No Deal: Agriculture Tariffs

Ben Lake Excerpts

Tuesday 16th July 2019 Westminster Hall

[The Minister for Agriculture, Fisheries and Food (Mr Robert Goodwill)]

I congratulate the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) on securing this debate on the proposed tariff schedule for agricultural products in the event of the UK leaving the EU without a deal.

I reiterate the position of the UK Government: leaving the EU with a deal remains our top priority. I hear the hon. Gentleman’s justification for not voting for the deal, but the deal that I voted for three times already this year represented a compromise between people such as him, who seem to think that being in the single market and customs union is the only way to deliver Brexit—in my view, it would be Brexit in name only and would not give us the freedom to negotiate free trade deals around the world—and others, who seem to want some sort of pure Brexit. I believe the compromise deal was a good deal. Had we voted for it, we would have left on 29 March and would now be in negotiations on the trade arrangements with the rest of the European Union.

I gently remind the hon. Gentleman that 52.5% of the people of Wales voted to leave the European Union. They will be frustrated that some parties in Wales have not voted to deliver on that. He said it was a narrow margin, but the majority for the 1997 devolution referendum was 50.3%, and he seemed very happy to stick with that.

[Ben Lake (Ceredigion) (PC)]

That is something that has been raised on several occasions. Is the Minister aware that there was a further referendum on devolution in Wales in 2011, which saw the Welsh people over- whelmingly support granting further powers to the Welsh Government?

[Mr Goodwill]

I understand that a win is a win, which is why the results of the initial referendum and the referendum on Britain’s continued membership of the European Union should be respected and delivered on by all parties in Parliament.

As a responsible Government, we have spent more than two years carrying out extensive preparations for all scenarios, including no deal. Nowhere has the preparation been more assiduous and detailed than in my own Department. As we heard, the Government announced on 13 March a temporary tariff regime that will apply for up to 12 months should the UK leave the EU without a deal. In developing the policy, we have sought to balance the five principles set by the Taxation (Cross-border Trade) Act 2018. The five principles include taking into consideration the interests of consumers, producers, external trade, productivity and competition.

We analysed a range of evidence, including information on average trade volumes, tariff data and Government modelling on tariffs in a no-deal scenario, supplemented with business stakeholder engagement. Under this policy, the majority of UK imports—87%—would be tariff free. However, tariffs will be in place for the remaining 13% of overall trade, to avoid significant adjustment costs for certain agricultural products, where tariffs help to provide support for UK producers against unfair trading practices such as dumping, and to maintain our trade commitments to developing countries.

We have not had tariffs on cereals to any extent for a number of years. Indeed, I believe the protections that we are introducing through tariffs on imported poultry meat will help protect the cereal industry, because the major customers of our cereal producers will be producers of poultry and other meat products, which we are protecting.

Oral Answers to Questions

Ben Lake Excerpts

Thursday 28th March 2019 Commons Chamber

[Dr Coffey]

Both DEFRA and the Home Office fund the national wildlife crime unit and support its work in investigating crimes. They undertake analysis and share intelligence with police forces. There are six wildlife crime priorities—badgers, bat and raptor persecution, illegal trade in species covered by the convention on international trade in endangered species, poaching and freshwater mussels, but more can be done locally, and I am aware that hare coursing in particular concerns many Members of Parliament.

[Ben Lake (Ceredigion) (PC)]

The Minister will be aware of the devastating impact that dog attacks on livestock can have for farmers. What discussions are the Government having with colleagues about possible amendment to the Dogs (Protection of Livestock) Act 1953 to better enable police forces to address the matter?

[Dr Coffey]

Strictly speaking, livestock is not wildlife, but there are protections and it will really be a case of local communities working together. A lot more could probably be done to educate people about how they control their dogs when they are out on a country walk.

Oral Answers to Questions

Ben Lake Excerpts

Thursday 17th January 2019 Commons Chamber

[George Eustice]

Upland farmers, including sheep farmers, will be able to readily access many of the public goods listed in clause 1 of the Bill. Organisations such as the Uplands Alliance are very excited about the potential for a new scheme based on payment for the delivery of public goods.

[Ben Lake (Ceredigion) (PC)]

The Bew review is looking into the mechanisms for allocating farm funding across the UK post Brexit, but do the Government intend to launch reviews of the legislative and governance frameworks that may be necessary to maintain a level playing field for Welsh farmers in the UK’s future internal market?

[George Eustice]

There are two ways in which a UK framework can be delivered. First, it is important to recognise that agriculture is devolved. Although the Welsh Government have asked us to add a schedule to our Bill, which is currently going through Parliament, they also intend to introduce their own future legislation. There are provisions relating to compliance with WTO rules, and the Department for Business, Energy and Industrial Strategy will also provide an approach to state aid rules.

European Union (Withdrawal) Act

Ben Lake Excerpts

Thursday 10th January 2019 Commons Chamber

[Ben Lake (Ceredigion) (PC)]

Diolch, Mr Speaker. This debate, and the votes that will follow next week, will probably be the defining moments of this Parliament. They will certainly determine Ceredigion’s prospects and prosperity for decades to come. The withdrawal agreement and the declaration on the framework for the future relationship can perhaps be described as the Government’s attempt to convince Parliament to abandon the familiar benefits and certainty of the status quo, and risk it all by embracing the possibilities of the unknown and moving towards a relationship with the European Union whose opportunities are apparently unencumbered by the constraints of reality.

The matter in question is deeply significant and serious. This is our future relationship with our closest and largest trading partner and ally. It is therefore our duty as parliamentarians to challenge the ambiguity and the risks inherent in this deal, especially in the political declaration on the future relationship. As detailed in the Government’s own analysis, the UK will be poorer over the next 15 years under all possible scenarios than it would have been within the EU single market and customs union.

Ceredigion is reliant on the knowledge and rural economies. The education sector alone accounts for 20% of our economic output and sustains around 5,000 jobs in total, more than 2,800 of them directly supported by the county’s two universities. Agriculture is key to wealth and job creation, with every £1 generated translating into £7.40 for the local economy through supply chains and spending. Each job in farming supports another 3.5 in other sectors.

There is a lot of uncertainty at the moment, but there are a few things we can be certain about. We know that the single market is a vital export destination for Welsh food and drink, with more than 80% of exports going to the EU. We know that the Welsh universities thrive on our membership of the EU and particularly benefit from the contribution of staff and students from the EU, as well as from European Research Council funding. We know that both the agricultural and higher education sectors will therefore be heavily impacted by changes to our relationship with the EU and devastated if we were to leave the customs union and single market.

That said, we do not know what the future relationship under this deal will look like, despite our having triggered article 50 two years ago and having debated the matter ever since. During this time, sectors such as agriculture and higher education have been plunged into unprecedented uncertainty, so it is entirely understandable that some find the prospect of a period of stability appealing and therefore the Government’s deal worth supporting. Let us be clear, however, that the proposal is no more than a 20-month stay of execution, not a reprieve. It offers a brief respite, but no assurances for the long term.

Uncertainty over the future relationship will continue to plague businesses and communities throughout the transition and most likely beyond. Far from the detailed and substantive document promised, the political declaration merely sets out a spectrum of potential options. The details will materialise only on the conclusion of yet further negotiations. While the Government have stated repeatedly that they will not entertain the prospect of another referendum, it is unclear what role Members of Parliament, as the elected representatives of the people, will have in the negotiations and whether they will have a role in the ratification of any agreement reached.

Admittedly, the declaration expresses a great deal of ambition for a close trading relationship, but to echo the Brexit Select Committee, ambition is no guarantee of success, and the experience of the past two years does not instil great confidence in the Government’s ability to deliver on such ambition or indeed to engage with others to seek compromise. It has been heartening to hear a lot tonight about compromise. Those who argue that opponents of the Prime Minister’s deal have not offered alternatives are mistaken and have not been listening. Several alternatives have been aired this evening. Back in January 2017—two years ago—a colleague in the Senedd, Steffan Lewis, in co-operation with the Welsh Government, published a White Paper detailing a range of options and a conclusion about what they thought was the best future relationship for Wales and the EU.

Ceredigion voted to remain, and conversations I have had with constituents have given no indication of a change of heart. The Government present us with an offer of embarking on a voyage to an unknown destination, warning that it will leave us poorer and possibly lead to ruin, yet they nevertheless ask us as parliamentarians to relinquish any say over the choice of destination and to renounce all influence over the course charted. Given the reservations I have expressed, this is an undertaking that I cannot in good conscience support.

Agriculture Bill (Thirteenth sitting)

Ben Lake Excerpts

Tuesday 20th November 2018 Public Bill Committees

Brought up, and read the First time.

[Ben Lake (Ceredigion) (PC)]

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairmanship, Mr Wilson. I rise to speak to new clause 11, tabled in my name and those of my Plaid Cymru colleagues, in the hope of probing the Government a little on their thinking about the need for and the operation of common UK-wide frameworks once the Bill—and the respective Welsh, Scottish and Northern Irish Bills—comes into effect. It was mentioned in an earlier sitting that the EU provided both the regulatory and financial frameworks within which each of the devolved nations has been able to tailor and operate some of their agricultural policies.

If we are to leave the European Union, I cannot see any clarity at present as to how the four respective industries and the four respective Administrations will continue to operate on such things as those listed in the new clause, including: the functioning of the UK internal market, which I am sure we are all quite keen to ensure, while allowing for some policy divergence for each Administration to tailor whatever agricultural policy best suits their specific needs; compliance with international obligations; the management of common resources; and—most importantly, perhaps, from my point of view—how finance and funding under the UK umbrella will be allocated to the four respective nations.

I am very much of the opinion that any proposed framework would have to be agreed by the three devolved Administrations and the UK Government. If we did not have such an agreement, I do not think anything would truly operate smoothly. We would open ourselves up to challenges, legal disputes and so on.

--- Later in debate ---

[Chris Davies (Brecon and Radnorshire) (Con)]

The hon. Gentleman has given me a great opportunity to come in. I sympathise with a lot of what he is saying, and my hon. Friend the Member for Gordon, sitting in front of me, has been nodding in agreement on various things. However, does the hon. Gentleman not have concerns, as I do, about certain things that come out of the DEFRA Department of the Welsh Government as a result of having too much authority in cases such as this? I understand his request for a framework, which we are all working towards, but if we give that Department too much power, Brecon and Radnorshire, and Ceredigion, will be in hot water indeed.

[Ben Lake]

I thank the hon. Gentleman for his intervention. I acknowledge and accept what he is saying: there is always a danger that we may not agree with what the Welsh Government want to do, particularly with regard to agriculture. I share that concern. However, I assure him that he need not worry and wait for too long—before long, my own party will be in government.

I fear that I have rambled on for long enough. This is a probing amendment, so I will not be pushing it to a Division—

[Jenny Chapman (Darlington) (Lab)]

Go on!

[Ben Lake]

I might be tempted later.

We need to look at how the four industries and Administrations will work following the UK’s withdrawal from the EU, because the EU provided a sort of overarching framework within which we all knew the parameters and rules. Any new framework would have to be agreed by the four Administrations if they were to work effectively and smoothly. I am probing the Government to see what their thinking is on this matter. I may then bring it back for a vote on Report.

[The Minister for Agriculture, Fisheries and Food (George Eustice)]

The hon. Gentleman said that this is a probing amendment. He raises some important issues about how we co-ordinate policy around the UK. I will first explain why we do not agree with the approach taken in the new clause; secondly, I will outline some of the things we are doing.

First, we do not have a federal system in the UK. We have a devolved settlement. There is a good reason for that: federal systems tend to work best where there are a number of constituent parts all of roughly the same size. Our challenge in the UK is that England is so much bigger than the other parts of the UK; if we had some kind of qualified majority vote, England would end up dominating the decision making. Equally, if we had equal votes and effectively required unanimity, smaller parts of the UK would have a veto on what England did. That is why we have developed a devolution settlement where certain powers are clearly devolved and certain powers are clearly reserved. In the middle, where it makes sense to co-ordinate and work together, we have a good track record of putting together voluntary frameworks and memorandums of understanding.

The approach that we envisage taking is that there would be frameworks, in the form of memorandums of understanding or concordats, and that those would facilitate co-operation, collaboration and co-ordination so that we can work together on a number of key areas. As the hon. Gentleman highlighted, there are elements of the Bill that are devolved but on which we would probably want to work together, to co-ordinate the impacts. Notably, there needs to be some sort of administrative agreement in place to manage cross-border holdings. We have that already under the existing CAP so it would be relatively easy to roll something similar forward.

Perhaps most important is the use of powers in exceptional market conditions. Those intervention powers could have impacts on other parts of the UK, so having a memorandum of understanding about how we would use the powers is important. Other areas in which we believe that having an MOU would be important include approaches to data collection, contracts and market transparency, but also issues such as the changing of marketing standards.

We already have in the DEFRA family good examples of concordats working well. We have a number of them in relation to fisheries. Some of those have within them a dispute resolution mechanism. The Scottish Government have at times been in dispute with, for instance, the Isle of Man about scallop fishing—it is always scallops, for some reason—but a resolution process exists in the fisheries sphere to deal with that.

[Ben Lake]

Is the difference between a concordat and a memorandum of understanding the involvement of a dispute mechanism?

--- Later in debate ---

[Martin Whitfield]

I want to make a few points about this and to split them into the political and the legislative aspects. We have an opportunity with the Agriculture Bill to do what the National Farmers Union in Scotland has been crying out for—namely, to shape the decision-making process and establish it within the field of agriculture, for production and the environment. It would be a missed opportunity not to pursue that, given the length of time between agriculture Bills in the United Kingdom. We have an opportunity to provide farmers with a level of certainty and confidence, both of which, from the reflections that I have come across, are deeply lacking.

I said on a previous matter that the Bill is a framework and that there is little to see within it. Unfortunately, a lot of people seem to be seeing in it whatever they want to see. In doing that, we run the risk of creating something that means different things to different people. Agriculture is, rightly, devolved, but it does straddle the borders. There are farmers who do not necessarily have farms that straddle the border, but who are landowners on both sides of the border. This is an opportunity to give some certainty through a UK-wide framework, so that all our farmers and land managers and those who take an interest in the land are able to decide how they want to move forward with that confidence and certainty.

Secondly, I would like to address the politics of the Bill. We are in this position regarding this new clause and the Bill because there has been an inability for politicians to come together, consider and reach an agreement. I was grateful to the Minister for indicating the uphill challenge with regard to the memorandums that sit in front of the three devolved nations and England. However, he has highlighted the great problem that people have been unable to sit down and come to an agreement. That agreement has been desperately sought by the National Farmers Union, landowners, farmers and others on both sides of the border. There is still an opportunity to achieve it. It would be very helpful, as the Bill progresses, if the politics of it could be removed, so that some reality, certainty and, most of all, confidence can be given to our farmers.

A UK-wide framework would give an overarching picture in which each devolved area and England can continue to develop its own agricultural practices and those nuances that make a farm in Northumberland different from a farm in the borders and East Lothian. However, both those farms actually need certainty.

[Ben Lake]

I thank all those who have participated in the consideration of the new clause. I emphasise just a couple of things. It is of course true that there are policy differences between the different nations at the moment. However, we should also remember that there is—in effect, if nothing else—a UK-wide framework: the EU framework within which all the different nations tailor, operate and administer their policies. I therefore think there is a need to look again at how the four industries and four nations will work and co-operate post Brexit.

I understand what the Minister said about the memorandums of understanding and the concordats. I am particularly interested in the proposed dispute resolution mechanisms, or at least the potential for such mechanisms. I still argue that it would probably be neater and easier to understand if we were to have a single dispute resolution mechanism. My preference would be some sort of council of Ministers for agriculture, in which the four devolved Administrations could come together and agree on a more formal basis.

However, the point about the decision-making process was very well made by the hon. Member for East Lothian. I reiterate that we now have the initial frameworks and memorandums of understanding. There will come a point, whether in three, five, seven or 10 years down the line, when we will need to renegotiate, whether on the tricky issue of regulations or the even trickier matter of funding. An approach that sees us have an array of static concordats and memorandums of understanding would possibly not be appropriate.

This was a probing motion. Having now listened to the points made by Members on both sides of the Committee, I am tempted to go back and draft something else for the next stage of the Bill’s passage, and to then push that to a vote. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 12

International trade agreements: agricultural and food products

“(1) A Minister of the Crown may not lay a copy of an international trade agreement before Parliament under section 20(1) of the Constitutional Reform and Governance Act 2010 unless the agreement—

(a) includes an affirmation of the United Kingdom’s rights and obligations under the SPS Agreement, and

(b) prohibits the importation into the United Kingdom of agricultural and food products in relation to which the relevant standards are lower than the relevant standards in the United Kingdom.

(2) In subsection (1)—

‘international trade agreement’ means—

(a) an agreement that is or was notifiable under—

(i) paragraph 7(a) of Article XXIV of General Agreement on Tariffs and Trade, part of Annex 1A to the WTO Agreement (as modified from time to time), or

(ii) paragraph 7(a) of Article V of General Agreement on Trade in Services, part of Annex 1B to the WTO Agreement (as modified from time to time), or

(b) an international agreement that mainly relates to trade, other than an agreement mentioned in sub-paragraph (i) or (ii);

‘Minister of the Crown’ has the same meaning as in the Ministers of the Crown Act 1975;

‘relevant standards’ means standards relating to environmental protection, plant health and animal welfare applying in connection with the production of agricultural and food products;

‘SPS Agreement’ means the agreement on the Application of Sanitary and Phytosanitary Measures, part of Annex 1A to the WTO Agreement (as modified from time to time);

‘WTO Agreement’ means the agreement establishing the World Trade Organisation signed at Marrakesh on 15 April 1994.”.—(Deidre Brock.)

This new clause would ensure that HMG has a duty to protect the quality of the domestic food supply by ensuring that imported foodstuffs are held to the same standards as domestic foodstuffs are held to.

Brought up, and read the First time.

[Deidre Brock]

I beg to move, That the clause be read a Second time.

Agriculture Bill (Tenth sitting)

Ben Lake Excerpts

Committee Debate: 10th sitting: House of Commons
Tuesday 13th November 2018 Public Bill Committees

[Deidre Brock]

We do not need a schedule inserted into the Bill. We do not need anyone to legislate for us on devolved matters. We have been producing our own legislation in such areas since 1999, when there was devolution to the Scottish Parliament. In terms of rushing into making legislation, I would have thought the hon. Lady would share my concerns about the views expressed by the Delegated Powers and Regulatory Reform Committee in the House of Lords on the Bill. It clearly demonstrates what happens when we rush into making legislation. The Scottish Government knows that it does not legally have to do it. They would much rather take their time, consult all the necessary organisations within the sector and arrive at stability and simplicity, which is of course the name of our document.

[Ben Lake (Ceredigion) (PC)]

My hon. Friend is making a very important point, which is perhaps best illustrated by the fact that the Welsh Government themselves have concerns about the schedule that they are trying to address, which they must do through this Committee, over which they have no direct control.

[Deidre Brock]

That is a perfect point and well illustrates my point, so I thank the hon. Gentleman for his remarks.

I have already commented, in my reference to the hon. Member for Brecon and Radnorshire, on the difficulties with thinking that a schedule to a Westminster Bill will protect devolved interests. The amendment I referred to came not from the Welsh Government or the UK Government, but from three Back-Bench MPs, so relying on a schedule for absolute protection is trusting to luck.

Although the Bill extends to Scotland in great part, it does little that would support Scottish agriculture. I will seek to amend and improve it where I can—much of it so far has been subject to the English votes for English laws process, meaning that I am unable to vote on it—but there is no amendment that will make it completely fit for purpose for Scotland. That will be a running issue in Scottish farming and for all the support mechanisms devolved to Holyrood. The flexibility of the EU support mechanisms gave some room for manoeuvre to allow support for Scotland’s farmers, but that is missing in the Bill, and I expect that Members representing parts of England are also a little concerned about that apparent rigidity. It will not come as any surprise that the Scottish National party would far rather all responsibility and power for managing Scottish agriculture rest in Scotland, but we are here and I will be looking to improve the Bill where I can. We will be back for the rest.

I turn to clause 22 and new clause 5 and amendments 56 to 64. The clause strays into devolved territory and could do with a bit of tidying up, just to save DEFRA Ministers having to deal with Scottish issues down the line, which would be tiresome for them. Amendments 56 to 64 would amend clause 22 to require that applications for recognition of producer organisations be made to the appropriate Administration. In other words, an organisation operating in Scotland would make its pitch to the Scottish Government, rather than leaving DEFRA to deal with it. That would save work for DEFRA officials and Ministers, but also has the virtue of respecting the devolution settlement.

Agriculture Bill (Eighth sitting)

Ben Lake Excerpts

Thursday 1st November 2018 Public Bill Committees

[George Eustice]

I confess that when the Bill was drafted that particular bit about creating offences jumped out at me too, and I discussed it at some length with our legal advisers and officials. I can confirm that we seek only to replicate powers that already exist.

The Common Agricultural Policy (Control and Enforcement, Cross-Compliance, Scrutiny of Transactions and Appeals) Regulations 2014 already provide for offences, and there has always been the ability to provide for criminal offences under EU regulation and the enforcement regulations, which are in secondary legislation.

The idea was always that those offences could include such things as intentional obstruction, the deliberate failure to give required assistance or information or knowingly to provide false or misleading information. I reassure the Committee that, during the time we have had those powers, the RPA has never brought criminal sanctions. It has never needed to, because other interventions have been sufficient.

A number of important points have been made, and I listened carefully to those raised by my right hon. Friend the Member for Scarborough and Whitby and my hon. Friends the Members for Ludlow and for North Dorset. The hon. Member for Ipswich also raised the legitimate point that there is already alternative legislation to deal with fraud. I am grateful to the shadow Minister, the hon. Member for Stroud, for not pushing the amendment to a Division today.

Given the representations from my hon. Friends behind me and from others, I am certainly willing further to discuss this issue with Government colleagues, and perhaps to come back to Parliament on Report to give it further consideration. We are clearly going into a changing world and a changing situation, and it might not be necessary to bring across all the sanctions available to us under the CAP scheme. It might be that the many other provisions—including being able to disqualify people from entering schemes in the future, penalties, an ability to recover or withhold moneys and so on—alongside existing criminal powers, are sufficient. We will undertake to look at that.

[Ben Lake (Ceredigion) (PC)]

On that point, will the Minister clarify, either today or on Report, the status of the power to create offences granted to Welsh Ministers under paragraph 3(2)(h) of schedule 3? Does that also mean amending criminal offences and creating new ones?

[George Eustice]

The power to create new offences is in the Welsh schedule. It is a decision for the Welsh Government whether they wish to change that as the Bill progresses. That is clearly a decision for them, and I will not give any indication about what they might do.

Agriculture Bill (Sixth sitting)

Ben Lake Excerpts

Tuesday 30th October 2018 Public Bill Committees

[Colin Clark]

I rise to speak in support of the amendments in my name, but for the sake of time I will not go over the points already made by my hon. Friend the Member for Ludlow.

I have stated on the record my belief that the Bill should address food and farming. I have been open about my registered interests, my involvement in food and in conventional and organic farming, and the fact that I receive the single farm payment from the Scottish Government. On that point, I should note my disappointment that the Bill does not include a schedule about the Scottish Government, because it is important that Scottish farmers have clarity, too. If the Bill is trying to achieve anything, it is a framework to give farmers greater clarity. Through the Bill I hope that we can achieve a common framework with the Scottish Government, as well as the authorities of Wales and Northern Ireland. We have to protect the unitary market, because we have shared values in farming and agriculture, and it is important that we continue to protect them. I embrace the opportunity to design UK agricultural policies. I listened closely to the hon. Member for Darlington, and I sympathise with her desire for clarity for the farming industry, so I would like to hear from the Minister that farming will have a clear shared priority, with public money for public goods.

I passionately believe that we should make farming in this country more productive. As someone who has been involved in the agriculture industry for 30 years, I know that productive farming and the environment go hand in hand, and I have seen leaps and bounds from the darker days on the 1970s. I look forward to hearing from the Minister about how farming and the environment will continue to go hand in hand, which is certainly the ambition of Scottish, Welsh, Northern Irish and English farmers.

[Ben Lake (Ceredigion) (PC)]

I will keep my remarks brief, but I must speak against amendment 90, tabled by the hon. Member for Ludlow. I appreciate that it is not dissimilar to his amendment 89 to clause 1, but it relates instead to schedule 3, which outlines the powers that I understand were requested by the Welsh Government. Those powers should not be amended or in any way interfered with by the Committee, or indeed by this House.

I oppose amendment 90 on a point of principle because it should be for Welsh Ministers to formulate proposals for Welsh agricultural policy and for the Welsh Assembly to give or reject its consent. As the hon. Member for Brecon and Radnorshire will know, my colleagues in the Welsh Assembly are vociferous in expressing reservations about some of the Welsh Government’s proposals for agriculture policy. However, it is unacceptable for the Committee to consider any amendment that would omit the requested provisions in schedule 3 or interfere with their operation in any way.

I will not return to the argument that we had this morning about the distinction between “must” and “may”. I will say only that I am not entirely sure what purpose the amendment serves in stating that assistance “may only be given” to certain persons, other than restricting the Welsh Government’s ability to pursue and operate their own policy preferences. I am not sure how that would do anything to enhance the powers currently set out in schedule 3, which states that the Welsh Government “may give financial assistance” for a broad range of purposes.

I recognise that amendment 90 is probing, and I appreciate the opportunity it presents to think again about UK-wide common frameworks, as the hon. Member for Gordon said. The agricultural industry is inevitably closely intertwined across the United Kingdom. The circumstances by which we remove ourselves from the European Union’s CAP make us go back to the drawing board on how this common UK market will operate. I have raised this matter on previous occasions and I make no apology for being quite a broken record in that regard. Where common frameworks are concerned, they need to be drawn up, agreed to and implemented upon the agreement of the three devolved Administrations and the UK Government. In that regard, I am not inherently averse to the alignment of agricultural policy across the United Kingdom—far from it. I am making a point of principle that it is for the Welsh Government, in conjunction with the UK Government and the other devolved Administrations, to decide on that alignment, and not for this Committee or, indeed, this place to act unilaterally.

I attempted to spell that out in new clause 11, which I acknowledge will not be debated, but I am sure that we will have further opportunities to discuss the need for common frameworks, and I know that Members on both sides of the divide are concerned about them. Just for the record, unless amendment 90 was something that was requested in any way by the Welsh Government, I am struggling to see how, as it stands, it enhances the powers of schedule 3 and why it would be in any way necessary for the schedule’s effective function.

--- Later in debate ---

[Chris Davies]

There are many faults with the common agricultural policy. The hon. Gentleman seems to be well versed in the written word, but we on the Government side of the Committee understand how it is implemented. There are many farmers on these Benches who completely understand how the agricultural world works. There are many issues with the CAP. These amendments do not state that we should have direct payments to farmers. They are probing amendments that clearly state that farmers should be part of the package and part of the discussion as we go forward, and I am happy to support them.

I class the hon. Member for Ceredigion as an hon. Friend, even though he is on the other side of the Committee, and he and I agree on many things. My constituency of Brecon and Radnorshire shares a boundary with Ceredigion, and our farmers cross that boundary regularly. We have similar faiths, meanings and needs—certainly for our agricultural and rural communities.

On schedule 3, we agree on most things, but it is important, if not vital, that the framework enables the devolved nations to work exceptionally closely together. I fear that it will have to be led by one particular region, with everybody coming to a consensus rather than a clear agreement, and I would like to see it led by Westminster. I share a border not only with the hon. Gentleman in Wales, but with England, and it is clear that we need a common framework for cross-border farming, whether it relates to Wales and England, or to England and Scotland, so that everybody works together in the same direction. We have one market and one new agricultural policy, so it is vital that the four devolved nations work together closely and in the same way for the benefit of agriculture throughout the United Kingdom.

[Ben Lake]

I thank the hon. Gentleman, who is my constituency neighbour, for giving way. I wholeheartedly agree that we must ensure that the internal UK market functions effectively, particularly for our farmers and for agricultural produce. One of the reasons why we need this discussion now is because the overarching framework of the EU CAP will no longer exist. I wholeheartedly agree that we need such co-operation, but we will have to agree to disagree about how we get to it.

[Chris Davies]

Bringing my thoughts to a conclusion, I reiterate that these are probing amendments, and I am sure the Minister will take them on board.

Agriculture Bill (First sitting)

Ben Lake Excerpts

Tuesday 23rd October 2018 Public Bill Committees

[Ben Lake (Ceredigion) (PC)]

It would perhaps have been a good idea to have representatives from the devolved Administrations, given that the Bill will inevitably have an effect on each of the industries in turn.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

Does that mean, Chair, that when Scotland produces its Bill it will ask for evidence from English farming organisations? Is that the logic of what is proposed?

--- Later in debate ---

[Mr Goodwill]

Q Talking of public goods, we have been talking almost exclusively so far about environmental enhancement, but there is one public good that many members of the public would like to see: better public access. That can of course produce conflict, particularly with some of the environmental objectives. Indeed, one of the best bird habitats that I have seen was the oil refinery at Immingham, where not only were there lots of things for the birds to perch on, but the public—and their dogs in particular—were excluded. Do you think we can get the balance right? Do you think public access should be part of this, or if we are to encourage ground-nesting birds such as curlews, do we need to ensure that we do not have as much public access as some would perhaps wish?

Patrick Begg: We live and breathe this every day. This is at the heart of what the National Trust does. It is always a balance, and there will always be trade-offs. There is no blanket policy that you can apply here, but I think we would all agree that more public access that allows people to get the spiritual and physical refreshment that our countryside offers is absolutely critical.

The Bill is incredibly welcome, in that one legitimate area for public investment in future will be increased public access. I could not agree more strongly with what has been done in the Bill on that. Sometimes we can find small examples of disturbance where people and wildlife do not match up very well, and think that it is a universal problem. I think it is not universal. Our experience is that there is a large amount of open countryside in which people can happily co-exist with wildlife. There will have to be some careful thought put into how we make sure that the interface between people and livestock works. Dogs and livestock can be problematic—let us be honest. Again, we have methods for dealing with that. There is public education. It is interesting that the countryside code has gone off the agenda and no longer gets talked about. That can be revitalised, and people can be made to feel engaged in their countryside and feel that they have a shared responsibility for what happens out there, not just as users, but as people invested in it.

Martin Lines: On public access, it is good for people’s health to get out into the countryside, but it needs to be managed because of dogs and the health and safety aspects of people walking around on farms. This is also about access to information. Hopefully, we can deliver environmental land management plans to let the community have that knowledge and make it publicly accessible. The community around me can access what we are delivering as farmers, and put it on their community pages, so when they use the countryside and the footpaths, they understand what we are delivering.

As an industry, we can communicate positive messages, and talk about some of the trouble and hassle we get from public access, how people can use the landscape, and the food and public goods that we produce. That should connect back to society, because much of society is disconnected from what the landscape is used for, the food and animals that are used, and the threats that can come from wandering around nesting habitats or letting your dog run free.

Thomas Lancaster: Access is a good one to talk about, in terms of thinking about how you can have a holistic approach to securing public goods and food, with a solid regulatory foundation. We would not want farmers and landowners to be paid to keep rights of way open. That is a legal requirement, so you would not pay for that through public payments. What you might do is to pay for permissive access where it makes sense to join up rights of way, and where there is a real desire to connect one part of the local community to another part, but currently there is no path to do so. The farmers we work with are almost always passionate about educational access. They really love the support for it that they get through current schemes and agreements.

There will be instances where access is not suitable for biodiversity reasons, or on a Ministry of Defence firing range or whatever. That points to the need to have really good advice and guidance when we develop future schemes, to enable whoever is putting together the land management contracts to do so in a way that balances all the public goods and secures the best net outcome from any given farm or area of land.

Gilles Deprez: My knowledge is not good enough for this question. It is important to have public access. From what I have seen, we have a lot of public footpaths in Cornwall, for example. It is not always easy, to be honest. If you have a public footpath that goes across the middle of your most productive area of land, it is not easy, but we are already doing it today.

[Ben Lake]

Q Some organisations have questioned the legality under World Trade Organisation rules of schemes that would pay for the delivery of public goods, as opposed to those that compensate farmers or other land managers for costs incurred and income forgone. Do you recognise those concerns regarding, I think, annexe 2 of the agreement on agriculture? Quite simply, should we also hold those concerns?

Thomas Lancaster: Generally speaking, we are of the view that the World Trade Organisation agreement on agriculture provides pretty much all the flexibility that you would want to develop pretty much any public payment system that you would want. Some of the concerns that have been expressed are about whether paragraph 12 in annexe 2 of the agreement, which limits payments for environmental programmes to costs incurred and income forgone, limits the ability to provide a fair return, but even within the common agricultural policy, there are examples of other member states that have gone much further and have paid more for those environmental benefits. That is within the CAP, in which the Commission sets some stringent guidance about how member states’ managing authorities can calculate those payments. When we move away from the CAP, there is nothing in the agreement on agriculture that stipulates how you should interpret costs incurred.

In hill farming operations, the income is very low. Some people have expressed the concern that that would mean that payments for environmental benefits would be low. Actually, if a whole hill farming operation is loss-making and a cost to an individual, you can interpret that as a cost incurred, and you can effectively pay to secure that ongoing management, and then tweak that management to secure specific environmental benefits for curlews, water quality, flood risk management or other public goods that you might secure from an upland farm. We are of the view that there is huge flexibility in that.

Even if you were to declare your public payment scheme as green box, and you have done some pretty imaginative interpreting of the rules, you would still have the aggregate measure of support—the amber box—sat there as a sort of hedge against any challenge that might come from another member of the WTO. It has been blown up into an issue, but is a bit of a red herring, really, in terms of how we might go about developing future payments and providing an adequate incentive for the public goods that the Bill lists.

[The Chair]

We have 10 minutes left, and three more Members want to ask questions. Unless anybody really wants to say something, we will move on.

Martin Lines: WTO rules are for DEFRA and the Government to deal with, not farmers. It is your problem. If you are going to design a scheme that will not work because of the WTO, do not do it.

Agriculture Bill (Second sitting)

Ben Lake Excerpts

Tuesday 23rd October 2018 Public Bill Committees

[George Eustice]

Q It is an interesting point. The additions in the Welsh schedule could be read both ways. If you are worried about an active farmer test, then arguably you would not want that.

Huw Thomas: They can be. The powers throughout the Bill are pretty broad, enabling powers. There is always an element of risk with such powers as to how they are utilised by Ministers. A lot of policy discretions are conferred upon Ministers, including financial discretions. The devil will be in the detail, as always, but there is not much detail in the Bill. It has to be read in conjunction with the consultation and the further policy statements from the Welsh Government next year, as well as the direction of travel they are wishing to take. It is difficult to say at the moment, but I do take your point.

[Ben Lake (Ceredigion) (PC)]

Q I have two questions, if I may. You have already mentioned the powers granted in the Bill to UK Ministers. Do you have any thoughts about the impacts that some of these powers might have on Welsh Government, and their ability to formulate agricultural policy? Are there any aspects that you welcome? Are there any aspects about which you have concerns?

Huw Thomas: I think the part 7 clause 26 powers around the WTO, for example, could be concerning, because potentially they will artificially constrain the type and level of support that a devolved Administration might be able to pay because of considerations around the WTO. That may be one issue where there is potentially something that risks becoming contestable or contested in the future between the UK and the devolved Administrations.

John Davies: Obviously a UK framework is vital, not by imposition but by agreement. We need to get to the dispute resolution part of that, and clearly work out how those issues might be resolved. At the present time there is not that much clarity.

Huw Thomas: It is a proposal to take powers into the centre. It is not the common consent common framework that we, as NFU Cymru, always envisaged and espoused. We always said that we recognised the need for common frameworks, and that limits needed to be set on certain things, but they need to be decided by common consent, not imposed from the centre. With respect to the WTO provisions in part 7, the UK Government and the devolved Governments need to get together and agree between them, rather than having this quite heavy-handed approach that involves proposing to take these powers into the centre, and accepting the Secretary of State for DEFRA as the ultimate arbiter of who gets to do what.

[The Chair]

Dr Fenwick, Hansard cannot record nodding, but I take it you are agreeing.

Dr Fenwick: I have nothing to add; I agree entirely.

[Ben Lake]

Q In that sense, are you surprised that there is not more in the Bill? Is there something that you would have liked to accompany the Bill in terms of progress made on these common frameworks and how they might be agreed upon in future? What strikes me is that not only will you have the initial discussion about how the original of the first new frameworks will operate, but there will inevitably be a need for these things to be renegotiated at a future date. Is it something that you would have liked to have seen?

Huw Thomas: I think there was an expectation that there may be more in the Bill about common frameworks and how they might work. There was agreement in the spring around 24 identified areas that would require some sort of common framework, whether a statutory common framework or a memorandum of understanding between Governments.

I do not feel that we have moved forward enormously from that point. We need to get these things in place if we are to preserve the integrity of the UK single market and ensure that we are not distorting between the home nations. I was perhaps a little bit surprised that there was not provision. We perhaps had not moved forward a little bit from the position in the spring around the 24 identified areas.

Dr Fenwick: I agree entirely. We absolutely need those mechanisms and systems to arbitrate, to work out what is right and wrong. That is something that we have argued for the past two years. We certainly welcomed the announcement in recent weeks that there will be a review of how money is allocated between the devolved nations, and that is absolutely needed. It is a contentious issue—there is no denying that—but it had to be addressed.

We also need almost a parallel process to look at how countries agree on frameworks—whether it is through memorandums of understanding, rather than nations feeling or knowing that things are being imposed on them, against the spirit of devolution.

[Ben Lake]

Q The Minister might remember my raising this question last week. Recently, a review was announced into the way in which payments will be allocated across the four countries of the United Kingdom. Would it be fair for that to include an element that looks at the future frameworks and how any disputes are arbitrated, and when reallocations come along in several years’ time, how they then come to be decided as well?

Dr Fenwick: It may be opportune to extend the remit of that Committee. We always hope it goes the way that we would like it to go. It certainly needs looking into because we worked for so many years with a council of Ministers. We now have a void, a vacuum, where there is potentially a free-for-all, and countries or nations could move in very different directions and cause market distortions internally, without anything to do with WTO. There could be internal market distortions that are not in anyone’s interest.

[Trudy Harrison]

Q I represent a Cumbrian constituency that is made up of English Lake district upland farms and coastal lowland farms. My sheep, beef and dairy farmers inform me that they receive about £70 for a lamb, £50 for a sheep and just 90p for wool per head and 29p for a litre of milk. Is that enough? What assessment has been made of what a fair price is? Does the Bill enable farmers, through innovation, through the reduction of supply chain, through enabling better local markets, to receive a fair price for their public goods?

John Davies: There could be more in the Bill in terms of how we get a fairer share of the retail price, because we are at some historical lows, once again. Milk is slightly better than what it has been, but we are close to breaking even in nearly all of those commodities.

We need to take responsibility as well, mind, to become more efficient. The biggest factor is within my own farm gate; we do not shirk that responsibility, but we need to find ways in the Bill to ensure that other people are operating to similar standards. If we compete on a level playing field, we have an opportunity to do that. We have a higher welfare aspect and environmental aspect and that is a cost that has to be taken into account.

--- Later in debate ---

[Deidre Brock]

Q I have a quick question about the consultation that the Welsh Government are conducting at the moment. Does it include proposals around the capping of payments?

Dr Fenwick: Only with regard to the capping of basic payments during a transition period in order to move money over to a public goods scheme. If I recollect correctly, there is no reference to the capping of payments, which is something that we have raised repeatedly. Indeed, some have told us that there should be no cap on payments, which is a huge concern because we saw capping as a great movement forward in terms of the reputation of what is currently the common agricultural policy and in terms of the reputation of the industry.

Sadly, when we see headlines in newspapers about millionaires or racehorse owners getting huge payments, we are all tarred with the same brush. People do not realise that in Wales they took the progressive move back in 2014 to cap agricultural payments. We appreciate that the CAP legislation was not designed as well as it could have been in terms of making it possible in every country; we appreciate that England had problems from that point of view, but it is a massive backward step not to have capping.

[Ben Lake]

Q Another quick question. We have spoken a lot about what is in the Bill today. Is there anything you would like to see that is not there? I have in mind the meat levy. There was some discussion in Wales about the possibility of including that in the Bill. Do you have any views on that particular omission and is there anything else you would like to see in the Bill?

Dr Fenwick: Certainly, there has been a lot of discussion about how this could have been an opportunity to take account of the fact that Wales is currently losing money through the red meat levy legislation. We appreciate that some moves have been made to address and correct that, but it is far from ideal. We lost hundreds and hundreds of thousands of pounds when a single slaughterhouse closed a few years ago, and that hamstrung our meat marketing body hugely in terms of how it could market its meat, whether in England or on the continent. So it absolutely needs addressing. Certainly an opportunity has been lost there.

In terms of other elements, I am afraid I am more concerned about what is in it than what could have been in it.

John Davies: We want to see agriculture in the Agriculture Bill. We want to see a real, strong focus on the active farmer and how that comes through in terms of a sufficient degree of self-sufficiency. That would be useful. We see food security as a public good or a public right. That is vital. So there are a number of issues there. We want a safe and traceable domestic food supply. We want equal standards for imports and a level playing field, so that needs to be tightened up. There is an opportunity around public procurement. There is a real, strong opportunity around better labelling. It is vital that consumers are properly informed about their purchasing decisions. So there are a number of places there where we can see room for tightening and more detail. It is broad enough. We just need to focus in on that.

[Chris Davies]

Q You probably heard the talk earlier about how there could be a compounded payment in the transition period. Do you think that would work in Wales and would it be a benefit to many of our senior farmers who were looking to retire? Do you see it as a benefit or not?

John Davies: We would have some concerns around that in terms of the active farmer. We do not accept that it will be the correct and proper time to transit out of direct support or a level of direct support, so obviously we would not agree with that. That option has not at the present time been flagged up strongly in the consultation, so we need to focus more on that, with the membership, but initially we would say no, we would not be supportive of that.

Dr Fenwick: I am afraid I was on a train, or on a tube train maybe, when that was raised, so I did not hear the discussion around it, but I agree with John Davies that it is a concern. We would have preferred to see some proactive moves to encourage young farmers and a transition from the older generation to the younger generation, with greater succession, etc., rather than moves which potentially leave vacuums, but are done for all the wrong reasons rather than being something that actually ensures that there is an incoming generation that probably is more deserving of any moneys.