Food Price Inflation

Debate between George Eustice and Alistair Carmichael

Thursday 19th May 2022 Commons Chamber

[George Eustice]

These matters are regularly discussed in Cabinet, but it is perhaps best that I do not go further at this particular stage.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

I remind the House of my entry in the Register of Members’ Financial Interests.

Any fair-minded person can see that international factors are clearly at play, over which no Minister can have total control, but we can control the support that we give to our domestic food producers. Is this not the moment to do as the National Farmers Union has asked of the Secretary of State and pause the Department’s programme of basic payment cuts to farmers? They will see their payments cut this year by 25%, next year by 30% and the year after by 50%.

[George Eustice]

The Government pledged to keep spending on agriculture in cash terms the same year after year in this Parliament, and that is precisely what we are doing. The right hon. Member is correct: we are phasing out the subsidy on landownership that meant that 50% of the budget went to 10% of the wealthiest landowners in the country and replacing it with a more logical approach that is about supporting the things that farmers do for the environment. Our sustainable farming incentive in England will deliver that by helping farmers with the cost of alternatives to fertiliser to chart their course. Of course, it is for Scotland and the Scottish Government to decide what they want to do in that regard, but we have a programme that is supporting farmers in England.

Oral Answers to Questions

Debate between George Eustice and Alistair Carmichael

Thursday 28th April 2022 Commons Chamber

[George Eustice]

We do recognise the importance of food security; under the Agriculture Act 2020 we introduced a new requirement that every three years the Government must publish an assessment of our food security, and we monitor that closely. On the wider point, the reality is that food prices and international commodity prices have always been linked very closely to the price of energy, and the sharp spike in gas prices is inevitably going to have an impact, but overall we are still self-sufficient for about 75% of the foods we consume.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

8. What recent discussions he has had with his Faroese counterpart on access for Russian fishing vessels to shared UK-Faroese fishing grounds.

Oral Answers to Questions

Debate between George Eustice and Alistair Carmichael

Thursday 10th March 2022 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

4. If he will hold discussions with the Secretary of State for International Trade on the potential effect on farmers and crofters in the highlands and islands of the UK-New Zealand free trade agreement. [R]

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

Over the past 18 months, I have held regular discussions with both the current Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and her predecessor, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), regarding the negotiating mandate for the free trade agreement with New Zealand, which includes protections for British agriculture. Tariff liberalisation for sensitive goods, including beef and lamb, will be staged over time.

[Mr Carmichael]

The Secretary of State’s decision to seek advice from the Trade and Agriculture Commission is welcome, but the questions on which he seeks advice all seem to revolve around standards. Important though standards are, they are not the full story as far as the crofters and farmers in my constituency are concerned. Will the Secretary of State encourage his right hon. Friend the Secretary of State for International Trade to take a more farmer and crofter-focused approach? This week the Government’s own figures indicated that that trade deal risks taking £150 million out of British agriculture.

--- Later in debate ---

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T6. I remind the House of my entry in the Register of Members’ Financial Interests. I say to the Secretary of State that farming faces a moment of existential crisis with massively increased input costs, especially for fuel and fertiliser, which could seriously reduce productivity in the long term. Will he use his office to bring together the unions, the supermarkets and other stakeholders in farming to find a way through so that farming has a long-term future?

[George Eustice]

Yes, we are doing that in fertiliser. We are also exploring options to identify alternative sources of animal protein.

Oral Answers to Questions

Debate between George Eustice and Alistair Carmichael

Thursday 27th January 2022 Commons Chamber

[George Eustice]

As my hon. Friend knows, the Government have increased spending on flooding to £5.2 billion so that we can better protect 336,000 properties across England. I would, of course, be delighted to meet my hon. Friend and visit his constituency to discuss the particular challenges that Southport faces.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The fishing industry in Shetland is being hammered by Spanish boats engaging in the completely unsustainable practice of gill netting. I have spoken to the fishing Minister about this in the past. What is being done to stop it or to ensure that, if it is to be done, it is to be done safely?

[George Eustice]

We keep different gear types and fishing practices under constant review. Concerns are sometimes raised about gill netting; that can be a sustainable form of fishing in some inshore waters, but not in all cases. I would be willing to meet the right hon. Gentleman to discuss his particular concern, although in some areas it will be for Marine Scotland to make the technical decisions.

UK-French Trading Dispute

Debate between George Eustice and Alistair Carmichael

Thursday 28th October 2021 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

As the shadow Secretary of State said, the next few weeks will be absolutely critical for fish exporters in this country. If the French do what they are threatening—which is only, as I understand it, what is allowed by the trade and co-operation agreement—then they risk damaging the confidence and the reliability of supply from this country. The Secretary of State has given the number of licences that he has issued. He should also be aware that a number of those are for super-trawlers over 100 metres and fly-shooters, that he has given away access to non-quota species without limit, and that this is on top of a TCA that allowed access to the six to 12-mile limits, which is not what was promised. When he has given away so much already, why is he risking this over such a small number of small boats that we must always have known would struggle to get the data to justify the creation of track records?

[George Eustice]

I think what the right hon. Gentleman is saying, in a nutshell, is, “Shouldn’t we just roll over and accept these vessels even though they don’t qualify?” The position of the Government is that there were very clearly agreed terms in the trade and co-operation agreement. Any vessel that qualified has been granted access, and that includes many vessels—close to 1,700—in our exclusive economic zone. I do not agree that we should take an approach that says, “We should just let in these people for an easy life.” The reality is that these vessels did not have a track record in our waters. This is not just about data. We have been open to considering data. We have looked at the VALPENA chart data that has come from the European Commission. Because the French were struggling at one point to provide the data, the UK Government went into the commercial market and bought AIS—automatic identification system—data for some of the French vessels so that we could understand their applications better. The data is available, in many cases. We have sought to be as helpful as we can to assist the EU in providing that data, but if it is unable to do so, there comes a point when we must assume that it probably did not have access during the reference period.

EU Trade and Co-operation Agreement: Fishing Industry

Debate between George Eustice and Alistair Carmichael

Thursday 14th January 2021 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD) (Urgent Question)]

To ask the Secretary of State for Environment, Food and Rural Affairs if he will make a statement on the consequences of the EU trade and co-operation agreement as it applies to the fishing industry.

[The Secretary of State for Environment, Food and Rural Affairs (George Eustice)]

As hon. Members will know, before Christmas the UK and the EU concluded a new trade and co-operation agreement, which established tariff-free trade in all goods and, among other things, sets a new relationship with the EU on fisheries. Before turning to the specifics of that agreement, I should briefly set the wider context.

The withdrawal agreement that was agreed by this House in January last year established the United Kingdom as an independent coastal state. Over the course of the last year we have taken our independent seat at the regional fisheries management organisations, including the North East Atlantic Fisheries Commission and the North Atlantic Fisheries Organisation. In September, we reached a partnership agreement with Norway—our most important partner on fishing interests, and with whom we have responsibility for shared stocks in the North sea.

We have also developed new bilateral arrangements with our other north-east Atlantic neighbours, including the Faroes, Greenland and Iceland. We have recently commenced annual bilateral fisheries negotiations with the Faroes in relation to access to one another’s waters, and a UK-Norway-EU trilateral is about to begin to agree fishing opportunities on shared stocks in the North sea. There will also be a UK-EU bilateral negotiation on fishing opportunities for the current year in remaining areas. For the first time in almost 50 years, the UK has a seat at the table and represents its own interests in those important negotiations.

The trade and co-operation agreement establishes an initial multi-annual agreement on quota, sharing and access, covering five and a half years. It ends relative stability as the basis for sharing stocks. Under the agreement, we have given an undertaking to give the EU access to our waters on similar terms as now and, in return, it has agreed to relinquish approximately 25% of the quota that it previously caught in our waters under the EU’s relative stability arrangement. That means that we move from being able to catch somewhat over half the fish in our waters to two thirds of the fish in our waters at the end of the multi-annual agreement. The transfer of quota is front-loaded, with the EU giving up 15% in year 1. On North sea cod, we have an increase from 47% to 57%. On Celtic sea haddock, our share has moved from 10% to 20%. On North sea hake, we secured an uplift from 18% to 54%, and on West of Scotland anglerfish, we have an increase from 31% to 45%. After the five-and-a-half-year agreement, we are able to change access and sharing arrangements further. The EU, for its part, will also be able to apply tariffs on fish exports in proportion to any withdrawal of access.

Although we recognise that some sectors of the fishing industry had hoped for a larger uplift, and, indeed, the Government argued throughout for a settlement that would have been closer to zonal attachment, the agreement does, nevertheless, mark a significant step in the right direction. To support the UK industry through this initial five and a half years, the Prime Minister announced, just before Christmas, that we will invest £100 million in the UK fishing industry, and I will be bringing forward proposals for this investment in due course.

Finally, although it is not a consequence of the trade and co-operation agreement, the end of the transition period and the fact that we have left both the customs union and the single market does mean that there is some additional administration accompanying exports to the EU. I am aware that there have been some teething issues as businesses get used to these new processes. Authorities in the EU countries are also adjusting to new procedures. We are working closely with both industry and authorities in the EU to iron out these issues and to ensure that goods flow smoothly to market.

[Mr Carmichael [V]]

For years, this Government have promised our fishing industry a sea of opportunity, but, today, our boats are tied up in harbour, their propellers fouled with red tape manufactured in Whitehall. Boats that are able to go to sea are landing their catches in Denmark—an expensive round trip of at least 72 hours, which takes work away from processors and other shoreside businesses in this country. Our Fisheries Minister describes promises made by Ministers as “dreams” and apparently did not think it was worth reading the agreement as soon as it was made, even though every second counted. How on earth was it allowed to come to this? The EU trade agreement allows a grace period on customs checks for EU businesses. Why was there no grace period allowed for our exporters, and will the Government engage with the EU as a matter of urgency to make good that most fundamental of errors?

Yesterday, the Prime Minister told the Liaison Committee that compensation is being considered for our fishing industry. Who will be compensated, for what, and by how much? When will our scheme be published and what steps will be taken to help processors, catchers and traders in the meantime? On the loss of quota swaps and other mechanisms, as the Fisheries Minister said yesterday, this could be done Government to Government in-year. Can the Secretary of State explain today how the literally hundreds of producer organisation to producer organisation swaps done every year will be done on a Government-to-Government basis?

Finally, what will happen at the end of a five-and-a-half year transition period? A transition normally takes us from point A to point B. This transition takes us from point A to point A with a new negotiation. Is zonal attachment still the Government’s policy on quota shares?

This is a shambles of the Government’s own making; there is no one else to blame now. When will the Minister start listening to the industry? I make him this offer: I can convene a virtual roundtable of all the affected sectors today or tomorrow. Will he meet with me and them to sort this out? The time for complacency has passed.

[George Eustice]

May I begin where the right hon. Gentleman ended and say that we are looking and working very closely with industry on this matter? We are having twice-a-week meetings with all the key stakeholders and all the key sectors to help them understand these issues. Yesterday, we had a meeting with the Dutch officials; earlier this week, we had a meeting with the French; and, on Friday, we had a meeting with the Irish to try to iron out some of these teething problems. They are only teething problems. When people get used to using the paperwork, goods will flow normally. Of course, it would have been open to the EU to offer us a grace period, just as we have had a grace period for its goods coming to us. For reasons known only to the EU and the way that it approaches its particular regulations, that was not something that it was willing to do, so we have had to work with these arrangements from a standing start and, clearly, that causes certain issues.

The right hon. Gentleman asked what happens after five and a half years. As I said in my opening statement, after that period, we are free to change access arrangements and change sharing arrangements, and we will do so. He asked specifically about swaps. It is important to note that the Department for Environment, Food and Rural Affairs has all of the information on all of the swaps that have taken place in recent years, since each of those producer organisation to producer organisation swaps requires the Government to agree them. It is, therefore, quite possible for us to build those swaps into the annual exchanges. Annual exchanges of fishing opportunities are a normal feature of annual negotiations, and we have also retained the ability to do in-year swaps on behalf of those POs.

The right hon. Gentleman has raised the issue of what the fisheries Minister said yesterday. I think the record will show that she did not say she did not have time to read the agreement; what she actually said was that her jaw did not drop when she was told what was in the agreement. There may be a reason for that, which is that she knew what was likely to be in the agreement for at least a week, since I had been discussing it with her and we were both in regular contact with our negotiators.

Finally, I am aware that the Prime Minister mentioned yesterday that the Government remain open to considering compensation for sectors that might have been affected through no fault of their own. We will look closely at this issue, but in the meantime, we are going to work very closely with the industry to ensure that we can iron out these difficulties.

Agricultural Transition Plan

Debate between George Eustice and Alistair Carmichael

Monday 30th November 2020 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Jacob Young is next on the call sheet, but he is down as both physical and virtual. If he is not going to appear, I shall call Alistair Carmichael.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The Secretary of State has told us that the Scottish Government’s budget for the scheme will be £595 million, which is the budget that they carry over at present. That figure is not going to last forever; by what means will future budgets be fixed? What mechanisms will be used to resolve any disputes? What will happen if the divergent agricultural policies in any part of the United Kingdom, including England, then have a distorting effect on the UK’s internal market?

[George Eustice]

The Government set out in our manifesto that we will keep the budget for each part of the UK the same in cash terms for every year of this Parliament, and that is what we intend to do. Matters thereafter will be a matter for all the political parties in their manifestos for future elections and, of course, for future spending reviews. I should point out that the European Union’s budget runs for only seven years and it has cut its budget by 10% for the next perspective.