Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Thursday 18th June 2015 Commons Chamber

[Elizabeth Truss]

I thank my hon. Friend for her question. We have fantastic produce in the west midlands, from Burton’s Marmite to Worcestershire pears. I am pleased to see that Birmingham City Council is working to make sure all its schools meet the Bonfield standards, and I would like other cities, towns and villages across Britain to do so too.

[Ms Margaret Ritchie (South Down) (SDLP)]

Will the Secretary of State outline what discussions have been held with the devolved regions about the use and promotion of local food right across the UK public sector?

[Elizabeth Truss]

I thank the hon. Lady for her question. I recently met the Scottish Agriculture Minister to talk about how to promote British food. I look forward to meeting my Northern Ireland counterparts very soon to discuss that issue, too.

Dairy Industry

Baroness Ritchie of Downpatrick Excerpts

Wednesday 4th February 2015 Westminster Hall

[Ms Margaret Ritchie (South Down) (SDLP)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the hon. Member for Ribble Valley (Mr Evans) on securing this important debate on the dairy industry.

I am a member of the Select Committee on Environment, Food and Rural Affairs, under the chairmanship of the hon. Member for Thirsk and Malton (Miss McIntosh), and we have just completed a detailed report on dairy prices, volatility in the market, and the need for the European Union to review the intervention price. I urge the Agriculture and Rural Development Commissioner, Phil Hogan, and the Minister to make sure that the price is reviewed, and that there is considerable uplift. From my Northern Ireland perspective, the volatility has had a great impact on the local dairy industry. The majority—about 85%—of our milk products are exported. With the milk quota ending in April, the issue of price volatility will be more marked and definite, so it needs to be addressed.

My constituency neighbour the hon. Member for Strangford (Jim Shannon) mentioned the dairy intervention price, which the Select Committee report dealt with clearly, along with the fact that the Groceries Code Adjudicator lacks teeth. On 29 January a motion was tabled on enabling fines to be levied on the big supermarkets. I hope that penalties will be brought in, but smaller retailers also have an effect on the consumer and, more importantly, the farming and dairy industries, and that needs to be investigated.

We want an uplift for the dairy industry, and we feel that there is a need to take a long-term view of the industry and its current crisis. Countless farmers are being forced to leave it and abandon their livelihoods, because they are not receiving sufficient support in the crisis. There will come a time when the markets improve and we will need their high-quality produce. There may be a shortage of farmers remaining to produce it.

The dairy industry is vital to farmers’ livelihoods and to the economy. Intervention is not just an option; it is an immediate necessity. We need action at Government and EU level to protect farmers properly in the long term, in the face of market volatility, which will bring further challenges. I commend the Environment, Food and Rural Affairs Committee’s report to the Minister, and I look forward to his response. I hope that he, in conjunction with the EU Agriculture and Rural Development Commissioner, will be able to provide some relief for the dairy industry.

Poultry Industry

Baroness Ritchie of Downpatrick Excerpts

Tuesday 20th January 2015 Commons Chamber

[Roger Williams (Brecon and Radnorshire) (LD)]

I am pleased to have been given the opportunity to raise an issue of importance to many of my constituents and to the UK as a whole. I refer to the Transatlantic Trade and Investment Partnership negotiations between the EU and US and the risks they bring for the UK poultry industry.

Britain is and always has been a great trading nation, and the TTIP negotiations represent a significant opportunity to expand our trade relations with the US. The Government estimate that a successful TTIP treaty could boost the UK economy by as much as £10 billion a year. Some £1.5 billion in goods and services is already exchanged between the US and Europe every day, and 13 million jobs rely on that trade. A major point of discussion in TTIP is the trade in food and food products—the biggest manufacturing sector in the UK. TTIP could bring huge opportunities for the food sector, but I hope the whole House will agree with me in urging caution before we get carried away, as these opportunities should not come at the expense of the great efforts that UK food businesses, particularly poultry meat producers, have made in the improvement of the sustainability, quality and standards of production here in the UK.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Gentleman on obtaining the debate. He is making a compelling point. Does he agree that we need a robust presence in the international negotiations to ensure that the interests of the poultry industry in Britain and Northern Ireland, where Moy Park employs more than 5,000 people, are totally protected, and that export markets are fully opened in places such as China and the US?

[Roger Williams]

The hon. Lady makes a very good point, and I will set out later how I believe the standards of production in the UK are far in advance of those in the US—a factor which should be taken into account in negotiations. I will also be talking about egg producers.

According to the British Poultry Council, the UK poultry meat industry produced more than 900 million chickens in 2013—up from about 780 million in 2001. Based on sales of £6.1 billion in 2012, the poultry meat industry made a £3.3 billion gross value added contribution to UK GDP. The industry supports 73,000 jobs in the UK—35,000 directly, 25,000 in the supply chain and nearly 13,000 in wage consumption. The industry pays about £1 billion in tax to the Exchequer, and so funds many of our public services.

Virtually half the meat eaten in Britain is poultry meat and it is enjoyed by millions of people every day. The UK is at least 80% self-sufficient in poultry meat and as such it is an important contributor to UK food security. There may be some concerns about the intensive nature of poultry production, but animal welfare is higher in the UK than in the rest of Europe.

--- Later in debate ---

[George Eustice]

It is widely anticipated that the US will make concessions, but the hon. Gentleman makes a good point. The opening offer from the EU was deemed to be somewhat more generous than the opening offer that came from the US. That was recognised. At a session that I had with Tom Vilsack, who was representing the US, and other EU leaders, that was one of the points that was raised.

I appreciate the concerns about the implications of the different approaches taken to food safety and animal welfare as between the US and the EU and, in particular, whether this could place UK producers at a competitive disadvantage. I shall return to this point later in my remarks. First, we need to recognise that any free trade agreement is about setting the foundations for a better, more effective trading environment for our producers. This includes outlining specific areas for deeper collaboration to ensure that we are maximising trade opportunities. For agriculture, this includes establishing a better transatlantic relationship with regard to animal and plant health—or, to use the jargon, the sanitary and phytosanitary measures.

The aim of TTIP will be to formalise how the EU and US work together in this area to facilitate trade, while protecting human, animal and plant health. I should point out that that is not something new. For example, the EU has negotiated deals with a number of countries, including with Canada and Korea—both of those deals include dedicated sections on animal and plant health measures. Each agreement sets out some specific details in a tailored way, but ultimately outlines a template for future co-operation in a given field. If we can achieve that with Canada and Korea, I see no reason why it should not in principle be possible to achieve the same with the US.

We should bear in mind the fact that a free trade agreement is just the beginning of the process, not the end. Once agreed, TTIP would form the basis from which to negotiate specific market access issues, product by product. For example, the detail of specific sanitary requirements for poultry exports to the USA would be set out in an export health certificate, which would be negotiated only once discussions on equivalence had been concluded. The UK would be fully engaged in all stages of these European-led negotiations to ensure that UK exporters get the most favourable conditions possible in order to facilitate our exports. We should remember that exports are as important for our industry as they are for the US.

We should recognise that it is inevitable that different countries will take a different approach to ensuring food safety and animal welfare. The UK and wider EU farm industry takes a farm-to-fork approach to food safety, as the hon. Member for Brecon and Radnorshire pointed out, whereas the US approach has historically focused on the safety of the end product and taking safety measures closer to the point that food is consumed. Although such differences in approach are definitely relevant, they should not present an insurmountable obstacle to trade, which is why the principle of equivalence is important.

[Ms Ritchie]

Will the Minister indicate how the British Government intend to reconcile our much higher standards for poultry meat with the lower standards in the United States? That is the basic fear that we are expressing on behalf of Moy Park in Northern Ireland, the second largest poultry producer in the UK.

[George Eustice]

That is precisely what is going on in the detailed discussions to which I have referred. Many of the points the hon. Lady asks about would be resolved when export health certificates were agreed, and those certificates sometimes include a recognition of animal welfare considerations. Such details will be teased out in the negotiations, but I would say to the hon. Lady that we already import quite a lot of food from the US—from confectionary to cereals—and it is already required to meet EU standards. Such food is not necessarily produced directly in compliance with EU regulations, but through negotiation it has been deemed to meet EU standards. TTIP would apply a similar principle.

We certainly do not want a trade deal that undermines the current good farming practices in the UK sector, which are a hallmark of our poultry industry. I can reassure the hon. Member for Brecon and Radnorshire that EU negotiators have consistently stated that we will uphold the EU’s food safety standards throughout the TTIP discussions.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Thursday 11th December 2014 Commons Chamber

[George Eustice]

My hon. Friend makes a good point. At current prices many farmers are indeed making a loss, and at the dairy supply chain forum we discussed volatility. The last two years have been a rollercoaster ride for the dairy industry—it had a dire year in 2012, last year was very good, but this year is bad again. We have considered whether we can develop a successful futures market, for example in skimmed milk powder or cheese products, to help farmers manage that volatility in future.

[Ms Margaret Ritchie (South Down) (SDLP)]

With volatility in the dairy industry impacting on farmers generally, does the Minister agree that the EU intervention threshold, which was agreed at 18p per litre in 2003, does not protect dairy farmers across the UK and is in urgent need of review? What representations will he make to Brussels on that?

[George Eustice]

I met Northern Ireland representatives from Dairy UK when I was in Brussels last week and they raised that point with me. The European Commission is looking at the intervention price, and our officials are working on what the appropriate price would be. Generally, an increase in that intervention price would tend to benefit other countries that have lower prices before it benefits UK farmers, but we are considering the issue.

Fishing Industry

Baroness Ritchie of Downpatrick Excerpts

Thursday 11th December 2014 Commons Chamber

[Ms Margaret Ritchie (South Down) (SDLP)]

My colleagues and I were extremely grateful to secure this important debate and to have time made available for it in the Chamber. I thank those from across the parties who worked, through the Backbench Business Committee, to secure it. I pay tribute to my hon. Friends the Members for Great Grimsby (Austin Mitchell) and for Aberdeen North (Mr Doran), who have made major contributions to the fishing industry, and to fishing debates in this Chamber, over very many years. Their loss will be greatly felt in these debates in future, and I want to put that on the record.

We have had a very productive, sometimes passionate debate across a range of issues to do with fisheries in all the various fishing ports represented by Members right across the United Kingdom. This is all about sustaining the fishing industry offshore and onshore, because both are interlinked and both make a major contribution to our own local economies. Many Members referred to the problems associated with landing obligations. I hope that during his negotiations the Minister will be able to apply pressure to ensure that the amendments proposed last week by an MEP from Northern Ireland are eventually implemented, because they will ease the impact of the discard ban and allow a greater level of flexibility.

In my constituency, I have two fishing ports—Ardglass and Kilkeel. At the end of October, I was very grateful to the Minister for visiting to examine the work of the offshore fleet and the onshore industries. I well recall that we were picking prawns or trying to do some redress work to the prawns after they had been fished. In those two areas, fishing is at the heart of the local food industry and crucial to the local economy.

We pay tribute to those who continue to risk their own safety every time they go out on a fishing boat. We must protect their right to make a living, because they do it in some of the most challenging weather conditions. The weather can have an impact on the number of days that they can go out to sea. I know from my own local experience that the Fishermen’s Mission played a major role in trying to secure and provide the necessary financial help to beleaguered fishermen.

I also pay tribute to the hon. Member for South East Cornwall (Sheryll Murray), who has a particular expertise in the fishing industry and serves with me on the EFRA Committee. She knows full well the risks that are associated with the fishing industry, and we all empathise with her in her loss.

I thank all Members who have spoken with such clarity, sense and purpose about the need to safeguard our fishing industry across these islands. There are different factors, considerations and emphases in each fishery. There are issues to do with the MMO, maximum sustainable yield, the reallocation of quotas, and The Hague preference. However, a strong common thread unites us all in our desire to maintain a strong, sustainable fishery and to ensure that we get a positive outcome from the Minister’s negotiations next week.

I was very much taken by what my right hon. Friend the Member for Tynemouth (Mr Campbell) said in pointing out that there must be collaboration between fishermen and those involved in the science. In my experience and that of the fishermen I work with, it is clear that the fishermen themselves know much more about what is in the sea than the scientists do. That has been borne out by today’s comments by many Members from various parties. Too often the fishermen are not listened to. My message on behalf of all Members who have spoken is: please listen to what the fishermen have to say about the impact of the current climate on fishing. A compelling case has been made.

As other Members have said, the industry has done a lot to improve gear practices and techniques to meet new regulations and limits. That has been the case in my own constituency and across Northern Ireland. The industry deserves credit for that. The Minister has seen for himself examples of those gears, which have been very much in the vanguard of the fishing industry and are innovative. Just as in previous years, fishing negotiations are vital in securing the future course of the industry.

On the challenges faced in Northern Ireland, nephrops, which are so vital to the industry, remain the primary focus of our attention. I am glad that the Minister referred to that. The catch limit for the species was announced after the Commission published its total allowable catches on 28 October, as there was a delay in making sufficient stock data available. Once again, there is a significant cut in the TAC limit for nephrops. The TAC limits for area VII nephrops have previously—this happened last year—been increased in response to Spain and France underutilising quotas, which protects countries such as the UK and Ireland with a full quota intake. As the hon. Member for Strangford (Jim Shannon) said, the priorities of the UK, the Northern Ireland Executive and the Irish Government have been aligned on what is best in quota requirements for a sustainable fishery in the Irish sea. I hope that will continue and that the Minister’s colleagues in other countries will listen to that in the negotiations. The same logic should apply this year, as the proposed cut in nephrops would be extremely damaging. I urge the Minister to take that on board and share the message at the meeting.

There remains no directed Irish sea cod fishery, and the industry, with the Agri-Food and Biosciences Institute and the Department for Environment, Food and Rural Affairs, continues to work positively in that area and agreed to relaunch the fisheries science partnership early in 2015. It will also begin a large-scale cod-tagging project and re-evaluate the assessment model of the International Council for the Exploration of the Sea, to make the best possible assessment of cod stock levels. It is hoped that the Commission, as indicated, will not pursue further effort reductions, in order to allow a focus on more important issues related to quota limits. I would like clarification in writing from the Minister as to why a cut to the TAC limit has been proposed when the Commission seems to have paused the long-term cod plan by not determinedly pursuing further reductions in efforts or days at sea. The TAC limit will simply lead to more unnecessary discards as part of the nephrop by-catch.

Thankfully, previous effort reduction has had a limited impact on the nephrop fleet, as Northern Ireland has made full use of the facility to buy back all the effort we need through the adoption of highly selective gears. However, it must be noted that the gear modifications have in many cases led to a loss of valuable white fish by-catch, putting further pressure on fleets. I mentioned discards earlier, and they have been at the centre of the reform of the common fisheries policy.

If there is one message that the Minister can take with him to Brussels next week it is that those Members who have spoken today clearly want to see proper regionalisation and decentralisation underpinning a sustainable fishery. If that can be done, we would be very pleased.

Once again, I thank all Members who have spoken. I wish the Minister a fair wind—to use a nautical phrase—in his negotiations. We look forward to a successful outcome, notwithstanding the challenges he faces in negotiating on behalf of our fishermen, including on the issue of landing obligations for pelagic and demersal fishermen, the whole area of discards and the need for further decentralisation.

Question put and agreed to.

Resolved,

That this House has considered the fishing industry.

Avian Influenza

Baroness Ritchie of Downpatrick Excerpts

Monday 17th November 2014 Commons Chamber

[Elizabeth Truss]

I can assure my right hon. Friend that east Yorkshire is most definitely open for business. The restrictions that we have put in place are specifically on the poultry industry. Compensation will be paid to farmers. We will do that in a robust fashion that is properly audited, learning lessons from previous disease outbreaks. My right hon. Friend is right that it is important that we see the value to the wider £210 billion rural economy. Food and farming are important, which is why we are dealing with this disease outbreak as quickly and as effectively as possible, but we must also see the wider benefits to the rural economy.

[Ms Margaret Ritchie (South Down) (SDLP)]

I thank the Secretary of State for her statement. She referred to work with operational partners and devolved Administrations. Will she outline the nature of those discussions with devolved Administrations, particularly the Northern Ireland Executive, so that the local poultry industry in Northern Ireland can be protected and public health safeguarded?

[Elizabeth Truss]

I can assure the hon. Lady that we had a meeting today, which was part of our national disease control meetings, in which the Northern Ireland Executive were involved, as were the relevant authorities from Scotland and Wales. It is very important that we communicate properly with the devolved Administrations, and that is what we are doing, so they are fully involved in all our operations.

Dairy Industry

Baroness Ritchie of Downpatrick Excerpts

Wednesday 5th November 2014 Westminster Hall

[Simon Hart]

I thank my hon. Friend for a contribution that I will add to my list of questions for the Minister. He has put his finger right on a problem that particularly affects the more isolated parts of rural Britain.

That all leads conveniently to the issue of supermarkets. The milk price public battleground always centres on the role of retailers, in particular the better known ones. Some 50% of British milk is not traded globally. We talk about global influences, but we must not forget that the other 50% of our milk is not traded globally and that its price is a straightforward consequence of the relationship between UK-based retailers and the processors. The retailers cannot escape criticism by blaming it on the Chinese or the Russians. A lot of the price is about straightforward UK contractual arrangements between two important parts of the chain.

What can the Government and the processors do? There are some long-term proposals and ideas. They are nothing new, and no one in the Chamber will be unaware of them. We must—this is an easy expression to use—continue to strive for and identify new markets. Of course—that is stating the bleeding obvious, some people might say. It cannot be done in a hurry, and it cannot necessarily be done by Government alone; it has to be done by a combination of processors and Government. Identifying and exploiting new markets is of course critical, but it will not solve the problem facing my constituents in the next few weeks.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Gentleman on securing this vital debate on dairy prices. Is he aware that the Dairy Council in Northern Ireland, which is an offshoot of the UK Dairy Council, has been awarded two EU contracts for the export of milk and cheese from Northern Ireland to third-country markets including south-east Asia? Does he agree that that will be a good stimulus to the local economy and will help with milk prices in a world in which they, like beef prices, are slightly depressed?

[Simon Hart]

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

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

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

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Thursday 17th July 2014 Commons Chamber

[Elizabeth Truss]

I will be delighted to work with the hon. Lady and the Select Committee; I am very much looking forward to that. We know that 70% of farmers are already processing their payments online. She is absolutely right that some do not have access to online payments at the moment, which is why the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Camborne and Redruth (George Eustice), who has responsibility for farming, is making centres available that will be able to advise those farmers and help them get online.

[Ms Margaret Ritchie (South Down) (SDLP)]

I, too, welcome the hon. Lady to her new position and look forward to her appearance before the Select Committee. We know from the report on rural broadband that we carried out last year that the lack of adequate broadband has been identified repeatedly as one of the key barriers to growth in rural economies. In view of the fact that so much money was allocated to England and to the devolved Administrations, what assessment has been carried out of its effectiveness, given that for topographical reasons many rural areas have not yet received their access?

[Elizabeth Truss]

I agree with the hon. Lady about the vital importance of broadband for rural businesses in this country and for exports, which I am passionate about promoting. We know that the extent of broadband coverage has increased significantly from 45% of premises in 2010 to 75% now. I agree that we need to do more, which is why I am working on that along with my right hon. Friend the Culture Secretary.

Common Agricultural Policy

Baroness Ritchie of Downpatrick Excerpts

Monday 7th July 2014 Commons Chamber

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

I welcome the opportunity to debate the implementation of the common agricultural policy in England. I welcome the Minister to his place and look forward to his comments.

Looking at the estimates for the forthcoming year, it appears that there will be a 2% increase in the overall budget against last year’s final position in the 2012-13 supplementary estimate. It appears that the £43 million increase in programme spend is largely due to the £124 million increase due to the transfer of the CAP disallowance funding from 2013-14 to 2014-15, in line with a Treasury agreement to allow flexibility in disallowance funding between years. There is also a £38.4 million increase to the Environment Agency’s flood management budget, which is extremely welcome and includes the £20 million announced in the 2014 Budget. It would be helpful if the Minister, in his response, reassured us that this is new money and that we are not being asked to make savings from, for example, the EA’s Yorkshire and Humber budget to transfer to other parts of the country. That leads to the question, since I understand that the National Audit Office is not in the position to provide figures for the debate, of what the projected figures for disallowance, and any quantifiable fines from the new CAP reform coming into effect next year, will be.

Against that backdrop, the Select Committee on Environment, Food and Rural Affairs was extremely pleased to consider the Department’s proposals. When we reported last year, we found much to like. We support the Government’s intention to raise the minimum level of claim threshold to five hectares, and to move money uphill. It is extremely important to state at the outset, however, that that money must go to active farmers and not simply to those who own the land. I would like to go into some detail in that regard, and the Minister cannot help but be aware of our particular concerns.

I would like to record my particular thanks to the previous Minister with responsibility for farming, my right hon. Friend the Member for South East Cambridgeshire (Sir James Paice), who was mindful of our concerns about areas where common land is prevalent. The Committee supports the Government’s position that England should adhere, as closely as possible, to the greening measures set out in the direct payments regulation, and not adopt a national certification scheme approach to greening. In our conclusions, we recommend that the Government maintain the 9% rate of transfer from pillar one to pillar two, and only move to 15% in 2017 if they can demonstrate that additional funds are required and that there is a clear benefit from the projects proposed. Clearly, a compromise of 12% is less than 15% and more than 9%. Perhaps the Minister will share the Government’s thinking in that regard, but we are pleased that the farming voice, and that of the Committee, was heard.

The Committee recommends that the Government take steps to ensure that those actively farming receive the direct payments and that those farmers who have responded to the call to diversify are not captured inadvertently on the “negative list” of business types ineligible for CAP funding under pillar one. We recommend that the Government update the commons registers and allow commoners associations to claim on behalf of all those who actively farm commons, so that the commons attract the share of pillar one money intended for them. I am aware of the position in North Yorkshire and Cumbria, and that the register will be updated from October. I believe that in County Durham and other parts the situation might be slightly different. My concern, which I am sure the Committee shares, is that the update to the register cannot take place before 1 January 2015, so a number of eligible claims will be excluded. What will happen to specific claims that are relevant and should be awarded, but may not be in place by 1 January 2015? It would be extremely helpful to put the minds of those farmers at rest.

The Committee supports the continuation of dual use under pillar two, but we think that Natural England must display a lot more rigour in arranging agri-environment contracts to ensure that payments under those schemes go to those who do the work and whose income is forgone. We make a specific recommendation that I hope will be echoed across the House this evening—that Natural England must be in a position to give advice. It should not be seen just as the policeman; it must be there to provide advice to farmers who seek it.

One of the central recommendations—it is certainly close to my heart, given the area that I represent—is that where there is a dispute between landowners, tenants and graziers, they must have access to a dispute resolution mechanism, set up along similar lines to that suggested by the tenancy reform industry group. In this day and age, it is worrying that those whose interests are sometimes ignored or trodden on should not have access to arbitration or a simple, swift dispute resolution mechanism along the lines we propose.

The Select Committee highlights the risks associated with the Government’s plans to develop a new single IT system for CAP funding through which all agencies would be able to administer the CAP. We do not wish to rehearse the grief from previous Administrations, but we are aware of recent history and we do not wish it to be repeated. An undertaking and some assurance from the Minister that that is not intended would be most welcome this evening.

We support the Government’s ambition to encourage and support as many people as possible to apply for CAP funding online, but that approach will simply not be available to some farmers. We received an assurance from a DEFRA Minister in our recent deliberations that a paper-based application process would be retained and that guidance will be provided in paper format in the run-up to the new scheme. It was thus of some concern when the chief executive of the Rural Payments Agency, in giving evidence to the Committee in April this year, told us that there is absolutely no way that a paper format application can be made. That will send shockwaves through rural areas.

In my own constituency, I had a briefing from NYnet, the county council’s regime that is working in tandem with BT to try to roll out broadband in the area. By 2015-16, however, only 78% of my Thirsk, Malton and Filey constituency will be covered. That means that 22% of Thirsk, Malton and Filey will have no access—I repeat, no access at all—to fast-speed broadband. That 22% is where all the farming communities live, and it means that they will be severely disadvantaged. We are all familiar with those trying to apply online who find either no access or receive internet access that is so slow that all the information that has been entered can be lost just as people are trying to press the send button.

I say to the Minister that it is no comfort to farmers to be told that they should seek a satellite connection, as they simply cannot afford the prohibitive cost. I repeat the Committee’s recommendation to the Government that the BT money that is being rolled out—particularly the element coming from the BBC licence fee and the next round of licensing—should go to those rural communities across England that have the slowest speed and the weakest broadband coverage. We cannot expect the farming community to go digital by default from 1 January, yet have no access to broadband.

[Ms Margaret Ritchie (South Down) (SDLP)]

I, too, am a member of the Select Committee on Environment, Food and Rural Affairs. Does the hon. Lady agree that throughout the UK and particularly in isolated rural areas, farmers are being marginalised because of lack of proper access to broadband, and that the Minister should use his good offices to make representations to BT about that problem? That issue was highlighted in our rural communities report. Does the hon. Lady further agree with me—on a compelling point that she made—that there is a need for proper guidance and form filling to be available in paper form?

[Miss McIntosh]

I thank the hon. Lady for her sterling contribution and excellent work on the Select Committee. I agree that this goes to the heart of how applications will be made from 1 January. We need clarification, because we cannot have the Minister saying one thing and the RPA saying another. If, as the RPA assured us, paper forms will not be available to submit, intensive tuition must be made available to those required to go digital from 1 January.

I want to raise one or two more points before putting some questions to the Minister. Another issue that the RPA shared with the Committee during the evidence session in April is that the reality will be less than was first hoped and more complex, even without the known unknowns such as the disallowance or fines. The cost to implement will, according to the RPA, be between 15% and 40% higher than previous schemes and, possibly, than previously thought. I shall ask the Minister a couple of direct questions about that.

The impact of flooding on farmland is another important issue that cannot be underestimated. Thousands of acres in Yorkshire and the Humber area were under water in 2012-13 and 2013-14, and thousands of acres were under water in Somerset and the south-western parts of Scotland at the time of flood incidents. The impact on the productivity of farming has been severe.

Will the Minister confirm whether farmers will be eligible for parts of the CAP, perhaps under pillar two, and the rural development fund, if not agri-monetary schemes, for storing water on land? How long would it take? Will such storage constitute reservoirs? When will DEFRA be in a position to publish the reservoir safety guidance, for which we have been waiting for some months, if not two years, because it will have a direct bearing on this matter?

Is it a source of disappointment to DEFRA that the CAP reforms have in many respects become more complex and less simple in an already complex system? Is it indeed the case that the CAP schemes are likely to be between 15% and 40% higher than previous schemes, and how has the Department budgeted for that in the estimates? Is the Department seeking to simplify and minimise the administrative cost in the new schemes, even against that backdrop?

Will the Minister respond to a question that has been asked by me and by the hon. Member for South Down (Ms Ritchie)? In April, the RPA told our Committee:

“It is not actually possible to submit by paper to the new scheme, because of the way that it is structured.”

That completely contradicts what Ministers told us in their evidence. I repeat that farmers in areas with no broadband service face considerable problems. Will the Minister assure us that making access to CAP funding digital by default will not cause problems for farmers in areas that lack broadband coverage or significant speeds? Will he also assure us that the new digital support centres, which form an important part of the assisted digital service, will be accessible to all farmers, including hill farmers in relatively remote locations such as mine? Will he confirm that there will be a certain degree of privacy, and that farmers will not be expected to sit in a public place, such as a library, sharing commercially sensitive information with members of the public? The Committee believes that that would not be appropriate.

What makes the Minister think that the United Kingdom’s allocation of pillar two funds, which was much less than had been predicted, will not adversely affect the competitiveness of English farmers, especially in view of the fact that the Government now say that they will modulate 12% and that the proportion will increase to 15% if they believe that to be necessary? What will be the criteria for the move to a 15% rate of transfer from pillar one—direct payments—to support in the final two years of the pillar two rural development programmes? As I have said, we are pleased that the Government listened to the views of the farming community and those of the Committee before reaching their decision, but it would nevertheless be helpful to know what those criteria will be.

In June, the Secretary of State unveiled the details of how the Department would implement the greening rules in England, and referred to a specific problem relating to hedges. He said that the need to validate all claims and map digitally every hedge to EU standards might significantly increase the risk of delayed payments to those who adopted that option. What progress has DEFRA made in talking to banks to ensure that farmers who receive late payments as a consequence of the inclusion of hedges in ecological focus areas will be treated sympathetically? What guidance will it give farmers in regard to how hedges should be measured? I am sure that the Minister will want to allay our concerns, and those of farmers who have contacted us, about any change in the date on which farm payments will be made. What effect will the inclusion of hedges as an option enabling farmers to comply with EFA requirements have on disallowance risk? Will the Minister tell us how the Department will forecast what that risk will be?

During the evidence session, when asked about the level of disallowance that the agency expected to incur under the new CAP, the chief executive of the RPA told the Committee

“we would be doing incredibly well if we can hold disallowance to 2% of future scheme expenditure”,

which is calculated to be in the order of £40 million. From that, it would be reasonable to infer that the UK’s disallowance risk will be increased. We are at a disadvantage this evening because we are debating the subject without the figures from the National Audit Office.

The proposal to move money uphill is obviously welcome, but, as I said earlier, we must ensure that it is those who are actively farming, particularly on common land, who will benefit. DEFRA announced in April that farmers in England who operate within the moorland line would receive approximately £26 more per hectare in direct payments under the new CAP, an increase of about 90% in the moorland rate. That is great news, and a victory for commons, given that 96% of upland commons are above the moorland line. I repeat, however, that we must ensure that the money goes to the commons and the graziers. I hope that the Minister will respond favourably to our request for a dispute resolution mechanism. It would be great if he could also assure us that commoners and graziers who wish to claim payments under the new CAP schemes will not be disadvantaged by the poor state of the registers in North Yorkshire, Cumbria, County Durham or elsewhere.

The new environmental management schemes which are open to all upland farmers are obviously welcome, but I hope the Minister will assure us that those farmers will not be left worse off overall by the changes introduced under the new scheme if, as a result of the comprehensive area assessment, the new environmental land management schemes are not open to farmers who are currently operating the uplands entry level stewardship schemes.

I would like to end by highlighting how current payments have worked least well: in respect of rewarding active farmers and graziers on the common land. It is crucial that those who are actively involved in the commons—those active farmers and graziers, or at least those who perform an active part in managing the commons—receive payment timeously, whereas people who do nothing with the commons should not receive a payment where that is not appropriate. Therefore, I urge the Minister to agree that lessons must be learned from how the existing direct payment scheme—the single payment scheme—was implemented in relation to common land, and to ensure that those who till the land on our behalf are indeed the beneficiaries of the new proposals.

With those comments and questions, we await with great interest the Minister’s response.

Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Thursday 12th June 2014 Commons Chamber

[George Eustice]

The hon. Gentleman makes an important point. This is one of the key issues being raised with Ministers as we go around agricultural shows. We will have a summit on the matter before the summer recess. A number of factors are driving this: it is partly due to changes in global commodity prices, but it is also clear that in some cases supermarkets are taking a larger margin than before. Regarding solutions, we are keen to open new export markets for British beef so that farmers can get a better price. We are also keen to ensure that there is fair contracting between farmers and processors, and between processors and retailers.

[Ms Margaret Ritchie (South Down) (SDLP)]

The Minister will be aware of my correspondence on the export of pork to China. From his correspondence to me on 8 May, I know that inspections are to take place with the authorities in Northern Ireland, as DEFRA regulates the negotiations on behalf of the whole of the UK. Will the Minister advise the House on when those inspections will take place? What is the possibility of approval following on from that?

[George Eustice]

The hon. Lady has raised this issue with me a number of times and we have had meetings on it. It was also raised with me at a meeting in Northern Ireland at the beginning of this year, and we continue to raise it with the Chinese authorities. When Mr Zhi, the Chinese farming Minister, was in the UK in April we took the opportunity to raise it again. We want more meat processors to be able to export pork to China and we need clearance for their plants. We will continue to keep up the pressure.