(2 weeks, 2 days ago)
Lords ChamberMy noble friend is absolutely right that this is a long-term problem that has been going on for many years. Unfortunately, the water industry has simply not been held to account in the way that it should have been, and that is why we are bringing in the clean water Bill and changing the regulator.
Can the Government give us their estimate of the cost and the timetable for putting in the extra pipes and processing capacity so that we can clean up our rivers?
That is probably a cost for the water companies to assess.
(4 weeks ago)
Lords ChamberThe noble Baroness makes some good points. I am more than happy to discuss these issues in the department and with the Farming Minister. Looking at our response to the review by the noble Baroness, Lady Batters, on tenancy, because she particularly mentioned this, we recognise the benefits of longer agricultural leases and the importance of security of tenure for tenant farmers. New industry-led guidance was published in March of this year, which hopefully will help more landlords and tenants look at how long-term agreements are of benefit to both landlord and tenant. Also, we know that the Law Commission is looking to review agricultural tenancies within its 14th programme, and we welcome that, because we genuinely believe that longer-term tenancies are better for the sector.
Is this not a policy to make us more dependent on imported dairy and meat from the EU, because these policies will find that the carbon targets, the grazing policy and the wilding policy will mean far fewer farm animals in our country?
I disagree with that. In fact, I think the opposite. When we have met industry sectors, whether pigs, cattle or whatever—particularly in Northern Ireland, interestingly enough—we have found that they really see the benefit in the opening up of markets by us working closer with the EU. A lot of the trade restrictions, the paperwork and the bureaucracy will go. We lost, I think, 40% of our trading opportunities with Brexit, but this is an opportunity to have more trade and support for our farming industries.
Absolutely. The word “agroecology” may be used only three times, but sustainability—improving water, air and soil quality—runs all the way through the document. Just because it does not say the word, that does not mean this is not a key part of what the document intends to deliver. As I said earlier, environmental degradation leads to poor farm profitability: the Batters review was about farming profitability. That is also what the farming road map is designed to improve, because we need to improve our farming profitability.
Why are the Government asking for carve-outs from bad EU laws when, as a sovereign country, we should just say that we do not accept bad laws?
It is part of the negotiations.
(1 month, 1 week ago)
Lords ChamberMy understanding is that that is not the assessment by Ofwat at the current time. However, the noble Lord makes some good points. I am sure that the Secretary of State and the Minister for Water meet regularly with Ofwat. We are watching very closely for when or if there is a considered view that it has tipped into that space.
My Lords, do the Government agree that Thames Water needs to put in a lot of new, larger waste pipes and an extra reservoir to cater for the extra population that we have experienced in the area? What is the Minister’s rough estimate of how much capital this new investment will take?
On the basis that I do not know how many pipes, what size reservoir and where it would be, it is difficult to assess a capital investment. The Government have a reservoir policy. We have committed to building new reservoirs. No Government have done that for many years now, which is partly why we have issues with supporting housing development and important infrastructure development in the south-east. We are working closely with the Ministry of Housing, Communities and Local Government because we must get this right to ensure that our economy is fit for the future.
I can see where the noble Baroness is coming from. The difficulty is that if a company continues to pollute regularly and other water companies are being fined, where is the fairness and logic in letting one company off the hook because it has got itself into a worse mess? These are difficult, complex areas to get right. It is very much Ofwat’s decision, and I am sure the Government will continue to discuss such matters with it.
Pursuant to the Minister’s kind reply to me, I welcome the Government’s wish to have more reservoirs. She might like to ask about the Abingdon reservoir plan for the Thames area, which has long been around. It was much needed when I was MP for my local area and is even more so now.
I know the Abingdon area applications very well. In a previous life I worked in communications on major infrastructure, and I remember it crossing my path probably 20 years ago now.
(1 month, 2 weeks ago)
Lords ChamberAs the noble Baroness knows, Defra is very keen to be able to implement SUDS. We know that it makes a huge difference. We know that we need to use sustainable drainage to tackle flooding, particularly given the size of the building programme and the Government’s ambitions in housing, for example. I can only assure the noble Baroness that we will continue to press the department on this.
We do need more capacity for reservoirs and water storage. Where have the Government and the regulator got to in granting the permits so that work can get under way to make that much-needed provision?
The Government are very keen to press forward with new reservoirs. It is unfortunate that no new reservoirs have been built in almost 40 years. There are a number of reasons for that, and it is one of the reasons why we brought in the Planning and Infrastructure Act: to allow major projects—nationally significant infrastructure projects—to be able to move forward more quickly. We are currently working through that process.
(2 months, 1 week ago)
Lords ChamberClearly, we are discussing this area with the EU. One of the approaches that we have around the new technologies, whether you are talking about gene editing or novel foods, is that it is important that we are able to strengthen the UK’s credibility as an innovative regulator, bringing in these new technologies. We are very proud of our scientific community and of the work being done in these areas, and we will continue to support them to the best of our ability.
Under dynamic alignment, will we be able to block a measure which we think is anti-innovation but which the EU asserts is not?
(3 months ago)
Lords ChamberMy Lords, I first draw the House’s attention to my registered interests as a farmer and landowner who is also in receipt of delinked and other government payments. I am very grateful to the Government Chief Whip for moving this debate to a civilised time this evening; I think that is much appreciated by all noble Lords. I thank the Minister for outlining this SI, although we regret its introduction. Indeed, it is now at the end of this Session that we are about to lose significant agricultural expertise from this House, which keenly understands the impact of legislation such as this on the ground and in our close-knit communities.
When in government, we replaced the basic payment scheme with delinked payments based on historic BPS claims. We intended this to be gradually phased out by 2028 in favour of environmental land management schemes, where farmers and landowners receive payments only for public goods, as outlined by the Minister. The reductions we put in place put these delinked payments on a gradual glide path to zero in 2028. This Government dramatically accelerated that decline last year and have continued at a similar rate this year. This, in effect, ends the seven-year transition well before the 2028 deadline that farmers had been led to expect, undermining their budgeting.
We support the long-term transition, but not at this accelerated pace. Conflict in the Middle East has caused uncertainty over fuel prices and fertiliser and a shortage of industrial CO2. Grain prices remain at low levels, undermining profitability for our arable farmers. However, it is not just external factors that are adding pressure to farmers. Deliberate choices made by this Government have left farmers more vulnerable. The early closure of the SFI application window last year, the family farm and business tax, increased employer national insurance, and the Government’s refusal to consider our cheap power plan to lower energy costs all have a cumulative impact.
I note that the Government are set to spend £100 million to reopen the Ensus bioethanol plant in Teesside to mitigate CO2 disruptions. But this might not have been necessary had the Prime Minister not, in effect, sold out the UK’s bioethanol industry at the last minute in the UK-US trade deal. These plants provided a valuable source of demand for our farmers producing wheat. Closing them down to benefit American ethanol producers means that we are now supporting American maize or corn farmers at the expense of our own farmers. The deal reduced British tariffs on a quota of 1.4 billion litres of US ethanol, when the total market size for bioethanol in the UK was coincidentally 1.4 billion litres. These are not events outside the UK’s control; these are government choices. This SI reduces the direct financial support farmers receive at a time they need it most.
Ultimately, this SI does not help farmers precisely at a time when global events and this Government’s choices threaten their viability—let alone profitability. I beg to move.
My Lords, I would like to support my noble friend and challenge the Government on how they are going to spend the money they are going to allocate. While I can understand the wish to have a transition, it is right that it has to be done at a sensible pace. The really big disappointment of the farming community is that the alternative schemes the Government are bringing in are not the kind of schemes that are particularly attractive to many farmers or that promote the production of more domestic food.
I would hope that the Government will have a rethink now. Do the Government not understand there is currently a crisis in world trade and the supply of food in the months ahead because of the difficulties of getting fertiliser out of the Gulf area, the damage being done to chemical and fertiliser plants by more than one war and by the very acute trade disruption with no immediate signs of being resolved? Those I have heard from in the farming industry tell me that not only are fertiliser prices extremely high but there is no visibility as to when they will be able to buy serious quantities of fertiliser again at sensible prices. As we know, without proper fertiliser applications, yields will plunge and there will be a further shortage in food provision.
It is a tragedy that this century there has been a big decline in the amount of home-produced food that farms have been able to make because of the grant choices of the EU and successive United Kingdom Governments. I would have thought that now is a wonderful opportunity for a rethink to place at the very centre of agricultural subsidy policy, in line with many other countries around the world, the need for more domestic, reliable supply and production.
The Minister reminded us that some small pots are available for those important topics of innovation and new technology. I agree that there can be a new agrarian revolution; it was this country that launched the original one. There is now huge scope for mechanisation with robotics and drones and all the other things that can come in. However, the amount of money being offered in these small grant schemes is very small and unambitious. We have some great farms and some great farmers. Many of them would like to have access to serious money for that big investment and that pioneering technology that could start to make the difference.
I urge the Government to think again: put food production as the central issue that we need to deal with; understand the urgency of the collapse both in British farming and in the wider world market because of the interruptions to fertiliser and other chemicals; and do something to make available the money they are saving by the rundown of the existing ground system in a more intelligent and purposeful way, so that farmers can get decent money to rebuild their ability to feed us.
My Lords, my maiden speech in 2019 was on the impact of Brexit on food and agricultural produce, with a focus consistent with my interests as a Devon farmer on the Devon cream tea. It is fitting that my final words are on matters agricultural and the delinked payments regulations—the final decoupling of our agricultural subsidy regime from the common agricultural policy.
When I joined the House, one of the silver linings of the Brexit storm clouds was the promise of autonomy over agricultural policy, which we sought to deliver through the Agriculture Act—scrutinised largely online during those dark days of the pandemic. The birth of environmental land management and the sustainable farming incentive promised a brave new world of public money for public goods, under which the blunt instrument of CAP area payments would be replaced by the agile deployment of Defra’s budget to allow British farming to increase productivity and sustainability in equal measure.
During the passage of that Bill, this House reiterated multiple times the long-term nature of agricultural business and the need for certainty and continuity in government policy to enable farmers to adjust their business models at an appropriate pace, consistent with the annual harvest cycle, their very narrow margins and their necessarily long-term investment strategies. Despite the hard work of many at Defra and the Rural Payments Agency, that continuity has not materialised. Farm and food businesses have been battered not only by the pandemic and by wars in Ukraine and Iran, but by extreme climatic events, drought, flooding and government policy that has become even less clement than the weather.
(2 years, 2 months ago)
Commons ChamberI beg to move,
That the draft Agriculture (Delinked Payments) (Reductions) (England) Regulations 2024, which were laid before this House on 16 April, be approved.
I declare my farming interests, as set out in the Register of Members’ Financial Interests. The instrument continues the important agricultural reforms that we are making in England—reforms that support the long-term prosperity of the sector. It applies progressive reductions to delinked payments for 2024. Delinked payments were introduced on 1 January 2024 in place of payments to farmers under the basic payment scheme in England. The reductions in the instrument were first announced in our agricultural transition plan in November 2020. They continue the progress of gradually phasing out untargeted subsidy payments over our seven-year agricultural transition period in England. We are now in the fourth year of that seven-year transition.
We remain committed to moving away from untargeted payments, which have served our industry so poorly. Most of the money has been paid to the largest landowners, and the payments have done little to improve food production or the environment over that time. I reiterate that the overall annual farming budget is being maintained at an average of £2.4 billion per year across this Parliament —money that is no longer being spent on untargeted subsidy payments and is not lost to farmers. Instead, it funds the sustainable farming incentive and other farming support.
As was the case under the basic payment scheme, we are applying the reductions to delinked payments in a fair way. Higher percentage reductions are applied to amounts in higher payment bands. We plan to make delinked payments in two instalments each year, which will of course assist with farmers’ cash flow. By continuing to gradually reduce the subsidy payments, we are freeing up money so that farmers can access a range of environmental land management schemes and grants to suit all farm types. We planned for the agricultural transition, and we are delivering on it.
I am pleased that the Minister and the Prime Minister are keen on promoting more home-grown food. As the transition occurs, what proportion of total subsidies paid will be for promoting food? It still seems to be too small.
My right hon. Friend will understand that the basic payment scheme did not motivate food production at all, as it was not linked to it. As we move to the new regime, we are promoting better productivity through grants for better equipment. We are investing in new technology. Alongside that, we are pushing to improve gene editing and gene technology, to try to make agriculture more sustainable and more productive at the same time. As we go through this transition, we are certainly keen to increase the productivity of our agricultural sector.
(2 years, 6 months ago)
Commons ChamberAs my hon. Friend will know, I am not responsible for EU legislation. During conversations with friends in the EU, I have been told that they are currently looking at the issue of live animal transport, but that is, of course, a matter for them.
I, too, thank the Minister and the Government for their fantastic legislation and great track record, of which we can be truly proud. Is it not the case that this Bill would not have been possible when we were EU members, and that we have put right that wrong? I urge the EU to catch up.
(4 years, 5 months ago)
Commons ChamberThere is that, but I have no idea what the Environment Secretary does. I remember going up to Durham at the height of Storm Arwen, when families were disconnected from electricity for two weeks and more. The Environment Secretary, who sits around the Cabinet table with the Prime Minister, did not even turn up, and that matters to people.
I will make some progress. The cost of everyday and essential food items, on which millions of low-paid families depend, are soaring even faster than the headline rate of inflation. As campaigner Jack Monroe explained on “Good Morning Britain”, the cheapest rice at one supermarket was 45p for a kilogram this time last year and it is now £1 for half that. That is a 344% increase, hitting the poorest and most vulnerable households the hardest. A can of baked beans has gone up by 45% and bread by 29%. All those are the staple of a household cupboard.
I will make some progress. As oil and gas giants are seeing more profits than the whole of the Treasury corporation tax take combined, Labour has been clear that a windfall tax should be levied on companies that are profiting, cushioning rocketing household energy bills and helping hard-working families here in Britain.
It is always a real pleasure to talk to the hon. Lady about these matters, because she has really leant into them over the years, and the work of her all-party parliamentary group on the national food strategy has been very helpful. I should be delighted to meet her again to talk about what we can do for county and peri-urban farms. We are putting together a new entrants strategy as part of our environmental land management plans. We have not quite finalised that work, but I think it would be a good idea if I could meet her so that she can feed into the work that we are doing.
Does the Minister agree that there is no reason why we should not produce 100% of the temperate food that we need? We lost a huge amount of market share when the common agricultural policy was introduced, and some of us want to get that back now that we are out of the CAP. Is it not better to cut the food miles and rely on local jobs and local production?
(4 years, 8 months ago)
Commons ChamberI believe that the public are seriously concerned about what has happened in the House over the past few weeks. They have been alerted and awakened to the volume of raw sewage discharged into their rivers and seas; they want faster and bolder action from Ministers now that they are aware of this absolute outrage in our environment. That is why we need to build trust again.
In her speech and in earlier remarks, the Minister has cited a figure of more than £600 billion, but the maths is disputed, to say the least. It is not sufficient to say, “To deal with this properly will cost £600 billion, but to deal with tinkering around the edges will cost hardly anything on the side,” and pretend that those are fair options to choose between. We need a much bolder approach, with honesty and clarity rather than threats about bills and about how the process works.
We also need to look at how to build trust with the public again, because they are very concerned. I share the Minister’s concern about fake news online and do not wish to see wildly inaccurate claims made, so such a large figure needs to be backed up with clear evidence. I have tabled a parliamentary question asking the Minister for the working behind it; I hope she will be able to confirm the answer in due course.
Labour wants a stronger amendment. The Minister’s amendment in lieu of the Duke of Wellington’s amendment is confined to storm overflows rather than addressing the sewerage system as a whole—a really important point. There is no specific duty on Ofwat or the Environment Agency to ensure compliance, but there should be. We need to focus on reducing harm, rather than just on the adverse impacts. The amendment in lieu looks like the Government looking busy without making a real difference, so I want to set out three things that I hope the Minister will confirm today that could make a difference.
We all want to clean up the rivers. Could the hon. Gentleman give some idea of the timetable and cost that he thinks would be appropriate?
Funnily enough, that is a point that I was going to refer to the Minister, because there is no timetable—a really glaring hole in what has been published today. A progressive reduction in discharges sounds all well and good, but I would like to progressively reduce the amount of cake I eat, and yet there is a big difference between doing that over a day and doing it over a year. I am a big fan of cake, as some in the House may know.
Let us get down to the detail. There are three things that I would like the Minister to confirm; otherwise, I fear that we will not be able to support her amendment. First, will she commit to reviewing the scale of fines so that water companies that continue to routinely discharge raw sewage face higher penalties?
Secondly, Labour wants the guidance in the strategic policy statement for Ofwat to be super-strengthened so that there is a clear direction to water companies to target the most polluting discharges now, with a plan to address the rest urgently against a clear timeframe. Progress by DEFRA, Ofwat, the EA and water companies should have proper parliamentary scrutiny annually via the Environment, Food and Rural Affairs Committee, or potentially the Environmental Audit Committee.
Thirdly, will the Minister set out in detail what she means by “progressive reduction”? That means answering two very simple questions: by when, and how much? If that cannot be set out, it is just spin. I fear that water companies could say, “We are meeting our progressive reduction with these two tiny projects over here,” and not set out a clear commitment. By when and how much will discharges be progressively reduced?