Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024
Debate between Earl Russell and Lord Douglas-Miller(7 months ago)
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Lord Douglas-Miller (Con)
I thank all noble Lords who have contributed to this debate and I welcome the strong level of support across the House, largely, for these measures.
I start by addressing one or two of the issues raised by the noble Baroness, Lady Hayman. She touches on a common theme that comes up when I am out and about. I was at the Chelsea Flower Show this morning and there were a few farmers there—not many, but a few. The issues are about what is going on and where the money is going. The same amount of money is available today as there was yesterday and will be tomorrow. It is £2.4 billion each year over the course of the Parliament, so there is not less money available.
To anyone who has been in receipt of the basic payment scheme as—full disclosure—I have been for probably 40 years, it is a pretty blunt instrument. You get your cheque. There is a little bit of cross-compliance. I received mine in Scotland. It came in two tranches: one at the year end and one about six months after the year end. For anybody who feels that transitioning away from the BPS is somehow bad for cash flow or bad because there is less money in the pot, they have misunderstood what is going on .
The issue of confidence is critical. For sixty-something years—I cannot remember the exact number—if you have been a farmer, you have been used to one system. You farm, you get your BPS payment. If you were interested in other stuff, you could get into an agri-environment scheme, but they were pretty challenging to get into and pretty expensive to join; they really only suited the larger landholdings.
This is a significant shift away from that, but I get that any shift is challenging. Looking at my own farm arrangements, I find myself wondering how we are going to make all this work. Instead of just getting the money, you have to think about what you are going to do. It is public money for public good, so it is a proper shift in mindset. When you get that big shift, it does knock confidence. I am acutely aware of that. It means that people have to think totally differently about their farming operation.
If I am absolutely blunt, that is exactly what ELMS is designed to do and should do. The way that we have been farming has not been overly helpful to productivity or to innovation and—as I think all of us in this Room would collectively agree—it has been deeply unhelpful for the environment. To me, this change is absolutely welcome and necessary but I know that it causes a bit of stress and strain. That is one reason why it has been spread out over a seven-year period.
Farmers are amazing; they are incredibly resilient, but they are also incredibly resilient to listening. It is not as if this has come as a shock to anyone. We have been advertising it on the front page for a number of years now but, of course, this year is the year when it starts to really bite. If you have not been paying attention, you are going to feel some financial pain. We cannot hold everybody’s hand in this space. A huge amount of effort and energy has gone into consultations and into all the prototypes for the SFI modules. A huge amount of consultation has been done with the industry. Defra teams and Ministers have gone to agricultural shows; they have gone around the block telling everybody, “You have to pay attention; there is change coming”. But, as with all things in life, sometimes you start to pay attention only when it starts to hurt the wallet.
I know that there is a degree of concern and a degree of change but, as I think everybody recognises, this transition is long overdue. We really need to get on with it, so I am grateful for the overwhelming support. This is something that we should plug on with.
I will try to answer a few specific questions now. I was asked about financial support for farmers in the event of a crisis or financial emergency. In the event of an exceptional market disruption, the Government have powers to act to support farmers by making a declaration under Section 20 of the Agriculture Act 2020. These powers are intended to deal with unforeseen short-term shocks to agricultural markets where there is an adverse effect on the price achievable for one or more agricultural products. We have seen some pretty big shocks over the past few years, some caused by the weather and some caused by world events. The Government continue to keep this measure as a backdrop. I know that we look at it and think about it, but we have not got round to using it yet. I hope that it is a rainy day one that never has to come out.
Quite a lot of questions were asked about the rationale for delinking. I hope that I covered a lot of this in my opening comments but, broadly speaking, it is vital that we continue gradually to move away from untargeted subsidies as planned because these payments have inhibited productivity improvements and are, I believe, fundamentally unjust. The scheme that we have now delivers a much better outcome and will deliver a much better outcome in the long term.
The noble Earl, Lord Russell, and my noble friend Lady McIntosh asked whether this is the right time to go through a reduction in the BPS, given the weather and other activities. The Government recognise that many farmers are facing challenging conditions—not least the extreme wet weather, which was referenced several times during the debate and has affected enormous parts of the country—but cancelling the planned reductions to delinked payments is not an effective way of addressing these challenges or setting businesses up for a successful future. The longer we hang on to this, the longer we hold everybody back. These payments are untargeted, so increasing them does not direct support to those who most need them. In fact, you do not have to be a farmer to be in receipt of delinked payments now; if you have retired from farming, you will still get what you were due. Perpetuating that is not a helpful way of addressing either today’s issues or the issues that will undoubtedly come in future.
The noble Baroness, Lady Hayman, and my noble friend Lady McIntosh asked a couple of questions about tenant farmers and small farms. This is a challenging area but, on the basis that the basic payment scheme paid you for the chunk of land that you owned, the smaller the chunk of land, the less money you get. This transition allows you to earn more money on a smaller farm, by picking up the delinked payments and engaging with the SFI options. Again, I appreciate that this is challenging because you have to think about what you are doing and you will probably have to make some adjustments to your farming model but, as I have said, this has been signalled to the farming community—small farmers, tenant farmers and large farmers—for a long time. It will take a little time for it to bed in. The money is available; you just have to work out how to go and get it. The money is there. Noble Lords look as though they do not believe me, but it is. The options and choices are there. You have to go out and engage with that.
The noble Earl, Lord Russell, asked what had been done about an impact assessment. One has not been prepared for this instrument because it is not a regulatory provision. However, the Government have already published evidence providing in-depth assessments of the impact of removing direct payments. This includes the 2018 and 2019 farming evidence compendiums, our 2018 assessment of the impact of removing direct payments, and the 2021 and 2022 Agriculture in the United Kingdom evidence packs. If the noble Earl wants more information on that that I can supply, I would again be delighted to do so.
Earl Russell (LD)
No evidence has been published on the implementation of the transition to date. There was no evidence in this pack on the impact of these changes. From my point of view, it made it quite hard to assess the changes.
Lord Douglas-Miller (Con)
It is pretty early days in this transition, so I am not anticipating that we would have that evidence. We do a lot of consultation directly with farmers and with the industry through organisations such as the NFU, and we have developed a new food index to look at how that might be impacting food security, so quite a lot of measures are evolving and coming through. I would suggest that it is a little early to try to measure impacts at this stage.
I think the noble Lord, Lord Teverson was keen to understand what consultation we are doing with industry and how we are working with it. Have I got that right?
Fly-tipping
Debate between Earl Russell and Lord Douglas-Miller(7 months, 1 week ago)
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Earl Russell
To ask His Majesty’s Government what steps they are taking to reduce fly-tipping and its impacts on natural environments.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Douglas-Miller) (Con)
My Lords, I declare my interests as set out in the register. Fly-tipping and illegal dumping of waste blight our local communities and damage the environment. The Government have given the Environment Agency an extra £10 million a year to tackle waste crime, including illegal waste sites and large-scale illegal dumping, which is often perpetrated by organised crime syndicates. We are also helping councils to take tougher action on local fly-tipping by more than doubling the maximum on-the-spot fine and providing £1.2 million in grants, with a further £1 million to follow later this summer.
Earl Russell (LD)
My Lords, large-scale criminal enterprise fly-tipping is out of control and increased by 13% between 2021 and 2022. In areas such as Hoads Wood it was reported that up to 30 trucks of illegal waste were dumped every day between July last year and January this year, with no effective action taken. Campaign groups estimate that it will now cost £10 million to clear up the waste. Will the Government commit to meeting the full costs of this clean-up and undertake a review into this specific case, to assess the resources and effectiveness of enforcement action against large-scale fly-tipping?
Lord Douglas-Miller (Con)
I completely agree with the noble Earl that the illegal dumping of waste at Hoads Wood is appalling, and a full criminal investigation is under way. I am unable to comment further on the details of that live investigation as I do not wish to prejudice potential enforcement action. However, I assure the House that the Government are determined to bring those responsible to account. Specifically on Hoads Wood, the Secretary of State has written to the chief executive of the Environment Agency, asking him to draw up delivery plans to ensure that appropriate action is taken to resolve this wholly unacceptable situation. As part of that, we will consider how best to support the clearance of waste from the site. The Environment Agency has powers to recover the cost of action to clear the waste from those responsible. The Secretary of State has also asked the chief executive of the Environment Agency to review the agency’s actions in relation to the site, including what lessons it and other agencies involved in the local partnership tackling this can learn.
Water Companies: Licence Conditions
Debate between Earl Russell and Lord Douglas-Miller(7 months, 3 weeks ago)
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Earl Russell (LD)
My Lords, does the Minister agree that the continuing secrecy and uncertainty surrounding the future of Thames Water is unhelpful and damaging to the water sector and the whole UK economy? When does the Minister expect to fully update the House and provide some certainty on Project Timber, the Government’s contingency plan for Thames Water?
Lord Douglas-Miller (Con)
The noble Earl knows that it would be improper of me to comment on the details about Thames Water. I assure him and the House that we are taking an extremely close and careful look at this. It is in all our interests that the financial resilience of our water sector, as well as the individual players within it, is maintained and enhanced to ensure the level of investment required to improve water and address the issues related to sewage.
Chemicals Strategy
Debate between Earl Russell and Lord Douglas-Miller(7 months, 3 weeks ago)
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Lord Douglas-Miller (Con)
The noble Baroness is quite right. Forever chemicals are a serious concern. They are linked to a number of different firefighting products—the foam and chemicals that come out of the extinguishers present a particularly serious issue, and not only to those who are using them, for that product gets inextricably linked to the environment around it. A number of issues which will come through in the strategy are in place to address that.
Earl Russell (LD)
My Lords, how long do the Government plan to keep granting emergency exemptions from the ban on neonicotinoid pesticides? When are they planning to ban these dangerous substances permanently?
Lord Douglas-Miller (Con)
My Lords, as the noble Earl knows, restrictions preventing the general use of three neonics in agriculture have been in place for several years. The Government continue to support these restrictions and have no intention of reversing them. A neonic seed treatment, Cruiser SB, is allowed to be used on sugar beet in England only if yellows virus is predicted to pose a threat to that year’s crop. This decision is not taken lightly and is based on a robust assessment of the environmental and economic risks and benefits.
Right to Roam
Debate between Earl Russell and Lord Douglas-Miller(10 months ago)
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Lord Douglas-Miller (Con)
As a small farmer as well, I sympathise with my noble friend. Getting the balance right between responsible access and the other legitimate uses of that land is critical. In future, I hope that we can strike that balance correctly.
Earl Russell (LD)
My Lords, a recent survey showed that there were 32,000 blockages on our public footpaths. Further to the points already raised, it is extremely important that our footpaths are clear and accessible. Will the Government therefore consider providing long-term funding to local councils, which have the legal responsibility but not the resources to keep our public footpath networks open?
Environment Agency: Flood Defence Expenditure
Debate between Earl Russell and Lord Douglas-Miller(10 months ago)
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Lord Douglas-Miller (Con)
Indeed they do. A significant amount of research is ongoing around this issue. It is obviously very topical. Perhaps, once that research has been published, I can come back to the noble Earl.
Earl Russell (LD)
My Lords, the National Audit Office has noted that the Government have not set targets for the level of flood resilience they expect to achieve, and have not mapped any solid plans beyond 2026 to bridge the gap between their short-term actions and longer-term objectives. When will the FCERM strategy be updated, and are the Government planning to provide longer-term stable funding?
Lord Douglas-Miller (Con)
The Government have a very large budget for this spending period—£5.2 billion—and we are about half way through that process at the moment. The future funding arrangements will be subject to a funding review at the end of this period.
Met Office: 2023 Temperatures
Debate between Earl Russell and Lord Douglas-Miller(10 months, 2 weeks ago)
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Lord Douglas-Miller (Con)
As I said, NAP3 marks a step change in the Government’s work on climate adaptation, moving from planning to decisive action and delivery over the next five years. A key element of NAP3 is a much greater focus on monitoring, evaluation and learning than we have ever had before. Government departments will monitor the success of their actions throughout the programme, which will allow us to continually increase ambition in areas where risk reduction is insufficient.
Earl Russell (LD)
My Lords, there were 44,000 wildfires last year, an increase of 72% on the previous year. In the words of the Fire Brigades Union, the UK is “woefully unprepared” for the impact of climate change on wildfires. Does the Minister support the Fire Brigades Union’s call for a national wildfire strategy? What investments are being made in people, better equipment and training to fight against the increased risks of wildfires?
Lord Douglas-Miller (Con)
I thank the noble Earl for his question; it is extremely relevant in the current climate crisis. Wildfire represents a serious threat to large parts of the UK—not just England but the whole of the UK—and the Government are extremely supportive of any measures to address the issue. I will come back to him in writing on his specific question.