Household Waste Recycling

Lord Benyon Excerpts

Thursday 7th July 2022 Lords Chamber

[Baroness Humphreys]

To ask Her Majesty’s Government what steps they are taking to address the fall in household waste recycling rates in England.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

Me again, I am afraid. Through our resources and waste strategy and our landmark Environment Act, we will transform our waste system. We are introducing consistent recycling collections across England, creating a deposit return scheme for drinks containers, and introducing extended producer responsibility for packaging to ensure that packaging producers cover the costs of recycling and disposing of their packaging. Through these measures, our ambition is to reach a municipal waste recycling rate of 65% by 2035.

[Baroness Humphreys (LD)]

Will the Minister join me in congratulating the officers, recycling operatives and residents of Conwy Council in north Wales, who in 2020-21 achieved a recycling rate of 70% and are set to repeat that figure this year despite the pandemic? Key to their success is getting the infrastructure right. Councils from across the UK, Lithuania and further afield have visited to learn from its example. Would the Minister accept an invitation to visit to Conwy County to judge its success?

[Lord Benyon (Con)]

There is nothing I like more than visiting beautiful parts of the world to see their waste management processes. On my way, I might look in at West Berkshire, where the local authority inherited a lamentable 19% recycling rate and has now got it to more than 50%; I cannot remember who it inherited it from. We want to see every council doing that. The measures we have in the Environment Act can provide a means for getting consistency over the country—consistency that has hitherto been absent.

[Baroness Jenkin of Kennington (Con)]

My Lords, it is estimated that 7 million tonnes of food is discarded from the home every year, nearly half of which is edible, at a cost of about £700 per average family per year. The top reasons given are not writing a shopping list, not planning meals and forgetting what is in the fridge. What levers do the Government have to nudge and encourage households to do better?

[Lord Benyon (Con)]

My noble friend is right that households, particularly hard-pressed households, can save a lot of money by managing their food waste better. It is question of encouragement, education from an early stage and support, but it is not for me or the Government to dictate how people operate in their home. This is an enormous burden on society. We have to dispose of this, and I am delighted that food waste recycling will be consistent over the country, but we want to have to recycle much less.

[Baroness Jones of Whitchurch (Lab)]

Further to the Question asked by the noble Baroness, Lady Humphreys, can the Minister explain the growing disparity in recycling rates between England and Wales? Last year, England’s rate went down to 43.8% while Wales’s rate increased to 65.4%. If Wales can be so successful, why can England not be? What discussions are being held with the Welsh Government so that we can learn those lessons and apply them to England?

[Lord Benyon (Con)]

The noble Baroness is absolutely right that recycling levels have plateaued. Over the pandemic, they went down by 1.5%. The decrease reflects the impact of Covid, with waste tonnages from home increasing as people spent more time at home and waste collections decreasing due to household waste recycling centres being closed. She is also right that there are disparities not just between England and Wales but between different parts of England. That is why, through the provisions in the Environment Act, we want consistency. In every home, even if people move from one part of the country to another, they must know that they can recycle the same articles of their household waste in the same way in all parts of the country to help us hit our targets.

[Lord St John of Bletso (CB)]

My Lords, can the Minister expand on the measures being taken to promote separation and sorting technologies at recycling facilities, to increase the usability and efficiency of household waste in England?

[Lord Benyon (Con)]

There is improving technology in this area. Robotics and artificial intelligence are identifying waste in a way that we were not able to do before so we are able to divert yet more away from landfill. However, the real silver bullet is preventing it getting to the facilities in the first place by stopping packaging and other measures upstream and having many more recyclable products, which we are working with industry to achieve, before we even get to that separation process.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, there is never a silver bullet; I do not understand why this Government do not understand that. You need a range of options. The Minister said that recycling has plateaued. That is not true: the Government’s statistics from May suggest that it has in fact declined. Why not talk about incineration? As incineration increases, recycling declines, so will the Government bring in a moratorium on new incineration plants?

[Lord Benyon (Con)]

The noble Baroness is right that rates dropped by about 1.5% over the pandemic, as I think I said. I am not sure whether there are any incinerators planned at the moment but I will take her point away because I agree with it.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, the Government want to standardise household waste collection services throughout England, as the Minister said. Having moved from an area that collected—separated—nearly everything recyclable to one whose recyclable collection is pretty poor, I am frustrated to be told that I may have to wait two years for the collection to improve. Listening to the Government, however, I may have to wait 10 years for it to improve. Why are the Government dragging their feet?

[Lord Benyon (Con)]

As I said, we passed provisions in the Environment Act that give us new powers to improve consistency and introduce both a deposit return scheme and an extended producer responsibility for packaging. All these measures require working with industry; we are consulting, and have consulted, on them and will bring them forward. The producer packaging measures will be brought forward in 2024.

[Baroness McIntosh of Hudnall (Lab)]

Will the Minister address the possible small and perhaps niche issue of home composting? A lot of food waste and packaging could be composted but is not. Obviously, this is a more challenging prospect for those who do not have outside space, but what are the Government doing to encourage people who have outside space to use some of it to compost their own waste?

[Lord Benyon (Con)]

That is a very good point. As the noble Baroness rightly says, many households do not have the ability or space to do this but those that do need to be given information. They also need to know what they can do with the end product; for example, we are banning peat as a growing medium and compost can be an alternative to that.

[Lord Cormack (Con)]

My Lords, I wish my noble friend happy travels in Wales and a long period in office, but does he accept that what this country desperately needs now is continuity in government? It would therefore be wise if, when the present Prime Minister resigns, he does not remain as a caretaker but rather has an acting Prime Minister in the deputy in the other place.

[Lord Benyon (Con)]

My Lords, the words “above”, “pay” and “grade” come to mind. There is constitutional precedent on this, of course; I am sure that that is what will be applied.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, is the Minister aware that the Scottish Greens intend to fight the next general election on the single issue of independence? Is that not a betrayal of their main purpose, including recycling?

[Lord Benyon (Con)]

I would like to recycle the Scottish Green seats into good blue ones.

[Lord Lexden (Con)]

My Lords, towards the end of 1834, the Duke of Wellington ran the Government single-handedly for some 24 days. I wonder whether there is a case for suggesting that his highly respected successor the current noble Duke, with his well-known environmental interests, be invited to assume the position of Prime Minister on a caretaker basis to improve recycling and clean up our rivers.

[Lord Benyon (Con)]

That is a very good suggestion. I will put it to my honourable friends in the other place. Having a duke in No. 10 is probably long overdue.

[Lord McNally (LD)]

My Lords, the problem with recycling is not just the recycling but the rubbish that is left behind. How does the Minister think the country should deal with the recycling now going on at No. 10 and the rubbish being left behind?

[Lord Benyon (Con)]

I will leave that one for those concerned to deal with.

[Lord Bellingham (Con)]

My Lords, in his reply to the noble Baroness, Lady Jones of Whitchurch, the Minister said that there should be a national strategy. Does he agree that one of the problems faced by the public is that they get confusing and conflicting instructions on packaging waste? For example, it can say “Not recyclable here” or “Widely recyclable. Consult your local authority”. Surely there is an important need for more clarity.

[Lord Benyon (Con)]

There is. Local authorities, which have the interface with the customer or householder, are beholden on this. The drive that we are now pushing to increase recycling rates to 65% will require close working with councils and councils working closely with householders to show them how they can do it with minimal impact on their lives, whatever type of house they live in. We must make sure that we hit our targets because they are important for climate change and the cost of living, as well as for the kind of society, countryside and environment that we all want to enjoy.

Sewage Disposal in Rivers and Coastal Waters

Lord Benyon Excerpts

Thursday 7th July 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I refer noble Lords to my entry in the register. I congratulate the noble Lord, Lord Oates, on securing this debate and thank noble Lords for their contributions.

The noble Lord, Lord Oates, was absolutely right to mention the late Lord Chidgey. I remember having a very good debate about chalk streams with him in this Chamber just before he died. He saw my passion for them and raised me his. He was a great fighter for river health in this place.

My wife refers to my local river as my mid-life crisis; I suppose it is better than a fast car or soaring political ambition. I share noble Lords’ indignation and frustration that our rivers are not of the quality they should be and not in the state they should be in. That 14% figure is shaming. It is a high bar to reach. One wonders how many rivers there were in the past. One fact we must always remember is that we have been putting sewage, in one form or another, into our rivers for decades—centuries, even—but it has gotten out of hand and must stop.

The noble Baroness, Lady Ludford, talked about her eponymous sewer: “Sarah’s sewer”. In my former life as the Water Minister, I remember being shown “Prescott’s sluice” in the East End of London. I am not sure that I want to have a sluice named after me; the noble Lord, Lord Prescott, who was here earlier, may be able to tell me whether it was named after him. I am trying to think of alliteration; perhaps my sewer should have been called “Dick’s drain” because, when I arrived as Water Minister in 2010, everyone was opposed to it. The chairman of Ofwat took me on to Westminster Bridge, pointed to the river and said, “It won’t be a different colour if you spend billions on a new sewer. It will look just the same but will have cost water customers an enormous amount of money”. It was opposed right across politics. The noble Baroness is right that her former colleague, Simon Hughes—the former MP for Bermondsey—fiercely opposed it. The noble Lord, Lord Berkeley, and many others used to come and see me about it. Indeed, like a student going in front of a don, I had to go right to the top of the Government to tell Oliver Letwin why his fears were not to be realised. I am glad that I now see it under construction and that this iconic river, in one of the great cities of the world, will be cleaner as a result.

A healthy water environment is fundamental to a thriving economy, to abundant biodiversity and of course to public enjoyment of our beautiful rivers, lakes and bathing waters. The noble Lord, Lord Stoneham, made the very good point that this is not subject to the four-year or five-year electoral horizons that most politicians look to; we want to see generational and multidecadal change. The Government’s 25-year environmental plan includes a commitment to restore three-quarters of our water bodies to close to their natural state, but we know that we need to do more to meet this rightly high bar. That is why we are going further and faster than any Government in protecting and enhancing the health of our rivers and seas. This has included ground-breaking action to massively reduce the harm caused by storm overflows.

The noble Lord mentioned the importance of civic society. Politicians can hold Governments to account but the public can too. A huge breadth of civil society groups stand up for their rivers, and I remember from when we ran a campaign called Love your River how important it is to give people their sense of place.

Like the noble Baroness, Lady Jones, I can admire the noble Lord, Lord Sikka, but I can disagree with his points. He talked about privatised ownership being some sort of fetish. Actually, I would say that £150 billion of investment in our water sector would not have been reached by any degree if it had still been in public ownership. The owners of those companies would have had to get in the queue behind the health service, pensions, the police, hospitals and so on. Renationalisation would require a future Government to buy out the pension funds that pay perhaps his and perhaps my pension, and perhaps the pensions of many people on low incomes. The cost of buying Thames Water was estimated a year or two ago—my figures might be out of date—at £12 billion. To buy out the entire water sector would be a terrible shame. It would be the wrong thing for investment.

[Lord Sikka (Lab)]

The numbers that the Minister quotes have little or no substance. If water companies had to meet their statutory obligations, the chances are that their income streams would actually be negative. They would be begging the Government to buy them out; we would not have to pay them anything.

[Lord Benyon (Con)]

I do not agree with that. I also believe it is good that international sovereign wealth funds want to invest in our regulated utility sector, but it has to be a regulated sector that cracks the whip when it needs to—that is, when those companies do not do what they are required to.

The noble Lord, Lord Oates, asked the House to take note of the impacts of current sewage disposal rates in UK rivers, and further noted the responsibility of water companies to alleviate these impacts. There are two main types of sewage discharges into the water environment by water companies: treated and untreated. Discharges of treated wastewater into our waterways are one of the most significant pressures on the water environment. Treated sewage is the biggest source of phosphorus within the water environment, and excess phosphorus is the most common reason a water body fails to meet good status. Water companies are required to reduce phosphorus loads into the water environment from treated sewage by 50% by 2027. We have recently consulted on a proposal for an Environment Act target to deliver even more progress and deliver an 80% reduction by 2037.

However, it is the untreated discharges that are understandably generating the most public interest. Discharges from storm overflows not only impact the ecology of the receiving water body but can also impact public health where water bodies are used for recreational activities. We have been clear that the current use of overflows is completely unacceptable. They were only ever meant to be an emergency measure but now they are seemingly part of doing business; anecdotally, it seems that only centimetres of rain can trigger them, and that is simply not good enough. We have made it crystal clear to water companies that they must massively reduce sewage discharges from storm overflows as a priority. If we do not see the change we expect, we will not hesitate to take further action.

[Baroness Ludford (LD)]

I am grateful to the Minister and sorry that I missed the first minute of his response. Following the theme of my speech, can I ask that another term be used instead of “storm overflows”? It is the biggest excuse that the water companies rely on. It sounds like, “It’s an act of God; it’s a storm; we couldn’t have anticipated this”. If another term could be found it would help to shift the debate.

[Lord Benyon (Con)]

The noble Baroness may well be right. I agree that there probably needs to be a change. Just behind us, the River Thames is subject to storm overflows that we are hoping to relieve with the Thames Tideway tunnel. With just a few millimetres of rain that one could not call a storm, many other towns, cities and rivers are similarly affected. We have made it clear that the companies must massively reduce sewage discharges from storm overflows as a priority.

My noble friend Lady McIntosh raised a number of good points. I applaud the Slowing The Flow project that she mentioned in the constituency that she used to represent. Importantly, she went on to talk about flooding. There is an easy line that campaigners and politicians use: “We should never build in flood plains”. We are in a flood plain here, in York and in most of our cities. Are we honestly saying that we should never build in those communities? We need to build flood-resistant buildings and to remember the impact that buildings can have on a creaking—sometimes Edwardian or Victorian—sewage system. That is why it is vital to link the pieces together.

We are the first Government to instruct water companies in legislation to massively reduce the use of storm overflows. Earlier this year, the Government published a new set of strategic priorities for the industry’s financial regulator, Ofwat. This set out for the first time the direction from government that water companies must take steps to

“significantly reduce the frequency and volume of sewage discharges from storm overflows”,

and that the regulator should ensure funding should be approved for them to do so. The Government have also committed to undertake a review of the case for implementing Schedule 3 to the Flood and Water Management Act 2010—a case close to my noble friend’s heart. Schedule 3 was designed to set standards for the construction of sustainable drainage systems on new developments, and to make any surface water drainage connections to foul sewers of those developments conditional on the approval of the sustainable drainage systems. This, therefore, can also seek to address the right to connect, which has been of concern to many colleagues here and elsewhere who have mentioned it.

A number of noble Lords mentioned wet wipes. The Storm Overflows Taskforce is considering wet wipes as a contributing factor to overflows and treatment works. The noble Baroness, Lady Bakewell, talked about the importance of stopping wet wipes getting into our sewage system. We have a call for evidence that will explore a possible ban on all wet wipes containing plastic. We continue to encourage water companies and wet wipe manufacturers to raise concerns with the consumers and try to get this situation changed.

The review of sustainable drainage systems in planning policy and other developments towards reducing new burdens on the sewage system from surface water drainage from new developments really matter. My noble friend Lady Altmann mentioned nature-based solutions. These need to be understood. When I first raised them with Ofwat a decade ago, it did not like them because they could not be measured. There has been a sea-change and now nature-based solutions are much more palatable to the regulator and all concerned.

In addition to the actions that the Government are taking, we are setting out clear requirements on water companies to put in place the mechanisms to hold them to account for delivering reductions in the use of storm overflows. Last year, our Environment Act brought in a raft of new duties on water companies, which are now legally required to secure a progressive reduction in the adverse impact of discharges from storm overflows. The Act also included a duty on the Government to produce a statutory plan by September this year to reduce discharges from storm overflows and report to Parliament on progress.

On 31 March, we published a consultation on the storm overflows discharge reduction plan, which will revolutionise how water companies tackle the number of discharges of untreated sewage. Water companies will face strict limits on when they can use storm overflows and must completely eliminate the harm that any sewage discharge causes to the environment. This will be the largest programme to tackle storm sewage discharges in history.

In the consultation, the Government proposed several specific targets for water companies to achieve. One example that addresses some of the points raised is that, by 2035, the environmental impacts of 75% of overflows affecting our most important protected sites will have been eliminated. These are the most important protected sites; they are used for bathing and are valuable ecosystems that are deteriorating and need to be addressed. By 2035, there will be 70% fewer discharges into bathing waters.

The Government will also publish a report setting out the actions that would be needed to eliminate discharges from storm overflows in England. We will be very clear about the costs that this would place on consumers and their bills. Under the Environment Act, water companies are now required to produce comprehensive statutory drainage and sewerage management plans, which will set out how they will manage and develop their drainage and sewerage systems over a minimum 25-year planning horizon. They must include how storm overflows will be addressed.

The right reverend Prelate the Bishop of St Albans asked some pertinent questions. The water industry was privatised in 1989, with the aim of attracting much-needed investment into the sector through private capital markets, rather than by relying on core government funding. Since privatisation, water companies have delivered £160 billion of investment, including £30 billion invested in the environment. This is equivalent to around £5 billion of investment annually. The privatised model continues to attract investment, and, for the period from 2020 to 2025, water companies have invested £51 billion, including over £7 billion of investment in the environment. This will reduce pollution incidents by 30% and deliver improvements to more than 12,000 kilometres of rivers.

The right reverend Prelate talked about the importance of joining up the pollution in our rivers with our farming policy, and he is absolutely right. I was in his diocese recently at the Groundswell event, which showed how farmers can weaponise their soil to protect rivers and the environment. He will be pleased to see the Government’s riparian tree-planting proposals, which will protect river systems by planting more trees on the edge of water.

My noble friend Lord Caithness was absolutely right to raise catchments; we need to think about this landscape to protect water bodies and, of course, aquifers. I am such a geek that I check the Pang Valley Flood Forum’s data whenever it rains to see the impact on my local river. I refer noble Lords to the evidence given to the EFRA Select Committee by the Government’s preferred candidate to take over the Environment Agency, Alan Lovell, who comes from a farming family and understands the impact, both beneficial and damaging, that farming can have on waterways and rivers. We hope that noble Lords will appreciate this appointment and the other work that we are doing with public bodies to make sure that this remains a priority.

The Environment Act also includes a power for the Government to direct water companies in relation to the actions in these drainage and sewerage management plans. The Act includes duties to massively improve the monitoring and transparency of the use of storm overflows. Water companies will be required to publish spill data in near real time and monitor the water quality impacts, upstream and downstream, of all storm overflows. Water companies and the Environment Agency will be required to publish summary data on storm overflow operation on an annual basis.

The Government have been clear to water companies that we will not hesitate to take enforcement action if they are failing to meet their obligations. I say to the noble Lord, Lord Sikka, that the fines get unloaded not on customers but on shareholders. The noble Lord is shaking his head, but this is true: it is a rule that we have imposed.

Since 2015 the EA has brought 49 prosecutions against water companies, securing fines of over £137 million. On 9 July last year, Southern Water was handed a record £90 million fine after pleading guilty to thousands of illegal discharges of sewage which polluted rivers and coastal waters in Kent, Hampshire and Sussex. The fine has been paid solely from the company’s operating profits, rather than added to customer bills.

We are holding the industry to account on a scale never done before. Ofwat and the Environment Agency have launched the largest investigations into all water and wastewater companies in England and Wales in the light of information suggesting that water companies in England may not be complying with their permits, resulting in excess sewage spills into the environment, even in dry periods.

Before coming to this role I was on the board of River Action, which seeks to address the issues around the River Wye, and across many other rivers. These combine the problems of sewage in the rivers and phosphates from farming and make sure that we are holding relevant people to account, so I have some form on this.

In conclusion, the frequency of discharges from storm overflows is wholly unacceptable. I have set out the Government’s ambitious agenda to deliver huge reductions in the use of storm overflows for the first time ever. This includes: reviewing the case for implementing Schedule 3 to the Flood and Water Management Act; a direction from government to Ofwat in the strategic policy statement setting out that water companies must take steps to

“significantly reduce the frequency and volume of sewage discharges from storm overflows”,

and that the regulator should ensure funding be approved for them to do so. Further measures include: statutory drainage and sewerage management plans, with powers of direction; a storm overflows discharge reduction plan, with clear, specific and ambitious targets; and statutory requirements for improved monitoring of sewage discharges.

It is time for water companies to step up and deliver on their promises. We have all set out our expectations that they must do better, as have the public. The Government recognise that healthy and well-managed waters are a cornerstone of our economy and our well-being. We are committed to collectively addressing all of these issues alongside our action on storm overflows to deliver on our pledge to hand over our planet to the next generation in a better condition than when we inherited it.

Environmental Principles Policy Statement

Lord Benyon Excerpts

Thursday 30th June 2022 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I am very grateful to all noble Lords for their questions and points today, and many congratulations to the noble Baroness, Lady Parminter, on introducing this debate so forcefully. I shall endeavour to answer as many of the points as I can.

The Government have committed that we will be the first generation to leave the environment in a better state than we found it. To do this, we need to put environmental considerations at the heart of policy-making. The environmental principles policy statement will enable us to do so, helping us to achieve the ambitious environmental objectives set out in the Environment Act.

At the risk of sounding oversensitive to some of the points made, it was suggested that I was somehow a journeyman Minister who had just come into this and will be gone tomorrow—I may indeed be gone tomorrow. However, I want to assure noble Lords. The Government brought forward the Environment Act because we mind about leaving the environment in a better state. I have been involved in it from the position of an insignificant Back-Bencher in the other place, working with people such as my noble friend Lord Goldsmith, also then on the Back-Benches, and Sir Oliver Letwin.

Getting these principles in the Bill and then the Act was really important, and their implementation is equally important. I should hate anyone to think that—while I might be put out to grass tomorrow—this is just parliamentary chaff for me. It really matters, and it matters that we get this right and that Parliament can continue to hold Ministers of whatever persuasion to the terms of the Act. It places a legal duty on Ministers of the Crown to have “due regard” to an environmental principles policy statement when making policy. The statement must cover the principles set out in the Act: the integration principle, the prevention principle, the “rectification at source” principle, the “polluter pays” principle and, much spoken about today, the precautionary principle.

The draft statement has been laid before Parliament and has been developed with the input of stakeholders, including environmental NGOs, as well as colleagues from across government. Their feedback and support have been valuable, and we have adapted the statement in response. For example, we have changed the statement so that it guides policymakers towards opportunities to enhance the environment, as well as preventing harm. Text was also added on the links to commitments such as net zero and the 25-year environment plan, as well as further defining the scope of the duty—for example, to arm’s-length bodies.

I would also like to thank the committees that have provided their feedback. We note that the Secondary Legislation Scrutiny Committee has requested a change to the accompanying Explanatory Memorandum to include the definitions of each of the five principles, which we commit to actioning when we lay the final statement. In answer to the question of the noble Baroness, Lady Jones, this will be in the autumn.

The noble Lord, Lord Hodgson, asked about the scrutiny process. We have worked with parliamentary clerks throughout our scrutiny process. The Government are open to feedback on that process, both for this piece of legislation and others. The scrutiny process on the principles was stated in the Act, which was, of course, approved by Parliament.

I turn now to points raised about some of the individual principles. The Environment Act states that environmental protection should be integrated into the making of policies. The policy statement builds on and strengthens this by setting out how this should be done. It states that, in applying the integration principle,

“policymakers should look for opportunities to embed environmental protection”

and enhancement in all policies, subject to the exemptions set out in the Act. I will come to talk about some of those that were raised. This emphasises the need for the environment to be considered as a system across all policy areas from the earliest stages of policy design. This will also help us meet our wider environmental targets, such as climate change mitigation via our net-zero commitments.

I am the Minister for Rural Affairs, so I proof write-arounds from all departments that affect rural communities, the rural economy and rural livelihoods. In the same way, Environment Ministers do that for any policy across government. They make sure that the principles about considering the environment are developed as early as possible in the policy process. That is a job Defra has to do. It is our role in government and one that we are happy to be held to account for.

The prevention principle is intended for use at the earliest stages of policy development. For the principles to be most cost effective and lead to better environmental outcomes, it is preferable for environmental damage to be prevented under the prevention principle. If it is to be addressed after it has occurred, the “rectification at source” and “polluter pays” principles should be considered to reduce, mitigate or disincentivise damage.

Our draft policy statement uses the 1992 Rio declaration definition of the precautionary principle. Its definition states that

“Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”


I suspect I am one of the few people in this Committee, and possibly in this country, who has actually read the European Union’s guidance on the use of the precautionary principle. It is fundamental to the protection of our environment that we interpret it in the right way and are held to account for that. This principle is an important tool that can be used to manage risk and protect the environment. The principle should not hinder innovation but instead support innovative policy approaches.

I reiterate that evidence is as important as ever within policymaking, and we are not undermining this important and well-established principle. I reiterate that to the noble Baroness, Lady Parminter, who made an important and absolutely justified point about the use of words. Sometimes there is one word, whether it is “likely” or “possibly”, and that used in the 1992 Rio declaration definition is “impossible”. We need some evidence of a threat, even where there is lack of certainty of likelihood or severity, to make sure that it is used in the right way.

This principle is being placed on a statutory footing through the Act to reflect its important role in international, as well as domestic, environmental policy. For example, the successful Montreal protocol, which effectively tackled damage to the ozone layer caused by CFC gases, comes right down to these kinds of principles.

The point that the noble Baroness, Lady Boycott, made about Southern Water was absolutely justified, but I expect its chief executive ate his words when he faced a £96 million fine for what it had released into the Solent. More such fines will come as and when—we hope never—further such acts of what is, effectively, criminality take place.

I reiterate that this is an ambitious policy statement that fully meets the requirements of the Act. This includes the requirement placed on the Secretary of State that the statement will, when it comes into effect, contribute to the improvement of environmental protection—I emphasise that—and, of course, sustainable development.

Taking a proportionate approach plays an important part in policy-making. The new duty will ensure that environmental considerations are factored into policy-making, and this must be done in parallel with other policy considerations. This means that Ministers should balance social, economic, and environmental considerations in making policy. Therefore, we have not substantially altered the role of proportionality in the policy statement from the draft we consulted on. We have reviewed the statement as a whole to ensure that the definition of proportionality is consistent and clear.

We understand how important it is to ensure that government departments are prepared for the duty to have regard to the policy statement when it comes into force. I hope that addresses the point made by the noble Baroness, Lady Bakewell. Engagement is therefore already ongoing ahead of the final statement publication, so we are open and listening to suggestions that are being made.

We have engaged with key departments, such as BEIS, the Department for Transport, the Department for Levelling Up, Housing and Communities, and others. This has included workshops and presentations to build understanding of their approach to the new duty and to identify what support would be useful. Several departments are already looking at developing their own tools, such as their own templates. We are working closely with them to share ideas and identify best practice as we develop a toolkit of resources. Within Defra, we are developing pilot studies to test materials and help establish best practice. That toolkit of resources will be shared across government in advance of the final policy statement. It will contain notes, an introductory video, case studies and other materials to support the application of the principles.

We are also developing an online training package for Civil Service Learning. This is aimed at policymakers and legal professionals and is accessible to civil servants across government.

We are engaging at senior level with other departments through the cross-government 25 Year Environment Plan Board and a network of senior ambassadors. We are working to embed the principles in cross-government guidance and processes, including the Treasury Green Book.

We are currently considering arrangements for the implementation period that will follow publication of the policy statement. I understand that noble Lords want clarity on this, but we will have more clarity by the time we publish it and we will be happy to share it, as we know the amount of work that is involved. We are discussing the possible length of that period across government.

The noble Baroness, Lady Bakewell, asked about enforcement and the OEP’s role in it. The duty for Ministers to have due regard to the policy statement on environmental principles falls within the definition of environmental law. As such, once the duty is in force, individuals—any citizen or organisation—could make a complaint to the OEP regarding Ministers’ compliance with this duty. The OEP has powers to investigate and, where necessary, take enforcement action in relation to serious failures by public authorities to comply with environmental law. Nobody doubts its determination or its wonderful chairman’s indefatigable independence. It is flexing its muscles as it develops, and it will be a force for good across government policy-making.

At the end of the implementation period, the legal duty will come into effect and apply to policies made after this date. This includes policies that are in development leading up to this. We must therefore ensure that we balance the importance of bringing the new duty into force as soon as possible with the time needed for departments effectively to implement it. I am sure all noble Lords understand that.

We are discussing and considering internally the best way to evaluate the effectiveness of how the environmental principles are applied—this was the concern of the noble Baroness, Lady Parminter—and how they are applied in the future. However, neither the policy statement nor the Act is prescriptive about how departments should apply and document their implementation of the duty. The most appropriate way to do this will depend on the policy. Different government departments may have different approaches.

My concern is not for my tenure in this office but that future Ministers will be held to account if they do not stick to the letter of this law. Ministers will be responsible for implementing the new duty within their departments and our toolkit will provide templates, guidance and support. Departments will need to consider what records should be kept to demonstrate that the due regard duty has been satisfied.

The question of exemptions was raised, and I remember this lengthy debate during the passage of the Environment Act. As for which policy areas will be exempt from the statement, work is already under way in the Ministry of Defence to design processes that will achieve the outcomes required by the principles duty and to report on actions taken. The work is being led in the MoD’s new climate change and sustainability directorate, which is also responsible for its wider environmental sustainability work and will actively work with Defra and other government colleagues to maintain a coherent and robust approach.

Taxation, spending and the allocation of resources within government are excluded from the remit of the duty. The exemption on the allocation of resources refers to central spending decisions only. Individual policies that require spending will be within scope of the duty to have due regard to the policy statement. The Treasury’s world-leading Green Book already mandates the consideration of environmental impacts, climate change and natural capital on spending.

I add that the new duty goes further than corresponding provisions under the Treaty on the Functioning of the European Union, which are not legally binding for member states. We want to ensure that these principles not only guide our domestic policy, but that they are used properly and transparently, and on all policies that have an environmental impact—not just on environmental policies.

I say to my noble friend Lady McIntosh that the Agriculture Act says:

“In framing any financial assistance scheme, the Secretary of State must have regard to the need to encourage the production of food by producers in England and its production by them in an environmentally sustainable way.”


No farmer in this country should be in any doubt that we want them to produce food, but to do it sustainably. That is the direction of travel of our farming reforms.

I am grateful for this opportunity to hear views on the environmental principles policy statement, and I thank noble Lords here today for this discussion, which has highlighted some really important considerations. It is important that we are able to agree on and implement the final policy statement quickly and effectively. To put environmental protection and enhancement at the heart of policy-making in government, the Government will consider all comments from within this House and beyond received during the parliamentary scrutiny period and will publish a response alongside the final policy statement in the autumn. By integrating these principles into our policy-making, we will contribute to the wider environmental goals set out in the 25-year environment plan, including reducing carbon emissions, improving biodiversity and helping us to become the first generation to leave the environment in a better state than we found it.

Agricultural Fertiliser and Feed: Rising Costs

Lord Benyon Excerpts

Wednesday 29th June 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I refer noble Lords to my entry in the register. I congratulate the noble Lord, Lord Redesdale, on securing this debate and the clear passion with which he introduced this subject. I am grateful to other noble Lords for their contributions. The Government are of course more than sympathetic towards and understanding of the plight and costs that farmers face now, as they try to plan for the future.

I hope that the noble Lord will put pressure on his Front Bench to dump the idea of suspending the transition in farming from BPS to the new farming future, because that would precisely help the arable farmers who will see their gross margins double and perhaps even treble in certain areas this year. Suspending it would not help the chicken farmer that he mentioned or small tenant farmers, upland farmers or the family farmers who have grown up around me, and it would perpetuate a system that gives 55% of the money to the largest 10% of the landowners. It is deeply unfair, and now would be completely the wrong time do this.

Agricultural commodities are closely linked to global gas prices, as the noble Baroness, Lady Bakewell, and the noble Lord, Lord Campbell-Savours, pointed out. Farmers are facing increased input costs, including manufactured fertiliser, livestock feed, fuel and energy. Natural gas is a key input in the manufacture of nitrogen-based inorganic fertilisers, which include the two main mineral fertilisers used in Great Britain: ammonium nitrate and urea. A combination of global demand and supply pressures has caused the price of gas to increase dramatically since the end of summer 2021, causing significant issues for both the global and the domestic fertiliser industry. As has been said, the invasion of Ukraine by Russia this year has obviously further disrupted global supply chains.

We want farmers to be able to keep running a viable business and continue producing food. This is right at the top of the Agriculture Act, which requires Secretaries of State today and in the future to have the production of food at the heart of what they do. We recognise that increasing input costs, particularly fertiliser, animal feed, fuel and energy, are creating short-term pressures on cash flow. On 30 March, the Government announced measures to address the cost pressures impacting farmers as a result of the global instability of demand and price increases. I remind the noble Baroness, Lady Jones, that changes to the use of urea fertiliser have been delayed until at least spring 2023—this was one of the many actions that we have taken and will continue to take. When restrictions are introduced, they will include the use of protected or inhibited fertilisers, rather than a complete ban. Farmers will be further supported through new slurry storage grants as of this year, helping to meet the farming rules for water and reducing dependence on artificial fertilisers by storing organic nutrients.

We have published additional details of the sustainable farming incentive, which will help farmers move towards sustainable farming practices over time, supporting them to build the health and fertility of their soil and to reduce soil erosion. This is essential for sustainable food production, helping to bolster food security and the longer-term resilience of the sector.

On 6 May, we agreed to bring forward half of this year’s BPS payment as an advance injection of cash to farm businesses in England from the end of this July. I appreciate that many noble Lords on all sides have mentioned that. Payments will also now be paid in two instalments each year for the remainder of the agricultural transition period, to help farmers with their cash flow. Sympathy and understanding are easy; action is what matters and is what this Government are doing.

An industry fertiliser task force—previously known as the fertiliser round table—has been formed, made up of key sector bodies including the National Farmers’ Union, the Agricultural Industries Confederation, the Agricultural and Horticultural Development Board, and the Tenant Farmers Association. A lot of work has been done on innovations, much of which has been mentioned in this debate. I make the point that CO₂ is a by-product of fertiliser industries; we need CO₂. One of the measures we took in supporting a factory last year was to sustain the CO₂ which is needed in food production in other sectors, particularly in abattoirs.

The task force has met regularly and continues to work on issues around fertilisers, identifying solutions to better understand the impact of current pressures on farmers. Actions need to be informed by facts, and that is what we are doing. We continue to keep the market situation under review through the UK Agriculture Market Monitoring Group, which monitors UK agricultural markets, including price, supply, inputs, trade and recent developments. We have also increased our engagement with the industry to supplement our analysis with real-time intelligence.

Fertilisers are vital for food production, providing essential plant nutrients, such as nitrogen. It is estimated that approximately 50% of human-edible protein produced globally is a direct result of mineral fertiliser usage. Mineral fertilisers, when used appropriately—tailored to the soil and crop requirement, with correct application timing and techniques—are highly efficient. Organic materials applied to agricultural land, such as livestock manures, biosolids, composts, anaerobic digestates and waste-derived materials are also valuable sources of plant nutrients.

Data from the 2020 British Survey of Fertiliser Practice suggested that around 65% of Great Britain’s farmers used at least some manure, slurry or biosolids. Careful recycling to land allows their nutrient value to be used for the benefit of crops and soil fertility. We are supporting farmers in making more efficient use of these mediums. However, we know that poor application of any fertiliser is bad for the environment. The UK has environmental objectives published in the Clean Air Strategy, the 25-year environment plan and the net-zero strategy. These aim to make farming more sustainable and to reduce the polluting effects of fertiliser use by developing further policies. However, I accept that this is the medium and long term; we have a current crisis to deal with.

The current increased cost of fertiliser provides a very strong incentive for farmers to increase their nutrient use efficiency to include every ounce of fertiliser—I have spoken to many who are doing this. Farmers in the UK, concerned about high prices and future supply, did not buy at their usual rates from autumn 2021 through to May 2022, which resulted in delayed or reduced fertiliser application. However, the UK has a highly resilient food supply chain, as demonstrated throughout the Covid-19 pandemic. It is well equipped to deal with situations with the potential to cause disruption.

Every year, yield is heavily affected by the weather—the amount of rain and sunshine that crops receive. It is not yet clear the exact impact on crop yields for the 2022 harvest, but, as has been said, it looks pretty good in many areas—although we must not count our chickens before they are hatched. After a largely dry April, welcome rain was seen in May, so let us hope for the best.

Farmers aim to produce food while also providing themselves with a profit for their livelihood. However, to produce a profit, it is understood that farmers have to reduce crop areas in favour of different land use, sow different crops with lower fertiliser requirements, or choose to apply less fertiliser to get a lower quality yield. Our supply chain providing imports of fertiliser to the UK has remained dynamic in sourcing products. As has been said, CF Fertilisers continues to produce ammonium nitrate fertiliser from its plant in Billingham.

I understand noble Lords’ concerns about access to affordable animal feed, particularly in the context of high inflation. For the livestock sector, animal feed is a vital input, with increases in price and problems in availability impacting variable costs and productivity. Cereals and oilseeds make up a significant proportion of animal feeds, most of which are internationally traded commodities. Subsequently, their supply chains are dynamic and responsive to global market developments in price and availability. These developments may be influenced by both the war in Ukraine and additional factors unrelated to the conflict, such as weather conditions and currency fluctuations.

The question of what we are doing to make the UK more self-sufficient in fertilisers was raised. As I have said, it is a global market; the UK sources fertiliser from a wide range of countries and already produces fertilisers such as ammonium nitrate. While global fertiliser prices have risen, we are still producing it here and we are working very closely with the sector to make sure that it is happening.

We must also look at alternatives. The Secretary of State and I have, at different times, visited a company called CCm, which produces such technology. It is an absolute game-changer. CCm produces fertiliser that can be used in the same way as prilled inorganic fertiliser, but it is produced from sewage sludge, potato peelings and so on, and it is an entirely circular economy. I would commend a greater understanding of it, because I think it has great possibilities for the future.

Our dependence on inorganic fertilisers is something that we have to face in the medium term. We have suspended many of the changes on the farming rules for water, which was a point made by the noble Earl, Lord Devon.

On fertiliser market transparency, Defra is working with the AHDB, the AIC and the NFU on how fertiliser price transparency can be improved in order to aid farmers in their decision-making. Defra is also looking to review fairness in the supply chain across the agri-food supply chain business, which was a point raised by the noble Lord, Lord Carrington.

The noble Baroness asked for action now, but she did not in fact say what action she was talking about. I think I have proved that we are taking action. We are aware of the pressures on farmers caused by rising fertiliser and feed costs and we have taken active steps to mitigate these. We continue to work in partnership with key sector bodies, so that any wider impacts on the food supply chain are minimised and to ensure the UK is well equipped to respond to the global forces that continue to drive the supply and price issues that we are facing. We are deeply mindful of this very serious issue for farmers. We are taking action and working with them and the whole supply chain. I hope that I have answered the questions.

[Lord Redesdale (LD)]

The Minister made the assertion that we are against ELMS and for BPS. I can happily say that, after massive pressure, we are quite clear that we are for ELMS, rather than BPS.

[Lord Benyon (Con)]

I am aware that, across this House, there is great support for the environmental land management scheme, but there was a suggestion by his Front Bench in another place that it should be suspended. Now is not the time to do that; now is the time to make the farming industry more secure and more sustainable to withstand these kinds of global impacts, and make it fit to produce food in the future.

Plant Health etc. (Miscellaneous Fees) (Amendment) (England) Regulations 2022

Lord Benyon Excerpts

Tuesday 28th June 2022 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Plant Health etc. (Miscellaneous Fees) (Amendment) (England) Regulations 2022.

Relevant document: 5th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, this instrument makes amendments to plant health fees established in the Plant Health etc. (Fees) (England) Regulations 2018 to ensure that there is no underrecovery or overrecovery of costs.

First, it ensures that the fees charged for plant health checks on regulated commodities imported into England from all third countries reflect the frequencies of those checks established under the new risk-targeted inspection scheme set out in the Official Controls (Plant Health) (Frequency of Checks) Regulations 2022, which will be laid in Parliament on 30 June and apply from July 2022. This approach to fees does not apply to a new flat rate fee, which this instrument also introduces and which I will discuss shortly.

It is our responsibility to protect biosecurity across plant and animal health and the wider ecosystem. To that end, plant health checks, encompassing documentary, identity and physical checks, are carried out on certain regulated consignments imported into England from third countries that may carry pests or diseases that could pose a risk to our biosecurity.

Currently, the highest-risk commodities are subject to 100% plant health checks. The level of identity and physical checks on other commodities is based on risk. The new risk-targeted inspection scheme will provide a risk-based method to determine the frequency of plant health checks, focusing specifically on risks to GB biosecurity. This scheme will apply equally to certain regulated imports from non-EU countries and from EU member states, Switzerland and Liechtenstein.

It is UK government policy to charge for many publicly provided goods and services. The standard approach is to set fees to recover the full costs of service delivery. This relieves the general taxpayer of costs so that they are borne by users who benefit from a service. This allows for a more equitable distribution of public resources and enables lower public expenditure and borrowing.

Charging for plant health services is consistent with the principle that businesses using these services should bear the costs of any measures to prevent harm that businesses might otherwise cause by their actions or non-actions, since most serious plant pests and diseases that arrive and spread in this country do so via commercial trade in plants and plant produce.

In line with the standard approach that the full cost of service delivery be recovered from businesses using these services, fees for physical and identity checks will reflect the frequencies established under the Official Controls (Plant Health) (Frequency of Checks) Regulations 2022. For commodities subject to reduced levels of physical and identity checks, a proportionally reduced fee is applied.

This statutory instrument applies to England only. The Scottish and Welsh Governments are following the same approach in terms of applying fees to recover the full costs of their respective inspections. The Scottish and Welsh Governments laid corresponding legislation on 20 May and 21 June respectively.

Secondly, this instrument provides for a flat rate fee on certain plants for plants imported to England from all third countries. The new risk-targeted inspection regime will see plants intended for final users subjected to lower frequencies of checks, compared with 100% frequencies for plants not intended for final users. This flat rate fee aims to prevent plants that have completed their production stage in a third country and are ready to be sold to consumers after import benefiting from a cost advantage over plants imported to complete their production in Great Britain, while maintaining full cost recovery. The policy for a flat rate fee was proposed following stakeholder concerns. The Welsh Government have laid a similar piece of legislation to implement the flat rate fee.

We have worked closely with industry bodies, including the Horticultural Trades Association and the National Farmers’ Union, on developing our approach to the flat rate fee. Following a consultation, it was decided that a new flat rate fee should be applied to plants for planting and cuttings. After feedback that a switch to a flat rate fee would significantly increase fees for importing bulbs and seeds for the final user, we have restricted the flat rate fee to commodities where there is a clear benefit to trade. This excludes bulbs and seeds from the proposed flat rate fee.

Thirdly, this instrument extends an exemption from the payment of fees for pre-export and export certification services where goods are moving from England to a business or private individual in Northern Ireland. This will continue to enable trade between England and Northern Ireland in line with the Government’s movement assistance scheme. The Welsh and Scottish Governments are extending these exemptions in a similar fashion.

Finally, an error is corrected to reinstate in the fees regulations a provision for fees for samples taken on imports, which was omitted by the Plant Health etc. (Fees) (England) (Amendment) Regulations 2021.

This instrument is necessary because it ensures that there is no over-recovery of fees charged for plant health checks on commodities imported from third countries and maintains the full cost recovery of plant health services. If this instrument is not made, it would lead to over-recovery of fees from businesses, which would mean that proposals agreed with stakeholders on a flat rate fee for certain categories of plants would not be implemented. I beg to move.

[Baroness McIntosh of Pickering (Con)]

My Lords, I thank my noble friend for introducing the regulations before us. I broadly welcome them, but I have a number of questions.

Paragraph 12.1 of the Explanatory Memorandum states:

“The impact on business … is that these changes are estimated to save businesses c. £1.2m per annum due to lower levels of checks and subsequent impact on fees.”


Obviously, a lower level of fees will be pleasing for the industry, but I had not grasped that we are introducing a lower level of checks through this instrument.

One of the difficulties of this instrument, which my noble friend just introduced, was also set out in the Secondary Legislation Scrutiny Committee’s fifth report. As my noble friend stated at the outset, there will be a second statutory instrument at the end of June that will set out the regime. Why has the way in which the fees have been structured been separated from the regime? Why have we not had an opportunity to consider them both together? I would have thought that the regime was probably of most interest. When might we expect to see that statutory instrument, as today is already 28 June?

Am I right to assume that paragraph 28 talks about the inspection fees being corrected, as they are being reinstated, when samples of imported consignments are taken for lab testing to confirm the presence of certain plant pests? Can my noble friend elaborate on whether that is done on an ad hoc basis or responding to intelligence? Does it include such laboratories as FERA, which I had the honour to represent in North Yorkshire for the last five years I was in the other place?

Also, is this one of the instruments that appears on the famous dashboard that we heard about last week? Is it one of the 570 statutory instruments that is retained EU law or is it a stand-alone instrument? Will we come back to look at this in a different context? I welcome the opportunity to debate and approve the regulations this afternoon.

--- Later in debate ---

Who makes the judgment on this “clear benefit to trade”? How long is the temporary flat rate fee intended to last? I look forward to the Minister’s response.

[Lord Benyon (Con)]

I am grateful to both noble Baronesses for their points. To continue to protect plant biosecurity while facilitating the trade and movement of plants and plant material, it is essential that consignments that could pose a risk be subject to risk-based inspections before entering Great Britain. As I described, this instrument will maintain the alignment of plant health inspection fees with UK government policy to recover the full costs of official checks to manage risks arising from commercial activity.

I will respond in a rather random way to both questioners—I hope the Committee will forgive me. First, my noble friend Lady McIntosh and the noble Baroness, Lady Jones, asked why the two SIs are being dealt with separately and why Parliament has not been given a chance to debate measures in the other SI before deciding on this one. The Official Controls (Plant Health) (Frequency of Checks) Regulations 2022 set out the methods used to calculate the frequencies on which the fees in this instrument are based. Those methods and the resulting frequencies of checks have been published via consultation.

Both SIs are scheduled to come into force on 22 July and require scheduling to ensure that they do so in an aligned fashion. The difference in scheduling of these SIs is due to the different type of parliamentary procedure that they should follow, determined by their parent Acts. The Official Controls (Plant Health) (Frequency of Checks) Regulations 2022 will be open to full parliamentary scrutiny, as per the negative procedure, following being laid on 30 June.

I reassure both noble Baronesses that we have raised the standards of biosecurity in this country since leaving the EU. We have put resources behind it, employing 150 more inspectors, and we are approaching it in a unified way, with Border Force improving our training at ports of entry. As the Committee knows, we are rolling out our BCPs in the coming months to make sure that we stop more high-risk plants at the border, rather than at point of delivery.

The noble Baroness, Lady Jones, asked about some fees and checks being reduced significantly and whether that means that we are somehow weakening biosecurity as we will not be inspecting so intensively. The new inspection arrangements are based on international standards for categorising commodities according to risk. This will allow the Animal and Plant Health Agency to focus on those commodities representing the highest potential risk, including trees and other woody plants to be grown outdoors, while reducing input on those products representing a low risk due to their intended use, such as houseplants and many fruits and vegetables for consumption. In this way, we will be targeting resources in the most effective way to protect GB biosecurity while avoiding unnecessary burdens and costs on businesses.

The noble Baroness asked who makes this decision. Experts make the decision, not me. Our Chief Plant Health Officer, who I speak to regularly and have spoken to today, and I have a monthly biosecurity meeting where we look at risks, but the risk is managed by people who understand its evidence base. Those are the basic criteria around which we make this decision. The plant health risk group meets monthly and continuously monitors new threats, taking account of the results of import inspections and other relevant information, such as scientific reports and developments in other countries. Inspection frequencies are one tool by which risks can be mitigated, and they will be kept under frequent review. However, it is already the case that the highest-risk plants and products, including trees and woody plants, will be inspected more intensively, and that we will keep our import requirements under continuous review to determine where they need to be strengthened in response to new or altered risks, as was the case in the recent pine processionary moth incident.

Going back to my noble friend Lady McIntosh, certain goods are subject to routine sampling and testing, such as seeds. In other cases, goods are sampled when an inspector sees something concerning during an official import inspection. A sample is taken to confirm the presence or absence of a controlled pest.

A question was asked about the large difference between some fees. It is a good point to make. The risk associated with specific commodities is the basis on which the fees are set. The highest-risk commodities are subject to 100% documentary, identity and physical checks and 100% of associated fees. Lower-risk goods are subject to lower frequencies of checks and therefore proportionately lower fees. Defra and its agencies are not alone in doing this. There is a protocol across Whitehall about charging for these activities. That protocol is set by the Treasury. We work closely with it to make sure that our rules for cost recovery are in accordance with those laid by the Government.

I should say at this point that the Government announced on 28 April that the remaining import controls on goods from the EU, Liechtenstein and Switzerland, including plants and plant products, will no longer be introduced this year. Instead, traders will continue to move their goods from the EU to GB as they do now. The rest of the controls which were planned for introduction on 1 July are no longer going ahead. This means that import checks of high-priority plants and plant products will not be moving to border control posts yet. Deregulated and notifiable produce and cut flowers will not be subject to import checks from July. Low-risk Article 73 goods will no longer require prenotification but will be assessed on a risk basis.

I have received inspiration in reply to a question about who makes the decision. This is agreed on the basis of consultation with stakeholders, as we have done with this SI, which has the support of the industry. That is really important to us.

There was also a question about the flat-rate fee. The fee will be in place until a fees review has taken place. That will involve a full review of all plant health fees, including the methodologies used to determine them. It is a multi-year process involving close work with stakeholders.

The other point I would make is on the disparity in funding for foliage versus physical checks, which the noble Baroness rightly raised. There is a serious risk to seed potatoes, which is why they are charged at a higher cost. Foliage—an apple, for example—is a simple product to assess. We want to make sure that we are doing it on the basis of risk but also in accordance with cross-government rules on charging.

As I have outlined, these regulations ensure that full cost recovery of plant health services is maintained and that the costs of inspecting imported plant health-controlled material are met by those businesses using Defra’s import inspection services. With that—

[Baroness Jones of Whitchurch (Lab)]

I thank the Minister for his reply, which was, as ever, very comprehensive. I just want to go back to the original point about the missing SI that is not here. The Minister said that it and this SI originally came from two pieces of legislation, which is why they ended up here in a different order, but there must be somebody in Defra who can apply a bit of common sense to that ordering. I do not wish to make too much heavy weather of it but I hope that a lesson is learned from this. The department needs to ensure that, whatever the originating piece of legislation, instruments come before Parliament in a sensible order so that we can deal with concurrent bits of legislation at the same time. I leave that thought with the Minister.

[Lord Benyon (Con)]

That thought is well made and will be reflected on. We want to make sure that we are doing this properly. As the noble Baroness says, the instruments come from two separate pieces of legislation. Which measures are affirmative or negative, in what is brought before us in this place, is an enigma wrapped in a mystery to me. However, there are wiser minds than mine that understand these things. I accept the point: we try to apply common sense in everything we do and make it easy for noble Lords to hold the Government to account, but we are bound here by two distinct pieces of legislation. I am hopeful that they will go on to the statute book and improve the regime, and be in place by the middle of next month.

Motion agreed.

Common Agricultural Policy (Cross-Compliance Exemptions and Transitional Regulation) (Amendment) (EU Exit) Regulations 2022

Lord Benyon Excerpts

Tuesday 28th June 2022 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Common Agricultural Policy (Cross-Compliance Exemptions and Transitional Regulation) (Amendment) (EU Exit) Regulations 2022.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I declare my farming interests as set out in the register.

These regulations apply to retained EU law relating to the common agricultural policy, specifically: rural development; the common organisation of the markets, known as the CMO; and the underlying cross-compliance rules that farmers and land managers must follow on their holding if they are claiming certain rural payments. The instrument, made using the powers of the withdrawal Act, is extremely limited in scope. It makes no policy changes to retained EU law and no provision for future funding.

This instrument corrects a number of requirements to make notifications to the European Commission, references to “member states”, references to EU funding and EU policies, reports to be prepared by the European Commission and references to prospective EU legislation not yet made. These references came into force in the EU through Regulation 2020/2220, which the European Commission published and brought into force only in December 2020. This was too late for Defra to address prior to the end of the transition period, therefore the references were brought into retained EU law in the UK at the end of that period.

These references are redundant or deficient in a domestic context. They would, if possible, have been amended or removed from the statute book by Defra’s 2020 EU exit SIs had the EU regulation that introduced them been made earlier. The provisions being amended add little to domestic law, place unnecessary requirements on the UK to comply with EU policies that the UK does not share, or actively contradict amendments that Defra and the devolved Administrations have already made to provide for the future of agriculture in the UK.

--- Later in debate ---

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister for his introduction to this SI and for the helpful briefing beforehand. I accept that the majority of these changes are technical in nature.

First, although it is not ideal, I understand why the changes to EU regulation 2020/2220 could not be made at this time, given that it was passed so close to the end of the transition period. It therefore makes sense to take this opportunity to remove the provisions to minimise ambiguity and potential confusion. I also accept that it is helpful to remove redundant references to the EU and member states where they no longer apply in UK law.

Secondly, with regard to the changes to cross-compliance regulations, I can see why it might be necessary to widen the scope of the existing cross-compliance exemptions as set out in Schedule 3. However, I have some specific questions about this. These new exemptions to the schedule are very specific and refer only to the specific changes we made to Section 98 of the Environment Act 1995 and Section 1 of the Agriculture Act 2020. Can we be sure that these two provisions are the only two occasions where exemptions to the cross-compliance rules should be necessary?

I am struggling with some of the detail here, but I do not think many farmers will be operating exclusively under those agreements. That raises the question of what happens if, for example, their environmental work is, say, 20% but also has a direct impact on other activities, such as food production, at 80%. Would they be penalised, or is there an element of discretion? If so, what would that look like? In other words, what is the interface between the old cross-compliance and the new arrangements? How much discretion is there in all that or is it absolutely fixed in stone?

I still do not feel, having read the SI several times, that the application of the cross-compliance rules is clear, notwithstanding double negatives and so on. I would not relish being a farmer and having to try to understand and apply them. To be absolutely clear about this, are they to be applied only to claims under the old basic payment scheme? Therefore, will the cross- compliance rules be phased out as any claims under the old CAP scheme are phased out?

Given that there is wide acknowledgement that the CAP was too rigid and the financial penalties for non-compliances were too onerous, why are the Government not taking this opportunity to introduce the lighter-touch regime we were promised when we debated the then Agriculture Bill? Can we be assured that the roll-out of ELMS and any future UK agricultural and rural payment schemes will be assessed without cross-compliance penalties? How is that all going to work in future?

I look forward to the Minister’s response. I also look forward to the Minister’s response to the very interesting questions from the noble Baroness, Lady McIntosh, which I would like to know the answers to as well.

[Lord Benyon (Con)]

I am grateful to the noble Baroness and my noble friend for their contributions; I will try to answer their questions.

On the dashboard, these regulations and all retained EU law will be carefully reviewed as we go through the next few months. The Bill text is yet to be finalised. We are working closely with the Cabinet Office on what will be required in Defra-retained legislation. My noble friend Lady McIntosh is right to point out that we are coming to the end of the transition period, which is why we are doing all this stuff now. The tidying-up operation we are bringing in is because the sunset element of the EU withdrawal Act will be later this year and we want to get these matters resolved.

My noble friend asked how this instrument relates to the Brexit freedoms Bill. This instrument was an EU exit instrument made using the powers of the European Union (Withdrawal) Act 2018. As such, it makes no policy changes and does no more than is appropriate to make this common agricultural policy legislation fully operable now that the transition period with the EU has concluded. The Brexit freedoms Bill makes it easier to amend or remove outdated retained EU law from the statute book, ensuring that the UK continues to seize the benefits of Brexit and utilise our regulatory freedoms. Future regulation will be in line with our new regulatory principles. This answers some of the points that the noble Baroness, Lady Jones, made. Our rules will be proportionate and create a collaboration with business to help spur on economic growth.

I would just say, to her final point on ELMS, that we are trying to generate a culture change within agriculture. The cross-compliance rules of the common agricultural policy were tedious—I speak with the scars on my back from having to fill in the IACS forms and all their successors—and you could feel the dead hand of government on your shoulder regulating every aspect of what you do. We are transferring to a system that trusts farmers to draw down from a list of possible actions they might like to take and treats them rather like we do taxpayers. We taxpayers fill in our tax returns and the Government trust us unless they have reason not to. Occasionally, they will do an inspection. Occasionally, they will do a risk-based, intelligence-based assessment of whether somebody is at risk of breaking those rules. If they do break those rules, there are sanctions, but we want to be working with farmers much more, encouraging them into the new schemes and seeing the benefits that will come from that.

The noble Baroness, Lady Jones, made a very important point about cross-compliance regulation and enforcement. We are reforming our regulatory system, as I have said, to meet the country’s need and we will deliver a clear, fair and effective system. Cross-compliance will end at the point that the CAP direct payments are dealing from land. However, protections provided by cross-compliance will mostly continue. Domestic legislation already contains most of the same rules as cross-compliance and enforcement action to deal with any non-compliance.

The end of cross-compliance provides an opportunity, as I say, to move away from an approach that is seen to be disproportionate. We are reforming our farming regulatory system using the Dame Glenys Stacey 2018 review recommendations and by working closely with farmers and others. We want a farming regulatory approach that is focused on outcomes and based on the core principles of partnership, adaptability, proportionality, transparency and efficiency.

Some questions related to the whole area of complexity. Defra is working hard to make the system as easy as possible for everyone. We have simplified the online application system to make it faster and easier for farmers to apply and revised the scheme standards to make them clearer and more self-explanatory. Farmers can be in the SFI and the Countryside Stewardship scheme or the Environmental Stewardship scheme at the same time, so long as they are not being paid for the same actions twice and the actions are compatible.

--- Later in debate ---

[Baroness Jones of Whitchurch (Lab)]

I am sorry, I do not normally interrupt the Minister, but can this be right? I think the Minister said, which I did not expect him to, that when the basic payment scheme is phased out, as it will be, cross-compliance will carry on after that. Is that the correct understanding of what he said?

[Lord Benyon (Con)]

There is some conditionality on the scheme. If you say that you are going to plant a headland, you have to plant a headland with wild flowers, and it is the same if you are doing something that comes under the heading of “public goods” that we are pushing through our new schemes under the SFI. However, as I said, we want to do this with a light touch. We want farmers to be trusted to do it. The cross-compliance elements will remain as the schemes are phased out, but then we want to move to a system that is more trusting of farmers to do the right thing.

Motion agreed.

Water Companies: Sewage Discharge Monitoring

Lord Benyon Excerpts

Tuesday 21st June 2022 Lords Chamber

[Baroness Jones of Whitchurch]

To ask Her Majesty’s Government what plans they have, if any, to require water companies to monitor the volume of sewage discharged into water courses and not just the frequency of such discharges.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I refer noble Lords to my entry in the register. The volume of storm overflow discharge is not directly proportional to its harm as the concentration of sewage in discharges depends on the volume of rainwater it is mixed with. Therefore, we have taken a more effective approach to place a duty on water companies in the Environment Act to directly monitor the impact of discharges on water quality upstream and downstream of overflows. This monitoring system will identify harm from storm overflows and ensure that water companies are held to account through enforcement action.

[Baroness Jones of Whitchurch (Lab)]

I thank the Minister for that response, but the Environment Agency has already said that there has

“been widespread and serious non-compliance with the … regulations.”

How can it be expected to act if water companies do not have to measure the intensity of polluting sewage being discharged. Of course there is a cost, but we have always known that more investment is essential to tackle this problem. The Commons Environmental Audit Committee has already recommended installing these monitors, so why are the Government siding with the water companies against the interests of the public, who are rightly outraged at this ongoing scandal?

[Lord Benyon (Con)]

The Government are very much not siding with the water companies. The level of storm overflows into our rivers is totally unacceptable. That is why we are publishing on 1 September this year our storm overflows plan, which will give details of how we will monitor this. We have measures within the Environment Act which give new legally binding targets and measures which we will bring into force. We have the 25-year plan commitment and our strategic policy statement for Ofwat, which gives a very clear direction. We also have our requirements to the Environment Agency on enforcement, which will hold water companies that break the law to account.

[The Duke of Wellington (CB)]

My Lords, as the Minister has just said, the Government recently published a draft of what they describe as the storm overflows discharge reduction plan. That draft was published and consultation was invited. In that plan there is a target of reducing discharges of sewage over the next 18 years by only 40%. Does the Minister agree that the public expect a much more ambitious target than that?

[Lord Benyon (Con)]

The public are right to feel very strongly about this and we try to reflect that in the priority we give to this. The target will be to concentrate on bathing waters and special environmental waterways, such as chalk streams. They will be the Government’s absolute priority and by 2035, under our plans, we will have eliminated nearly all outflows into those waterways.

[Baroness McIntosh of Pickering (Con)]

My Lords, does my noble friend accept that if he introduced Schedule 3 to the Flood and Water Management Act 2010, the amount of discharge would be immediately reduced? What plans have the Government got to do so?

[Lord Benyon (Con)]

From memory, I think that Schedule 3 refers to water companies being statutory consultees. I am very happy to follow that up with my noble friend in the near future.

[Lord Oates (LD)]

My Lords, is the Minister aware that last year South West Water discharged raw sewage into rivers and beachfronts 43,000 times over a period of 350,000 hours, including for 3,709 hours into the River Otter in Honiton, for 1,872 hours into the River Exe in Tiverton, and for 1,482 hours into the River Axe in Axminster? Will the Government end this scandal by imposing a sewage tax on water company profits to fund necessary upgrades, and will they ban water company bosses claiming bonuses until that is done?

[Lord Benyon (Con)]

I think that was a very good choice of geography. The noble Lord will accept that this is an absolute priority for this Government. People who live in that part of the world, in places such as Tiverton and Honiton, are right to want a Government who will clean this up, but who have a plan to do it without raising their bills to unaffordable levels. That Government are this one.

[Baroness Jones of Moulsecoomb (GP)]

My Lords—

--- Later in debate ---

[Baroness Jones of Moulsecoomb (GP)]

We have better policies than Labour, do not worry.

I am really sorry to hear that these volume monitors are so expensive, but let us remember that the water companies are not short of a penny or two. For example, Liv Garfield, the CEO of Severn Trent, has just been paid £4 million a year; Anglian Water has just today paid shareholders a £92 million dividend; and of course £72 billion was paid out in dividends by water companies, while also raising bills by 31% and cutting investment in infrastructure by, in some cases, almost 40%. These are all facts and figures from Feargal Sharkey, and I thank him very much. Can the Minister tell me how much these volume monitors cost?

[Lord Benyon (Con)]

I cannot tell the noble Baroness precisely. I can tell her that, 11 years ago, the then Water Minister was quite stunned to discover that we knew of only 10% of sewage outflows into rivers. He required all water companies to identify them and, by the end of next year, we will have identified 100% of them, with real-time monitors, so that the public will know. I know who that Minister was, because it was me.

[Lord Watts (Lab)]

My Lords, the Minister has just said that he found out about this 11 years ago. What have government and the regulator been doing since then? Quite frankly, I think the regulator needs sacking and the Minister needs sacking. Perhaps if he brought my good friend Feargal Sharkey in as a regulator, things would happen.

[Lord Benyon (Con)]

The noble Lord is not the only person who refers to Feargal Sharkey as his friend. He is someone I know and worked with when I sat on the board of River Action, which was set up to clean up rivers such as the Wye, part of which is ecologically nearly dead. That is why there is an absolute priority in my department and in this Government to make sure we are making these changes and restoring our rivers.

[Lord Hannan of Kingsclere (Con)]

My Lords, have my noble friend or his department seen any assessment of the impact on rivers or consumers if, as some in this House want, the water companies were nationalised?

[Lord Benyon (Con)]

I have. An independent piece of research said that water bills would be considerably higher if we had not privatised all those years ago. We know that if water companies were in public ownership, the heads of those utilities would have to sit in the queue behind the health service, education, the police and all the other priorities of public spending, and our environment and water customers would get the crumbs at the end of the queue.

[Baroness Bryan of Partick (Lab)]

My Lords, as somebody who drinks water from Scottish Water, I am pleased to tell noble Lords that it is of excellent quality, our water bills are very reasonable, and the water is owned by the people who use it. I would like to follow up the question from the noble Duke, the Duke of Wellington, because I do not think the Minister gave him an adequate answer. It is not good enough to say that the Government are prioritising one type of water over another when by the time most of us here will be long gone, we will still have only a 40% reduction in sewage in our water.

--- Later in debate ---

[Lord Benyon (Con)]

I very much hope that I and the noble Baroness are spared until 2035, so that we can see that priority waters—those for public bathing and those which we mind desperately about, such as chalk streams and other very special environmental ecosystems —are prioritised. That is what we are intending to do. Our ambitions are both high and achievable.

[Baroness Boycott (CB)]

My Lords, the Minister mentioned the River Wye, yet the rivers in the west of England are largely polluted through industrial chicken farms. Can the Minister enlighten the House on what regulation the Government might take to stop this form of pollution?

[Lord Benyon (Con)]

The noble Baroness is absolutely right that the problem does not just exist with water companies. Agricultural activities in certain parts, particularly the Wye and Usk catchment, are detrimental to water quality. We have to make sure that, for the phosphates that are run off from the chicken and poultry farms in that area, there is more join-up to protect waters. This is not just an agricultural issue; it is also a planning issue. There is an added problem, in that that river catchment runs across Welsh and English boundaries, and so we have to work with the devolved Government as well.

Animal Welfare (Miscellaneous Amendments) Regulations 2022

Lord Benyon Excerpts

Monday 20th June 2022 Grand Committee

Moved by

[Lord Benyon]

That the Grand Committee do consider the Animal Welfare (Miscellaneous Amendments) Regulations 2022.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, this instrument makes several minor, technical amendments to retained EU regulations, correcting deficiencies so that the legislation operates effectively. These regulations relate to the protection and welfare of animals during transport and to official controls on the imports of animals, animal products, plants and plant products, including food and other imports relevant to the agri-food chain.

In Great Britain, the Animal and Plant Health Agency issues authorisations to commercial transporters of animals which can show that they meet the regulatory requirements, such as having appropriately trained and competent staff. For long journeys, the Animal and Plant Health Agency also approves journey plans, known as journey logs, prior to the journey beginning. Approval of a journey log depends on the transporter demonstrating that it can meet the welfare needs of the animals being transported, through providing appropriate rest, food and water. The requirement for an APHA-approved journey log extends to EU transporters that wish to import animals to Great Britain.

This instrument clarifies the role and powers of the competent authority to grant or refuse requests for journey logs and transporter authorisations needed for the transport of live animals into, out of and through Great Britain. This will allow for better enforcement, as the role and powers of that authority would otherwise be unclear in some circumstances, resulting in possible confusion on the ground.

It also clarifies a power of the competent authority to recover the costs of enforcement action where appropriate; that is, it provides the competent authority with the discretion to decide whether to recover costs. The powers of the competent authority are not affected, and the change is intended to make it clear that cost recovery is an option for the regulator. The power to recover costs, without an obligation to do so, enables the authority to take into account circumstances and make decisions regarding cost recovery on a case-by-case basis.

This instrument removes defunct references to various EU systems and organisations—contact points, mutual assistance schemes and an oversight committee. It also removes the legal requirement to report annually to the European Commission on long journeys and animal welfare inspections. Multiple references to “EU member states” are replaced with “Great Britain”. An outdated requirement to provide rules on penalties for infringements of animal welfare in transport regulations by 5 July 2006 is removed, as those rules were laid by that date and are currently in force. Finally, outdated references to other regulations, relating to training for competent authority staff, other veterinary legislation and animal welfare inspections for animals destined for slaughter, are corrected, ensuring that the regulators’ ability to enforce welfare standards is maintained.

The amendments contained in this instrument are necessary to ensure that, in line with current government policy, we can enforce our high animal welfare standards and protect the UK’s biosecurity. I beg to move.

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thank the Minister very much for that introduction. We agree that these changes are broadly technical in nature but, once again, we have an SI before us which, in its own words, corrects failures and deficiencies in retained EU law which should and could have been spotted earlier. First, can the Minister say how these errors came to light and why they were not identified earlier? Has there been any detriment to animal welfare controls since the adoption of the withdrawal Act in 2018, as a result of this incorrect wording?

Secondly, the Minister explained the rationale for changing mandatory cost recovery to discretionary cost recovery. On the face of it, this seems sensible, but can he say something more about the types of cases where it would not be in the public interest to pursue cost recovery? Is there a danger that, if we now switch to what he described as a “case-by-case basis”, it could lead to a broader fall in enforcement action, with many authorities making a financial calculation that the cost is just not worth the effort, particularly if it is a marginal benefit? Could there be an overall drop in enforcement as a result?

Finally, paragraph 7.5 of the Explanatory Memorandum says that the outdated references have been updated to refer to current legislation, and the Minister gave some examples of that. Are the current standards now in place equivalent to or better than the old ones that were there before? As this is quite a complex area of regulation, will it potentially be revisited as part of Jacob Rees-Mogg’s bonfire of EU regulations? If so, what will the process be and when will we hear more about how he intends to conduct that review? I look forward to the Minister’s response.

[Lord Benyon (Con)]

I am very grateful to the noble Baroness for her questions and her understanding of the need for this. She rightly identified a number of areas that need clarification. I absolutely reiterate that these regulations do not reduce any current animal welfare standards. As the noble Baroness pointed out, they make technical but necessary changes to ensure that existing legislation on animal welfare during transport can continue to operate effectively in practice.

In answer to the noble Baroness’s first question, no detrimental effect nor operational issues have arisen since our EU exit but this legislation enables operational delivery. However, there is a need, met by this SI, to ensure that the role of the competent authority is clarified to avoid any points of confusion. There is also a need to ensure that the definition of the competent authority is consistent with that set out in the retained form of the official controls regulations. The other corrective measures in the SI, such as the removal of any obligations to report to the EU Commission and references to defunct legislation, are tidying-up requirements and so have not created any impact.

Leaving the EU was never going to be an easy job. The legislation that took us through the retained EU competence process left a number of anomalies, for which there is a time limit for us to sort out. This is one of them and is relatively minor. It could have been done earlier but is being done now. I hope that the noble Baroness understands.

The noble Baroness talked about the importance of recovery of costs. By providing discretion for costs recovery, we are allowing for situations where such actions would be impractical, uneconomic and not otherwise in the public interest. It is our view that this measure would enable money-saving decisions to be taken by the regulator or at least to ensure that the costs are net zero. We are not amending the powers available to the competent authority; this change is intended to make it clear that recovering costs is discretionary for the regulator. Currently, the competent authority is required to attempt to recover the costs of any and all enforcement actions undertaken. This relates to expenses incurred and there will be a de minimis where the activities exceed the monies recovered. We want to make sure that we are protecting businesses, not imposing costs on them. Giving that discretion to authorities is important.

The noble Baroness asked about making sure that the competent authority has the skills. Any references to other regulations related to training for competent authority staff, other veterinary legislation and animal welfare inspections for animals destined for slaughter have been deleted. They have been replaced by references to current legislation, which maintain the standards already in place. The training requirements for competent authority and veterinary staff are now set out in the retained versions of the official controls regulations. I hope that this gives the noble Baroness comfort that the new standards are at least equivalent, if not better.

On her point about the Government’s deregulatory drive, this is a key area in which we want to retain high standards. We want this country to continue to have the highest animal welfare and environmental standards, which is why it is important that we take this forward. I do not see that changing in this Government and I think that there is cross-party support for Britain remaining a beacon for animal welfare standards, constantly raising the bar and improving what we are trying to achieve. The Government’s animal health and welfare pathway is an example of that and has been broadly welcomed by the farming industry. It is just part of this picture.

We are proud of our world-leading standards on animal welfare. As I have outlined, these amendments will ensure that existing regimes for animal welfare during transport continue to operate effectively.

Motion agreed.

Pig Farming

Lord Benyon Excerpts

Thursday 16th June 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I refer your Lordships to my entry in the register.

I thank the noble Baroness, Lady Harris of Richmond, for securing this debate and welcome the opportunity to respond on the state of the pig farming industry in England. I am very grateful to all noble Lords for their contributions to this very good debate.

Recently I was at the National Pig Awards and I was bowled over by some of the innovations, entrepreneurial activities and the animal welfare measures that pig farmers are bringing in. Many are from Yorkshire, as the proposer of this debate mentioned. It is amazing to think that a pig now produces roughly twice the amount from the same amount of inputs we had on the pig farm I grew up on. That is a recognition of the huge contribution that the pig farming industry has made at the same time as improving welfare standards. It is something to be enormously proud of. I do not diminish the problems the farmers face and I will come on to talk about that.

There are about 4.1 million pigs in England. Pig farming and pork production play an extremely important role in our domestic food supply chain. A rise in international consumer demand for high-quality pork means that there are huge opportunities for growth in British pork exports. The UK’s pig industry exported £567 million of pigmeat products in 2021.

Our pig industry has faced several challenges over the last year, including those arising from the pandemic, such as the loss of exports to the Chinese market for certain pig processors, disruption to CO₂ supplies, and a temporary shortage of labour in the processing sector, all of which were well articulated by a number of speakers. This was accompanied by a 9% increase in the size of the pig herd between December 2020 and December 2021, the biggest increase in more than 20 years. We recognise that the industry is also now experiencing further difficulties following the increase in input costs, notably feed, fuel and energy, which has further impacted on farmer margins.

The combination of these initial challenges led to a significant backlog of pigs on farms, which in turn led to financial and emotional impacts on the individual farmers concerned and posed serious risks to animal welfare. I have huge sympathy for all those affected by this.

I am confused by those who say that at this time, we should be delaying the tapering of the basic payment scheme. Doing so would reward arable farmers, some of whom will see their gross margins double because of the current wheat price, whereas the pig and poultry sectors really need our help. Those who are saying, for whatever reason, that this is not the time to continue to change our farming system are missing the point.

The Government provided a package of measures in October 2021 to help address these unique circumstances. I refute those who say we did not act at speed: we acted as quickly as possible to help in these unique circumstances, including through a temporary visa scheme for butchers, private storage aid and the slaughter incentive payment scheme to facilitate an increase in the throughput of pigs through abattoirs. The PSA scheme allows processors to place pork products in frozen storage, enabling them to be safely stored and released on to the market later, while the SIP scheme encourages slaughterhouse throughput by providing a payment for any pigs slaughtered outside normal working hours. More than 740 tonnes of pigmeat has entered the PSA scheme, and close to 30,000 pigs have now been slaughtered under the SIP scheme. 

Together with the Agriculture and Horticulture Development Board, the Foreign, Commonwealth and Development Office and other government departments, we continue to work on expanding our existing export markets and identifying new ones for pork. In March this year, we announced the opening of a new export market to Chile worth £20 million over the first five years of trade. This follows our successfully gaining market access to Mexico for fresh pig meat in September 2021, with support from the UK Export Certification Partnership and pork-producing establishments.

Working with our British Embassy in Beijing, FCDO and DIT, we continue to press the Chinese authorities to re-list and allow exports of pork from those processors who voluntarily delisted themselves at the request of the Chinese authorities due to the Covid-19 outbreaks in the workforce back in 2020 and early 2021.

Over the past year Defra has worked closely with the pork industry to support it in clearing the backlog. My honourable friend the farming Minister, Victoria Prentis, has chaired three roundtables: two, on 10 February and 3 March, with pig industry representatives from across the UK, and one on 3 April with representatives of the wholesale and hospitality sectors, to discuss the challenges the sector is facing. As a result, processors made commitments to slaughter an extra 40,000 pigs during the period of March to May. As has been said, several retailers also committed to provide further support to the sector. Last month, Tesco, Waitrose, Sainsbury’s and the Co-op made public commitments to increase both their financial support to the sector and the volume of British pork products they sell.

My colleague Victoria Prentis also met representatives of the agricultural banking sector to discuss the situation in the pig sector. The banks confirmed that they are working closely with impacted pig farmers during this exceptionally challenging period and remain keen to be supportive. Furthermore, we are launching a UK-wide review—this reflects the point made by the noble Lord, Lord Carrington—of supply chain fairness in the sector. We are also engaging with industry and expect a consultation to launch shortly. We want to hear from the industry about improvements to fairness and transparency that could be made to ensure a profitable and productive future. That is addressing the medium to long-term as well as the short-term difficulties. We also continue to work with the industry to support its efforts on the recruitment and retention of domestic workers. 

The combination of these measures, together with an increase in slaughter numbers in processors, means that the backlog of pigs has now been almost completely removed, with only small pockets of producers still experiencing backlogs. That is the up-to-date information, and I hope it addresses some of the concerns that have been raised today. This is good news for the sector and demonstrates our commitment to it.

There remain, however, many challenges to pig producers, not least those arising from the conflict in Ukraine and the increase in input costs. The supply chain disruption seen across the agricultural industry, particularly in the pig sector, in recent months, driven significantly by Russia’s invasion of Ukraine, has created challenges across this sector and the wider food and farming industry. Farmers are facing increased input costs, including for fertiliser, feed and fuel, which we recognise are creating short-term pressures on cash flow.  

We are working closely with the pig industry to identify where mitigations are available to tackle these challenges. Together with the devolved Administrations, we continue to keep the market situation under review through the UK Agriculture Market Monitoring Group, which monitors UK agricultural markets including price, supply, inputs, trade and recent developments. We have also recently increased our engagement with the industry to supplement our analysis with real-time intelligence.

I want to address some of the points that have been made. I hope that I misunderstood the noble Baroness, Lady Harris, when she seemed to suggest in her introduction that pork products entering this country just come here. That could not be less true. In recent times, we have recruited an extra 180 inspectors. We are also designing a global import control scheme that will be simple, efficient and safe to use, and best suited to our own needs. We want to utilise digitalisation while also maintaining strict biosecurity controls on the highest-risk imports.

A lot of noble Lords, including the noble Lord, Lord Trees, mentioned the very serious threat of African swine fever. He is right to point out how it is progressing across Europe, often in the wild boar population. I chair a monthly biosecurity meeting and the next one will be on Tuesday, where we will hear the latest information on this issue. The Government take this very seriously. We have raised the risk profile for certain countries and undertaken exercises with the Animal and Plant Health Agency and our Border Force colleagues on how we will react to an outbreak and what we can do to mitigate it. However, the most important thing to do is stop it getting here in the first place.

The noble Lord, Lord Carrington, raised the issue of short-term cash flow, and he is absolutely right. It will help some pig farmers that we have brought forward the basic payment scheme by six months because they will have other farming interests, but the majority of the pig sector is unaffected by the support schemes. We want to make sure that there is more action and that they can benefit from the new, reformed farming system through all the innovation grants we are bringing in and the improvements they can bring to their processes. We can make sure that they will benefit.

The Groceries Code Adjudicator was a very welcome change brought in under the coalition Government. It is working for producers and other parts of the supply chain.

I absolutely assure the noble Lord that the pot of government support is not getting smaller. The £2.4 billion that was in the basic payment scheme will continue to be allocated to the sector.

The noble Lord, Lord Trees, talked about food as a percentage of household income. He is right, but we are mindful that a great many families are suffering at the moment. There is wider support for them right across government in how we deal with that. I agree with the noble Lord about waste. We could resolve all our food supply issues if we wasted less food. I was always taken by a campaign called The Pig Idea, which involved the use of safe swill in feeding pigs. However, that might be above my pay grade.

The issue of African swine fever was also raised by the noble Baroness, Lady Bakewell. I assure her that we can block imports from African swine fever countries in the EU through the regionalisation agreements we have made. We want to make sure that future farming support reaches pig farmers.

I absolutely note the point made by the noble Baroness, Lady Hayman, about rare breeds and I am delighted that the Berkshire breed has been saved; it was going fast towards extinction. It is just one example of the possibilities of future development here. The noble Baroness’s involvement with the Rare Breeds Survival Trust is noted.

In the last few minutes, I will again run through the vital work that we are doing. I hope that this will reassure noble Lords. We included temporary visas for skilled butchers, private storage aid, slaughter incentive payment schemes, and working with the AHDB to seek new export opportunities and an expansion of existing export markets. There were 12 specialist pig abattoirs in England in 2020 and, overall, 93 registered slaughterhouses of all sizes, commodity-specific and cross-species, that can process pigs. Yesterday, I was at Fir Farm in Gloucestershire, looking at a mobile slaughterhouse. This is an innovation that I hope the Food Standards Agency will authorise in the near future. This will be of enormous benefit to stock farmers, and it will alleviate the movements that some stock has to make.

Together with an increase of pigs slaughtered by processors and, sadly, the on-farm culling of an estimated 40,000 pigs—not the 60,000 that was allocated, but still a horrendous number—the combined impact of these measures has helped reduce the backlog of pigs on farms significantly. The size of the backlog has fallen from close to 200,000 pigs at its height to almost nothing, with the backlog now estimated to be cleared by the end of June. This is based on a combination of industry intelligence and internal Defra modelling based on February slaughter data, culling estimates and butcher arrivals. Small pockets of pigs remain backed up on farms where there are specific challenges.

A mention was made of the temporary visa scheme. Due to Covid, many of the butchers did not start to arrive in the UK until February or March 2022, but their arrival has enabled processors to increase the throughput of pigs. The private storage aid scheme closed to new applications on 31 March. Under the scheme, 745 tonnes of deboned pigmeat have been placed in frozen storage, which has been of great benefit.

I will write to any noble Lords whose points I have not been able to answer. We acknowledge the important role that the pig farming industry plays in our domestic food supply chain, and the challenges that it has faced over the last year and continues to face as a result of the war in Ukraine. We will continue to work with and support the industry to ensure its long-term future.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I covered extensively the Sustainable Food Trust report, Feeding Britain From the Ground Up. Can the Minister commit to the department looking at the report to see what it might draw from it for government policy?

[Lord Benyon (Con)]

I was at the launch of that report yesterday. I read it and it has been received by the department.

[Lord Trees (CB)]

Can the Minister reassure us that the Government will reinstate sanitary checks on animal products from the EU?

[Lord Benyon (Con)]

Already, the 180 extra inspectors are doing that. We have built our BCPs and will be occupying them in the coming months.

[Baroness Harris of Richmond (LD) [V]]

My Lords, I thank the Minister for his response, especially on biosecurity, although I did not quite catch all that he said a moment ago when talking about the highest risk imports and border checks, which he says are adequate; we will see.

I am most grateful to all noble Lords who have spoken in this very interesting debate and who have supported my concerns about the pig farming industry. My noble friend Lady Bakewell of Hardington Mandeville and the noble Baroness, Lady Hayman of Ullock, have neatly summed up the contributions of your Lordships, so I will not repeat them. I look forward to continuing discussions on this important subject in the future.

Food Security

Lord Benyon Excerpts

Monday 13th June 2022 Lords Chamber

[The Lord Bishop of Southwark]

My Lords, I beg leave to ask the Question in the name of the right reverend Prelate the Bishop of St Albans, who has been unavoidably detained in his diocese and sends his apologies.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Benyon) (Con)]

My Lords, I declare my farming interests as set out in the register. This Government are committed to safeguarding food security, as highlighted by the food strategy published today. I am very conscious of the issue raised, and we already have several protections in place, such as requirements for public consultations on any large new woodland as part of environmental impact assessments. I am also working closely with Her Majesty’s Treasury and BEIS to develop robust standards for green finance investments, and will set out the next steps in the forthcoming months.

[The Lord Bishop of Southwark]

My Lords, does the Minister agree that industrial-scale tree planting by large investment companies which purchase arable land may create what are called ecological dead zones and generate more carbon emissions if insufficient attention is given to biodiversity, according to the John Muir Trust? If so, how will Her Majesty’s Government ensure that such companies are subject to proper biodiversity requirements so that they may prove to be responsible stewards of the land?

[Lord Benyon (Con)]

Yes, I agree with the right reverend Prelate that the wrong kind of trees planted in the wrong place under the wrong management style will be a loss for both the environment and the social element we want in our countryside. That is why there are very clear rules under the woodland carbon code which corporates would have to abide by, and why the Forestry Commission, if applying through grant aid schemes, will require standards to be maintained. For example, planting will not be permitted on deep peat; it will be concentrated on poor land.

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, it is a nonsense to allow private companies to acquire vast hectares of arable land, often removing generations of farming families, in order to offset their carbon emissions and carry on with business as usual. British farmers are essential to the country’s ability to produce food. Does the Minister agree that importing food which is not produced to the same high animal welfare standards as we enjoy in the UK, to replace that which we might have grown ourselves, is a backwards step?

[Lord Benyon (Con)]

I suggest that we look at this as the glass half full: there are plenty of examples where private sector finance can be a massive boost towards the environment by working with farmers and seeing tree planting on poor-quality land, for example. Some 57% of agricultural produce is produced on 33% of agricultural land. This shows that, if we favour the productive land to produce food—every single farm has corners of it that can be planted with trees or for other ecological benefits—this will benefit the farmer and is in accordance with the food production targets and ambitions of this Government. It can work; we want to root out the bad behaviour which the noble Baroness rightly points out.

[The Earl of Kinnoull (CB)]

My Lords, I declare my interests as set out in the register. The Minister has rightly referenced the importance of a good balance between vital food production, carbon capture and other environmental things. It is a very difficult issue, and I wonder whether he can confirm that the devolved Administrations and the UK Government are discussing these things at the new Inter Ministerial Group for Environment, Food and Rural Affairs.

[Lord Benyon (Con)]

I absolutely assure the noble Earl that we are working closely with our devolved colleagues on this, because the environment clearly does not respect boundaries. We want to make sure that our policies are very closely aligned with them. The issue is perhaps more pertinent in Scotland and Wales, where we have seen some of the concerns which have led to this title of a “wild west” in how private sector finance is applied. We want the highest standards applied. There are good examples right across the United Kingdom and we want to make sure that the tweaks and the measures that we impose favour those who are showing virtue rather than those who are not.

[Lord Lansley (Con)]

My Lords, I declare an interest as I live quite close to Newmarket, where an exceptionally large solar farm is proposed on high-quality farmland. I wonder whether my noble friend will say, in light of the food strategy today and the desire for greater food security, what steps the Government are taking to ensure that the desirable use of solar farms and renewables is not prejudicial to our environment or indeed our food security?

[Lord Benyon (Con)]

I am well aware of this case in Suffolk and the concerns of local people about loss of good agricultural land. The food strategy published today sets out the ambition to maintain our high levels of food security and production. Those sorts of developments need to be seen in the context of that ambition, and very strict rules relate to both planning and the use of the best agricultural land. That may well apply in the case that my noble friend refers to.

[Lord Rooker (Lab)]

With about 7 billion trees, I think, we are one of the least forested countries in Europe, and there is a case for more trees—the right trees in the right place. I cannot understand why there is not a complete ban on using food-producing land for solar farms, when all the flat roofs of the warehouses and factories in this country could be used for that. There would be more space available; it is a given that it does not take good agricultural food-producing land.

[Lord Benyon (Con)]

There are many grants that people can source, even at a household level, to acquire and install solar panels on roofs, and the noble Lord is entirely right to point that out. He is also right that we need more trees. We have very ambitious targets of planting 30,000 hectares of additional trees every year by the end of this Parliament. That can be achieved without impacting our food security, and there are many areas of renewable energy production that can be done in accordance with food production as well.

[Baroness Bennett of Manor Castle (GP)]

I am sure the Minister is aware of figures from 2019 showing that corporations already own 18% of England, together with oligarchs and City bankers owning 17% and the aristocracy and the gentry owning 30%, all of that adding up to less than 1% of the population owning more than half of the land. Does the Minister agree that for food security to allow new small farmers and food growers to enter and start small businesses, we need to democratise land ownership?

[Lord Benyon (Con)]

The most beneficial way to encourage people into farming at all levels is through a system of let land and tenure. It is very often those corporations and those individuals that the noble Baroness mentions that provide the only entry for people who do not have access to capital to purchase a farm. We want as broad activity as possible in agricultural production, and that means encouraging new and younger people to enter farming through the tenancy system.

[Baroness Jones of Whitchurch (Lab)]

My Lords, in response to the question from the noble Baroness, Lady Bakewell, on a similar issue last Wednesday, the Minister said:

“we are taking action to make sure that private sector investment in our natural environment is done properly, with the proper social underpinning.”—[Official Report, 8/6/22; col. 1151.]

Can he explain how this “social underpinning” is going to work? Will local people have the right to veto a large-scale private sector land grab, an example of which we have already been hearing about?

[Lord Benyon (Con)]

Under the Forestry Commission’s rules, there is a local consultation process that proposed tree planters are required to go through. Also, the woodland carbon code is very clear, as is the UK peatland code. We also want to make sure that corporations that are investing in this kind of mitigation are publicly accessible through the UK Land Carbon Registry, so anybody can see what is being done in their neighbourhood. We want to make sure that, with these so-called environmental, social and governance measures, the middle word is used and is fundamental—w want to make sure that these schemes are socially acceptable, as well as environmentally acceptable.

[Lord Lancaster of Kimbolton (Con)]

The most pressing food security issue facing the United Kingdom at the moment is the inability of Ukraine to export its grain to the West. I ask my noble friend: what assessment have the Government made as to the challenge that this will present us and the West? Also, how do the Government intend to mitigate this problem?

[Lord Benyon (Con)]

It is having an enormous effect on the global cost of agricultural production. The Government are working internationally with organisations such as the World Bank, which has invested $180 billion in trying to make sure that the countries that are going to be deprived of grain as a result of the Ukraine war are supported. In this country, we are largely self-sufficient in grain, and what we do import comes from countries such as Canada. But my noble friend is entirely right to point this out to make sure that we are working with the international community: first of all, to get the grain out of Ukraine; and, secondly, to support the countries that are going to be affected, in a devastating way, by the shortages that arise from this crisis.