Agriculture Bill

Debate between Lord Carrington and Lord Taylor of Holbeach

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Thursday 17th September 2020 Lords Chamber

[Lord Carrington (CB)]

My Lords, I declare my interests as set out in the register, together with my membership of the National Farmers Union and the CLA.

I sympathise with, but do not support, the noble Earl, Lord Devon, in his amendments which would remove both Clause 34 and Schedule 3 from the Bill. Although, in an ideal world, the legislation on the reform of tenancies would be in a separate Bill, the clauses cover several matters that have been agreed by the industry through TRIG. So, if necessary, I would reluctantly accept Clause 34 and the schedule. However, what I certainly would not support—and I am afraid I do not support either the noble Baroness, Lady Rock, or the noble Baroness, Lady McIntosh of Pickering—are Amendments 85 and 86 regarding succession on the death of an Agricultural Holdings Act 1986 tenant.

The suggestion that the rights of succession should be given to nephews, nieces, and grandchildren as well as partners and their children is several steps too far and begs the question, “Why stop there?” It would unnecessarily prolong the life of the AHA 1986 tenancies when we have moved on to the Agricultural Tenancies Act 1995, along with a more modern and flexible regime for letting agricultural land, with the hope of bringing new entrants into the industry.

All these amendments would achieve is benefiting a small group of successors, some of whom might succeed anyway in view of their existing competence and relationship with the landowner, and others who might see it as an easy way to inherit an otherwise unaffordable house and a deceptively attractive way of life. It would also have the serious effect of depriving landlords again of their property rights and access to their own land for another generation.

Land could and should be freed up for a wider pool of occupiers under arrangements and agreements that are more flexible and more market-oriented and might help deliver productivity advantages. New tenancy agreements or share farming, as well as joint ventures, which are more collaborative, work well for new entrants and young farmers.

I am also opposed to Amendment 88 with its proposed changes to the Agricultural Tenancies Act 1995. All stakeholders in the industry have expressed their agreement that the 1995 Act provides a suitable framework for tenancies in the modern era, with flexibility for the parties to agree the terms that suit their arrangement. This legislation has generated very little need for litigation or dispute resolution, and on previous occasions, all parties were agreed that the Act did not need revision or reform.

The amendment would create a situation where a recently agreed tenancy agreement can be amended in a way not foreseen or agreed to by the parties. If the parties are not able to agree on amending terms—an option that is, of course, open to them—to do this by recourse to an expensive alternative dispute-resolution process will have a very negative impact on that relationship and more widely on the landlord/tenant sector. It will undermine cross industry efforts to encourage parties into longer term agreements and possibly undermine the lettings market altogether. It is a different context to that under the Agricultural Holdings Act 1986 framework and will be counterproductive to the industry. It is also proposed in the amendment that the detail of how such a dispute would be resolved by secondary legislation be determined at some later point. This is very unsatisfactory.

Issues and factors like these certainly need to be further discussed and considered by TRIG before being legislated upon. The National Farmers’ Union has welcomed the reforms in the Bill but also urges that other reforms, such as landlords’ consent to variation of terms under tenancy Acts, are taken forward through TRIG. Please could the Minister consider separate legislation to cover tenancy reform issues that are not currently in this Bill on the back of the TRIG recommendations?

[Lord Taylor of Holbeach (Con) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Carrington, and to participate in the debate on this group of amendments. Noble Lords will know of my interest in my family business, which is on the register.

I speak as someone privileged with “boys’ land”—they say this of the silts around the Wash. This land is ideal for arable farming, and we grow a diverse range of crops, from bulbs, in which we are prominent, to cauliflowers and potatoes. My neighbours are engaged in a great variety of different cropping, and this diversity —together with the marketing and distribution facilities —has encouraged field-scale horticulture similar to that in the Netherlands. It has also led to large-scale investment in protected cropping indoors and not exclusively under glass. I admit that this experience colours my thinking as to how we can raise productivity and harness modern techniques of scientific agriculture. It also colours my thinking about the role that the occupation and use of land plays in allowing a lively and prosperous industry.

I spoke in Committee on amendments covering tenancy issues and, in particular, about the value of cropping licences. I explained the background to my conviction that a dynamic farming and growing industry depends on having a lively market for land occupation to make this land readily available to up-and-coming farmers and growers. Schedule 3 is the product of the dialogue between the Government and the Tenancy Reform Industry Group, where different parties to this issue are seeking to find consensus on landholding issues.

Consensus must be the right way to seek to change something as complex as this. I might add that it seems to me that this whole Bill is about establishing a consensus on a path for agriculture into the future. It is with this in mind that I cannot support the wish of the noble Earl, Lord Devon, to remove Clause 34—and, with it, Schedule 3—of this Bill. I believe that Schedule 3, which his amendments seek to remove, delivers on the Government’s consultations in England and Wales and, indeed, on many of the recommendations from TRIG.

The Bill is not a root-and-branch reform of tenancy legislation. It is not intended to be. Listening to this debate, I am very much aware that many noble Lords are impatient for more changes. However, these modest key and agreed changes, which form Schedule 3, will help to modernise agricultural tenancy legislation and, more importantly, play a part in giving this key industry the flexibility to adapt to change, and this is why they should remain in this Bill.

Having said that, I hope there can be consensus on further issues that the UK and Welsh Governments will wish to discuss with TRIG to see what other actions will lead to a thriving tenancy sector. In turn, this will require further consideration by Parliament and legislation. However, as it is, Schedule 3 makes considerable changes now, and they should be supported.