of the key things—one has seen this in other countries—is that when equal marriage is in place, changes occur. So there is something to be said for looking at what people want—whether they want civil partnerships to be open to heterosexuals, so that there is equality, or whether people will stop opting for civil partnerships if equal marriage is available.

Equality Act 2010 (Equal Pay Audits) Regulations 2014

Baroness Northover Excerpts

Tuesday 29th July 2014 Lords Chamber

Moved by

[Baroness Northover]

That the draft Regulations laid before the House on 30 June be approved.

Relevant document: 7th Report from the Joint Committee on Statutory Instruments (special attention drawn to the instrument), considered in Grand Committee on 28 July

Motion agreed.

Equality Act 2010 (Equal Pay Audits) Regulations 2014

Baroness Northover Excerpts

Monday 28th July 2014 Grand Committee

Moved by

[Baroness Northover]

That the Grand Committee do consider the Equality Act 2010 (Equal Pay Audits) Regulations 2014.

Relevant document: 7th Report from the Joint Committee on Statutory Instruments

[Baroness Northover (LD)]

My Lords, I am pleased to present these draft regulations to the Committee. They are intended to ensure that employment tribunals require employers who have breached equal pay law to carry out an equal pay audit.

These regulations are needed because, despite the introduction of equal pay legislation in the 1970s, there remains clear evidence of a persisting pay gap between men and women. Our concern is that a certain proportion of this disparity is due to the unlawful pay practices of some employers. Although there has been welcome progress, the Government believe that there is still more to do to help women move towards overall pay parity with their male colleagues. The key to this is continuing to build on the voluntary initiatives that we have introduced, coupled with greater transparency and backed where appropriate with tough measures to hold to account those employers who have been found to have flouted the law, whether knowingly or not.

That is why from 1 October, subject to parliamentary processes, we propose that where an employer has been found by a tribunal to have breached the equal pay or pay-related sex discrimination provisions in the Equality Act 2010, he or she will, by virtue of Regulation 2, be subject to a requirement to conduct an equal pay audit. The regulations contain certain exemptions and exceptions to this requirement, which I will explain shortly. Once undertaken, the results of an audit will enable the employer to identify any action that needs to be taken to prevent equal pay law breaches from continuing or recurring. Moreover, to ensure that this is a transparent process, under Regulation 9 the employer will also be required to publish the results of his audit. This will afford affected employees the opportunity to view the results and consider further action, where it is warranted.

The legislation providing for equal pay between men and women who do the same or equal-value work for the same employer has been in force since 1975. According to statistics published in December 2013 by the Office for National Statistics, the overall median gender pay gap still stands at 19.7%, although this is considerably lower than the figure of 25% 10 years ago. The overall figure does not tell the full story, however. For women under 40 who work full-time, the pay gap has all but been eliminated, but for older women, many of whom take career breaks in order to bring up children, the disparities in pay with their male colleagues become more marked. That is also true for part-time workers.

We are taking a wide-ranging approach to addressing this challenge. For example, we are promoting greater transparency on gender employment issues through banning pay secrecy clauses and promoting “Think, Act, Report”, a framework that encourages employers to think about gender equality on key issues such as recruitment, retention, promotion and pay—it currently covers over 2 million employees in more than 200 leading companies. We have also extended the right to request flexible working to all employees from this year and will be introducing a system of shared parental leave from 2015. Both these measures allow more women to remain at work and so avoid falling behind in pay terms. We have strongly promoted the work of the Women’s Business Council, we have implemented the work of the noble Lord, Lord Davies of Abersoch, on women on boards and from 2015 we will introduce tax-free childcare for working families.

The Committee will, I hope, therefore recognise that the Government are working in many ways to promote greater equality and tackle discrimination in the workplace. However, in cases where unlawful pay discrimination still persists, the regulations before the Committee represent a further important addition to our work.

These regulations will ensure that employers found by an employment tribunal to have broken equal pay law undertake a systematic evaluation of their pay and reward systems to ensure that existing breaches do not continue and that future breaches do not occur. The regulations provide that an equal pay audit should identify any differences in pay, including non-contractual pay, between men and women doing the same or equal work in the organisation.

--- Later in debate ---

[Baroness Donaghy (Lab)]

My Lords, I think it was 10 years ago that I sat on a Government working party chaired by Bob Mason to see how we could make the Equal Pay Act more effective. Central to the recommendations that we made were equal pay audits and the importance of having a transparent pay system. We estimated at the time that it would take about 50 years to obtain equal pay. I looked carefully at the Explanatory Notes for this particular regulation and I thank the Minister for pointing out that the gaps still are very serious. In the build-up the Explanatory Notes accept that the issue of equal pay has an impact on economic growth. It goes on to say that the Government intend to do something about it in these regulations, so I got terribly excited. But then I looked at the impact assessment, which estimates that an average of two equal pay claims will be brought each year. The Minister was so embarrassed by that that she said “two or three” would be brought. As I say, it is estimated that an average of two or three equal pay claims a year may result in the imposition of an equal pay audit order—that is out of 23,638 equal pay cases that were brought in 2012-13. That really is a nut to crack a hammer, is it not?

It is important that the Government realise what message they are giving out about topping and tailing the issue of equal pay for women. We have the noble Baroness the Leader of the House who does not yet enjoy equal pay and we are now to have small businesses and new businesses possibly not being followed up through the law. That sends the wrong signal about equal pay. Will new businesses include those that start up again after bankruptcy, and will there be any qualifications around that? Some companies seem to make quite a habit of that. They start up anew when it suits them. It is important to know what the impact will be on so-called new businesses which are really only starting up again under a different name. Further, does the Minister really think that these regulations will do anything to narrow the pay gap? I have my doubts when the estimate is an average of two cases per year.

[Baroness Northover]

Well, my script says that I am very grateful to all noble Lords who have contributed to this debate, which has been so constructive and considered. However, I can then go on to say that we have been clear, as have all those who participated, that paying women less than men for doing the same, similar or equal value work is totally unacceptable and therefore must be tackled head on. If women are ever to realise their full potential in their chosen career, they must be paid the same as their male counterparts. We believe that these regulations are an important step in the right direction. They will ensure that employers who have been found to have breached equal pay requirements have transparent pay systems where hitherto they have not.

I shall turn to the various questions which have been put to me by noble Lords to see if I can answer some of them. I will follow up my remarks in writing if I do not cover them all. I start by addressing the contribution of the noble Baroness, Lady King. She quoted the figures that were used by the noble Baroness, Lady Thornton, in an Oral Question on 25 June. We had a little discussion back and forth. The previous Government, like this Government, rely on a particular set of figures from the Office for National Statistics published in the Annual Survey of Hours and Earnings. The previous Government and this Government share the view that these are the most robust figures. On the basis of those figures, there is not the falling-off that the noble Baroness, Lady King, mentioned.

There are problems with the set of figures that the noble Baroness, Lady Thornton, and now the noble Baroness, Lady King, have used in the sense that they are not as comprehensive and they are self-reported, whereas the other figures are derived from PAYE and HMRC information. There are very good reasons why the previous Government and this Government both use the ONS figures. However, if one uses the figures referred to by the noble Baroness—I have asked my noble friend Lady Jolly to print out for me what I was given before—one of the things I find quite striking is that the noble Baroness mentioned that pay for women working full time fell by 0.1% for the quarter. These quarterly figures fluctuate considerably, so that the previous quarter saw a 0.4% rise. I do not claim that that is a true representation of the situation because I do not claim that the 0.1% fall is a true representation of the situation any more than would the previous Government, under which the noble Baroness was the Minister. They, too, would not have decided to use this particular set of figures. I know that her colleagues in the other place quoted them, but I suggest to her that she looks again at the Office for National Statistics figures and works out the ones that she should rely on.

[Baroness King of Bow]

I thank the noble Baroness for raising the subject of statistics. For the sake of clarity, I should say that the figure that I gave of 0.1% was for last year, 2013, and not the last quarter. However, I will go away and verify that, although I got it from two different sources. In general, could the noble Baroness tell us whether she feels that we are moving in the right direction in terms of the gender pay gap?

[Baroness Northover]

The figure that the noble Baroness gave was actually for the last quarter, as she will probably find out when she investigates.

One thing that I find striking and encouraging is that the gender pay gap between men and women under the age of 40 who are working full time has narrowed considerably. The difference in the gender pay gap is for those above that age and those working part time. One reason why there is a major difference in part-time work is the type of work that men and women are in. We know that equal numbers of kids are going through school and that often girls come out better qualified. More are going to university, but they are grouping in different subjects. Some of those subjects lead to better-paid careers, which is something that we, like them, seek to address—I am referring to the STEM subjects.

The most important thing is the caring responsibilities that women often have, which is why you start to see this difference as you go through life. That is why in some ways it is quite encouraging to see that the gender pay gap has narrowed so much for those up to the age of 40, although we need to do much more to make sure that that carries on through.

[Baroness Donaghy]

I apologise to the noble Baroness, but I just wanted to query the impact on workers under 40. It might sound like good news, but it might be because men are being paid less in this low-wage economy. Does the noble Baroness have any more information to reassure us on this point?

[Baroness Northover]

I think that the noble Baroness would be reassured by the progress being made in this regard. I will probably need to write to her with the details but, again, I looked at this and I did not see the negative trends that she may be hinting are there. I will write to her and clarify that.

I am glad that the noble Baroness, Lady King, welcomes the audit. Obviously, that follows on after cases have been lost by employers. She is quite right, as is the noble Baroness, Lady Donaghy, to emphasise that it is in the interests of the companies and for the health of the companies to make sure that their employees are paid fairly between the genders. If they are not, there will not be a happy and effective workforce. I think that forward-looking companies recognise that now; indeed, they should recognise that it is in their own interests to make sure that this moves forward. If they lose such cases, they need to take action to put it right.

The kind of pay audits that we are talking about help to shine the spotlight that the noble Baroness mentioned on this. She mentioned the exceptions and seemed to imply that a company could say to the tribunal, “We can’t afford to do this”. I hope that she will be reassured by the fact that the tribunal, not the company, decides whether there are reasons for exemptions. I hope that I illustrated, in listing the four cases where there might be an exemption, how tightly drawn that is. I gave an example in each case of the kind of thing that we are thinking about there. Clearly, if they persist—suppose that they said they were about to go bankrupt and the tribunal thinks that that is the case, but then another case is brought and it turns out they had misled them—they are obviously in a much weaker position.

I reassure the noble Baroness, Lady King, that new businesses only have that exemption for the first year, not for 10 years. She grouped them together, but the committee asked for further elucidation about micro-businesses, which I hope that we have provided.

[Baroness King of Bow]

Before the noble Baroness moves on, as I understand it, micro-businesses and new businesses will be exempt for 10 years.

[Baroness Northover]

No, I will clarify that. As I understand it—I am sure I will be corrected if this is not the case—new businesses are protected for one year only. Micro-businesses are protected, potentially, for 10 years, but providing that they remain micro-businesses. I hope that clarifies the position. I take it the noble Baroness would rather that is not the case, but that is the settlement we have reached on this to try to ensure that micro-businesses do not have disproportionate burdens placed on them. However, they are obviously still subject to the law, and their employees are protected by the law. We are talking here about whether the audit would follow the loss of such a case.

The noble Baroness thought that the penalty of £5,000 should be much higher. The penalty is specified in primary legislation, so we cannot impose a greater penalty in the regulations which follow on from that. It derives from the Equality Act 2010, which she no doubt played a part in, as did the noble Baroness, Lady Thornton. When the Enterprise and Regulatory Reform Act inserted this penalty into that Act, the party opposite did not oppose it.

[Baroness King of Bow]

Would the noble Baroness then agree that we have all got it wrong? Surely it does not make sense for the penalty to be less than the cost of continuing the breach.

--- Later in debate ---

[Baroness Northover]

We will all, no doubt, be monitoring this to see what the effect is. One of the things which happens to a greater extent these days is that people put information about the place they work on social media. This is not the kind of thing which any company wishing to attract talent wants to have flagged among potential employees. Nobody will want to head down the route of losing equal pay cases, and they will certainly not want to have an audit thereafter which shows further challenges within the company. I am sure that we will all monitor this to make sure that it is heading in the right direction.

Similarly, not having a pay audit may make micro-businesses that have lost cases more vulnerable to further claims. Again, I am sure that those businesses will not want that to happen.

[Baroness King of Bow]

I thank the noble Baroness for her indulgence on this, but are these regulations not setting up a scenario where the same employer can breach the same law again and again, and never be forced to take any action? There is no sanction, even if they are ordered to take an equal pay audit and choose not to.

[Baroness Northover]

I am suddenly inspired to say that the regulations allow the tribunal to apply a £5,000 penalty repeatedly if the employer remains in breach. Therefore, it could have quite an effect cumulatively. I hope the noble Baroness will be somewhat reassured that there is a possibility of that follow-up if they are not taking action. I think that I have addressed most of her questions.

I now come to the main points raised by the noble Baroness, Lady Donaghy. I agree absolutely with her support of the notion that unequal pay does not help the business or the economy. That has to be a major incentive for companies to ensure that this moves forward. I do not think I have an answer to what happens if a company goes into bankruptcy and then resurfaces; maybe I have and I have buried it somewhere.

[Baroness Donaghy]

Perhaps the noble Baroness would write to me about that.

[Baroness Northover]

That is extremely kind of the noble Baroness. She asked me quite a bit about narrowing the pay gap. I hope that I have helped to address some of those. This is obviously a lever to help in these cases. It is very important that the law is there, that we ensure it is implemented and that companies are heading in the right direction. However, we all know that there are much wider reasons why this is difficult to shift. We are in line with what is happening in northern European companies—many more women are working than in the eastern European and southern European countries where, curiously enough, there is a narrower pay gap. That is because many women are not working. We share that particular challenge with our northern European neighbours, but we all need to ensure that we take forward the kind of support and legal changes that help to underpin women’s ability to participate in the labour force as equal to men’s. We also need to ensure that we tackle instances where there is genuine discrimination.

[Baroness King of Bow]

May I ask the noble Baroness what I hope is one last question? How many cases do the Government envisage being brought in circumstances where businesses will be asked to carry out an equal pay audit?

[Baroness Northover]

Indeed, the noble Baroness, Lady Donaghy, picked up on what I said in my speech; it is anticipated that it might be two to three a year. If, in due course, we see that this regime is not tight enough, I am sure that we or any other Government would keep that under review. However, these kinds of examples often have a beneficial effect on other companies. The last thing they want to do is have that spotlight on them, either through having lost a case or having their pay audited. This has to be about greater transparency, which can be demanded by a number of women, right up through companies, rather than being grouped at the bottom. I would not be at all surprised if employees in different companies will expect that kind of transparency of modern employers. I do not know whether there is anything else that I need to answer in that regard, but I hear what has been said.

I have tried to answer most of the points that the noble Baronesses have raised. I hope they will accept that it is extremely important to send the message to employers that it is in their interests and everybody else’s to have gender equality in pay in their workplace and that they have to think very seriously about that so that they are not in breach of equal pay law and avoid equal pay claims and, ultimately, the requirements of these regulations. In some ways, it would be good if these regulations did not need to be implemented at all and we just saw a transformation—that would be the best result. However, failing that, I commend the regulations to the Committee and hope that it will approve them.

Motion agreed.

Agriculture and Food Industry

Baroness Northover Excerpts

Thursday 24th July 2014 Lords Chamber

[Baroness Northover (LD)]

My Lords, I am grateful to my noble friend Lord Plumb for calling this important debate, not least because it enables us to emphasise the huge contribution that our farmers and those in our food industry make to the economy. I feel immensely privileged to be answering the noble Lord. This is my opportunity to tell him that, when I was young, I recall my father, a tenant farmer, speaking in awed and hushed terms of the noble Lord when he was vice-president, then president, of the NFU. My parents felt that here was a true champion of what they were doing. They felt valued as they sought to make a living out of difficult hill-top land, the fertile valleys being occupied by a golf course, which my father longed to plough up. They worked against the odds in food production in dairy, beef, sheep and arable, training me and my siblings as expert sheep-dogs, bale movers and—I address this to the noble Lord, Lord Marlesford —straw burners. The noble Lord, Lord Plumb, said that farming is not for the faint-hearted; he is so right. I also know how important the agricultural industry is to our own food security and what we can contribute, given the huge global need that my noble friend Lady Parminter and others pointed to.

The UK agri-food chain, from the farm to the retailer to the caterer, is estimated to be worth £97 billion. Our world-class food and drink manufacturing and retail sectors supply consumers both in the United Kingdom and abroad. The food supply chain employs some 3.7 million people. Food and drink is the country’s largest manufacturing sector, contributing £24 billion to the economy and employing 370,000 people. British food and drink has an excellent reputation for its high standards and rigorous traceability, as well as the strong environmental and animal welfare standards that are valued by consumers across the world.

We have a rising UK and global population, and demand for British produce is increasing. At the same time, for the types of food that we can produce in this country, we import 31% of what we eat. Consumers care increasingly about the origin of their food, thus offering the chance for UK producers to increase their share of the domestic market. We want to provide the right conditions for UK producers to take advantage of these opportunities now, in the face of increasingly fierce international competition.

Both the agriculture and food sectors have their challenges. Our rate of agricultural productivity growth has lagged in recent decades relative to some of our key competitors such as the USA, Denmark, Ireland and the Netherlands. Various noble Lords referred to this. We therefore need to increase our rate of agricultural productivity but, as my noble friends Lord Selborne and Lady Parminter emphasised, we need to ensure that we do it sustainably, to ensure that we can go on competing in the global market.

My noble friend Lord Plumb is absolutely right about the need for research to underpin agriculture. After all, it was in the United Kingdom that the agricultural revolution started, which transformed agriculture in Britain and around the world. That combines now have eight computers demonstrates the complete variance from my father’s battered old combine. Only his engineering skills kept it going and, when it was finally sold, it was bought by a collector. It is right that science and research must underpin the agriculture industry. As my noble friend Lord Selborne emphasised, this is the key. That is why we have brought forward the agri-tech strategy, which was mentioned by many noble Lords.

However, as my noble friend Lord Selborne and the noble Lord, Lord Curry, pointed out, we cannot be complacent. The strategy was launched to support the agri-food sector, providing the UK food and farming industry with opportunities to increase productivity, grow the economy and give UK businesses a competitive edge both here and overseas. The Government are investing £160 million through the strategy, as noble Lords have noted, in projects that will, for example, establish centres of agricultural innovation. The strategy also calls for a joined-up, industry-led approach to improving skills in the agri-tech sector. My noble friend Lord Selborne emphasised the importance of linking this to farming practices. My right honourable friend the Prime Minister announced funding of £18 million from government and industry for 15 agri-tech catalyst projects on 21 July so that they can become commercially viable.

We have a long record of innovation in farming in this country. However, in recent decades, as I mentioned, our productivity has not grown as fast as that of some of our competitors. The strategy is designed to help tackle this by supporting the transfer of innovation to the farm. There is huge potential from breakthroughs in areas such as plant and animal breeding and in the application of technologies such as the satellite imaging mentioned by my noble friend Lord Plumb in terms of their effect on agriculture—my father would have been stunned to hear my noble friend say the things he did. The aim of the agri-tech strategy is to ensure that we make the most of these opportunities. The noble Lord, Lord Trees, rightly emphasised that animal health is relevant in this area. I am sure that he knows, but I would point out to him that the new catalyst projects announced on Monday 21 July included one for technology automatically to monitor pigs for early detection of health and welfare issues.

Many issues came up that show the need for a research base in agriculture. The noble Lord, Lord Bilimoria, and my noble friend Lord Ridley mentioned GM. At an Environmental Council last month, there was overwhelming support for the proposal that will allow member states and the devolved Administrations more choice on whether to cultivate GM crops. The next stage is to agree this proposal with the European Parliament, and these negotiations could conclude later this year or next year. If adopted, it will be a few years before GM crops are grown commercially in the United Kingdom but, earlier this month, an EFRA Committee report on food security recognised the benefits of GM technology and supported the UK’s efforts to make the approval process operate more effectively.

My noble friend the Duke of Montrose asked a very specific question on sheep carcasses. I can let him know that the EU Commission is looking into this, but that is at a very early stage, and we note what he says. My noble friend Lord Marlesford mentioned herbicide-resistant black grass in wheat. We recognise that this is a serious issue, and we will look carefully at this problem.

British food and drink is known the world over for its quality, and our food and drink industry is a success story both at home and internationally. Since 2010, we have seen exports increase by £1.2 billion to reach an impressive £18.9 billion in 2013. Increasing exports provide an excellent opportunity for the sector to grow even further as well as to become more resilient and more profitable. With surging global population growth and demand for western products increasing worldwide, there has never been a better time to pursue food and drink export opportunities. That is why I can assure noble Lords, including the noble Lord, Lord Bilimoria, that promoting food and drink exports is a key government priority. To help grasp these opportunities, Defra and UKTI launched the UK food and drink export action plan. This details the Government’s commitment to champion UK food and drink overseas, break down trade barriers and open up new international markets for our produce.

Last year, the United Kingdom exported food and drink to the value of £18.9 billion, as I mentioned. There is room to increase this even further, particularly in emerging markets. The export action plan outlines an ambitious target, jointly agreed by government and industry, to add £500 million to the UK economy by helping 1,000 UK food and drink companies with their international growth up until October 2015. The plan also details government and industry’s commitment to work together to champion UK food and drink overseas, open up new markets, overcome barriers to trade and simplify and improve support and trade procedures for exporters.

Back home in the UK, both agriculture and food manufacturing face another challenge: the skills gap. Various noble Lords referred to this. This affects innovation and profitability. The Food and Drink Federation anticipates that 137,000 new employees are required in food manufacturing by 2017 to meet its ambition to grow sustainably by 20% by 2020, and 45,000 of these will be needed in management roles and professional jobs. The noble Lord, Lord Grantchester, mentioned apprenticeships. The Government are supporting the food industry’s work on creating a number of career pathways for young people. These include the BIS-led reforms to ensure that apprenticeships are even more rigorous and responsive to employers’ needs and the development of the UK’s first food engineering degree at Sheffield Hallam University.

The future agricultural workforce is a vital part of meeting the challenge of global food security. We are currently addressing a number of the findings of the Future of Farming Review, which industry and Government worked on together, to look strategically at the opportunities and barriers encountered by those making a career in farming.

My noble friend Lord Caithness mentioned various challenges, including poor pay and poor prices. They are clearly important factors. He will be pleased to know that we held a beef industry summit on 1 July, bringing together all parties in the supply chain to discuss the fall in beef prices. My noble friend Lord Marlesford mentioned milk prices. There were record milk prices in 2013, and they have remained high in 2014. When I hear about various variables, it takes me back to my father’s view of why he needed a mixed farm, not only for the preservation of the soil, but because he never knew which bit of it might be profitable at any time. Sheep would be losing money, arable would be neutral, but a third area—let us say beef—might be making a little. He never knew which it would be and which would be losing.

My noble friend Lord Caithness also mentioned seasonal agricultural workers. We understand the concerns over the availability of seasonal workers. We have established an industry-government working group bringing together growers, labour providers and relevant government departments. We are pleased that Jobcentre Plus has shared its experience in helping with temporary recruitment in the relevant industries and it is now working with the agricultural sector. It is worth bearing in mind that, on average, UK farmers enjoy higher incomes than others in the EU but we fully realise that that varies by sector. Seeing the variability plays an important role in recruitment into the industry.

My noble friend Lord Plumb is right to emphasise the importance of colleges and to note the encouraging increase in competition for places, which indicates the health of the industry. As part of CAP reform, we are developing a new rural development programme and have dedicated £140 million to farming growth and productivity, with particular attention to how to support new entrants and those developing their businesses in the early years, to pick up on a point that the noble Lord, Lord Bilimoria made. He also asked more generally about the CAP, as did the noble Lord, Lord Grantchester, who emphasised the importance of the EU market and its influence in other markets. He is, of course, absolutely right about that. I remind him, as my noble friend Lady Warsi so often does, that the Prime Minister has made it very clear that he does not intend to leave the EU.

Our approach to implementing the new CAP in England is aimed at minimising the burdens on farmers while delivering value for taxpayers and improving our natural environment. Within a smaller overall EU budget, English farmers will benefit from £15 billion of funds over the next CAP period and we will invest at least £3.5 billion in rural development schemes. A bigger share of the rural development budget will be spent on the environment than ever before—87% compared with 83%. I point out to my noble friend Lord Caithness that we aim to have an IT system that is simple, affordable and effective, but assistance will be provided for those who genuinely cannot or do not get online, ensuring that farmers and their advisers have access to the guidance they need. What he said rather rang true.

We should acknowledge that agriculture’s contribution to our economy is not just about production. Significant economic and social benefits are provided directly to local economies and communities. We heard some wonderful examples from my noble friend Lady Bakewell, on farmers’ markets. It was lovely to have that as a contribution to the debate. My noble friend Lady Scott made the important point that the Government need to do much more to educate people about food and where it comes from as part of the wider context. She will probably know that Defra sponsors Open Farm Sunday, which is held every June and sees more than 200,000 people go to farms to see where food comes from. Natural England has set up educational access agreements with farmers, which help them host educational farming visits. Quite a lot of work is going on but I am sure that more could be done and I know that children enjoy that immensely.

As I have indicated, agricultural and food industries are not without challenges. Noble Lords will be aware of the increasing demands on our land. Defra has helped to fund a project by the University of Cambridge—a sustainability leaders’ platform—which clearly outlines the calls on land, including those from food, fuel and housing. The Government are currently discussing how policies that can have an impact on land interact so that the best outcome is achieved. My noble friend Lady Miller of Chilthorne Domer spoke passionately about the need for us to steward our soils. She is absolutely right. We fully recognise the importance of soil and its essential role, including in food production, carbon storage and flood protection. The ambition expressed in the Natural Environment White Paper was that all soils should be managed sustainably by 2030. New national standards to limit erosion, protect soil organic matter and maintain soil cover will be in place from 2015. I hope my noble friend is reassured by that.

On Monday 21 July, Peter Bonfield’s report, A Plan for Public Procurement, was published. My noble friend Lady Parminter referred to what she found within that and what she wished might have been in it. In the report, my right honourable friend Elizabeth Truss, the Secretary of State for Defra, stated that the plan will create £400 million of new business opportunities for the British food industry. From 2017 all of central government will commit to buying fresh, locally sourced, seasonal food so that all food that can be bought locally will be.

My noble friend Lady Parminter spoke about the Green Food Project. The noble Lord, Lord Curry, and my noble friend Lord Ridley also spoke about this in a strategic context. We are committed to supporting growth and increased competiveness in the food and farming industry. We are working in partnership with industry to focus on priority areas for action, including through the areas I already outlined. We want a healthy and resilient farming industry that contributes to our food security. I assure noble Lords that we have looked at how this also serves to enhance the environment and reconcile any tensions there might be within that. The research and technology we are investing in will also, we hope, help contribute to that.

There are various other things that I might need to reply to in a letter, I am afraid, given the time.

[Lord Grantchester]

Since the Recess is approaching, could the noble Baroness say anything about the Elliott review?

[Baroness Northover]

Yes, we are considering Professor Elliott’s interim recommendations and will respond to his final report, which will be published shortly. I am sure that the noble Lord will enjoy reading it as he lies on the beach somewhere or other. The professor’s interim report recognises that UK consumers have access to some of the safest food in the world. This record must not be undermined by criminals. We should pride ourselves on our record in this area, built upon the work of a number of Governments successively. I am sure that we will all look forward to debating the report when it comes out in its final form in due course.

This has been a wide-ranging and thoughtful debate, reflecting the huge expertise among its participants. We fully share noble Lords’ sense of the key importance of British agriculture, both for own food security and for our potential contribution worldwide. That is why we support the range of research, investment and other areas that we do.

Israel and Palestine: Humanitarian Aid

Baroness Northover Excerpts

Thursday 24th July 2014 Lords Chamber

[The Earl of Courtown]

To ask Her Majesty’s Government what action they are taking to ensure that humanitarian aid is reaching Israel and Palestine.

[Baroness Northover (LD)]

My Lords, the already chronic humanitarian situation in Gaza is rapidly deteriorating. Ongoing hostilities are making it very difficult and dangerous to deliver humanitarian support. We have increased UK humanitarian support and continue to urge Israel to fulfil its obligations under international humanitarian law to minimise civilian casualties and facilitate the rapid, unimpeded and impartial delivery of relief to civilians.

[The Earl of Courtown (Con)]

I thank the Minister for her response, which I am sure the House will be pleased to hear. I understand that, in the past four years, £340 million has been spent in humanitarian aid to this area. I am glad that my noble friend can confirm that we are making our best efforts to ensure that it reaches those who need it. In this time of increased conflict in that area, are Her Majesty’s Government able to make more funds available? What actions can they take to ensure that the rest of the international community also play their fair part in helping humanitarian aid to that area?

[Baroness Northover]

My noble friend is absolutely right about the commitment that the UK Government have made. We are the third biggest donor to UNWRA’s general fund, which supports the majority of the Gazan population. Given the rapidly declining situation, we have made more than £5 million available in emergency support. This includes £2 million in new funding to help UNWRA provide immediate emergency assistance for more than 100,000 people. We are also bringing forward £3 million in funding to help the ICRC respond to the worsening situation. We are also working very closely with others to encourage them to engage and support as well in this dire situation.

[Lord Turnberg (Lab)]

My Lords, the tragedy that is occurring in this terrible carnage in Gaza can be stopped immediately if Hamas stops firing its missiles that it is storing in UN schools and hospitals. However, my question is: what conversations have the Government had with the Government of Qatar about the funding that they have been giving to Hamas to build tunnels into Israel and to buy missiles from Iran, instead of using that money for infrastructure and aid?

[Baroness Northover]

We urge all in the region to be restrained. There is massive civilian casualty resulting from the conflict there, as the noble Lord will be well aware. We would impress on everybody in this situation to draw back. We need an immediate ceasefire. It was appalling to hear this morning our noble colleague, Valerie Amos, saying that a child an hour is being killed.

[Baroness Nicholson of Winterbourne (LD)]

While welcoming the Minister’s answer, could I ask her how much of the aid—particularly the £30 million that the Government are giving to the Gaza Strip—is she confident is reaching the real beneficiaries and is not being diverted to other purposes?

[Baroness Northover]

We have very strong safeguards in place to ensure that the money is spent as intended. As the noble Baroness may know, our financial assistance to the Palestinian Authority is provided through the multi-donor trust fund, which is administered by the World Bank, which very closely monitors Palestinian Authority expenditure. It is absolutely right that we need to make sure that the funds reach those who most need them.

[Lord Sacks (CB)]

My Lords, at this difficult and distressing time, which is surely a source of grief to all of us, will the Minister comment on what a Government not blind to humanitarian concerns but seeking to defend their citizens from missile attack do when missiles are stored in schools, rocket launchers are placed beside hospitals, ambulances are used to transport terrorists, entrances to tunnels are set inside apartment blocks and civilians are used as human shields?

[Baroness Northover]

The noble Lord will fully recognise that the most important thing is to have an immediate ceasefire on both sides and to try to move forward a peace process which will bring peace and stability to the benefit of the Israelis and the Palestinians. That is what we must aim for.

[Lord Campbell-Savours (Lab)]

My Lords, Hamas said last night that the rockets will stop in the event that the Israeli Government lift the siege and blockade of Gaza. If we are being serious about stopping those rockets, why cannot we exert extreme pressure on the Israeli Government to cease their policy of blockading Gaza?

[Baroness Northover]

As I said, we are seeking an immediate ceasefire with no preconditions on either side, which is something that the noble Baroness, Lady Amos, emphasised. It is extremely important that the underlying problems in this area are also addressed. As the noble Lord will know, we press the issue of those restrictions all the time, as we do settlements and all the other relevant areas, as well as what Hamas is doing.

[Lord Grocott (Lab)]

My Lords—

--- Later in debate ---

[Lord Dykes]

Will my noble friend explain to the House why the UK Government and other European countries abstained on the war crimes resolution, which was passed by a majority in the United Nations and will have to be followed up, including, of course, as regards any war crimes by Hamas?

[Baroness Northover]

My noble friend is quite right—we abstained on this with the other EU countries. We are seeking to stop the bloodshed now. However, we urge that all sides act proportionately and take every step to minimise civilian casualties.

India

Baroness Northover Excerpts

Thursday 17th July 2014 Lords Chamber

[Lord Harries of Pentregarth]

To ask Her Majesty’s Government what is their assessment of the new Government of India and the challenge presented by poverty in that country.

[Baroness Northover (LD)]

We congratulate the new Indian Government on their decisive victory in the largest democratic election in history. Development through good governance was a central plank of Prime Minister Modi’s election campaign. He has announced a government programme that aims to raise economic growth and improve opportunities for the poor.

[Lord Harries of Pentregarth (CB)]

I thank the Minister for her reply. As she knows, poverty in India is on an enormous scale. It has one-third of the world’s poor and more poverty than the whole of Africa put together. Is she aware that of the 320 million people living below the poverty level, 200 million are Dalits, 50% of Dalit villages have no clean water and 75% of Dalit women are illiterate? In her discussions with the Indian Government on this issue, will she press home the fact that tackling poverty on such an epic scale is integrally linked to tackling also a system that leaves the Dalits and other scheduled castes trapped at the bottom of an oppressive pile?

[Baroness Northover]

The noble and right reverend Lord makes a very good point. We and the Government of India are well aware of the figures that he outlines. It is encouraging to see that when the President addressed Parliament to lay out the new programme for the new Government, he emphasised that and said:

“My government is committed to making all minorities equal partners in India’s progress”.

DfID is giving a great deal of technical assistance to the Indian Government in this regard.

[Lord Paul (Non-Afl)]

The Government of India and the Prime Minister are very much aware that the people have voted for him to remove and eradicate poverty. However, there is a very confusing message for the people of India. Will the Minister clarify whether Her Majesty’s Government are more interested in seeing poverty eradicated in India than in strengthening the market for sales of UK military hardware?

[Baroness Northover]

Again, I quote from the President’s address to the Indian Parliament on 9 June, when he said:

“My government will not be satisfied with mere poverty alleviation but commits itself to the goal of poverty elimination”.

That is extremely encouraging. India is an important bilateral partner for us but, as the noble Lord will know, DfID is strongly engaged to try to ensure that poverty is indeed alleviated, and we hope, eliminated.

[Lord Loomba (LD)]

My Lords, I congratulate the Government on leading the way in fulfilling the UN target to spend 0.7% of gross national income on aid, underpinned by the forthcoming Private Member’s Bill sponsored by my colleague in the other House, Mike Moore MP. Will the Minister tell us what percentage of the international aid provided by the Government is spent on poverty-alleviating projects in India?

[Baroness Northover]

I thank my noble friend for his tribute to the Government. I am proud to be part of a Government who have finally met that 0.7% target. Everybody in this House knows how important that is, and how small a contribution it is in financial terms. That is something that we need to get across to the public as a whole. There is a moral case for this; it is extremely important.

My noble friend will also know that, as India grows, it is transitioning to looking after its own people; that is key. I have seen major Indian government projects in place supported with DfID technical expertise. That is the right way to head.

[Lord Collins of Highbury (Lab)]

My Lords, 15 years ago there were just two dollar billionaires in India; now there are 46. The total net worth of the billionaire community in India has climbed from 1% to 12% of GDP. That is enough to eliminate absolute poverty twice over, with enough left over to double spending on health. What steps will the Government take to ensure that this fundamental issue of income inequality is properly addressed at the UN talks on post-2015 SDGs?

[Baroness Northover]

The noble Lord will know from our own history that poverty alleviation in our country was a slow process. India is moving very fast. Over the past decade, it has moved from having 37% living in extreme poverty to 22%. The important thing, as the noble Lord rightly identifies, is India’s investment in its own people. I have said that what the Indian Government have put on the record is very encouraging, as they seek to eliminate poverty among all their people with, as they stress, inclusiveness in doing so.

[The Lord Bishop of Carlisle]

My Lords, does the Minister agree that while the gender gap in employment and political participation is narrowing in India, there is still much that needs to be done by the Government for the health and safety of girls and women? If that is the case, can the Minister assure us that this matter will be given the attention it deserves at the Girl Summit being hosted by the UK Government next week?

[Baroness Northover]

The Girl Summit is extremely important. The right reverend Prelate is right about the gender gap in India, but I also notice that in the budget of last week money was put into trying to ensure that girls attend and are safe in school. I have myself seen a major programme which puts money into the hands of families of girls to try to ensure that they stay in school and have the incentives to be there.

[Lord Flight (Con)]

My Lords, does the Minister agree that the most important way to reduce poverty in India is to increase its growth rate? It has lagged behind that of China significantly over the past decade for a variety of reasons, whereas China has indeed alleviated poverty dramatically.

[Baroness Northover]

I agree with my noble friend that growth is essential for reducing poverty. As he will know, Mr Modi has a record in this regard. What he is doing at the moment by investing in that growth, stabilising prices and investing in infrastructure is encouraging because that is how he is most likely to relieve poverty.

[Lord Patel (CB)]

I return to the point that my noble and right reverend friend Lord Harries of Pentregarth made. The poverty is related significantly to discrimination against a group which is a minority but is comprised of a large number of people: the Dalits. What will the British Government do to help India understand that and reduce the poverty among this group of people?

[Baroness Northover]

I quoted what the President said at the opening of Parliament in that regard.

Public Bodies (Abolition of Food from Britain) Order 2014

Baroness Northover Excerpts

Tuesday 15th July 2014 Lords Chamber

Moved by

[Baroness Northover]

That the draft order laid before the House on 6 May be approved.

Relevant documents: 1st Report from the Secondary Legislation Scrutiny Committee, 1st Report from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 9 July.

Motion agreed.

BBC World Service and British Council

Baroness Northover Excerpts

Thursday 10th July 2014 Lords Chamber

[Lord Williams of Baglan (CB)]

My Lords, I welcome this debate on two renowned and much loved British institutions whose impact on the globe during the past century has been immense. We as Members of this House, and, indeed, the British people, can take great pride in what they have done to promote British values of decency, fairness and respect. Both the council and the World Service have ensured a lasting British impact and influence in all corners of the globe.

For reasons of time, and to reflect my own personal experience, I will concentrate my remarks on the BBC World Service. I declare an interest as a trustee of the BBC with responsibilities for the World Service. I should also note that I worked for eight years as a journalist and editor at the World Service’s then headquarters, Bush House, in the 1980s and early 1990s.

In a subsequent career at the United Nations I experienced at first hand, in Cambodia and the Balkans, how critical the World Service is for people caught up in the vortex of violence and conflict, where information is always the first casualty. In the Middle East, I have seen how vital are the BBC’s services in Arabic and Farsi, on radio, in television and online, for the peoples of that region, and perhaps now more than ever, when conflict rages and freedom of the press scarcely exists in any country from the Maghreb to the Gulf. The tasks facing the World Service are as great as ever. In this country, we look to the BBC for information, entertainment and education, but there are still all too many countries in this world where the BBC sheds light where darkness prevails. One of my former bosses, Kofi Annan, the former Secretary-General of the UN, declared the World Service to be Britain’s greatest gift to the world in the 20th century.

I am pleased to say that today, in a striking example of the BBC World Service’s continuing relevance and agility in adapting to changing circumstances, the Foreign Secretary has agreed to a new Thai language digital service being established. This online news service is responding to the need for accurate and impartial news and current affairs at a time when the Thai media are subject to censorship following the coup d’état of recent weeks. I welcome this move, which is of considerable importance. It may be a model suitable for a Korean service, which the noble Lord, Lord Alton, has advocated for some time. Although there are many difficulties in that regard, not least the funding, I salute the noble Lord’s endeavours. When I left the BBC in the early 1990s we broadcast in more than 50 languages, and nearly all on short wave. That number has now diminished to 27 languages, plus English. Our capacity in east Asian languages is much weaker than it was, making a viable Korean service difficult, although we have an online presence in languages such as Mandarin and Vietnamese.

I can testify that much of the focus in recent years has been on launching television and online services in Arabic and Farsi, which have had a great impact throughout the region. Nevertheless, the withdrawal from short-wave broadcasting during the past decade has been too fast, and in some cases deprived some of the most vulnerable audiences that the BBC World Service should serve.

Despite this, the World Service remains the most popular and best known of all international broadcasters. Yes, it is under pressure from competitors and budget cuts, but it is still primus inter pares. Following the financial settlement of 2010, it needs now to do more to show its relevance to licence fee payers.

Closure of the 648 kilohertz medium-wave service was a mistake and I propose to encourage the BBC Executive to do more to promote not only World Service language and World Service English but languages such as Somali, Urdu and Hindi, which have more speakers in our country than Welsh or Gaelic. The impact of the World Service on domestic radio and television has already been apparent, and we are seeing rather fewer white men in suits in the world’s trouble spots. I believe that as we embed the World Service further into the domestic BBC, our people will increasingly see its value at home and abroad.

[Baroness Northover (LD)]

My Lords, may I remind noble Lords that this is a time-limited debate? When the clock reaches four, noble Lords have had their four minutes.

[Baroness Prashar (CB)]

My Lords, I thank the noble Lord, Lord Alton, for the opportunity to debate this topic, and for his introduction. The BBC World Service and the British Council are, of course, two of the best instruments we have for promoting our values and interests. I am proud to be the British Council’s deputy chair. This year is its 80th anniversary, and it has retained the same mission for which it was founded in 1934. It has, however, transformed its economic model and changed the way in which it fulfils that mission, in response to changing times.

The government grant now represents less than 20% of the British Council’s turnover. Entrepreneurship delivers the rest. This means that, at a time of declining public sector funding, it has been able to grow its influence for the UK. Some criticise this approach, seeing it as a deviation from its core function. In my view the critics are wrong. The mixed funding model is the engine that keeps the British Council’s global network in more than 100 countries running at a time of austerity. If we want to continue to benefit from the 80 years of relationships and experience that the council has established, it would be unwise to change the mixed funding model that has proved its worth for the UK.

The British Council’s establishment in 1934 was a conscious effort to counter extremist views, and spread values of democracy and free speech around the world. It has continued that work by taking the long view and maintaining a lasting presence in countries, even in circumstances when other forms of engagement are no longer possible. That continuity of presence and purpose has been central to the organisation’s success, and in creating the conditions for sharing our values and strengthening our business ties.

It was the British Council’s lasting presence in the countries of the former eastern bloc that proved so important 25 years ago. Staying in places such as Romania and Poland through the tough times meant that it was able to support these countries’ transformation into liberal open democracies. I could go on and give a number of other examples, but time does not permit.

The British Council’s cultural and artistic work, in today’s digitally connected world, is based on reciprocity —that is, on developing a shared understanding of the world through collaborative effort. This is the approach that we are currently using, for example, to work with South Africa to mark the celebration of 20 years of democracy, which will benefit not only South Africans but those in the UK.

The British Council’s school in Madrid, Spain, which opened in the 1940s during the years of dictatorship, offers bilingual and bicultural education, and was quite explicit about its intention to inculcate values of freedom, honesty, integrity and creativity. Now this school, in a different way, serves the same purpose as the British Council’s work in South Africa—promoting the aspects of our national life that are attractive to others, not least the excellence of our education and the values that underpin it.

This work does not set out overtly to export “British values”, but it is an indirect way of sharing important values—by keeping conversations going and by keeping doors open to exchange views, ideas and beliefs. Reciprocity and longevity are central to the British Council’s success, but those values do not always fit comfortably with the rather utilitarian and short-term views of those looking for immediate results.

The British Council has always had a degree of separation from the political arena and has had operational independence. Repeated studies and recent reports have shown that soft power should be, or appear to be, not closely state-directed. Those reports build on the Foreign Secretary’s concept of a networked world, which best sums up how the council will need to operate in future. That means that the British Council needs not only support but better understanding of how it operates and why. As the salience of soft power has increased, it is all the more important that the factors which have made the British Council so effective for 80 years are protected.

I should therefore be grateful if the Minister would assure the House that the Foreign Secretary and the FCO will do all that is required to ensure that the British Council’s entrepreneurial model and ethos will be supported. Any attempts to tamper with it or change it, as suggested by some, will be resisted—albeit with the promise of continuous improvement from the British Council. It would also be helpful to get an assurance that the British Council’s operational independence from government will be maintained.

[Baroness Northover]

My Lords, I remind noble Lords that when the clock reaches four, they have had four minutes.

Public Bodies (Abolition of Food from Britain) Order 2014

Baroness Northover Excerpts

Wednesday 9th July 2014 Grand Committee

Moved by

[Baroness Northover]

That the Grand Committee do consider the Public Bodies (Abolition of Food from Britain) Order 2014.

Relevant documents: 1st Report from the Secondary Legislation Committee, 1st Report from the Joint Committee on Statutory Instruments

[Baroness Northover (LD)]

My Lords, I welcome this opportunity to introduce the Public Bodies (Abolition of Food from Britain) Order 2014. First of all let me explain why the Government have proposed to abolish the public body, Food from Britain. The rationale for this is quite straightforward and I can assure noble Lords that I am not actually abolishing all food from Britain, which might be a little more controversial than this order.

The Government have made a commitment to reduce the number of unnecessary public bodies. In July 2010, my right honourable friend the then Secretary of State for Defra announced proposals to reform a number of departmental public bodies. These included Food from Britain, which—if I can use inverted commas throughout—was set up under the Agricultural Marketing Act 1983. It operated between 1983 and 2009, focusing mainly on the promotion of UK food and drink exports. In 2008, the Food from Britain Council took the decision that the body should be administratively wound down, following a reduction in its grant in aid by the previous Administration. Food from Britain ceased its activities in March 2009. All the staff were made redundant and the body vacated its former offices in 2009. However, Food from Britain was not formally abolished at that time.

Although the legislation which provides for Food from Britain remains in force, the Government continue to have a legal obligation to publish annual reports and accounts. Despite having no activity to report, the cost of preparing and publishing the reports is in the region of £3,000 a year. Formal abolition of Food from Britain will eliminate this unnecessary cost. The Public Bodies Act 2011 provides the legislative mechanism for the Government to carry out reform of public bodies. Food from Britain is listed in Schedule 1 to that Act. This enables the Minister to lay an order under that Act to abolish it. This order, when made, will dissolve Food from Britain in law by repealing the legislation which first established it.

In accordance with the requirements of the Public Bodies Act, a UK-wide consultation was carried out in the autumn of last year. Having carefully considered the consultation responses, it is now proposed to repeal the legislation which provides for Food from Britain by an order under the Public Bodies Act. Ministers in the devolved Administrations have given their consent to the abolition of Food from Britain, as required under the Act. As Food from Britain is effectively defunct, its abolition will have no impact on jobs. However, it will remove an unnecessary public body from the legislative framework and will reduce costs to the taxpayer. Abolition of Food from Britain is a legal tidying-up exercise, but I can assure noble Lords that the Government are firmly committed to strengthening the UK food and drink industry.

The agri food and drink sector is already the UK’s largest manufacturing sector, supporting 3.6 million jobs and adding £97.1 billion to the economy. British food and drink is known throughout the world for having the highest standards of quality, safety and traceability. By increasing food and drink exports, the sector can grow further. My honourable friends the Defra Ministers have made it a priority to promote British food and drink at key international trade shows, and negotiate to remove trade barriers and open up new markets overseas. In 2013, my right honourable friend the Secretary of State at Defra, Owen Paterson, visited China on two occasions to support UK produce and to negotiate market access. Last week, he was in the USA to discuss the opportunities the EU-US Transatlantic Trade and Investment Partnership offers for our producers and exporters. My honourable friend the Farming and Food Minister George Eustice also visited the Gulfood trade fair in Dubai, in February, to promote UK food and drink. In 2013 Defra opened 112 new overseas markets for animals and animal products, increasing exports outside the EU by £179 million to £1.35 billion. Some 54 new markets have been opened in 2014.

UK Trade and Investment provides both potential and active food and drink exporters with a range of advice and assistance to help them take advantage of new markets, including providing funding to attend international trade fairs; organising international “meet the buyer” events; running GREAT week events in priority markets worldwide; and offering a range of seminars and advice.

In October 2013 Defra and UK Trade and Investment launched the UK Food and Drink—International Action Plan at the Anuga trade event in Cologne, the world’s largest food and drink fair. The plan sets out how the Government are working closely together with the industry to promote trade, break down barriers, open up new markets and champion what is great about British food and drink. The export action plan outlines, among other goals, an ambitious target jointly agreed by the Government and industry to add £500 million to the UK economy though assisting 1,000 UK food and drink companies with their international growth by October 2015. That is a 400% increase in support for the sector.

I hope that it has been helpful to give this explanation about the rationale for the abolition of the body entitled Food from Britain and the continuing support that the Government are giving to the food and drink sector. I commend this order to the Committee.

[Lord Grantchester (Lab)]

My Lords, I remember Food from Britain very well. It appeared just before the introduction of milk quotas and has not quite been able to outlast quotas over the last 25 years. I declare my farming interest in a dairy farm.

I thank the Minister for her introduction and explanation of the order before the Committee. I am very happy to support the order to abolish the organisation Food from Britain. However, it is interesting to put it alongside the quota regime in its timing and duration. Agriculture has an almost universally recognised leadership as an industry for its productivity and efficiency improvements since the Second World War. Farmers are very good at producing, especially when working with science. However, they are somewhat less good at marketing their produce. Food from Britain represents one of the many and continuing ventures into marketing assistance.

As ever thus, as a non-departmental public body Food from Britain was brought to a close by the withdrawal of funding. Can the Minister say whether these organisations ought to have sunset clauses included in their set-up legislation to complete the administrative processes. However, it seems rather extravagant that the Ministry should agree with its order to pay £3,000 a year for a nil return from a defunct organisation.

The Explanatory Memorandum is excellent in explaining the tidying-up operation regarding pensions and the transfer of functions to other bodies. The legacy of Food from Britain is a good one. UK Trade and Investment, together with the Food and Drink Exporters Association, have collaborated to produce the UK Food and Drink—International Action Plan—although the Food and Drink Federation contends in its consultation submission that it was only the desire to tidy up administratively that led to this progress. Once again, sunset clauses would be a catalyst for improvement. The local and regional food marketing organisations also do an excellent job in these times of localism and evolution to local people and local funding.

Regarding the explanations in the memorandum concerning the protected food name scheme, I will ask the Minister one or two questions. Can she clarify Defra’s role under the scheme? Is it devolved? If it has a presence within Defra, is that as a proactive support to companies, regions or organisations in their plans for recognition, or as a certifying body to organisations in their applications for recognition at EU level—or, indeed, something else? Finally, the Explanatory Memorandum underlines that the legal ownership right to the name “Food from Britain” and the domain name, foodfrombritain.com, remain with Defra. That this is retained may signify that Defra recognises that it still has some value. Ministers may well have used the name Food from Britain in championing British food at international trade shows. Does Defra have any plans for the name, Food from Britain? Has it considered licensing the name for a fee or for a length of time, or even considered selling it? Does it intend to add value to UK food by the use of this name in any way?

While agriculture still needs marketing improvements, I am content that Defra has made the case for the abolition of Food from Britain. In conjunction with the Secondary Legislation Scrutiny Committee, I am happy that the abolition of Food from Britain will make a small contribution to improving the exercise of public functions.

--- Later in debate ---

[Baroness Northover]

My Lords, I thank both noble Lords who have contributed to this mini-debate on the order to abolish Food from Britain. I thank them both for their support. As they made clear, the order removes what is effectively a defunct body that has not operated for more than five years. It is excellent to have the noble Lord, Lord Rooker, contribute on the back story and I hope that historians will take note of what he said. It is clear from what both noble Lords have said that the body’s removal will have no impact on UK food and drink exporters but will save the taxpayer around £3,000 a year.

The noble Lord, Lord Grantchester, is right in his reference to the name: Food from Britain is indeed a rather wonderful name. I assure him that Defra owns the legal rights to the name and to the website domain name. There are no plans to use the name or the domain name, but he may be reassured to know that we own them.

The noble Lord, Lord Rooker, wonders why it took so long to abolish Food from Britain. The kernel of that is perhaps in what he said—the body was so small that it fell down the order of priority. As he will note, primary legislation was formally required to abolish the body; it would have to repeal the Agricultural Marketing Act, which set the body up. I note with interest what the noble Lord, Lord Grantchester, said about sunset clauses and how useful they might be in certain circumstances. However, they were not built into the legislation on this body, so we took the earliest opportunity to abolish it by including it in the Public Bodies Bill, which, as noble Lords know, was introduced in late 2010. Defra then had to prioritise which bodies should be abolished first. Given that this one no longer operated in practice and was, as the noble Lord noted, smaller, it came later in the process. We also, of course, needed to co-ordinate the process, including the UK-wide public consultation and the devolved Administrations.

Defra has, so far, abolished 51 non-departmental public bodies and it now has very few left to abolish. These are mainly defunct or non-operational and include Food from Britain, but I am very glad to be bringing the order forward to such acclaim this afternoon. I thank noble Lords again for their support and the time that they have taken to consider the order, which I commend to the House.

Motion agreed.

St Helena

Baroness Northover Excerpts

Wednesday 9th July 2014 Grand Committee

[Baroness Northover (LD)]

My Lords, I start by thanking my noble friend Lord Shutt for initiating today’s debate and for his keen interest in St Helena. In this debate and through other channels he has rightly been a champion for this project and consistently highlighted the very considerable barriers to the development of one of our most isolated overseas territories. I thank other noble Lords who participated in this debate for their contributions, knowledge and engagement.

As noble Lords noted, we took decisive action to address the constraints of St Helena in November 2011 by approving the construction of an airport that would bring to an end 500 years of isolation. I thank my noble friends Lord Jones and Lord Shutt for their tributes to this decision. For the first time in the island’s history, it will be possible to travel to St Helena in less than a day, opening up this beautiful island to the world and providing opportunities for economic development and the enhancement of the lives of its citizens. I take what the noble Lord, Lord Collins, said about the special beauty of many islands, and it is clear that St Helena has much to offer. It is an unspoilt island of dramatic beauty, biodiversity and heritage, as we have just heard. From its fantastic marine wildlife to its diverse landscapes and unique endemic flora and fauna, the island that hosted Napoleon until his death also played a big part in the emancipation of slaves on the south Atlantic trade route. It is one of the most remote inhabited islands in the world and has the potential to attract visitors from around the world.

My noble friend Lord Shutt clearly appreciates, as do other noble Lords, the scale of the challenge for the island’s small population to turn the opportunity that has been granted to them into a reality. I know that when he visited the island in 2013 as leader of the Commonwealth Parliamentary Association team, he will have seen at first hand the scale of change needed to transform a community that has been in receipt of budgetary assistance from the UK for over 40 years into one that takes control of its own future. I know that his work was greatly appreciated by the new council.

The airport will impact on every aspect of life in St Helena. With construction work on the airport now at its peak, we have already seen a reverse in the population decline which has had such a marked impact on the social and economic life of the Saints, and which my noble friend Lord Jones so graphically made clear. The continual outflow of the most economically active Saints to employment in the Falklands, Ascension and the UK reduced the population from 5,500 in 1995 to around 3,800 at its lowest point. The airport construction project has seen the population rise again to over 4,500, with the creation of more than 350 jobs for Saints. As the noble Lord, Lord Collins, and others have made clear, the challenge will be retain those Saints once the construction has been completed and to harness the skills they bring to help build up St Helena’s long-term economy. DfID is working closely with the St Helena Government to put in place the building blocks that are required to deliver economic growth. The St Helena Government, with funding from DfID, has established Enterprise St Helena, an arm’s-length body tasked with driving private sector-based growth, helping local businesses respond to increased tourism demands, and stimulating local and overseas investment to ensure that the island is ready to capitalise on improved access.

Securing investment in a new and untested market presents significant challenges. While air access is coming soon, currently it still takes three weeks to visit the island, time that few potential inward investors can afford. Nevertheless, progress has been made. A local developer has completed the construction of eight new rooms in Jamestown, and only last week an inward investor announced the development of 20 wood cabin lodges aimed at the big game fishing market, with construction to commence this year. These are small beginnings, but they are significant in the context of St Helena and are likely to encourage others. Enterprise St Helena is also exploring options for the development of a hotel in Jamestown, building on the island’s unique heritage, mentioned by my noble friend Lord Jones, the noble Lord, Lord Collins, and others, by converting Georgian buildings that are currently being used as government offices into a small, 40 to 65-bedroom hotel. The initial design is under way and the St Helena Government are actively pursuing funding options. DfID is working very closely with Enterprise St Helena and the St Helena Government to support their efforts.

I was asked a number of questions about accommodation and I shall provide some fairly rapid updates. There are currently 41 service rooms on the island, 30 with en-suite facilities. In addition to that there are a number of self-catering establishments, which bring the number of rooms up to 113. Many, as the noble Lord, Lord Collins, indicated, may not be at the standard expected by modern travellers at the moment.

I was asked about St Helena Hotel Development Limited. That has been set up to try to kick-start hotel development in Jamestown. Initially it will be wholly owned by the St Helena Government. If plans proceed, shares will also be issued to investment partners. The St Helena Government would look to divest their entire shareholding over time. Clearly, as noble Lords indicated, access, constraints and uncertainties over air services make it challenging to attract private sector investment, but early interest has been shown by two hotel groups. However, both have put plans on hold due to uncertainties in visitor numbers. I have just mentioned the chalets, though, and the plans for Jamestown. DfID itself has no plans to provide funding for hotel development, and it would not be appropriate to use airport contingency funds for a hotel.

I was asked about Shelco. It has revised its proposals to bring forward the development of a 35-room boutique hotel and golf course, with the aim of having it up and running by the time the airport opens. Funding remains an issue, and Basil Read would need to tender for any work that it wanted to undertake.

I was asked about the proposed hotel developments in Ladder Hill and Jamestown. Both Protea Jamestown and Mantis Ladder Hill have put their proposals for hotel development on hold for the reasons that I have given, but the St Helena Government are currently exploring funding options for a medium-sized hotel in Jamestown.

As to when it will be possible to book holidays in St Helena and whether that could happen already, it is of course possible to book the accommodation that I have already mentioned through the tourism office. My noble friend is clearly a forward thinker, way beyond anything that I consider, I am afraid, but we note what he says. He always was extremely well organised.

DfID also supports Enterprise St Helena to offer a range of business advice, training grants and small capital investments to local businesses in the sectors of tourism, hospitality, agriculture and fisheries. We are seeking to give St Helena the opportunity to develop further. It cannot be DfID’s role to undertake each role of that development itself. As my noble friend Lord Shutt indicated, there is mutuality here: DfID is investing in the airport and other areas, and we hope to see a necessary response within the island, including in the conservation skills that my noble friend Lord Brooke has mentioned. Obviously we take the points that he makes very seriously.

Securing air services to support tourism and to maintain access for Saints to travel to and from the island is a key requirement for achieving economic development. Twelve potential service providers have registered early interest, and a formal call for expressions of interest was issued on 12 June.

However, the airport will not just bring economic development. Economic growth on St Helena will mean more jobs and prosperity on the island, reuniting families of Saints who have previously had to travel overseas to find employment. It will mean the potential for faster evacuation in medical emergencies, and easier access to education overseas.

My noble friend Lord Shutt pointed to the difficulties of recruiting staff on the island. He is of course right. DfID is providing £2 million this financial year to provide staff to fill short-term specialist positions that cannot be recruited locally. We support long-term positions in key areas on the island.

My noble friend Lord Brooke highlighted the range of work that could productively be carried out on the island. My noble friend and the noble Lord, Lord Collins, asked about a range of skills. Enterprise St Helena, working through the education directorate, has established or is establishing training programmes leading to qualifications covering a wide range of skills. I have a list here. The ones they might be particularly interested in hearing about are building and construction, hospitality and catering, leisure and tourism and environmental conservation. I can go into further detail about them, should the noble Lord, Lord Brooke, in particular, want more on that.

My noble friend Lord Jones asked about a South Atlantic federation. That is very interesting, but it is not currently under consideration. He has lobbed it in, so no doubt people will consider it.

I shall answer some specific questions on the airport as rapidly as possible. I was asked whether it will be possible to fly directly from Europe. The length of the runway on St Helena, unless we flatten St Helena, will not support direct flights to Europe. Johannesburg and Cape Town in South Africa are the nearest international hubs with excellent direct links to most European cities. The current tender for air services will look at all options.

Prequalification questionnaires for the air service are due to be submitted on 17 July. More than 12 potential service providers have downloaded the documents—of course, one of them may have been my noble friend Lord Shutt—and currently five have indicated that they will respond. At this stage of the tender process, it would not be appropriate to name airlines. The current target date for signing a contract for air services is March 2015, but that will depend on the nature of the response received. It is intended that air services to St Helena will be operated on a purely commercial basis and that that should be achieved as early as possible. However, it is recognised that this may be challenging in the early years, and air service providers have been invited to put forward proposals for any required research.

The noble Lord, Lord Collins, asked about risk. The fixed-price, lump-sum contract with risk transferred to the contractor is the arrangement. The airport is now 60% complete and to date is on time and to budget. There is also a temporary jetty at Rupert’s Bay.

Wideawake Airfield on Ascension, as noble Lords will know, is a military airport operated by the US to military standards. It would not be possible to meet minimum civil aviation standards, but we expect that the US will agree to the use of Wideawake as a nominated alternative for flight planning and for domestic services between St Helena and Ascension only. We work very closely with the United States on that.

There will be a limited amount of air freight, and alternative arrangements are being made for sea freight. In fact, the St Helena Government have commenced a tender process to secure post-airport shipping to the island and are expecting to receive expressions of interest this Friday, 11 July.

This is a long-term investment trying to ensure that this dependent territory is less dependant in the future. The business case depends upon not rapid development but slow growth over 25 years. I was asked about the value of cross-learning between islands and development. That is absolutely right. The Joint Ministerial Council is an obvious vehicle for putting that into practice, as is the Overseas Territories Consultative Committee.

The airport is key to the economic development of the island. These are challenging times for St Helena, but they also carry the promise of a brighter future made possible by this airport investment. Noble Lords have very effectively laid out the challenges that St Helena faces and how this new opportunity could and should unlock a transformation of the island and its people in the way we all wish to see.