(9 years, 7 months ago)
Lords ChamberYes, my Lords. Certainly, innovative deals such as that are of real value to farmers. Sadly, not all farmers are able to negotiate those deals, but we are working with them, as I have said, on various ways to resolve the problem.
My Lords, as the Minister knows, I was at the summit yesterday hosted by his colleague George Eustice. While the long-term prospects for the dairy sector would appear to be good, what is also clear is that volatility is now an ongoing feature of global trading. I am concerned, as is the right reverend Prelate, about the long-term sustainability of the British dairy industry and the fact that we may lose market share. I understand that the Irish Government have introduced five-year tax averaging for businesses, which has existed in Denmark for a long time. Would the Minister consider approaching the Treasury to see whether that might be possible?
(10 years, 6 months ago)
Lords ChamberMy Lords, I have a very similar question. The speed at which water is now running from hillsides and from urban areas—tarmac and concrete—is part of the problem, coupled with the extreme weather events that we are now seeing. Catchment management is critical to try to reduce and mitigate the risk. I hope that the department is taking that very seriously.
We spoke about that in the debate on the Statement last week, at which stage I said how seriously the Government take that strategy.
(10 years, 6 months ago)
Lords ChamberFirst, I reassure my noble friend that proper, ongoing local co-ordination is vital and is being, and will continue to be, undertaken. On his comments on dredging, I hear what he says and am conscious that he is quite right that it is not good enough to do it once: you have to do this process continually. I agree with him on that.
I support the comments made by the noble Lord, Lord Whitty, and by the noble Baroness earlier on, on the impact of flooding on the farmers whose land has been submerged under water for weeks on end. This is the second year in succession that many of those farmers have suffered this effect. May I take the opportunity—I am sure the whole House will support me in saying this—to thank His Royal Highness the Prince of Wales for going down on Tuesday? His visit was very well received by the residents and farmers of the Somerset Levels. I have to declare an interest: I am a trustee of the Prince’s Countryside Fund and His Royal Highness announced that £50,000 would be made available to help the farmers of the Somerset Levels. His Grace the Duke of Westminster also made a contribution, so we are very grateful for that financial support.
The funds will be channelled through the agricultural charities for the immediate costs incurred by farmers as a consequence of flooding, whether for animal feed or whatever. However, it will not restore the pastures and crops that have been submerged under water. The longer-term impact of this is not well understood. My noble friend may well have views on that. May I ask him to think longer-term about how those farmers might be assisted in maintaining their livelihoods following this dramatic impact on the land that is under water?
First, I echo the noble Lord’s thanks to the Prince of Wales for his visit and financial contribution, and for the contribution of the Duke of Westminster, which are extremely welcome. We want to ensure that farmers are able to deal with challenges such as bad weather, to grow their businesses, create jobs and compete effectively in the marketplace. It has been very helpful that, in response to recent events, our colleagues at the Animal Health and Veterinary Laboratories Agency have agreed to a derogation to move cattle in Somerset without a pre-movement test. That may sound like a small thing, but it is important. I am aware, as the noble Lord said, that a number of charities are supporting struggling farmers more generally. I can also say to him that we have not heard from those charities that they have yet experienced a huge increase in demand, but I take on board his comments, which were extremely important.
(11 years, 1 month ago)
Lords ChamberMy Lords, there are a couple of questions in there from my noble friend. Our priorities for CAP reform have always been to help EU agriculture become more competitive and market-oriented while improving the capacity to deliver better environmental outcomes. It is unclear precisely what the greening requirements will look like since the detailed rules have yet to be drawn up. However, we are working to ensure that all these elements are complementary and coherent so that we have a smooth transition to the new programme in 2015.
My Lords, could I pursue with the Minister the issue of the existing environmental schemes referred to by the noble Lord, Lord Plumb? Many farmers have signed contractual agreements for the entry-level scheme, and I can claim some responsibility for that scheme, having recommended it. They are under an obligation under those contracts. Will these be jeopardised by the new greening arrangements? There is a lot of concern and some confusion among the farming community on this issue.
My Lords, the noble Lord makes a very good point. If I have understood him correctly, no, it is very much our intention that they should not be adversely prejudiced.
(11 years, 1 month ago)
Lords ChamberMy Lords, as regards my noble friend’s second question, I am very grateful to him for resolving the thorny problem of how I should spend my Friday evening. As regards his first question, I am not absolutely sure of the chemicals to which my honourable friend referred. However, in the absence of neonicotinoids, we expect farmers to use the available products, such as pyrethroids and organophosphates, for their particular pest problems. Without something effective, the consequence for farmers could be a reduction in crop yields, potentially substantial in scope. Despite not being as effective as neonics, these other products are legal and have passed the safety tests set in legislation.
My Lords, the scientific evidence supporting this is sketchy at best. It appears that some useful work has been done in Australia. Are the Government researching the work that has been done in Australia to help us better understand the impact of these chemicals?
My Lords, we certainly are aware of the work that has been done in Australia. In fact, my right honourable friend the Secretary of State went there recently and is certainly aware of it. We used that in making our case prior to the vote. That did not seem to work, so we are now working towards doing our own trials to fill out those evidence gaps.
(11 years, 6 months ago)
Lords ChamberMy Lords, this is a deeply concerning crisis and potentially could impact on consumer confidence in the products that we produce here in the United Kingdom. I was involved in the 1990s in dealing with the deep concerns about food safety and the various crises that occurred at that time. We set up internal systems of traceability through insurance schemes. This is now known as the red tractor scheme. This crisis has led to a much deeper level of testing being required through DNA. That throws up a real issue around the thresholds to which we are prepared to accept tolerance of DNA testing. If we insist on zero tolerance, then butchers’ shops would have real difficulty in complying. Are the Minister and the department considering levels of tolerance for DNA testing?
That is an important question. The answer is yes. The FSA has advised that 1% is a level of evidence at which it can take action. This is a temporary level as we undertake urgent scientific work to set the most appropriate threshold. This is the level at which the FSA can be confident that the results are reliable for enforcement purposes.
(11 years, 9 months ago)
Lords ChamberMy noble friend is of course right that there are concerns about the continued availability of insurance to householders—mortgage holders and those looking to sell their houses. We are working with those involved better to understand what the impact on the mortgage market might be. I am certainly encouraged that the Council of Mortgage Lenders is quoted as saying that the focus needs to be on finding a solution on flood insurance, rather than worrying householders unnecessarily about how lenders might choose to react. That has a knock-on effect on the selling market to which my noble friend refers. I also point out that in July, we published a guide to obtain flood insurance in high-risk areas in collaboration with the National Flood Forum and industry representatives, which I think is helpful.
I, too, encourage the Minister to bring those discussions to a conclusion as soon as possible. I declare an interest: I was chair of a mutual insurance company until the end of last year. I have a further concern. Those companies which have a strong CSR policy could be commercially disadvantaged in the marketplace compared with those who take a purely commercial approach. It is also deeply regrettable that planning permission is still being granted in areas that the Environment Agency has identified as potentially subject to flooding, which is simply aggravating the problem in the long term.
The noble Lord makes a couple of good points. In answer to his last one, development in areas of flood risk is permitted only exceptionally, where there are wider sustainability considerations, and must in all cases be safe, must not increase flood risk elsewhere; and, where possible, overall flood risk should be reduced.